A New Kind of Home Searching Emerges: Streaming Videos Begin to Shape the Industry

One aspect of real estate that has been increasing in popularity over the past few years has been the resources available to homebuyers through the Internet. Although real estate professionals have not yet fully adapted to the changing market, a recent development is showing that they might be catching up quickly. A small part of the industry is beginning to follow the lead of sites like YouTube, who have taken the world by storm with their vast array of streaming videos. Charlie Young, the vice president of marketing for Coldwell Banker said, "I believe streaming videos on Web sites is the wave of the future." With the introduction of web sites specializing in streaming video home tours and many other features, as can be seen in the picture to the left, it looks like the future might involve an easier, more convenient means of home searching.

There are many different methods that companies can use in order to take advantage of the Internet's role with homebuyers. According to an article by Les Christie, a staff writer at CNNMoney.com, one residential development in Delaware "has begun using high-quality, television news-style presentation to sell homes. On the site, viewers take interactive tours of the property, led by two on-line hosts, through different site channels." The development, Peninsula on Indian River Bay, is showing that features like online video tours do not necessarily mean that information or personality have to be lost. In the article, Christie says the site leads “users through a virtual tour of the development's offerings, including its neighborhoods, home styles, nearby beaches and features and amenities, including a Jack Nicklaus designed golf course.” This site makes the home searching process much more interesting for homebuyers, and could have an effect on the future of the industry.

One reason why this system will play an important role in the future of real estate is the convenience that it offers. Such features as video tours, floor plans and an almost unlimited amount of photos make searching for homes much easier. If homebuyers cannot find the time to look for homes, or have no means to travel across the country if they plan on moving longer distances, then the availabity of these resources on the Internet can be of great aid. An article by Manufacturing Talk, the number one production news source, says “The tremendous confidence buyers get through this type of interaction has lead to an increase in purchases 'sight unseen' from across the country, and the globe. Buyers know in advance that their furniture will fit in the desired space, and exactly what remodeling, if any, they want to have done even before they move in.” Offering such in-depth services gives homebuyers opportunities that would have seemed impossible only a few years ago.

Another reason why this could soon become a valuable part of the industry is the amount of portability offered through this technology. There are a number of gadgets, such as the one shown to the right, that can give homebuyers the information they need even if they are away from their computer. The iPod is beginning to play an important role with this too, as video podcasts are being used to give homebuyers video tours on the go with little or no information lost. Russell Shaw, a contributing writer for ZDNet.com, says in his post “Four Reasons Why Every Realtor Needs To Video Podcast” that “Home-selling (and buying) is a visual medium. Homes, and in many cases the accompanying land, are best described through visual means. Video podcasts are ideal for walk-through tours that up until now, have been mainly illustrated either via photograph-based virtual tours or slide shows.” Podcasts offer the real estate industry a combination of portability and knowledge that cannot be matched by any other means.

One downside of this technology could be an increase in the gap between large and small companies. Larger organizations such as Century 21, Coldwell Banker and Re/Max are putting a lot of their resources into making sites that offer streaming videos. With a lack of resources or capital, smaller companies might not be able to offer most of these services, or at least not offer them as comprehensively. Most of these features do not require too much capital, but they do require quite a bit of time and energy. If smaller companies want to continue to compete with bigger ones, they might have to sacrifice some of their initial profit and increase spending on the Internet.

Though it might hurt smaller companies, there is no strong argument that can be made against incorporating such features into the industry. The Internet allows real estate professionals to reach a larger number of potential homebuyers at a relatively low cost, and there is no question that it makes researching easier. It looks like the real estate industry as a whole might soon begin to take full advantage of the Internet. The demand and technology are certainly there, but real estate professionals need to start utilizing this opportunity, or they could soon end up without a job. In the words of Christie, “Today, if your site doesn't offer virtual tours, mapping technology, neighborhood guides and a video library of buying and selling tips, it's nowhere.”

The Other Side of the Industry: How Are Professionals Taking Advantage of the Internet?

Most of the topics my blog has addressed up until this point have involved the ways that technology is shaping real estate. The industry continues to change, and as the picture to the left points out, it is increasingly becoming one based around the computer. One issue that I addressed earlier in my blog was how homebuyers are taking advantage of technology, mostly through the use of the Internet. As a contrast to that topic, I have decided to focus on the other side of this issue: how real estate professionals are using technology to keep up with the evolving industry. Rather than make my own post, I have once again decided to feature a couple of posts from other blogs that I found to be very relevant with this topic. The first post was written by Richard Nacht, the CEO of Blogging Systems, a company that, according to their website, “provides real estate professionals with marketing and communications solutions using leading-edge blog technology.” Nacht mostly focuses on how the majority of agents are failing to keep up with the changes in the industry. The second post is from RealtyMadeEasy.com, which is a prominent online real estate classifieds website, and has no author listed. The company questions whether or not real estate professionals are savvy enough to keep up with the evolving industry. My comments to both of their arguments can be found on their respective blogs, and can also be seen below.

