Radical Transparency in Real Estate

Chris Anderson has an awesome post on the Long Tail Blog entitled, "In praise of radical transparency". I've written a great deal in previous posts how the web has become the primary catalyst of change in any business. Like it or not, we all need to realize that no matter how secret we think our sauce is, our prospects and clients are probably much more aware of the ingredients than we care to believe. Those that are taking what Chris describes as a radical approach to transparency intrigue me. I like the brutally honest approach to doing business and like Chris, I'm also huge Mark Cuban fan.

Altos Research has a recent post that speaks to this very issue. If you're a real estate professional that thinks your career is in danger because your clients are armed with too much information, you're probably right. Read the last comment on this post from a RE/MAX agent at Transparent Real Estate:

"Your definately(sp) right about the public not understanding the difference between and MLS, real estate agent IDX website, online real estate classifieds. The online marketplace is getting more confusing for homebuyers because they are using to(sp) many sources for their info.

Serious buyer and sellers should start with Realtor.com first."

I think making assumptions of what the "public" does or doesn't understand is mistake. Perhaps it's really just a deep seated fear of not having the same knowledge. Consumers don't care about IDX or classifieds or which national real estate portal has the most comprehensive database. They want to buy or sell a house and they have their own unique set of wants and needs. Consumers spend time educating themselves about all kinds of purchases on the web, does that stop them from asking the guy at Best Buy what he thinks? No. It just makes them feel better about their decisions. The same is true of real estate. Consumers want representation and they want it from people who are more knowledgeable than they are. They want representation from people who are doing things differently and more efficiently than the next guy or gal. The super agents and brokers of the future are going to be creative business people who have learned how to look at the glass as half full and fill the other half with their own blend of technology, marketing and negotiation skills.

I'm probably a good example of the new real estate consumer. You would think with all I've learned over the years I would sell my own home without representation. After all, I know how best to market it. I wouldn't even begin to attempt to move through the whole process on my own. Not only do I not have the time, there are plenty of things I don't know and I sure haven't built the same relationship "sphere of influence". So would I use a real estate professional to sell my home and help me find another? Absolutely. Would I use a real estate professional that knows less than I do about the process? Absolutely not.

You can look at transparency two ways. As a way of doing business, or as a way for your clients to see right through you. Welcome to the brave new world of real estate.