Good question!

One problem that I don't have a solution for: Help the public better understand how the process works. There's a lot of confusion and misunderstanding all the way through. For example, Karen, you're an agent with Keller Williams. Suppose you gave a multiple choice test to 100 people on the street: "Karen is a Realtor with Keller Williams. Does this mean: (a) Karen is an employee of the National Association of Realtors. (b) Karen is an employee of Keller Williams. (c) Karen is an employee of the Texas Association of Realtors. (d) Karen is an independent contractor running her own business.

How many people do you think would get that one right?

Or try this question: Mary Smith lives in a community consisting of similar houses built at the same time. Mary would like to sell her house. What would be the best indicator of how much her house is worth: (a) the county tax assessment, (b) a formal appraisal conducted when Mary refinanced in 2005, or (c) what her neighbor's homes have sold for in the past 3 months.

And what can we do about the situation in which--understandably--any family with children is going to ask: "What's a good school district?" and we parrot back: "I can't tell you. But here's a website..." Their next question is, "We're looking for a safe neighborhood." And we parrot back: "I can't tell you. But here's the phone number for the local police department." The consumer is making a purchase costing hundreds of thousands of dollars, and the decision is going to affect them and their life style (and perhaps their childrens' futures) for decades. And here we are, blathering about the built-in microwave. Consumers don't understand (and frankly shouldn't be expected to understand) this disconnect and apparent trivialization of issues.

As I say, there's just a lot that the "average" buyer or seller doesn't know. It'd be nice if they knew but--as we know--the average person buys or sells maybe 5-6 homes in a lifetime. Most are never going to know these things. So maybe the answer is: Increase transparency as much as possible. Provide (additional) online resources for those people who need or want to research it. And provide more training and education to Realtors to help them understand the confusions and limitations that buyers and sellers understandably have.

A second area I'd look at is helping Realtors become more creative and solutions-oriented. I come from a real estate investor background, where, really, the main way to make money is by being creative and solutions-oriented. Some Realtors are, of course. But many aren't. And that means there are many opportunities for more business--and more opportunities to help buyers and sellers--that are largely going untapped. One small example: Maybe once a day, some would-be buyer posts a question on Trulia like "How do I find lease-options in Miami" or "How do I find land contracts in Michigan." And, very quickly, a Realtor will respond: "A Realtor can check the MLS for that. However, I just looked and only found 2. There generally aren't very many." The truth: There are tons and tons of them. I have one response that I post to those, listing maybe a dozen ways to find them. (Check my profile and my Questions and Answers and you'll run across it.) And, actually, you can find a large number on the MLS...if you know how. And there are others not listed, but which Realtors--if they knew how to and wanted to--could find and could make a commission from. And there are many, many other questions posted here for which there are really good, legal, ethical, and creative solutions. That would certainly make the real estate experience more consumer friendly.

Those are just a couple of quick thoughts. I'll ponder it some and come up with some more.

Hope that helps.

Mon May 19 2008, 09:03

I think there is pretty good research out there already, but no one seems to listen. Buyers have told us for example they want to see plenty of pictures of the homes on the internet. How many realtors provide? What internet site do the majority of consumers use? Realtor.com.....what % of agents max out their exposure there?....minimal.... I think it would pay to have a more automated matching service and more of the transaction online. Think dating service.... Fill out a 100 question matching service that would start with preapproval, then suggest homes that match Qs, suggest alternatives, print list of homes with maps and details to allow consumers to drive at their convenience. Make offers and counter offers online with compartive software that might include risk models....like is a 7day option period with $50 more or less risky than 10days and $100 of termination or closing? It's also be nice to have the software give better comparisons of mutliple offers in a snapshot. The allow online signatures so negotiations could go quicker...maybe even in auction style format. As one buyer posted here the other day it also might be interesing to allow reverse auctions. He said he found 9 homes he liked all about the same area and price range. He can only buy one, but would like to make offers on all 9 and see who will give him the best price. I had another agent this weekend make offers on one of my listings and another very similar one across the street at the same time. It would work for them too. Finally it would be nice to be able to go to title co any time and sign one doc..and then work online for the rest. Video conf if we needed, but do all remotely. If needed record it and include it as part of the loan package. That could even help reduce fraud.

Mon May 19 2008, 07:19

Consumer needs to pay for a home buying few hour course prior to purchsing a home therefore they are educated about real estate services how it works, NOT an agent telling them. The general public does not understand we are short order cooks, low balling not to their benefit, find a seasoned agent, my list is endless.

Fri May 16 2008, 20:33