“Homebuyers Are Using the Internet; Agents Are Not”
Comment #1:

It seems to me that every real estate professional would be eager to take full advantage of the different opportunities that the Internet and other technologies have given them. Fully utilizing the Internet would give professionals a greater reach in advertising, and would also give them a way to offer easy to use services to a lot more people. You brought up in your post through a quote from another agent that this could be due to the number of real estate professionals using the industry as a second means of income. Do you think the Internet will separate out those people? I would think that in a few years, the industry will revolve heavily around the Internet, and those not involved in it will be somewhat obsolete. Also, could these new developments end up hurting smaller companies, who have less resources and capital to enable them to fully take advantage of the new options available to them? I am still in college, but I am planning on going into the real estate industry when I graduate. Personally, I can’t think of a better way to run a successful business and reach new customers than to take full advantage of the Internet. Maybe there is too big of a generation gap, and those real estate professionals that are part of the older generations will never fully utilize the many opportunities available to them through new technology. What do you think about this?

“Are Real Estate Brokers Internet Savvy Enough?”
Comment #2:

I am currently a junior at the University of Southern California, and plan on pursuing a career in real estate when I graduate. I first want to say that I found your post very interesting, and I think it really applies to the path that real estate is currently heading. It seems like real estate professionals as a whole are adapting to the Internet much slower than homebuyers are. Do you think this is true? You said in your post that "a home buyer in today's market wants to go online and do just about all of their work in terms of locating their next dream home." Why do you think homebuyers are so much more willing to use the Internet as a tool? The Internet provides so many great ways that professionals can reach a large number of people, and so many different services that they can offer. I cant think of a better way to run a successful business in real estate, as well as in any other industry. Do you think that the older generations of professionals will be able or willing to learn how to use these tools? I personally don’t think that the industry will fully utilize the opportunities available through technology until younger generations enter the market. What do you think? I would really appreciate your input on this issue.

Online Education: One More Way That Technology Is Affecting Real Estate

This week, rather than creating my own post, I have decided to focus on a couple of posts written by other people that I found both interesting and helpful. The topic that both of these posts relate to is online education, a trend that has been growing in popularity over the last couple of years. The classroom has become a thing of the past, and the picture to the left is a perfect example of a new type of classroom, the computer. The first post is regarding online education in general, and whether or not it is the best means to receive an education. The second post that I found is more specifically about the role that online education is playing in the real estate industry, focusing mostly on the positive changes that online education is bringing to the industry. I have included below the links to each of these posts, as well as displayed below the comments I made to each of the writers. I hope you find these posts as interesting as I did.

Post #1: "Pros And Cons Of Online Education"
By, Harris Jhosta

Comment:
I am currently a junior at the University of Southern California, and am planning on getting involved in the real estate industry after I graduate. It seems like online education is becoming a very popular method in learning about real estate, as it is with every other industry. You seem to be more on the pro side of the argument, but I was wondering if you thought that anything would be lost through an online education. You said in your post that it might be looked down upon, or not understood by employers, but do you think there is a good reason for that, other than the fact that it is a new and somewhat unknown means of education? Are there things that can only be learned through the classroom, like communication skills or working well in groups? One of the more important things that I have gotten out of my time at USC has been the ability to work well with others, and allocate different jobs within a group. This is an important aspect of professional life that could not be fully taught through an online education. There seems to be no question that online education is more convenient and less expensive, but could there be a limit to how popular and respected online education could become?

Post #2: "Are You Learning Online?"
By, Dave Shaut

Comment:
I am currently a junior at the University of Southern California, and am planning on concentrating in real estate development next year. As of right now, I would like to get involved in real estate in some way or another after I graduate, although I’m not quite sure exactly what I would like to do. It seems like postgraduate online education is a really practical and much more convenient means of learning about the real estate industry. Your post focuses only on the positives of online education, which there seem to be a lot of. However, I was wondering if you could explain some of the reasons why online education isn’t as popular as it could be. What are some of the negative aspects that come with learning about real estate online, rather than through the classroom? It seems like it would be hard to regulate all of the online educational programs to ensure they remain creditable. Are there certain things about the real estate industry specifically that could be lost or harder to understand if learned through the Internet, such as communication skills or working well in groups? Any advice or information you could give me would be very much appreciated, thanks.

