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How to Make Your Realtor®
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Chapter 14: Real Estate and The Internet

Mollie Wasserman's Real Estate Internet Warning©

Despite advertising claims to the contrary, the internet is NOT an experienced Real Estate Professional. It cannot consult, counsel, advise, have knowledge of local laws and market conditions, make judgments, "own" the result, or most importantly, understand your individual goals and needs and care about you as a Client. Furthermore, while the internet can provide information, it cannot interpret it. To obtain an accurate assessment of any data you're receiving online, please contact us.

Mollie W. Wasserman

So, you’re ready to go. Armed with the information in this book, it’s time to:

• interview agents to find yourself a knowledgeable teammate who can advocate for you and protect your interests;

• obtain a referral from your chosen Realtor® for a good lender and get the pre-approval process going; and

• find your dream house!

However, one last subject needs to be covered. Given the revolution in technology that we’ve experienced over the last few years we must look at what technology can and cannot do. This differentiation is especially crucial when dealing with real estate, an environment where online companies clutter the bandwidth and your inbox with schemes to save incredible amounts of money and time by using their services.

Now let’s be clear: Technology, and specifically the Internet, is a wonderful thing! As we said earlier, 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 services such as mortgage lending, law, and real estate.

Functionary/fiduciary—why do we keep using these "f" words? Simply, it’s very important to understand the difference between the data that you can get online and the advice, counsel, and interpretation of that data, that only your Realtor® can provide if you’re to get the best deal when you buy or sell a home.

Information Versus Knowledge

As Internet-savvy Realtors® who generate a significant portion of our business online, we are big believers in the free flow of information. You will find that both online and off, this new breed of Realtor® usually provides the most complete sources of information that you’ll find anywhere.

Yet, we have had many of our colleagues question why we give out so much information, often saying: "If you give out too much information, people will have no reason to call you." We disagree. Although we give out information freely, we have never had a shortage of requests to retain our services. That’s because there’s a big difference between information and knowledge.

As John Tuccillo said in his book: "The Eight New Rules of Real Estate",  Information is a collection of facts or observations about reality. Knowledge is actionable. 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 act on it. Information, without the context of a pro who can share the day-today 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.

Information is like sand on a beach—it’s plentiful and anyone can find it. But if you want to build a sandcastle, you may want to consult the Sandmaster who lives on the beach. They could tell you how much water to use, what weather conditions are best for building, and most importantly, when the tide comes in and how far up. Without this knowledge, you could spend an entire afternoon building a great sandcastle, only to have it washed away!

Myths Involving Real Estate and the Internet

People definitely love to surf the Internet when it comes to real estate. It’s estimated that last year, between 70 to 80% of homebuyers started their search online. But there are definitely myths about what the Internet can and cannot do. The following is one of our favorites:

At what point in the above statements did it step over the line from fact to myth? If you say after number two, the airline ticket, give yourself a gold star! What’s the difference between the first two products and the last three services? Simple. The first two are commodities bought mostly by price, the last three are services that require counsel, advice, knowledge, and understanding of your individual needs. The first two are functionary products, the last three are fiduciary services. You can purchase the first two products entirely online and probably save money in the process. In regards to the last three services, the Internet is a great place to start your search for service providers. But if you try to "go it alone" with just the data you find online, you will very likely risk losing your shirt if you don’t consult a local provider who understands your individual needs and is accountable for their services.

Let’s look at a couple of obvious examples before turning to real estate. Let’s say there’s an online site called Weknowlaw.com. For $39.95, payable in advance by credit card, you can receive a "legal opinion." Does this opinion come from an attorney, a paralegal, or a truck driver? The site says it’s from an attorney, but how do you know for sure? And what if you take this legal advice and your case turns out badly? How do you get out of the deeper legal dilemma you’re now in? Local attorneys who are dependent on referrals for future business have a great incentive to stand behind their advice and counsel. Does whoever at Weknowlaw out there in Dot-Com Land care if you’re unhappy with their opinion? In other words, what happens if something goes wrong?

