What is the biggest misleading aspect in the real estate industry was posted on Quora, it got my interest, so I answered it… Great question. First some background…..I was thinking of being a real estate “guru” and doing late night TV commercials with the disruptive data and technology I have developed. So I did a lot of research the industry, and studied the “guru” systems and how they mislead and sell. And in my travels, got an MBA in real estate, being licensed in 4 states, built AVMs and FVM’s etc….. So I know something about this topic.
First – The Gurus
In looking at the “gurus” who have training, and give live and recorded seminars…the most common and misleading practice is still the “near” false advertising of these courses, who primarily focus on selling their course and upsells. They make their profits in selling courses, not by adding value.
I say “near” since the federal government cracked down on false advertising recently, so now these course cannot say, “you can make millions by taking our course” but they can say, you can “potentially” make millions.
And none of these systems bring into the mix new data and any new disruptive or differentiating technology, so they are forced to spend most their monies on advertising and marketing to get people to take their courses.
Second – The Industry and lack of current market data
The other big misleading practice in real estate is more stealth. Typically most people who sell real estate only have access to data on the MLS and/or CoStar.
Sales data from a local MLS is a poor man’s market data. The trends in sales are often driven by many changing economic factors. Those changes won’t show up in sales data until it is too late. Using only the MLS to make investment decisions is like driving a car while looking in the rearview mirror. The problem is market data is often only available once a year and it is not specific enough to be useful for making investments in particular areas.
IMHO, the second misleading part is more fundamental, since if this fundamental problem of having access to the right data was fixed, then the first problem of the “gurus” would be addressed, since the data would not allow the misleading practice to take place.
Thus, I am pretty passionate and driven to fix this. The biggest misleading aspect in the real estate industry is not super clear, even to the most educated. I am hoping and planning on launching our tech right, in a few weeks. Darn hard problem to fix the problem, which is one reason why no one has fixed it yet, and thus real estate investment and ownership, remains full or risk, unknowns, and opaque.
Launching right soon, finally going to fix this, and as always, appreciate your feedback.