The Internet is a hugely important tool for home buying, and the rise of the Internet as a source of information in the home-buying process has been nothing short of meteoric. Look at these statistics, on how many people use the Internet in their home-search process:
- 1996: Under 20%
- 2006: 80%
- 2007: 84%
- 2008: 87%
I bet by 2010 we're pretty d*ggone close to 100% of people using the Internet independently in their home search. But people need to realize that while the Internet is a highly efficient tool to help you collect information, it is not the end-all, be-all in the home-buying process. And no amount of data can transform any buyer, no matter how smart, into the real estate expert that a good, conscientious Realtor, specializing in the market where you want to buy, will be.
In fact, I'm sitting here, giggling, thinking of those commercials, "No, I'm not a surgeon, but I DID stay at a Holiday Inn Express last night!" The same thing seems to happen in real estate all the time. And I'll tell you who disproportionately decides some Internet research has made them an expert in the purchase and sale of residential real estate: doctors, lawyers, and to a lesser degree, investment bankers. In fact, lawyers are the absolute worst for deciding to represent themselves in the purchase, and to a lesser extent sale, of residential real estate. I know real estate agents are NOT considered on the same professional level as lawyers, doctors and bankers. I also know that fact is primarily the fault of the real estate agents themselves. But people, really. Doing Internet research and then deciding that you can represent yourself in the purchase or sale of a home - it's the equivalent of me reading medical journals for a week and then deciding that I know enough to successfully perform an appendectomy.
The Internet can give you vast amounts of data, but unless you know how to sift through that data, evaluate it, and assess the realities of the market on the ground, it is of limited value. As Mark Twain famously said: "There are three kinds of lies: lies, damn lies, and statistics."
As an example, data on home sales in Area 10 in the Central Virginia MLS, which includes Church Hill, Downtown, Jackson Ward, Carver, the Fan, Oregon Hill, Maymont, Byrd Park and the Museum District, does not help you AT ALL if you aren't able to break down that data into those specific neighborhoods. What streets define those specific neighborhoods? Do you know about the elementary schools? That is a critical element for resale, even if you do not have school-age children. What about the crime statistics for those sub-markets? What accounts for the price differential between a sale of a 3,000 square foot home on Grace Street versus Hanover Avenue in the Fan? Why are two houses within 1 block of each other priced $250,000 apart?
So use the Internet, but be aware of its limitations. Here's a great article from MSN that basically says the same thing. The Internet is a valuable HELP, but over-reliance turns it into a hindrance.
Most of Richmond's real estate agents do a truly crappy job of taking good pictures for their listings. It's time for these jerks to leap into the 20th century, buy a digital camera, and use it.
Posted by: Farty | February 02, 2009 at 11:01 PM