Historic Growth of the Internet in Real Estate

Over the past 10 years or so the number of real estate related websites has grown by about 75% to 80% each year.  This of course includes anything and everything real estate.  Obviously the major players such as Google and Yahoo have become involve, but it’s the vertical search engines and destination sites that really supply the specific information that buyers are looking for.  Sites like NewCondosOnline.com are a combination of search portal and destination site where you want the user to stay for a while and gather information but then be on their way to the true destination site.  We have then seen these vertical search engines branch into even more industry specific niches such as resort communities, condos, time shares, etc. 

In the past, home buyers relied mostly on agents who held the key to all the information.  As the Internet has progressed from Web 1.0 to Web 2.0 the level of communication and information gathering has gone through the roof.  Now buyers spend months gathering information before ever contacting an agent. 

Will agents ever become obsolete?  That is doubtful.

Buying a home or condo is a very emotional experience and large commitment and people want to hold someone’s hand through the process.  Of course, the agents are necessary for all the detail work and negotiations, but they provide the necessary emotional support as well.  Agents these days probably spend less time in the car because the buyers come to them already knowing what they want.  Some agents were initially a bit intimidated by the introduction of technology to the world of real estate but it has really only proven to enhance the overall information sharing process.  Agents can gain more exposure, more clients, and more commissions…builders can market their projects more efficiently, etc. 

Where will technology and the Internet take us from here?

We will start to see real estate websites integrate better and better technology to support the flow of information from the buyers to the sellers.  The most important aspect of this technology integration will be increasing the accuracy of tracking “clicks” through to sales transactions.  Most industry professionals see the value in the Internet for marking homes and condos, but many still don’t know why they see the value.  The bottom line for real estate will always be getting people in the sales office. 

Do real estate websites get people in the sales office?

Of course!  Do the sales agents accurately track where these people come from and really know what resources actually brought them to the sales office…not usually.  Too much human error is involved in tracking marketing dollars these days.  The more automated the system can be, the more accurately we will be able to track the value of online based advertising.  Until the transactions are actually occurring online (which may never happen) industry professionals in the online space need to continually pursue the use of better technology so that they get credit for the leads they send.