Zappos is the leading online shoe site. They are a customer service-driven organization that has received a ton of business from my household the past couple years. But what concerns me here is the online experience, which is simply fantastic.
What makes Zappos great
It’s simple in my mind. I’ll use real estate language to explain it:
- The "MLS" — Zappos — easily mingles inventory from a vast array of shoe "brokers" across borders through a brilliantly executed public search site.
- The brokers who supply the inventory also supply awesome pictures and great content to merchandise their products.
- Consumers are allowed to participate and contribute reviews solicited by the "MLS" on behalf of the "brokers."
Zappos’ greatness is a result of this trinity of contributors working
harmoniously, each vested in a common end result – a
successful transaction.
Here, everyone wins.
Hard work in and great results out.
This is what it’s about.
What makes real estate search not so great
It’s simple in my mind:
- The MLS (most, anyway) won’t mingle inventory from the vast array of brokerages across borders resulting in a less than useful search experience.
- The brokers don’t, can’t and won’t supply awesome pictures and great content needed to properly merchandise their products.
- Consumers are never solicited for reviews by the MLS on behalf of the brokers because they fear this content.
Here, there’s no winner.
Laziness in. Nothing great out.
This is what it’s about.
Online real estate will never fulfill its promise if real estate’s three participants don’t all step up to the plate.
Real estate talks a great game. But comes up short when it counts.
It’s nice how everyone throws around the word "consumer," but meanwhile it’s almost 2009 and people still can’t search across MLS borders on most broker websites. Instead, they need to go outside real estate to do it. And while they might be able to look at homes on those sites, they can’t source the critical knowledge about homes and neighborhoods because it’s locked away inside the MLS, the brokerage and the minds of local residents. If real estate really cared about the consumer, this problem would be history.
It’s cool that a few MLS’s in the Bay area poured some celebratory bubbly over a decision to merge data. But the cheers are ten years too late. And the time just keeps tick-tocking away.
Zappos does it right.
It matters not that they sell shoes.
That’s not the big picture.
- Davison
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Marc,
MLSs seem to have a huge fear of allowing public reviews of properties by consumers and Realtors. Admittedly, review systems can be used and abused in many ways–but you'd better believe that reviews would allow both Realtors and consumers to eliminate or reconsider including homes from their search that are 'creatively marketed', but not exactly a true and honest picture of what exists. It would also make the Realtors and properties that stand out, justifiably get the attention they deserve.
An independent third-party entity who could objectively (as objectively as possible) rate and review homes would elevate each owner's and Realtor's presentation of the home.
We pick which restaurant we go to by reading a review–why not narrow down our home search based, in part, on homes which were reviewed by 3rd parties?
Marc,
Great as always. I can’t tell you how frustrating it is to feel “techno punished” for being a Realtor and a member of my local board. I can not commingle different types of listings on my website (FSBO, new construction, non MLS, REO’s, etc..) because it violates the “rules.” Mean while, my board (and many around the country) are feeding every real estate portal out there. These portals are finding innovative ways to leverage the MLS data along with sold data, FSBO’s, etc.. I get a notice from my board that my IDX logo is not quit as large as it should be and if I don’t get it fixed they are going to shut me down. Interestingly enough, this logo doesn’t appear on any of the sites my board feeds to? A bit of a double standard? Almost makes me want to cancel my membership so I can create a website consumers what to use, with info they want. There are so many great things we can be doing in this industry it is time NAR gets a clue and takes off the hand cuffs.
Brett,
By my thinking, reviews must come from the public and cover a host of issues from the homes themselves to the services provided. Together, this mix of greens are part of what's needed to make a great real estate salad.
But I have no faith. At least not during my lifetime.
Reviews are taboo in real estate and the reason is this simple: Real estate doesn't want to confront its many flaws and have it thrust at it like a pie in the face. The industry is smart enough to know the feedback won't be good and ultimately, won't be valuable either.
And so my point is, as a result of not acquiring key info combined with policy issues as Ryan pointed out, Search will only ever be ok. Which is a shame really because I for one see the potential.
Great discussion points…as always.
In WA state the Brokers all share their information on their public web sites. When viewing my companies public website you will also see listings by our competitors and visa versa. My take is I'd rather have a consumer go to any Brokers website in our area for the most up to date info possible. (Better than third party vendors who do not keep info as up to date)
Regarding photos…spot on. I wish all agents would invest the time and or money to properly market their listings with both photos (done professionally) and with commentary.
Your last point regarding reviews. Right, wrong or indifferent this seems to be the trend for at least the near future. One of the differences between reviewing a real estate agent and a product…like a shoe, or a service provider like a stock broker is this. A typical real estate transaction has between 16 and 20 people involved. Often times when a transaction gets bumpy the real estate agent actually has nothing to do with it, yet they are held accountable. If the underwriter on the loan the buyer is trying to get says no way, the seller will often be mad at their listing agent. Human nature is to take out frustration on the person who they are in contact with on a daily or weekly basis. Unfortunately the agent at hand is the one held accountable. Undoubtedly, a good agent working with engaged and informed clients will be able to work through these challenges and come out feeling whole.
On each of our transactions we send out a written survey. This type of feed back definitely helps our agents and our company improve with each transaction.
Thanks for the dialog.
Great discussion points…as always.
In WA state the Brokers all share their information on their public web sites. When viewing my companies public website you will also see listings by our competitors and visa versa. My take is I'd rather have a consumer go to any Brokers website in our area for the most up to date info possible. (Better than third party vendors who do not keep info as up to date)
Regarding photos…spot on. I wish all agents would invest the time and or money to properly market their listings with both photos (done professionally) and with commentary.
Your last point regarding reviews. Right, wrong or indifferent this seems to be the trend for at least the near future. One of the differences between reviewing a real estate agent and a product…like a shoe, or a service provider like a stock broker is this. A typical real estate transaction has between 16 and 20 people involved. Often times when a transaction gets bumpy the real estate agent actually has nothing to do with it, yet they are held accountable. If the underwriter on the loan the buyer is trying to get says no way, the seller will often be mad at their listing agent. Human nature is to take out frustration on the person who they are in contact with on a daily or weekly basis. Unfortunately the agent at hand is the one held accountable. Undoubtedly, a good agent working with engaged and informed clients will be able to work through these challenges and come out feeling whole.
On each of our transactions we send out a written survey. This type of feed back definitely helps our agents and our company improve with each transaction.
Thanks for the dialog.
I like what I am reading about the direction that consumers would want to see real estate.
I know that the state of Wisconsin is going to a full state MLS system where information is shared by every broker. I am sure this will take time to get everyone on the same page, but it will be beneficial.
I don't know what reviews can do for real estate. I think consumers having the ability to leave testimonials is great for an agent or company, but I don't see the benefit for reviews on a property.
Web 2.0 is opening up doors and as younger agents help "older" agents understand the benefits of information sharing, it will transition.
I love all of the comments and it is great to brain storm. Great blog!