Dear CAR Member,
Technology is changing at such a rapid pace today, disrupting industries and changing long-standing business models. Take the hotel, taxi, retail, publishing, travel, music, and television industries to name a few. Real estate also has been long subject to these same currents, but in my opinion it has benefited and even improved its customer positioning as a result, unlike the other disrupted industries.
With its recent acquisition of Dotloop, Zillow is purporting to alter real estate transactions. Zillow has publicly stated that while they’ve innovated real estate search, they think they can bring the “same innovation” to the real estate transaction itself – a move sure to affect you and your clients.
You know better than anyone that real estate documents contain a lot of your clients’ personal financial data and other sensitive information. Think of the personally identifiable information that could be mined to sell to third parties, such as title or mortgage companies, home inspectors, or home warranty providers. Real estate transactions are built on trust between REALTORS® and their clients, and with this acquisition, that trust could be compromised.
Technology may allow consumers to search for homes but it’s the REALTOR® who guides them through the maze of data and brings value in coordinating the transaction from “contract to close.” I don’t need to tell you that buying or selling a home involves many intermediate steps, each of which has the potential to go wrong and send you and your clients back to square one. Real estate transactions involve a lot of details, legal pitfalls, and liability issues, such as property restrictions, liens, financing glitches, or title and appraisal issues. Solving problems and negotiating solutions that arise during escrow is where the REALTOR® brings the greatest value to the consumer. In fact, a recent C.A.R. survey of home buyers found the top areas where a buyer needed an agent’s assistance in a transaction were negotiating the terms of a sale, finding the right home, negotiating price, and only lastly, dealing with paperwork. Although an integrated transaction platform can create efficiencies, the value proposition that a REALTOR® brings to the table is far more than pushing paper.
This doesn’t mean REALTORS® should rest on their laurels. The real estate industry has long served consumers, but because they and their needs are constantly evolving and changing, REALTORS® need to keep on top of those changing needs. Failing to respond to changing consumer demands and expectations, and focusing on the transaction instead of the consumer is sure to reduce your relevance.
The real estate industry hasn’t figured out a way to fully capitalize on the rapid advances in technology because transactions are incredibly complicated and regulations abound. As a result, well-funded tech companies continuously seek to erode the industry’s infrastructure and figure out ways to conduct real estate transactions completely online. In a digital era, people are always looking for ways to conduct business more efficiently, but they also want a good customer experience. Technology can’t replace what makes REALTORS® essential to the transaction: local market knowledge, in-the-trenches experience, and sage advice and recommendations – all the things that convey an outstanding customer experience and help make your clients’ dreams a reality.
In closing, as my term as your President concludes, I want to thank each and every one of you for your active involvement with C.A.R. this year. I leave knowing you’ll remain just as involved with your 2016 Leadership Team comprised of President Ziggy Zicarelli, President-elect Geoff McIntosh, Treasurer Jared Martin, and C.A.R. Chief Executive Officer Joel Singer. It has been a pleasure serving you.
Keep in mind what John F. Kennedy said: “For time and the world do not stand still. Change is the law of life. And those who look only to the past or the present are certain to miss the future.”
Sincerely,
Chris Kutzkey
2015 President
CALIFORNIA ASSOCIATION OF REALTORS®