Then there are the online mortgage companies that advertise everywhere. If you’ve read the business section of the paper lately, you know that many of these companies are not doing so well. Why is this? Well there are a couple of reasons. First, much of the mortgage process still has to be done locally, so there’s little economy to doing the process online, and more importantly, many consumers are finally catching on that interest rates and financing programs are very vulnerable to the old bait and switch that we mentioned earlier. Do you really think for a moment that the online mortgage company in Anywhereland is particularly concerned if you’re unhappy with their services? A local mortgage lender derives business from local Realtors® and the community. Therefore, they have to make the situation right because they must be accountable! The national dot-com isn’t. Now, as we said earlier, the Internet is a wonderful place to shop rates and programs and to educate yourself on the mortgage process. But afterwards, do yourself a favor and bring the best package to your Realtor’s® recommended lender and ask if they can match it. Either they will, or they’ll tell you why they can’t.

Have you ever been to a medical website? There are many wonderful sites out there. If you were to go to one to become a more educated patient, and then take your questions and concerns to your doctor, that would be a very smart use of the Internet. If, however, you were to go a site and attempt to diagnose yourself, that would be a very unintelligent use of information, with potentially disastrous results.

Real estate is an interesting field in that it combines functionary tasks with fiduciary counsel. Functionary tasks such as property searches or accessing home sales data can always be done cheaper, faster, and better by technology. If that was the whole of real estate, we’d be the first to applaud the national dot-coms popping up online promising to provide you these services without your having to leave the computer. But the problem is, these companies don’t tell you what you don’t get. As an example, there are a couple of companies that heavily advertise that you can get a free home valuation online. All you have to do is give them a street address and it’s yours. So what do you get? (Drum roll please.) A list of homes sold within a one-mile radius of that address. Does this "home valuation," coming from a national site, take into account the power plant going in two blocks away from this home which will affect its value? Has it seen the inside of the home to find out how it compares with others? Does it take into account the railroad tracks on the next street? What about the local economy and the fact that young professionals are moving into the area, accelerating the increase in prices? What about sewer abatements or the newest regulations? A national dot-com can’t advise you of any of those things, which could greatly affect the value of the property; but a Realtor® who’s working in your interest can.

Of course, many buyers aren’t ready for a relationship with a Realtor® right off the bat. When you’re just starting the process, you may want to get your feet wet by getting property listings and doing "drivebys" of homes that look interesting before interviewing Realtors®. That’s understandable. That’s why Mollie offers her website’s Property Search and Daily Email Alert services to non-clients but always encourages them to schedule a buyer consultation as soon as they are comfortable. That's because simply providing housing information without interpreting it based on the buyer’s goals and timetable is not going to get a buyer their best deal.

Please remember that while the Internet can provide information, it cannot interpret it! A Realtor®’s value is not in finding you a home, though we certainly have the tech tools to help you there. Our real value is in helping you get your best deal on a home once you’ve found it!

Available in all major book stores. Order online at Amazon or Barnes & Noble. Or receive a complimentary copy when you schedule a Buyer Consultation with a member of our team or join our Not-Ready-For-Prime-Time Buyers Club OR Ready To Go Buyers Club.

Dina Raneri 508-371-4385 Email Dina

Mollie Wasserman 508-613-9101 Email Mollie

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No reproduction, distribution, or transmission of the information, graphics, or design included in this site is permitted without the written consent of Mollie W. Wasserman. 
The Real Estate Internet Warning is the one exception to the above rule as we encourage agents to use it but ONLY WITH THE FOLLOWING CREDIT:
"Courtesy of Mollie W. Wasserman, http://www.TheHomeConsultants.com

Any questions or comments about this site should be directed to: Mollie W. Wasserman, Email or (508) 613-9101