Abundance of Research Tools Changes Real Estate Industry (Opinion)

It wasn’t that long ago that hours spent researching the dynamics of a specific real estate market, along with the proper amount of business networking, were all it took to separate a real estate agent from his peers.

Today, however, the competition isn’t limited to agents. The evolution of the Internet has empowered the general public with direct access to up-to-date information.

Sites like Loop Net, Zillow, Trulia, Realtor.com and Rent.com make information readily available to the average consumer and investor. Agents must promote themselves, their business and their expertise through the utilization of the aforementioned sites — and others — as well as social media networks such as YouTube, Facebook, Twitter and LinkedIn.

I began my real estate career more than 10 years ago, and at that time, real estate information found online was often incomplete or outdated. Researching property transactions typically meant a trip to the county courthouse, where one could spend hours researching deeds on microfilm, or a call to the office of an appraiser.

Each agent, or agency, compiled individual reports on comparable properties. Those with the most experience, or time, could amass comprehensive historical databases.

For an agent, name recognition came with work experience, networking at luncheons and after-hours events, and by engaging in community events through church and civic organizations.

Newspaper and magazine ads often were thought of as the best method to reach the masses. Recall searching the Sunday paper’s real estate section to identify properties of interest? Preparing for a tour of available properties often meant calling representatives of each property to discuss asking terms, etc.

Even though some new technologies were emerging, few in Northwest Arkansas used them on a daily basis.

In today’s environment, one has the ability to research comparable transactions, interact with the community, schedule property tours, send tour itineraries or peruse areas of interest — from the beach, if necessary. All you need is a smartphone, iPad or laptop and an Internet connection.

Trips to the county assessor’s office have been replaced with interactive websites that include the ability to quickly look up ownership records through the use of aerial images and GIS software. A great tool to use for this is datascout.com, or simply Google your county’s assessor’s office.

Some forms of advertising are being replaced by email blasts facilitated through regional and national third-party marketing service providers such as Certified Commercial Investment Member’s RedMail, PropertyBlast and PropertyCampaign. Tour books can be assembled using regional listing databases like www.xceligent.com.

While on a commercial real estate tour, LoopNet Mobile, for iPhone, iPad or Android, allows an agent to quickly access property information for any previously overlooked properties. Even the use of QR codes has become more common in the real estate sector.

We also have access to local market research firms (i.e. Skyline and Streetsmart) that provide semi-annual and quarterly reports on the state of the current real estate market.

However, interpreting the information in an aggregate form may prove to be tricky and therefore, an agent’s “on the go” knowledge may be helpful in dissecting the numbers.

Regardless, never underestimate the value of an experienced agent, as that experience is necessary to navigate through current market conditions as well as historical cycles. This is especially true in the case of CCIM-designated agents, who have completed a process that incorporates theory into practice through hours of training, supported by a work portfolio demonstrating a significant amount of commercial real estate experience. To find a list of local CCIMs, visit www.ccim.com. 

David Erstine is a partner at Sage Partners in Fayetteville. He can be reached at (479) 443-9990.