Thoughts from Online real estate pioneer
Peter Miller talks about where we've been and where we are going
September 9, 1996
Inman News Features
Vienna, Virg. -- Author, real estate broker and all-around real estate expert Peter Miller understood long before most of us that real estate was made for the online revolution. He jumped onto the early days of the America Online bandwagon and began offering a feast of real estate-related services.
Miller responds to every e-mail and has served as an ethics official, cheerleader and pundit for on-line property ventures. He is stubborn and sometimes suspect of new ideas, but for the most part he is credited with legitimizing the on-line real estate world.
Here is an interview with Miller.
What is your title at AOL?I am the creator and host of the Real Estate Desk.
Are you an AOL employee?
No. I am an independent contractor. I do not speak for AOL or represent the company.
How has the AOL real estate area changed since it was first created?
The area has not changed much in concept -- the basic elements are still in place: message boards, a library, a mortgage information area, live conferences, and a buy/sell/rent/exchange property feature.
But, if you look at AOL you can also see that the company has grown from 120,000 members when I first went online to more than 6 million. The value of posting a for-sale message, for example, is now far greater than several years ago. I think we will see more instances where there will be charges for advertising products and services, and for connecting commercial links. I also think we will see more demand for such access by those with products and services to sell.
Other changes, both online and on the Web, include the movement to faster modem speeds and more art. What was essentially a text-based form of communication several years ago is now becoming a multi-media format.
The biggest change is probably usage. As more people use the system, the value of the system grows. Each additional posting adds value, which attracts more users, who post more material, and the cycle then repeats itself.
What have you learned?
I have learned a great deal -- and I am still learning.
The questions and answers posted on our non-commercial message board area serve as a kind of radar system to identify consumer interests and industry trends. The sheer volume of information is astonishing. It helps that a very large number of articulate brokers, lawyers, accountants, inspectors, appraisers, assessors, lenders, and those with related skills contribute to our area.
Running an online area has also been educational. There was no model when I began, so of necessity many of the practical protocols needed to operate a real estate area had to be developed. Also, over time, area operations have become far more complex and there has been much to learn.
What is the future of real estate online?
Online services and the Web are at a very early point in their development. We know there will be real estate sites and activities online, but changing technology suggests that the "look" and "feel" of future sites might be very different than what we have today.
However, I think public interest in terms of subject matter has remained fairly constant -- and will in the future. The essential question for online hosts and Web operators is how best to satisfy public needs.
How did it happen that you are sharing the real estate stage on AOL with others?
If you mean what is the impact on my area from the new Real Estate Center on AOL, I am happy to "share" the stage with "others."
Think about the difference between a stand-alone retail site and a location in a regional mall. Malls routinely do more business per square foot because they attract more traffic and offer better economics. In a similar manner, why not aggregate content so consumers are able to find what they want at a single location?
Is real estate online being unduly commercialized?
"Unduly commercialized" according to whom? Where are the stone tablets which proclaim that online areas and Web sites should not produce a profit? Since when is financial failure a badge of competence, expertise or moral purity? Can someone please explain the standards necessary to produce a "duly commercialized" site?
At the Real Estate Desk we have a non-commercial message board area with more than 38,000 questions and answers -- I don't know of anyone with a larger non-commercial collection online. In the same way that newspapers have both editorial content and advertising, the Real Estate Desk also has a fusion of elements. There is no reason why, like a cable company or magazine, the Real Estate Desk should not earn income from both subscribers and advertisers.
What has been the response to your area?
We have had any number of positive reviews. NetGuide called my site the best real estate area online, "bar none." No less important, we get a lot of kind mail from people thanking us for our help and suggestions.
Who do you see as leaders online in real estate?
I am impressed with IRED and the HSH site. There are a number of solid MLS sites, and I think Century 21 has a strong area. I like the National Association of Home Builders area, and I think several federal sites are well done -- Census, FTC, etc.
I also think there are a number of interesting newsgroups online. The best ones tend to have tightly-focused content and small mailing lists. With all the attention to Web sites and new technology, text-based newsgroups remain an important element on the Internet.
How would you describe the relationship between the online services and the Web?
At this point they complement one another. It is sometimes estimated that 30 to 40 percent of all Web traffic starts on AOL, so it seems to me that AOL is a pretty good place to be.
What role is there for real estate brokers, trade groups and lenders online?
Once people see that online services and the Web are a form of media, we will begin to have fewer real estate sites but better ones. People in real estate will use online communication for three central reasons: First, as a marketing tool. Second, for general communication with group and company members (intranets), and for communication with the public. Third, we will see transactional communication between professionals and the public and also between and among professionals.
Will consumers benefit?
They already have. We now have public access to many MLS systems across the country via online services and the Web, and virtually everyone agrees that more direct -- if limited -- MLS access makes good sense for brokers and the public. Lending has become very much more competitive because now people can see and compare greater volumes of loan information. Consumers can search for homes in distant cities.
Are you still writing books?
Yes, I currently have five books in print with HarperCollins: The Mortgage Hunter, Buy Your First Home Now, Successful Real Estate Investing, How to Sell Your Home In Any Market, and Successful Real Estate Negotiation (with Douglas M. Bregman).
Will you be developing new sites directly on the Web?
The Media Marketing Group (via e-mail at OurBroker@juno.com), which I head, has been approached by a number of companies and associations to provide content, management, consultation, and administration. We expect to participate in a variety of sites with selected clients.
Is it possible for Web sites to be profitable?
Let's be careful to properly identify how we define "profitable."
If the question is, "Can my Web site generate enough advertising dollars to be profitable," then I think the answer for most site operators in the next few years, at least, will be no.
We can think more positively if the question is, "If I have a product or service to sell, or I have a membership to serve, can a Web site help me sell more (thereby producing higher profits per unit) or help me get and keep more members (thereby lowering costs per member)?" Here I think the answer is clearly yes.
We know that brokers have been introduced online to homebuyers and that such introductions have set off a chain of events leading to sales. We also know that real estate is a localized business and that the best Web set-up in the world is worth little if there is not a responsive local professional to handle the business. In a way perhaps not anticipated, I think the Web has done much to reinforce the value of local brokers and other realty professionals.