Future Internet Trends Already Changing Real Estate Several times in the past few days otherwise lucid people have mentioned that in the future the Internet will be everywhere and then used the same example to explain how the Web will influence our lives in coming years: Your web-enabled refrigerator will send e-mail when it needs repair work or you're running out of eggs. I guess such advances must thrill someone, but e-mailing ice boxes are not what hold my attention when thinking about tomorrow's Internet. I am vastly more interested in saving time and money, better communication, making a few dollars, and preserving my privacy. And while I haven't taken a survey, I suspect a lot of people with realty interests feel the same. Consider the growing use of voice recognition technology. We're not there yet, but given faster chips and improving software you can see that in a few years we may encounter our first computer without a keyboard. The dream of a true dictation machine will be real, something that hears words and then digitizes them -- correctly. Such technology will change many industries, including real estate. Home inspectors or appraisers, as an example, might visit a house, record their remarks, and then provide a print-out as they say good-bye. Online telephony will make long-distance calls free -- you'll dial an ISP locally and connect through the Internet. Such systems will work not only with connections from computers to computers, but also from computers to phones, one reason for the rush by so many players to enter the hand-held appliance business. In the future, the hand-held computer and the cell-phone will be one, and lengths of copper wire will be antiques. Monthly ISP fees will be gone. Why pay for a service which is also available without cost? In the same way that long-distance phone companies fear the Internet, ISPs fear each other. Competition is so intense that rather than free ISP services, we may actually see ISPs that recruit consumers by paying them. Language will no longer be a barrier. Translation sites already exist, tomorrow's will be better. Need to access information overseas or speak to a client in Korea, Kenya, Brazil, or Belgium? Need to speak with one of the more than 30 million people in the U.S. who use English as a second language? No problem -- translation technology will instantly convert words back and forth with a high degree of accuracy. Because of the Microsoft anti-trust trial it's now possible to imagine that new and competitive operating systems will begin to emerge -- Linux for desktops and servers, the Palm operating system for hand-helds, AOL's "Gecko" system for internet appliances and who knows what else. These operating systems, in turn, mean that new products and services will be able to enter the marketplace and have a reasonable opportunity to compete. Oh -- and one more. Computers will be free and in some cases you can imagine consumers being paid to use certain brands. Why? Because companies will make up equipment costs with monthly charges. Software will hook consumers into one ISP, thus creating a marketing channel to sell ads. Why should brokers care about any of this? Changing technologies represent new opportunities. The trends noted here, and others, show that the means to communicate, compete, and market are evolving in ways that will create new winners. It's interesting to look back several years and consider those identified as "industry leaders." The names from five and 10 years ago are different from the names we see today. No less interesting, the names we'll see tomorrow will also be different. Combine technological innovation with changes in practice and marketing, and you can see a different industry profile emerging. What will it look like? - Information technology will be widely available and cheap. This means even small firms will be able to compete with larger ones in terms of computing power, web sites, and software.
- A national MLS may emerge, but only after it's clear that such an entity will be owned and controlled by the folks who supply the data which makes it possible -- brokers.
- Many of today's costs of doing business will decline, meaning more and more people will opt to practice independently or in small groups.
- For reasons of liability, we'll increasingly see brokerages that serve only buyers, and also brokerages that only serve sellers.
- Fees per transaction are likely to fall because flat fee, menu-of-service, and consulting arrangements will become increasingly common.
- Some very large sites and services will fail because business economics will evolve. Expected revenues simply won't be there. Lean sites with a strong bottom line will evolve as the business model of the future.
- The US will adopt the privacy standards established by the European Community and all web sites will carry appropriate disclaimers and opt-in information.
- Sites and services that establish themselves now will have a substantial advantage in the future. Why? As more and more sites go on-line it will require bigger ad budgets to make a marketing splash and develop name recognition. Conversely, fewer investor dollars will be available as the odds of success and profits dim. (Think about cars -- the leading companies and brands date back 75 years.)
In the end, we'll have a fast-paced, competitive, and changing marketplace which features empowered consumers and responsive brokers. Brokers who are not Internet savvy will be a quaint curiosity, like saddle makers and oil lamp producers. Save Money Financing & Refinancing The latest edition of The Common-Sense Mortgage -- now among the top-ten best selling real estate books nationwide -- is available in bookstores online and off. In print for nearly 15 years and widely recognized as the standard consumer guide to real estate financing, it's described by syndicated columnist Robert Bruss as "an encyclopedic, detailed summary of just about everything real-estate investors, agents, lenders and borrowers want and need to know about mortgages." "On my scale of one to 10," says Bruss, "this superb book rates a 10." "This continues to be the most, lucid, comprehensive treatment of the subject on the market," says The Real Estate Professional. "If you want solid, reliable information about residential real estate financing, written in a thoughtful, convincing style, this is your source." For additional information, press here. Question Of The Week Q What is meant by a home that must be "broom clean" by closing? A When a home is sold the owners agree to deliver it in a given condition to the purchasers at closing. A common requirement within sale agreements is that the home must be "broom clean," an expression which generally means that all furniture, boxes, goods, and other items not intended by the buyers to remain with the house should be off the property. Just before closing the purchasers typically have an opportunity to walk through the property. At this time they should be able to see that the home is being properly conveyed. If not, it may be worthwhile to establish an escrow (trust) account to assure that all debris are removed from the property at the sellers' cost. For specifics, speak with your broker or attorney. Weekly Resource Looking for the inside scoop on the Microsoft trial? Several sites are tracking the case, including: | 
