Transparency In Real Estate – Key Message at SJREI Mid-Peninsula Meeting

The Three Pillars Of Change

The main message we delivered through our presentation (SJREI021313) at the SJREI (San Jose Real Estate Investors) two days ago was that transparency, or its lack thereof, is a critical catalyst that is preventing the industry from being what it can be, and the real estate professional, agent or investor, from being as efficient and productive as they should be. The underlying force being that a new paradigm shift in real estate is in underway, fueled by consumer insight, powered by technology and new business models.

We stressed and showed how these models will threaten the existence of organizations, large and small, that refuse to notice the oncoming change and tune in to new consumer expectations in how the real estate business is handled, especially online.

This would include real estate auction companies and real estate auction sites, sites that enable REO auctions and real estate government auctions, and organizations dealing in any shape or form with public real estate auctions or foreclosures and distressed property data and listings.

Notwithstanding, regular consumer portals were discussed in the same context, be it publicly traded companies or startup. That the threat is real.

The good news was that the undercurrent also brings with it potentially huge opportunities for those same organizations who tune in to the change and adapt, as many have magnificently done over the years.

Within the context of a session meant to explain to experienced real estate investors what ListedBy.com is, we took the path of focusing on industry concerns that when addressed by platforms and open environments such as ListedBy.com, should result in far greater efficiencies (operational and cost) and productivity for the investor and anyone engaged in the buying and selling of real assets. This, on the premise that all technology we elect to deploy in business is meant to enhance one or the other, in some shape or form.

The paradigm shift would consist of three key pillars with transparency at its core. From these new levels of transparency, the benefits far greater efficiencies and productivity will be drawn. Lack of transparency, today a detriment to economic growth and sales productivity will be replaced with an environment where full transparency is an expectation. Vis:

- Open access to listing data, REO, distressed and regular assets included. Hiding data behind cumbersome registration pages and fees will no longer be an option.
- Actual listing reps featured. The challenge of not being able to instantly see who the true seller or representative is, and not being able to access their contact information, will do more damage to the site or portal exercising such a strategy, than it would do them good.
- Bidding and bidder transparency. Shil bidding (bidding that is used to artificially inflate the price of a certain item), and transparency in being able to see who is bidding and who wins a bid, will become the norm.
Improved cost efficiencies would be delivered in a number of forms including:
- Free auctions
- Free access to listings
- No buyer premiums
- No registration fees
- No brokerage fees

We have a long way before everyone buying and selling real estate realize how deep the benefits of transparency would run within an organization, and how much of a boost in operational and sales productivity such transparency and access to information can drive.

If participant feedback at the session was any indication, the thinking behind ListedBy.com is definitely something more and more real estate professionals will be gravitating to.