| Ten years ago, the
idea of buying a home over the computer was as foreign as the
word "Internet."
Not anymore. The dot.com
revolution has changed the way we buy cars, do taxes, contact
friends and even buy homes. Type the words "real estate" into
any search engine on the Web, and you'll find reams of sites to
help you find a mortgage, connect with a real estate agent,
conduct a credit check or even offer a virtual home tour.
The largest of these sites is
Realtor.com, the official site of the National Association of
Realtors. More than one million users visit the site each month,
according to Real Select, the company that manages Realtor.com.
Local companies are seeing a
spike in their Internet use as well. Last year, Howard Hanna
Real Estate Services reported 20,000 visitors each month at its
site. But it isn't just the hits. It's what the sites are doing,
says Helen Hanna Casey, president of the company's residential
division.
"Just having a Web site isn't
really being on the Web," Casey says. She points out that most
Howard Hanna agents don't have their own pages yet. But many
have links to Howard Hanna's main page, and that is paying off
in sales. Casey says 11 percent of Howard Hanna buyers come
through the Internet.
"The client is seeing the sign,
going on the Internet, calling us up. The real power in the
Internet is real time. Intelligent agents are using it as a
tool."
Nearly every company that sells
real estate in Pittsburgh is on the Web, and rental companies
are finding that presence to be helpful. Franklin West, a
Shadyside-based company that rents upscale apartments in
Oakmont, Shadyside, Butler and the North Hills, has received
much business over the Internet. The company's vice president,
Ann Paul, reports that some clients rent apartments site unseen
because they're relocating from far away. Paul says the company
receives more than 100 e-mail a month about apartments.
Another trend in the industry
is the rapid consolidation of firms. Last year, Coldwell Banker
Real Estate Pittsburgh acquired Why USA Realty, based in Upper
St. Clair. Howard Hanna has made inroads into Erie and
Youngstown, Ohio, with acquisitions there.
It also acquired the assets of
Seven Fields Development Co. and Seven Fields' new construction
business.
"When someone merges with us,
it gives us a much larger platform," Casey said.
Casey said small companies
interested in hooking up with Howard Hanna have ways of letting
her know they're open to it. Often, they're attracted to the
bigger company's resources. Sometimes, Casey says, brokers and
owners are tired of managing and want to return to selling real
estate.
But many independents still
stand firm. Jerry Speer, broker/owner of Equity Real Estate in
Squirrel Hill, said his bigger competitors often approach to
talk merger. Speer isn't interested in merging his 40-associate
company and doesn't think he needs to in order to thrive in the
business.
As president of the
Pennsylvania Association of Realtors, Speer knows independents
statewide aren't as rare as they seem. In fact, he says, they're
thriving because they can establish a niche. Equity handles
commercial and residential real estate in the East End.
A bigger issue, says Speer, is
Act 112, a law enacted Nov. 25 that redefines relationships
between Realtors and customers.
Speer, a proponent of activism
in government affairs on a state and national level, was glad to
see Realtors have a strong role in defining the new law.
The law requires agents to
provide customers with an up-front, written statement disclosing
whether they represent the buyer or seller. The customer must
sign the disclosure.
The disclosure discusses the
different relationships agents can have with customers. It helps
customers know where they stand.
"The agency change is a big
change. It has forced the customer and the associate to look at
the services they provide," Casey adds.
Most agents have supported the
law, although implementing it was a bit tricky at first. Some
didn't receive the forms in time and, therefore, had difficulty
complying.
Act 112 also has caused agents
difficulty in taking calls from potential customers, because the
agents aren't supposed to give customers information until they
come in and sign the forms.
Speer acknowledged that the law
isn't perfect, and he hopes the Legislature will work out some
of the bugs during his tenure as head of the state Association
of Realtors.
Another trend seems to be the
lure of country living. The past few months have been good to
Lawrence County real estate, and February was no exception,
according to the West-Penn Multi-List.
Homes under agreement to be
sold increased 72.7 percent over the numbers from the year-ago
period. The average price also jumped, from $76,664 to $88,480.
New listings also were up from 55 in February of last year to
64, a 16.3 percent increase.
This news is consistent with
sales patterns in Lawrence County throughout the year.
In Lawrence County, Ryan Homes'
Neshannock Trails development is outselling its two developments
in Beaver County.
In neighboring Mercer
County, homes under agreement surged 66 percent, from 41 in
February 1999 to 68 in the month-ago period. The price went up
24 percent, from $78,821 on average in February 1999 to $97,954
this year.
Author
Rona Kobell, Post-Gazette Staff Writer
http://www.post-gazette.com/businessnews/20000409reality.asp
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