Letter from the editor: Real estate and the internet
The idea of consumers being on an even playing field is a simple one, yet one that has not been achieved in real estate.
Despite all the talk of a property purchase being one of the biggest financial decisions of your life, and home ownership’s role in the 'Australian Dream', there’s something distinctly unAustralian about the game of smoke and mirrors at play in our industry.
It’s no secret that I am against hiding information from property buyers. It’s also no secret that there are groups lobbying for better regulation. So far we’ve failed to regulate ourselves.
The internet has changed property. It’s the unrestricted playground of consumers and industry members where we can review, blog, write and question the experts to our heart’s content. This information floats around far into the future, meaning that indiscretions can always be dug up and that historical details are available. It also means that anyone with a modem, a bit of cash or some tech skills can set up a website and appear to be a genuine expert. Most people can write a book and self-publish it, given a little effort and some ‘how to’ steps. Most people can also get themselves quoted somewhere, put out a semi-decent press release or hold a webinar.
Technology has simultaneously made our lives easier, with instant access to the latest data, and overwhelming. There is a vast array of different viewpoints available. Some of those viewpoints will be worth your time and energy, others not so much. The internet has made us more educated about property – able to undertake our own research about prices a lot more quickly and easily – and ready to make decisions.
When new websites and technology emerge in real estate, it’s widely discussed. Whether it’s Squiiz, Homely or NextForSale, they make headlines. They’re often exciting – bringing us more information in different forms, more competition and shaking up the industry a bit.
One new site, realAs, looks to stop underquoting in the industry as a by-product of their new platform that claims to accurately identify the prices properties will sell for.
Speaking with realAs’ Josh Rowe yesterday it struck me that the only new sites we need, and the only ones that are likely to survive, are those that tackle a problem we’re facing – or provide something new – rather than adding to the busy online real estate landscape.
Rowe told me one very important thing about realAs’ successes and failure. When it doesn’t accurately predict a property’s purchase price, they won’t hide it. They won’t keep these secrets from their users.
One thing we are able to do being an online platform is ask you to take part in coverage, to call stories out when you think they’re wrong and to bring your opinion to the table.
We want to try an experiment with this new technology, with you involved.
If you’re heading out to an auction over the next month, let us know about it. Email me the home’s address via jduke@propertyobserver.com.au. Tell us the price guide, and once you’ve attended let us know the reserve price. We’ll then compare the sale result with the realAs price and put the data to the test.