The residential real estate industry will experience more change in the next 3 to 5 years than it has in the last 100.

The Internet Empowered Consumer (IEC) is the new, rapidly growing reality. They will no longer need-nor want- the traditional 'one size fits all' services.

Without doubt, not every real estate consumer will suddenly become 'Internet empowered'.However Net induced stratification among real estate consumers, segmented by their unique needs and capabilities, is occurring. Also, several coming fundamental changes to the capability and infrastructure of the Internet will lock in this trend, eventually enabling most people in their search for real estate services.

Ubiquitous, Continuous, Affordable Access

Ubiquitous, affordable, very high-speed, continuous (no dial up) access to the Internet is already becoming available in major markets around the United States. Within the next few years nearly everyone will have greatly enhanced Internet access via cable modem and/or some form of DSL (Digital Subscriber Line) through local telephone providers. As a result, these capabilities supported by powerful and easy to use personal computers will allow the consumer to take advantage of increasingly rich, immersive multimedia presentations of real estate related data.

Two additional factors will dramatically affect the quality and scope of the information that they tap and how they interact with it: XML Enabled Intelligent Searching and the Paperless Transaction.

XML Enabled Intelligent Searches

Where HTML (Hypertext Markup Language) determines how data on a Web page looks, XML (eXtensible Markup Language) determines how the data is defined. It allows standardization of various kinds of data no matter who presents it. Through the use of an industry-agreed-upon DTD (Document Type Definition) XML standard for listing data, property information will "look" the same to a Web browser no matter where it resides on the Net.

Using greatly enhanced search capabilities, otherwise impossible without XML, consumers will be able to access essentially a nationwide virtual MLS-comprised of listings from any online source around the country.

While a tremendous boon to the homebuyer, it also has important implications for the MLS industry. Since listing data will be equally "visible" on the Web, no matter who publishes it (including individual FSBOs), literally anyone can become a MLS. As a result, regional MLSs will need to redefine their value to the broker community. One possibility is to offer innovative means of presenting listing data on the Web using rich interactive and immersive multimedia virtual tours, demographic mapping etc.

The Paperless Transaction

The real estate industry is literally buried in hundreds, perhaps thousands, of paper based forms that make tracking and exchanging data difficult, time consuming, expensive and error-prone.

Certain Internet technologies will make the truly paperless transaction a reality. XML will allow standardization of the data found on all these forms.

This will simplify processing and transmission from one vendor or system to another. Digital signatures will become the basis of secure, legally binding Net based transactions and contractual commitments. The coming digitization of money will allow easy yet secure Web-based transfers of funds.

And finally, the advent of a Universal Forms Description Language (UFDL) standardizes secure, tamper-proof Net-based forms. UFDL preserves both the data and the presentation context of the information (i.e. paragraph formatting, type size and color). These forms can either be viewed via browser or printed to hard copy with presentation and information intact, thereby alleviating concerns of governing authorities about legally binding transactions over the Net.

XML and the advent of the "Paperless Transaction" will greatly empower, and hence alter the very nature of the real estate consumer -how they shop and work with various real estate services.

The following scenario (circa 2001 - 2003) offers a glimpse of how these and other Net based capabilities could be used for the typical purchase transaction. A word of advice-this is just one of many possible scenarios.

Suspend your disbelief, because the technologies mentioned in the stories below are either already available or will soon be...

PART III: Real Estate 2001: A Consumer's Perspective on Remote Purchases

Published: February 19, 1999

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Editor's Note: This article reflects the opinions of Michael J. Russer only and not necessarily the views of this or any other publication, organization or Website owner.