The next real estate technology breakthrough

by Dan Krell © 2013
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Besides face to face meetings, the telephone was the only way real estate agents could communicate with their clients up until about 1990. By the mid 1990’s the fax machine was a fixture in every real estate office and was a major method to send home listings and contract addenda to clients. By the housing boom in 2004, large numbers of home buyers turned to the internet to get the latest home listings before other buyers; and during that time, many real estate brokers and agents were taking to the internet finding rudimentary uses for email marketing.

Much like the advances in previous technologies that made the “business” of real estate easier, current advances also seek to make the process increasingly convenient and efficient. Before the internet was widely used, the increasing abilities of fax transmissions made communication faster and more accurate. And even though there has not been a major technological advent since the internet, the internet experience has much improved due to the exponential advances in computing power as well as widespread wi-fi access and increasing bandwidth.

Ten years ago, most home buyers and sellers used their desktop computer to access the internet; mobile computing was somewhat in its infancy. Advances in mobile technologies, including smart phones, have untethered home buyers and sellers; they now have access to real estate information at their finger tips any time of day, wherever there is a signal. Additionally, real estate websites can now send listing alerts via text messages. Technically known as “short messaging service” or sms, texting is not only allowing the “set and forget” convenience of the home search, but allows anyone to communicate contract details and showing instructions with minimal effort.

The internet as a platform has really changed the home buying and selling experience. Home buyers and sellers don’t have to wait for their agent to send listing information; and because they don’t have to meet with their agents to sign documents, fax machines have basically become obsolete.

Electronic signing is a technology that is becoming increasingly popular, especially for those who have busy schedules. The technology allows a person to review and electronically sign a document it via the internet. Too bad for Fed-Ex, as e-signing has all but eliminated the need to send packages of documents to be signed; most notably, the use of electronic signatures has made the process easier for international home buyers and sellers.

It might seem as if technology is not only allowing consumers to conduct the business of real estate with increasing convenience and efficiency, but also lessening the reliance on real estate professionals. Ten years ago, most home buyers relied solely on their real estate agent for home listings. Today, however, a majority of home buyers search the internet for home listings and public information.

However, as information is increasingly available, real estate professionals have become even more relied upon to decipher and provide perspective to the information that consumers are accessing. A real estate agent’s role is continually changing from the information “gate-keeper” to information analyst.

So, I don’t expect real estate agents to be replaced by androids or Star-Trekesque holo-decks in ten years time; however, new technologies will continue to make the home buying and selling process easier and increasingly efficient. But, who knows, maybe one day the holo-deck could allow buyers and sellers, who are thousands of miles apart, to attend settlement together.

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This article is not intended to provide nor should it be relied upon for legal and financial advice. This article was originally published the week of June 17, 2013 (Montgomery County Sentinel). Using this article without permission is a violation of copyright laws. Copyright © 2013 Dan Krell.

February 28, 2013November 23, 2021

Real estate integrity on the internet

The internet is brimming with information. And although a lot of information is based in fact, there’s plenty that is not. People often fall prey to internet half-truths because information is often presented convincingly with conviction by websites claiming to be the authority. The internet can be such a quagmire that even some trusted and reliable media outlets have been fooled. How about real estate integrity?

Home buyers and sellers are increasingly depending on the internet for information to assist them in buying and selling real estate. Many real estate websites that are visited not only contain current homes listed for sale as syndicated by the local MLS; they may also post homes for sale by other sources that include homes for sale by owner, fake listings posted by desperate real estate agents, and advertisements from other websites. Unless you know what you’re looking for, you might never know the posting source or how long it has been posted on the site. Real estate integrity may be lacking.

The MLS syndication is usually updated to ensure accuracy, even if it’s not always timely. However, it’s the list of FSBO’s, sham listings, and advertisements that can be out of date and/or used to lure consumers to visit other sites. Some home buyers/sellers can be lured to occasionally spend money for bargain homes for sale and home sales information.

Sometimes, real estate integrity is intentionally substituted for salesmanship. Some real estate websites post advertisements as “teasers.” The teaser may show a home for sale at a great price, but could lead to another website that may charge for the full information about foreclosures or bargain homes. Once on these sites, some consumers misunderstand that all the homes listed are for sale. The reality is that although these sites provide a service of collecting and posting public information about homes that have foreclosure notices and other related information (and sometimes even list MLS listings for sale), not all the homes are for sale. In fact some of the homes listed as distressed properties may never be offered for sale as a foreclosure because the home owners resolve their issues without losing their home.

The internet continues to be a source of real estate related scams. Internet real estate scams continue to prey on susceptible home buyers and sellers, as new and sophisticated cons are devised. Scammers often post fake names and photos to present themselves as being local, when they are not.