The Future of Real Estate: Better Educated Consumers Begin to Shape the Industry

Recent developments in technology have had a big effect on the real estate industry with regards to production, but production isn't the only aspect of the industry being affected by technology. These developments are beginning to change another part of the industry: the role of the homebuyer. The Internet has greatly changed the amount of information available to the world, something that can be clearly seen through the effect it has had on real estate. The Internet, along with a drastic change in homebuyer demographic, is starting to change the industry entirely. The homebuyer is not what it used to be, and continues to get younger and more knowledgeable with time. The picture to the left features a young couple getting their information primarily from the Internet, rather than using traditional means like brokerage firms. This is the new homebuyer; a young couple, or even single man or woman, who mostly researches the housing market through the Internet. This new search method allows potential homebuyers to get more information from a better variety of sources. The increase in information available through the Internet might not have a direct effect on the housing market, but it has done a great deal in creating a better-educated and more informed homebuyer.

The homeowner has been changing drastically over the past few years. According to Stefan Swanepoel, a contributing writer at realblogging.com, “in 2005, 40% of homebuyers were first time buyers and 50% of them were between the ages of 25 and 34 (Gen X and Echo Boomers). Even more telling - 38% of all homebuyers in that period were under the age of 35…According to numerous studies undertaken by NAR and the California Association of Realtors, approximately 70% of all homebuyers start their search on the Internet.” This means that the traditional ways of buying and researching homes has become a thing of the past. The new homebuyers are beginning to take full advantage of the resource that is their computer. A new medium has taken control of the industry, and there are a number of ways with which it is doing so.

One of the many recent developments keeping consumer's informed has been, interestingly enough, the blog. According to reTrends.com, one of the top 10 trendsetters in real estate in 2006 is Blogging Systems, “for leading the way in expanding blogging into the real estate industry.” The blog allows a means for homebuyers and homeowners throughout the country to communicate with one another about whatever they desire. One site, Outside.in, currently collects blogs from over 3,000 neighborhoods in 55 cities. Blogs on this site can range from types of restaurants in any given area to the quality of schools. Sites like this bring with them a huge amount of information, and have begun to severely limit the role of the real estate professional. However, blogs are not the only resource being used by the new generation of homebuyers.

Broker review sites are another trend that is turning the real estate industry upside down. Homethinking.com offers reviews of brokers in any area in the United States. A feature like this, according to Les Christie, a staff writer for cnnmoney.com, allows consumers to “engage the most professional real estate agents available." It also forces brokers to pay more attention to how they treat the people using their services. It might not be the most ideal situation for brokers, but it will ensure that their customers receive the best service.

The most dominating theme in the changing industry is the amount of information becoming available to the common man. As long as there is Internet available, there are no boundaries to what any homebuyer can learn about the housing market. Having a more educated and informed consumer not only means that they are able to make a better decision regarding the purchasing of a new home, but it also means that the role of the real estate professional is becoming increasingly less important. Before the introduction of the Internet, brokers were relied upon for most of the information regarding their housing markets. If they are going to remain a major role player in real estate, brokers will have to adapt quickly to the changing industry.

There are a number of ways professionals can use the Internet to reach the new generation of homebuyer. Although the Internet might limit the consumer’s reliability on real estate professionals, the Internet does offer a new medium through which the industry can advertise. The Internet is a relatively cheap way to reach a large number of people, and is becoming large part of most companies advertising campaigns. Also, companies could begin to offer certain online services via their website, which could once again increase their role with consumers. There is a lot of potential for brokerage firms with the Internet, and they must utilize that potential in order to keep up with the evolving industry.

If the people currently working in real estate would like to keep up with the industry they will have to adapt to the changing environment; if they fail to do so, the entire industry will pass them by. With that said, real estate professionals can take advantage of certain aspects of the new direction the industry is going by offering a number different services that only the Internet allows. There is an opportunity for professionals to make themselves more available to homebuyers and owners. This generation has a lot of information available to them, and they have begun to utilize it. The homebuyer is no longer the traditional family in the United States, and the real estate industry is becoming anything but traditional.

