Death of Real Estate Industry Greatly Exagerated

It is often said that “the only thing new in the world is the history that you don't know." I thought of this phrase when a home valuation web site named Zillow was launched to a lot of buzz a couple of years ago. The press, as usual, carted out the same tired (and wrong) prediction that it has made for 15 years: that home valuation sites like these will put Realtors® out of business or at least greatly reduce their fees.

Actually, over the last 15 years, the opposite has taken place. It doesn’t matter whether you are talking about law, medicine, accounting, mortgage or real estate; the more that the public uses the Internet to gather information, the more they turn to professionals before they make major decisions. That’s because there is a huge difference between gathering information and interpreting it.

In today’s information age, consumers can increasingly get all the information that they want or need, but it’s useless unless someone with expertise in the field can provide the knowledge to allow them to correctly interpret it and act upon it. Information, without the context of a pro who can share the day-to-day knowledge of the industry, is just data. If a consumer were to act on it without context, they could very well reach incorrect conclusions and achieve undesirable results.

While Zillow has improved over the years with the assistance of leading real estate insiders, the site still depends in large part on public records for its data. But public records often do not show factors like recent additions and improvements or the condition of the interior that affect price. Public records can also be wrong. Also, price is only one factor in buying or selling a home, and getting to the settlement table means avoiding traps and overcoming obstacles.

In other words, technology is a fabulous way to gather data and can do functionary tasks better, faster and cheaper than any human being ever could. But the danger does not lie in understanding that technology. The danger is that by itself, the Internet can never provide the fiduciary counsel required in areas such as medicine, mortgage lending, law and real estate.

Please remember that while the Internet can provide information, it can never interpret it. And here's the straight scoop: A Realtor's® true value is not in helping you find a home, or getting you numbers regarding comparable sales, though they certainly have the tools to do so. Their TRUE value is in using their experience and expertise to get you the best value once you find your home or the most money in your pocket when it comes time to sell.