Is Google Making A Play For Real Estate?
by Misty Lackie
For the past few years, many have watched the landscape of the Real Estate business change drastically. It has been transforming from a closed data system that only those with access to the MLS had the keys to unlock, to an open system where most listings can be found just about anywhere by anyone. Buyers can now find listings on sites such such as Trulia, Zillow, and yes, Google Maps, without having to unlock those doors to the MLS data. I have felt for a long time now that Google had the data and many of the pieces in place to be a huge player in the Real Estate space. Some recent announcements this year point even more towards that.
Improving Real Estate Search On Google Maps
On July 6th, 2009, Google announced that real estate listings would now display within a map with a one-box that would take you to real estate listings when users search for property related queries.
Google Retires The “One at a Time” Feature
On July 30th, 2009, Google announced that they would no longer allow manually entered single listings. Maybe I read into it wrong, but at the time of the announcement I translated that into Google wanting to target the large data providers.
Place Pages for Google Maps
In September, 2009, Google launched Place Pages. There are Place Pages for businesses, points of interest, transit stations, neighborhoods, landmarks, and cities all over the world.
More Real Estate in Google Maps
On October 29th, Google announced some changes to Google Maps that would make it easier for you to find listings. “First of all, we’ve made it easier to find real estate listings. Now, you can simply select “Real Estate” from the ‘More’ button on the top right of any Google Map to discover listings.”
Integration of real estate listings with Place Pages
On November 19th, Google mentioned the integration of real estate listings with Place Pages, saying “Now clicking the “more info” link next to a listing takes you to a faster, easier-to-read page that gives you all of the information we have about a listing: photos, inspection times, videos, details, a Street View preview and nearby public transit information if available, allowing you to quickly find the listing you want and click through to the sources of the listing.”
Google to Acquire Yelp?
On December 17th, 2009, rumors were flying around that Google was in discussions to acquire Yelp. Acquiring Yelp, in my opinion, would allow Google to enhance its real estate portal with ratings and other localized information.
Google to Acquire Trulia?
On December 18th, 2009, rumors surfaced that Google is in discussions to acquire Trulia. “According to sources close to the situation, along with its pending bid for Yelp, Google has been in on-again, off-again acquisition talks with Trulia”.
Is it just me here or does this look like a pattern? I personally feel that if Google purchases Yelp and Trulia, this will be another game changer in the Real Estate space. What will this do to the MLS? Will the many MLS’s be as important or will Google eventually be the main source for real estate search and data? After all, the MLS’s don’t have all the listing data. They don’t have FSBO listings, foreclosures, or other listings from Agents that don’t belong to the MLS.
Lori Galloway Said,
December 22, 2009 @ 12:17 am
When Zillow was first brought to market many thought it would change the face of real estate, but after it’s initial launch users found that much of the information was flawed because there was no direct access to the information found in the local MLS systems. Even after the many updates, it is still not nearly as accurate as the information found in the MLS systems. Trulia also only provides limited information. Many agents use it as a marketing tool.
I do not believe Google will make any further difference on the current Real Estate marketplace for the same reason the other systems have failed to make a marked difference;it has no access to the members-only information contained in the local MLS systems.
While it is true that the availability of information on the internet has grown, probably in part to a push by the public for access to this information after trying these other vehicles, Google should have limited impact on the current system of home sales. FSBO listings and foreclosures make up a small percentage of the market, and the MLS DOES have many of these, either in the form of the limited representation listings (FSBO) or in agent listed foreclosures. Very few agents are not members of MLS, so again this will not impact our current system in most cities.
I feel the greatest impact on the real estate industry has come (and will continue to come) from the changing face of the buyer in today’s market; much more tech savy, much less time to shop, and much more reliant on agents who have the ability to find the right home in the right area and communicate via e-mail, text, and handle documents with e-signatures. They expect to do much of the transaction over the internet.
Misty Lackie Said,
December 22, 2009 @ 12:55 am
Hi Lori – thanks for your feedback. You make some very good points.
Tina Merritt Said,
December 22, 2009 @ 5:05 am
While I agree with Lori on most points, I respectfully disagree with the statement that buyers will be “much more reliant on agents who have the ability to find the right home in the right area”. The real estate industry needs to understand that the role of an agent must constitute more than that of a walking lockbox key who can search the MLS. Real estate agents must become students of their trade and educate themselves on the economics of real estate, trends, statistics, etc. I’m amazed at how many agents cannot even explain the basics of how the markets effect mortgage interest rates. I fear that unless the industry pushes for more education within itself, it will face the same fate as the travel industry.
Misty Lackie Said,
December 22, 2009 @ 1:20 pm
Hi Tina – I 100% agree with you there. Your statement “I fear that unless the industry pushes for more education within itself, it will face the same fate as the travel industry.” is a conversation I just had with my Dad the other day. As for buyers being more reliant on agents to find the right home. I can only speak for myself and my friends/family who are looking or have purchased recently. It seems like more buyers find what they are looking for first online and then reach out to their Agent with a list of properties. I as a buyer like to look for my own property and then get the feedback and expertise of my Agent. My Agent is awesome! He has been in are area since he was a child and knows it well. He has also been in Real Estate for a long time and knows that well too. These are the reasons I chose him.
Tina you are a Realtor but you are also an educator so I have question that I was hoping you could answer coming from both ends. I hope this question doesn’t offend anyone but it is one that has been spinning in my head. Let’s say Google did make a play for Real Estate. Let’s say they offered Agents/Brokers tools that would help them manage their business, information, listings, local area info, etc. What if Google built a true national/international communication portal that allowed Agents to communicate with each other from across the globe and share listings and clients (think Google Wave for Real Estate)? Let’s say they did this for a very low fee or for free. If Google empowered Agents/Brokers and also buyers, would less Agents/Brokers renew their MLS membership? Google sure has the power and technology to put something like this in place.
Tina Merritt Said,
December 22, 2009 @ 1:53 pm
Misty, the real estate industry needs to stop being afraid of sharing information. I mean, seriously! A house is a product – a marketable, consumer driven product. Why is the industry restricting the marketability of that product? As far a global outlet for communication amongst agents and consumers – heck yeah! The sad thing is that the real estate mega-companies are either fighting or following rather than leading this trend. WHY aren’t real estate companies engaging their agents on their sites and creating hyper-local information? Why aren’t the sites staffed 24/7 to respond to consumer needs? UGH! Don’t get me started…….
Misty Lackie Said,
December 22, 2009 @ 2:09 pm
Well said Tina.