StepRep Blog

Did you ever notice that people are very slow to change their behaviour, even when they know that behaviour change will be good for them? Examples of hard to change behaviour could include everything from stopping smoking to real estate agents only taking one picture of a home. However in these examples of behaviour change it is easy to understand that change will be a good thing.  

Imagine, trying to convince people to make a behaviour change when it is not apparent that the results of that behaviour change will be positive. This is exactly the challenge that many Web2.0 companies are faced with when they try and embrace the real estate community. Free available and repurposable data, Agent Ratings, public comments on listings; these are a few of the things that the industry resists. They resist it not only because it is a change in behaviour, but because they can not see the benefits. To see the benefits requires a “change of their state of mind” and from time to time a paradigm shift does occur. Do you know what happens when there is a paradigm shift? Everyone starts over, and they start over from the same point.

I guess what I am saying as that sometimes it is not always obvious what is good for the real estate industry. And, from time to time, something happens that resets the playing field and everyone starts from the same place.

If you haven’t read the post on “social reputation” I think you should. The reputation paradigm is shifting. Google yourself, Google your competition. The playing field is zeroed. How do you rank so far?

Even given overwhelming evidence people will be slow to change. Sometime they just have to believe.

Think Different.

This is an example of the “Mpemba effect”  Where hot water can freeze faster than cold water.  You have to stretch your mind to believe.

So what is your “social reputation” and why is it important? 

First lets start out by defining what Identity or Social Reputation actually is. In my view  your “Identity/Social Reputation” is simply the social standing that others hold you in.  More simply put we could say that:

Identity/Social Reputation = what you say about yourself + what others say about you.

In the past (pre – Internet) your identity reputation would typically come from what others said about you.  Word of mouth so to speak.  One way to carry around what other said about you would be via endorsements and memberships in organizations or other such designations.  In the past this information was tough to discover. It existed in public records etc.  One way people use this information is via designations after their name which they display on their cards, business signs or in their conversations with people.  For instance, PhD, Esq, CMA, BSc, MD, Realtor, GRI, ABR you get the idea. 

Fast forward to today.  Google has become a verb.  I can “Google” almost anyone and find out far more about them than they may think.  The Internet has opened the door to instant access to data. It matters not whether the data is accurate or relevant.  It simply is.

Is this important to the real estate industry?  You better believe it is. Until very recently the real estate industry has chosen to stick it’s head in the sand and hope it would all go away. It won’t.  To that end I will attempt to illustrate the importance of Identity in the context of the real estate industry and the agent/consumer relationship.  It is one of the biggest issues facing the web today. It is affecting many industries and particularly those where the Internet is making an impact and changing consumer relationships and conversations from the offline world ( belly to belly conversations ) to the online world.  In order to understand the “Identity/Social Reputation Problem” I want to take you back through a bit of Real Estate / Internet history as I see it.  I believe that the key to predicting the future lies in understanding the past.      
   
Imagine back in time to the early 90’s.  Computers were becoming ubiquitous but the Internet was a small network of Universities, Military servers, big companies and geeks, the world wide web was in it’s infancy, growing up fast, but to be sure still in it’s infancy.  Computers were changing  the practice of Real Estate.  Listings were being emailed, listings data was improving and brochures were being created but as of yet the Internet had not made an impact.  If consumers were thinking about entering the market they had few choices.  Look in the paper, visit open homes or builder showcases.  Ultimately, though, because of the limited options consumers had a much shorter “pre-research” and “research” phase.  They were forced to “call a realtor” even if they weren’t quite sure they wanted to enter the market. I personally feel that this created a situation where Realtors were put in position where they were seen as trying to “sell” a consumer that wasn’t yet ready to enter the market.  I also feel that this is, in part, why consumers have such a low public opinion of Realtors (see NAR survey results).  The good realtor would have to spend hours doing a number of things:  Educating the consumer on the market, helping the consumer to decide even if they want to enter the market (without being pushy). And finally helping the buying consumer find a house that fits their lifestyle, budget,  and neighborhoods preferences, satisfied home inspections,  helping to negotiate, etc. Helping the selling consumer to set price, stage home, advertise, etc.   In short doing all the things good Realtors do that add a ton of value.       
      
The Internet has changed – it is now ubiquitous – and has changed many industries with it.  For example the travel and investment industries will never be the same.  Real Estate however hasn’t really changed all the much, or has it?   The best way to assess this, in my opinion, is to look at the consumer.  Today’s consumer has expectations that are slowly but surely changing. A consumer that wants to enter the market today has one more choice then his 1990 counterpart.  He has the Internet and he is choosing to use it.  Calling a realtor or any other live person to help him decide whether or not to enter the market is a decidedly unsavory second choice.   
 
The Internet has provided an alternative that has exposed what has really been happening since cavemen began considering looking to move caves.  Consumers can browse homes, look at prices, research neighborhoods and decide whether or not they want to enter the market.  This stage of research is decidedly longer than a realtor is used to. It can be up to 24 months or longer. Until the consumer is committed to entering the market  he doesn’t need a realtor because he doesn’t need what a realtor has to offer:  specific advice, negotiation, legal and administrative help, professional marketing and consulting, local service recommendations and the host of other things a good Realtor will do.      

So you you might ask yourself, what the heck does this have to do with identity and social reputation?  Lots I believe.  In the past (pre-Internet) consumers had to contact a realtor for access to information. In  order to choose which real estate professionals to contact they would learn about the Realtor’s Identity and Social Reputation.  Back then a “good” Realtor would have a “Social Reputation” that would be passed on by word of mouth from past clients and friends.  He would advertise his “slogan” along with his designations, his franchise association and maybe even his sales volumes etc.  He would say things like “#1 agent in xxx market” .  His reputation amongst past clients and colleagues and his advertising became his social reputation.  In the past, reputation changed slowly, it took much longer to create or to destroy.

The Internet has accelerated the discovery of ones reputation.  I only have to “Google” someone to find out what he is saying about himself, what others are saying and have said about him. Reputations can be created and destroyed in hours and days rather than months and years.   This is particularly important to Realtors as more and more people are selecting them based on their online social reputation. In the past where a person would pick up the phone and call a friend they knew had just bought or sold a home they now can simply and easily look to their social graph to see who their friends (people they know and trust)  are recommending.  They can, and already are, doing this through, Facebook, Linkedin, Myspace, Hi5  and a whole host of other ”social networks”.   

Smart real estate professionals know exactly what their “online footprint” or “social reputation” is.  They are building it by blogging as subject matter experts and connecting to consumers in a multitude of ways including social networks.  In short they are participating in an online conversation with the rest of the world.    

Are you?

I have the honor of writing the first blog post for our team on NoMoreDoorKnocking.com.  This is where the VendAsta team will discuss an exciting new real estate initiative.  We’ll talk about a lot of things here.  We’ll chat with real estate agents, brokers, industry experts, service providers, techies and consumers.  You’ll learn what we’re up to, how we are progressing, what we think and why we’re doing what we’re doing.  But more importantly, we want to hear your thoughts.  There’s a big hole to be filled where real estate meets the Internet and there’s a lot to learn.  Let’s begin the journey together…