Over the past few weeks, we’ve done posts about the use of the internet in selling real estate and also for some possible reforms for the industry, including eliminating buyer negotiation. One recent piece of news combines all of these aspects: the introduction of N-Play to the Atlanta real estate market. N-Play is an online real estate service designed to eliminate the negotiation process many agents experience with buyers. N-Play allows bidders to place an amount in a comprehensive online listing, with sellers getting to choose between multiple buyers. The environment for placing a bid is designed to be secure and anonymous.

At the moment, N-Play is designed strictly for residential properties and operates only in the Atlanta market, although it’s poised to spread to ten other markets over the next year. Essentially, the service is geared toward sellers, with getting a property sold quicker and eliminating haggling between you, various buyers, and the agent. With all bids ranked for your property online, you can choose an offer from the pool at any time. Re/Max Greater Atlanta is involved as the agent, and this way, potential buyers can see the property beforehand and, then, go online and make a bid.

As mentioned a few weeks ago, the bidding and negotiation process in real estate often leads to unnecessary haggling. The buyer often thinks that the seller is aiming too high and trying to put a higher price on a home that isn’t worth the amount. The seller, on the other hand, thinks the buyer is always asking too low. A service like N-Play works in the seller’s favor. He or she can go online and see the list of anonymous bids for the property. Instead of trying to convince a particular buyer of his price, he can select the amount that meets his needs and expectations closest.

The internet has changed advertising methods. Companies across various industries have turned to creating websites and optimizing them to get seen on Google and, more recently, social media. No matter the approach, advertising on the internet has displaced print methods that were popular ten years ago. Those wanting to progress in their industries need to find a way to use the internet, and, while no method is uniform across all industries, the overall approach is to get your products visible and seen. This has been the case for real estate in recent years, particularly as social media increases in popularity, and is detailed in a recent article.

One example this article gives is of an agent using all forms of social media and the internet to reach buyers. As mentioned, she created a video of a property and uploaded it to YouTube, featured property descriptions on Facebook and Twitter, created a website for this particular property, and even went to traditional real estate websites to post listings for this and other properties. Although only a small percentage of sales currently, social media has the benefit of being faster than cold calling to create sales and all listings, no matter the website, are free for the agent. In fact, many agents are saving significantly on advertising costs by using the internet instead.

But, simply developing an internet presence in real estate isn’t going to generate sales. Social media in particular needs an approach and, as an agent, you need to customize your approach to your needs. In many cases, the traditional approach for social media doesn’t always work, although gathering a network on places like Facebook and Twitter for listing your properties does. Finding a network of potential buyers may be much like cold calling – you still need to interest someone – but, much like Facebook is intended, connecting with old friends and colleagues may result in someone taking a look at your properties.

The real estate market has gone through several changes recently. But, does the industry need to experience more changes? According to a recent column, more general changes are needed to the industry in all aspects. For example, this agent writing the column suggests that agents themselves need more training – more than the three to four months that more currently receive. But, there are changed needed to be made on the buyer’s and seller’s behalf, as well, including no more negotiation for the home price and full inspection and appraisal before the property goes on the market. Some of the points he makes are:

• Home prices should not be negotiable. The seller needs to stick with a reasonable price, so the buyer won’t think he’s too high and the seller won’t think the buyer is trying to low-ball him.
• Homes must be appraised and fully inspected by a respected inspector before going on the market. This isn’t only for the interior of the home, but also for the piping and sewage system – everything connected to the property. Every defect must be listed once the home goes on the market.
• Having a one-year warranty for the buyer.
• The seller should be approved for a loan and not pre-approved.
• More information should be available about the neighborhood through websites and other sources. Buyers shouldn’t only rely on agents and sellers for this information.
• Fees and services for agents should be made more public. Those working with an agent should know what they’re getting into.
• A buyer shouldn’t be allowed to back out of a transaction.
• Becoming an agent should be more difficult. Education should extend beyond the three to four months of training, and yearly fees for a license should be higher. At the moment, the market appears to have too many “casual” agents that sell only a handful of properties per year.

How would you characterize this current real estate market? While in some areas we’ve seen a rise in home buying and a significant decrease in prices compared to 2007 values, other markets simply remain flat. Nevertheless, current real estate trends on both coasts indicate that, even with the home buyer’s tax credit ready to disappear, the market is favorable to buyers. This often is a case of prices being affordable to more, and, as a result, more are buying homes. Although foreclosures may be factored into these figures somewhat, the average price of a home on the market has come down to a level in which most looking to buy a home have more options.

One such instance is in Delaware, in Sussex County. The area is not only experiencing more homes purchased, but also a slight increase in commercial real estate in the form in increasing revenues. This has come in the form of realty transfer tax, building permits and inspections, and property recordings. Overall, the revenue generated from real estate has put the county in better financial standing than a year ago.

On the other side of the county, Napa Valley in California has found itself becoming more of a buyer’s market overall in median home prices and in commercial real estate. Although the Napa Valley market has a lower median home price compared to 2006 and 2007, sales for the area are up overall. Although, on average, the area has experienced a 15-percent drop in the median home price over a three-year period, this varies by town. Napa city, for example, has seen the median price drop, while nearby town Yountville has seen an overall increase. These figures incorporate commercial real estate, which, for the area, includes vineyards and wineries.