Why do Real Estate Agents convince themselves, that all consumers buy/sell real estate, based on logic? We tend to focus on a real estate related topic, rather then a personality trait or specific interest. People don’t buy based on logic. They respond to EMOTION.
Disney has a great example of how logic can be your biggest enemy. Several years ago, Disney entered the mobile phone market by creating the ideal phone for kids. It featured GPS Tracking, Disable Text MSGs Remotely, and Parents could limit calling times. What went wrong? No child over 10 wanted a Disney branded phone, they didn’t want parental controls, and Disney’s brand didn’t generate any buzz in the cell phone market.
This was a viable idea, but Disney’s flawed logic lead them to believe they were the right company to bring this product to market. In fact, this flawed logic watered down the Disney Brand. They are known for resorts, theme parks and family movies, not cell phones.
Even high profile companies make mistakes, but unlike small businesses, they can afford too. Greg Herder told me several years ago, “it’s essential that agents be known for something specific. If you’re not, you run the risk of not being known at all”.
30 year fixed mortgage rates are hovering around 3.90% and home prices are back down around 2001 levels. So how low is consumer confidence? Some surveys compare consumer confidence to levels not seen since the 1980’s. Ouch! What is the first step in rebuilding consumer confidence in the housing market?
- Getting our Government out of the Housing Industry.
- Create an exit plan for Freddie and Fannie.
There is a lot of debris along the road to rebuilding consumer confidence, but if the Govt. will pull over at the next exit, we can move on much faster.
Several clients have recently asked me about their home’s Zestimate. Just yesterday I received an email, from a very excited client, who informed me his Zestimate increased a few thousand dollars. Did the Zillow Fairy stop by his home last night to update the home valuation while he was sleeping? I hope not, the Zillow Fairy sounds a little scary.
If you scroll down to the bottom of Zillow’s homepage, you’ll find the “About Zestimates” tab, which is really a well written disclaimer. I don’t have the statistics on the percentage of site visitors who read this information, but I presumed it’s a very low one.
What is a Zestimate and how does it compare to an MLS Listing?
Zillow and Yahoo recently formed a partnership, which now ranks them as #1 & #2 Real Estate Search Engines, so they do deserve REALTORS attention. Zillow pulls data from many different sources, which often creates incomplete representations of a property’s value. If you are concerned about your property’s Zestimate, then login and fill-in the gaps. The Zillow Fairy will appreciate your help!