Yes, many property websites have taken steps to maintain real estate integrity by monitoring postings, and allowing user feedback to flag problem listings; and some of the leading real estate websites strive to continually improve on the consumer experience. However, if you want up to date and accurate home listing and sales information, talk to a real estate agent. Your agent has access to the local MLS and can not only provide you with timely home listings and contract status; they can also provide you with an up to date home sales analysis.

Just because you found it on the internet, does not necessarily mean it’s accurate. Practice due diligence and check out the source. A lot of real estate related information posted on the internet can be verified through public records. Public information is often readily available on the ‘net, and can be found on public websites maintained by State and local jurisdictions. For more information on protecting yourself on the internet, visit the “scams and safety” link on the FBI website (FBI.gov).

Original located at https://dankrell.com/blog/2013/02/28/real-estate-and-the-internet-its-gotta-be-true/

By Dan Krell
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This article is not intended to provide nor should it be relied upon for legal and financial advice. Using this article without permission is a violation of copyright laws. Copyright © 2012 Dan Krell.

January 18, 2012July 4, 2019

SOPA and real estate; Unintended consequences?

If you don’t surf the web very often, you may not have heard about SOPA and PIPA. No, SOPA is not something to wash with nor is PIPA the Duchess’ sister.

SOPA (H.R. 3261: Stop Online Piracy Act) and PIPA (S. 968: Preventing Real Online Threats to Economic Creativity and Theft of Intellectual Property Act of 2011; also known as Protect IP Act) were introduced with the intent to stop internet piracy and protect intellectual property. Essentially, the legislation gives the government authority to take down websites if a court finds a site in violation of the legislation; these websites would be considered “rogue” sites.

The main intention of the legislation is to protect intellectual property and revenue; there has been an annual increase of complaints of internet piracy, unauthorized copying, and counterfeit products that proliferates the internet. The bills are in the process of the maneuvering through Congress. H.R. 3261 is in “committee,” which is typically the first step after a bill is introduced in the House of Representatives; while S. 968 was recommended to be voted on by the Senate. Although the bills are the center of controversy, it is possible that they might not pass; but rather the wording could be incorporated in other legislation (much like the Indefinite Detention Without Charge or Trial provision that was included in the National Defense Authorization Act for Fiscal Year 2012, which was signed into law December 31st).

SOPA lists, among other things: expanding the definition of criminal copyright infringement; expanding what constitutes criminal trafficking of inherently dangerous goods or services; as well as increasing penalties for specified trade secret offenses and various other intellectual property offenses.

Supporters for SOPA/PIPA contend that internet theft has reduced corporate earnings; passing this legislation would protect their intellectual property from illegal distribution on the internet by shutting down or restricting access to offending websites, thus protecting revenue and entrepreneurship.

Critics claim that the legislation is an over reach and has the potential for abuse, which if passed could allow larger companies to control internet commerce by forcing competitors to take down competing websites. Some argue that such legislation, which concerns many bloggers and some news outlets, may conflict with the first amendment.

For example: the operators of Craigslist claim that if the legislation passes, they may be ordered to shutdown (http://www.techdirt.com/articles/20111005/10082416208/monster-cable-claims-ebay-craigslist-costco-sears-are-rogue-sites.shtml); Craigslist is listed by Monster Cable® as an “unauthorized dealer” and “blacklisted” along with Sears, Costco, eBay, and many other sites for allegedly selling counterfeit products (http://www.monstercable.com/).

The internet has become a major source of real estate information; consumers and professionals search the internet daily for home listings by brokers and FSBOs, housing and economic news, legislation, public and other related information. The National Association of Realtors® 2010 Profile of Buyers and Sellers indicate that 89% of home buyers use the internet for information and home searching. The number of home buyers, sellers, and owners using the internet to assist them in making a real estate related decision grows annually.

Although the consequences of enacting SOPA/PIPA into law (on the real estate industry) are unclear, it would be undesirable and unfortunate if readily accessible real estate information were to be unduly restricted by some association’s or real estate company’s claim of content ownership. Learn more about SOPA/PIPA, and provide feedback to our Representatives and Senators.

by Dan Krell
© 2012

This article is not intended to provide nor should it be relied upon for legal and financial advice. Using this article without permission is a violation of copyright laws.

July 13, 2011July 28, 2019

The internet: a catalyst for change between real estate agents and their clients

Have you ever thought of how the internet has changed your personal relationships? Before the proliferation of social media on the internet, you may have related to your friends and family much differently than you do today. Whether you know it or not, your relationship with businesses has also changed; banking and shopping seem to be mostly initiated on the internet. And, of course, the internet has changed your relationship with your real estate agent.

Before public use of the internet was commonplace, real estate agents mostly met with their clients in person to review available home listings. Although many used the technology of the day (fax machine and telephone), a face-to-face meeting was still a necessity. As the internet flourished, early adaptations allowed real estate agents to correspond with clients via email (of course those who were sophisticated enough to have an email account).