Real Estate Goes Green: Homeowners Become More Environmentally Conscious

The past few years have brought to the United States a newfound respect for, and awareness of, the state of the natural world. This awareness can be seen in many different aspects of human life, whether it be through the increased use of hybrid cars, the development of cleaner burning forms of fuel, or the number of environmentally charged films, like "An Inconvenient Truth," that have been recently gaining popularity. Though there has been a very noticeable change in overall attitude, homeowners have not yet taken a significant stand on eliminating methods harmful to the environment. With that said, recent developments of energy saving techniques have piqued homeowners' interest in the effect that they can have on the environment. With these developments, along with a recent increase in awareness, many homeowners are beginning to take an active role in lowering the energy they consume.

The U.S. Green Building Council, an organization focused on raising environmental awareness throughout the real estate industry, defines a green house as being one that uses less energy, less natural resources and a smaller number of toxic chemicals. According to the USGBC, green buildings can improve air and water quality, reduce solid waste, conserve natural resources and contribute through a variety of other environmental and economical means. A green house does not need to stand out, and could even be made with a less toxic form of paint or a showerhead that uses less water. Building a green house is not necessarily about excessive lifestyle changes, but rather, is about taking a more active and conscious role in the effects that homes can have on the environment, as well as the effects that homes can have on the human body.

According to the Department of Energy, more than 85 percent of the energy consumed in the U.S. comes from fossil fuels -e.g. coal, oil, and natural gas- and 18 percent of that comes from individual homes. An article written by Lew Sichelman, a contributing writer to the Los Angeles Times, entitled "New products say it loud: They’re green and they’re proud", predicts that over the next 25 years “40 million houses and 20 million square feet of commercial space will be built to accommodate America's swelling population.” Certain methods, such as solar power, shown above, and wind power have been available for many years, and do severely limit the amount of hurtful energy consumed by individual households. However, the costs involved in providing such power are extremely high, and unreasonable for the majority of the population. Because of this, new methods are being developed to benefit the earth, as well as homeowners' bank accounts.

The Energy Star, a joint program of the U.S. Environmental Protection Agency and the U.S. Department of Energy, estimates that “the typical house loses 15 to 20 percent of its heat or air conditioning leakage from ducts alone.” Sarah Max, a contributing writer to CNNMoney.com, says, “Energy-conscious construction can significantly reduce that waste. Some of the savings come from materials that provide extra thermal resistance, such as…insulated concrete forms. More can come from designs that maximize exposure to winter sun and minimize summer heat.” These ideas are simple, and for the most part, do not have the high costs that are often associated with energy conscious designs. They might not have as profound of an effect on the environment, but present a great starting point for the majority of homeowners building new homes or reconstructing old ones. There are, however, some bigger scale methods being developed that will play a large role in the state of the environment in years to come.

One new method being developed is underwater logging. Triton Logging, a company based out of Canada, currently manufactures lumber products that are made from trees found solely in underwater forests. Triton Logging was recently recognized as one of the top ten products of the year by the editors of the Environmental Building News, an award that recognizes the most innovative and exciting new green building products. The trees that Triton cuts and manufactures come from forests that have been submerged for years due to hydroelectric dams that created reservoirs and lakes. This is done through the use of remote-controlled submarines, shown right, that clamp onto trees, attach flotation devices to them, and cut the trees with an electric chainsaw. The trees are cut, rather than ripped out, to avoid releasing a large amount of sediment in the lake floor. The company believes that there could be up to 100 billion board feet underwater throughout the world. This process has the ability to greatly lower the need for trees in forests throughout the world. It could provide a much-needed break in the destruction of rainforests, and could end up having a great impact on the environment.

Another example of environmentally friendly home production comes in the form of a new type of countertop being developed, called PaperStone. According to Sichelman, this is a “dense, hard, water-resistant, solid-surface composite made from cellulose fiber and a nonpetroleum phenolic resin derived, in part, from a natural oil in cashew shells…the latest PaperStone is 100% post-consumer recycled paper.” This product is not only environment friendly, but also extremely practical, offering no less functionality than any of its competitors. It is products like this that will eventually become commonplace in homes throughout the United States, and severely limit unnecessary waste.

The one drawback in building a house with such environmentally friendly features is the initial investment required. This investment might be overwhelming in a few cases, with construction costs increasing by more than 20 percent. However, in most cases, homeowners only spend about 2 to 4 percent more on construction costs. A simple change would not bring too high of a cost, and would most likely end up paying for itself in the long run with lower energy bills. With that said, a green house might not be the best idea for a short term investment, but if you are planning on living in one place for a long time, then creating a more environmentally friendly home, even on the smallest of scales, would be a great idea. With all of the new environmentally conscious methods being developed, it won't be long until green houses become as common as traditional houses. Not only will it help the environment, it will also decrease energy costs, and increase a home's resale value considerably.