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Photograph by Kathy De La Torre
Jeff Barnett is vice president of Alain Pinel in Los Gatos. The company's website shown on his computer has helped Alain Pinel increase sales.
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Internet erases geographic boundaries
By Sue Stone
As the Internet permeates information-based industries, the real estate industry is faced with changing its business model. It will change from an "information monopoly" where Realtors were information providers to a service-oriented model where Realtors are 'knowledge brokers,' said John Tuccillo, former Chief Economist of the National Association of Realtors and a leading industry consultant and author.
At a recent real estate and technology Expo, Tuccillo's keynote presentation, "Using Technology in Real Estate--Understanding the Revolution," outlined a list of recommendations Realtors need to consider to survive their changing environment. As the author of The Eight New Rules of Real Estate and Click and Close, and a strategic business analyst for the industry, Tuccillo has a unique perspective on trends that will shape the future of the real estate industry.
According to Tuccillo, "Geography doesn't mean anything when the Internet is the model." His general advice to Realtors is to "reinvent the middle" by reducing a client's time and stress in the sales transaction. While real estate information is readily accessible to consumers, the knowledge of the transaction process and all the alternatives to make informed decisions are important talents Realtors have to offer.
As a result of serving high-tech clients, the Realtors in the Bay Area are ahead of the rest of the country when it comes to using the tools of technology in their business. Based on recent statistics, Silicon Valley and Seattle lead the nation in adopting new technology with major metropolitan areas, such as Chicago, New York and Dallas, following closely behind.
Calling the new focus on technology and the Internet a wake-up call to the real estate industry, Tuccillo emphasized how important the Internet has become to consumers shopping for deals and information. He believes Realtors must incorporate the Internet into the structure of their overall business as a crucial strategy for long-term success.
One company to heed Tuccillo's advice is Alain Pinel Realtors of Los Gatos. They have set up an interoffice network that allows an agent to poll all its offices for listings that fit a specific client request. All agents have email, voicemail and custom webpages on the corporate website that details agents' experience and listings they offer.
The website also allows potential clients to search for homes within a specific price range or geographic area. The company's instant electronic messaging system alerts clients the moment a listing that fits their criteria becomes available.
"We believe in embracing technology and giving it back to the public as a tool to enhance their buying and selling experience," said Jeff Barnett, vice president and manager of Alain Pinel Realtors in Los Gatos. "Silicon Valley clients are used to immediate access to information in their business dealings so it is very important for industries such as real estate to mirror that business model."
Photograph by Kathy De La Torre
Realtor Todd Hill checks the Alain Pinel website. He says he gets 25 percent of his clients from website referrals.
Recently Alain Pinel experienced the full power of the Internet when the firm sold a $12 million home, the most expensive listing they have ever sold in Los Gatos, through their website listing.
"Using our home search feature on the website, a potential client selected a search for homes listed above $1 million. He saw this property listed on one of our agent's webpages, contacted the agent for a tour, bought the home and then proceeded to list his present home with us for $3.5 million," explained Barnett.
In this particular case, the Internet listings became the initial information source. It allowed the client to refine his search and decision process before touring specific properties.
"The real estate industry needs to adopt a world-class customer service business model because consumers still value truly excellent service, something a computer will never be able to provide," said Tuccillo. "If Realtors act as counselors, negotiators and process managers for their clients in addition to incorporating the latest advancements in Internet technology they should be able to ride the tidal wave of change happening in the real estate industry."
As technology and the Internet create a new business model in the real estate industry, consumers ultimately benefit with greater access to information, knowledge and informed decision-making that comes with working with an experienced professional.
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Los Gatos, California Since 1881