As the internet evolved, so too did the business of real estate. And while surfing the internet became a regular daily routine (like your morning coffee); MLS services, Realtor® Associations, brokers and real estate agents all tried to capitalize on the latest technologies to capture business.

One could even try to make the argument that technology and the internet was an enabler of a real bubble that would eventually pop. Because house-hungry buyers wanted to be the first know about new listings and be able to present their offer before anyone else, internet applications were developed to adapt to that market need; internet applications were touted to automatically send listing alerts to buyers’ emails and cell phones. The increased use of mobile technologies such as texting and SMS, along with the ability to surf the internet on the cell phone allowed buyers to search homes anytime/anywhere. Tech savvy buyers could not only get notice of a new listing almost immediately, but they could also send an offer to the listing agent without ever leaving their chair!

Of course, many who hastily bought without inspections (or worse- sight unseen), realized that the internet was not a substitution for visiting the home and doing due diligence. The internet has since grown to become the leading source for real estate related information. What was once ballyhooed as the means of procuring clients is now realized as a tool to augment client relationships.

Certainly, the internet has not yet become the replacement for human interaction in real estate transactions. However, for better and worse, the maturing internet has impacted the relationship between the real estate agent and their client. Where at one time, the public solely relied on real estate agents for information; the public now relies on their real estate agent for specialized information and increased personal service. The business of real estate has shifted from selling the idea that real estate agents had the listings and all the related information, to not only selling personal and specialized services to facilitate the real estate transaction – but to assist the public in understanding the overwhelming barrage of data and information by providing meaningful interpretation and implementation.

Much like the effects to other financial industries, the internet has not totally replaced human interaction; but instead has changed relationships. At one time the internet was thought to become the virtual revolution; but in actuality has forced the real estate industry and agents to rethink their function and relationship with their clients.

by Dan Krell
© 2011

This article is not intended to provide nor should it be relied upon for legal and financial advice. Using this article without permission is a violation of copyright laws.

March 13, 2008October 5, 2019

Want to Buy Real Estate Online? (I have a bridge to sell you!)

by Dan Krell

Technology is great, isn’t it? You can do almost anything online these days; you can buy anything online, including real estate. Technological advances in the real estate industry have exploded in the last ten years to make it easier to for home buyers and real estate agents to complete transactions. Present technology allows you to almost complete an entire transaction from your desk. Now you can even bid on homes, from mansions to foreclosed homes, on various internet auction websites.

Sure, buying a home online might save you time, at least initially. But if there are problems with the home, you can bet you will spend lots of time and money to fix it. Nothing (at this present time) fully replaces physically viewing homes to get the full experience of the home and its surrounding neighborhood. Problems commonly encountered with real estate sold by internet auctions may include poor property condition, title issues, and location problems.

Would you buy a home from an online auction…without ever seeing the home in person? The term “buyer beware” may have more significance in this scenario as purchasing a home via internet auction may limit you on your ability to inspect the home.

Regardless of whether you are purchasing a home the traditional way or online, it is a good idea to have a home inspection. According to the American Society of Home Inspectors (ASHI), a home inspection will assist in your decision to purchase the home by revealing any major deficiencies and issues that need immediate attention. Additionally, the home inspection could provide information on regular maintenance as well.

Another problem that arises from internet real estate auctions is that you may be unaware if the property is land locked. Some believe it is safer to buy a vacant lot online than a home because there is no structure to worry about. Unfortunately, a property may physically sit behind other lots or homes with no access to the road. Without access, you would have to park your car and walk through your neighbor’s property to get yours.

If you are buying a lot online with the intention to build a home, having restricted or no access to the lot will pose a challenge. Without road access to the property, delivering materials and equipment necessary to build the home is almost impossible. Additionally, getting utilities to the home may also be a challenge as well, as there may not be a utility right of way or utilities may not be available at all.

Finally, buying a home through an internet auction may also restrict your ability to conduct a thorough title search. Hiring a title attorney to conduct a search and examination of the property’s title, will allow you to know if there are title issues (such as foreclosure, liens, or broken chain of title). It is important to make certain that you are being given a clear and marketable title.

Moreover, some question if internet real estate auctions are considered a binding purchase.

Perusing home listings on internet websites may be easy and tempting, however it is important to do your homework. No matter how you intend to buy a home, it is always a good idea to consult competent real estate professionals.

This article is not intended to provide nor should it be relied upon for legal and financial advice. This article was originally published in the Montgomery County Sentinel the week of February 25, 2008. Copyright © 2008 Dan Krell.

by Dan Krell © 2013 Google+ DanKrell.com

by Dan Krell © 2013
Google+
DanKrell.com