And now, a few entries from the "Famous Predictions That Flopped" file:
"When the Paris Exhibition closes, electric light will close with it and no more be heard of." -- Oxford Professor Erasmus Wilson, 1878
"That's an amazing invention, but who would ever want to use one of them?" -- President Rutherford B. Hayes, to Alexander Graham Bell upon viewing the telephone for the first time in 1876
"The horse is here to stay but the automobile is only a novelty, a fad." -- The president of Michigan Savings Bank, advising Henry Ford's lawyer not to invest in Ford's automobile company, 1903
And, a more recent one you've likely been told:
"Placing listings of homes for sale on the Internet will mean consumers no longer need us."
Remember that one? You probably can recall someone -- perhaps many people -- who made that doom-and-gloom prediction 10 years ago when listings, for the first time, began appearing on the Internet.
Dire predictions of our industry going down the collective drain were rampant. If we give consumers access to property information online, many skeptics darkly warned, "they will no longer need us."
But similar to the predictions listed above, time has also exposed this one as just plain wrong! Yet surprisingly -- sadly, really -- some agents and brokers still maintain that approach today …10 years later. They still don't want to provide home addresses or prices online, fearing they'll lose business if they do.
I say sadly, because this belief flies in the face of reality -- and these professionals are missing a major opportunity to use technology to attract and capture new leads, customers, and sales.
According to the National Association of Realtors (NAR), a whopping 74 percent of consumers now begin their home searches online. This reality points to an unavoidable fact: If YOU don't provide Internet consumers with the information they need and where and when they want it, they'll simply go to someone who will -- and quite possibly choose that person to help them buy or sell their home. And their next. And next.
So what, exactly, are consumers looking for online? Simply put, information that will help them quickly narrow their searches and lead them to a real estate professional who can provide the person-to-person contact and industry insight that remains -- and will always remain -- the heart of our business.
They want property information, neighborhood information, and rich real estate content that helps them better understand the process involved in buying or selling their home. And yes, they are indeed shopping for a smart, savvy agent that uses the Internet. You see, they appreciate the perceived anonymity of the Internet, and in many cases are testing an agent's ability to handle this medium.
According to NAR, Internet consumers on average literally look at seven homes before they buy, vs. 15 for non-Internet (traditional) buyers. Internet consumers take just two weeks to make a decision vs. seven for traditional buyers. On top of this, they also earn 24 percent more income and spend 32 percent more than traditional buyers.
The Internet, to be sure, has given consumers the power to educate themselves about the marketplace at their own speed and in their own timeframe. The results are well-informed consumers who are comfortable with the prices and process by the time you hear from them (as a result of a strong online professional presence).
Yet, according to NAR, 33 percent of Internet listings have no photos, and even fewer offer virtual tours. Very few sites provide detailed information on neighborhoods and schools and other resources that consumers say is absolutely vital to their online searches. A recent national survey conducted by Kelton Research shows safety and good schools were the top concerns Americans had when selecting a neighborhood.
For the uninitiated real estate professional, creating and maintaining an effective online presence can be daunting; I understand that. The good news is, as consumers have migrated online to begin their home searches, companies have designed a wide range of easy-to-use services and programs to help agents and brokers grab consumers' attention and win new customers.
These services are constantly evolving to keep pace with consumers' increasing Internet savvy and expectations. As just one example of our efforts to help agents and brokers meet (and exceed) consumers' expectations, HouseValues recently introduced the first national home buying and selling service that integrates home listings, birds-eye views of neighborhoods, and detailed community information all in one site . The site features information on communities, crime stats, schools and school districts, restaurants, detailed home listings all combined with aerial images. In addition to these features, consumers can immediately connect with Internet-savvy agents who know how to respond quickly to provide the information consumers are requesting.
But many agents haven't changed their business practices in 10 years … to their own detriment. They still operate from the "30-day" mentality that says they should move on if a consumer isn't ready to buy or sell within a month. But this, too, goes against reality: Research has found that online consumers spend anywhere from one to four years thinking about buying or selling, and then rely heavily on the Internet during their early research stages. Not surprisingly, agents and brokers who provide online consumers with the information they want throughout their search are at a distinct advantage of winning their business.
What's the bottom line?
What was so feared 10 years ago simply hasn't happened. Just the opposite, the Internet has created consumers who are better-informed and who value technology as a tool that can help them buy and sell homes -- and find agents to help them do so.
For years to come, that same technology will allow us to market ourselves -- and to enjoy new levels of customer service and profits -- in ways we never would have imagined were possible.
And that's a prediction you can carry with you all the way to the bank.
Claudia Wicks is Director of Real Estate Training and Content for HouseValues, Inc. Claudia is a licensed real estate broker in the state of Washington, where she has worked for the last 27 years as an agent, broker/manager and Director of Training for Coldwell Banker and John L. Scott. Learn more about HouseValues at agentsuccessnetwork.com or call toll-free 866-952-5042.
