Real Estate & Technology

"The More Things Change . . ."

Taken to their logical conclusion, innovations like Twitter are inevitably leading us, I suppose, to some sort of real-time, Borg-like mind meld (my apologies to Star Trek fans).

And certainly, advancing technology is affecting how real estate is bought and sold (more posts on that in the works).

However, I think it's fair to say that a good percentage of the advances relate to the speed and reach of people's communication.

So, Susan Boyle is a nobody yesterday, and famous today (and back to a nobody tomorrow?). Or, the street riots in Tehran are on display worldwide, notwithstanding the regime's efforts to suppress eyewitness accounts.

In the meantime, real estate itself is surprisingly technology-resistant.

At the end of the (24-7) day, it's still about bricks-and-mortar, or land, or some combination thereof. That's so even if the "bricks-and-mortar" are now high-tech composites, and the central nervous systems of buildings -- homes included -- are increasingly sophisticated.

"The more things change . . ."

I find that both a bit of a relief, and reassuring.

It reminds me of an experience I had in law school, when I argued a real estate case in moot court (simulated courtroom practice for novice attorneys, in front of a panel of attorney-judges).

Although I did well, advancing three rounds, I remember being thrown by one of the judge's questions.

In particular, he wanted to know why I couldn't "cite any legal authority more recent than 1892" to support one of my arguments.

A bit flustered, I said that, actually, that still appeared to be the governing precedent.

Afterwards, the judge came up to me, and told me I should have "stuck to my guns" when he had pressed me.

"A century-old case is recent when it comes to real estate law," he pointed out (correctly).

YouTube & Real Estate Sales

Star Trib: 'YouTube is Coming Trend'

The most interesting thing to me about the lead story in today's Star Tribune business section, "Increasing Numbers of Metro Realtors Turn to YouTube," wasn't the content, but the byline: the reporter is identified as "a University of Minnesota student reporter on assignment for the Star Tribune."

Hmm . . I wonder if there's any connection between using student reporters and the Star Tribune's bankruptcy filing last month??

It reminds me a little bit of Calvin Griffith, the one-time Minnesota Twins owner, who was famous for his penny-pinching ways. To "leverage" his more expensive, marquee players, Griffith famously relied on Triple A players -- more than a few who appeared to have been prematurely "promoted."

In fact, the student reporter is a good writer, and found some knowledgeable sources for the story.

So is he right about YouTube's growing role in real estate sales?

Virtual Tour vs. Home-made Video

I can't speak for all Realtors, but I don't use video's on YouTube to market my listings -- and have yet to personally encounter one who does.

Instead, I use something called a "virtual tour," which uses streaming video to give prospective Buyers a 360 degree impression of the home for sale. While it lacks the narrative and "personal touch" that's possible with YouTube, it also avoids the vertigo-inducing feeling you can get watching video shot with a shaky, hand-held camera.

Which is exactly the feeling I got watching the video of the Woodbury home that's featured in the article.

Ultimately, the purpose of any online marketing isn't to sell the home -- it's to generate showings, that is, get people in to see it.

What sells homes isn't how appealing they look in online photos or in a YouTube video . . it's how impressive they are once you're inside.

"For Sale, Foreclosed, and Forlorned"

Confused by the Crisis? Watch This

Barry Ritholtz's blog, "The Big Picture," features a video -- "The Crisis of Credit Visualized" -- that provides one of the single best explanations of today's market melt-down/credit crisis I've seen yet. (The video is also available on YouTube in two installments).

It identifies all the players and pieces, puts them in the right order, and gets the interactions right. Superb!