Property Grunt

Thursday, May 26, 2005

I stand corrected... on somethings

The Grunt had the pleasure of Jake Harrington of Onsite Manager responding to his post and clarified a set of issues.

Jake states that the service's objective is simply a tool for onsite agents to be more efficient and remove the administrative aspect of running a leasing office.

He acknowledges the need for the apartments to be managed and shown and is working with one of the two top companies in Manhattan to get Avalon Chrystie Place filled.

It is in his professional opinion that brokers being replaced by computers is a long time coming but he is certain technology will play a key role in the success of those who embrace it and in the downfall of those who ignore it in the real estate industry.

Also they are a premimum company and do not outsource to India.

The Grunt still stands by his entry because he can see Avalon Christie Place in the near future hiring a bunch of $10 an hour showers and providing internet access for clients to fill out applications after viewing the apartments.

Of course there are others who differ like Cristy.

Wow. I've been reading your blog since the first time Lockhart linked to it and you have seriously gone downhill due to overwrought, self-interested, pseudo-analysis like the above.

Why thank you for noticing. Going downhill due to overwrought, self-interested, pseudo-analysis was my major in college.

Brokers being entirely replaced/outsourced? Pull-ease. They've just automated the leasing process--not done away with the brokers! If you had gone to the avalon christie website you might have noticed the flashing sign saying "on-site leasing office now open."

Genius girl, what do you think is one of the main duties of a rental broker? It is to prepare and execute a lease. Even in a situation where the landlord/property manager is responsible for leasing phase a good rental broker should be onsite with their client to hold their hand during the process. And of course to pick up the commission check. The value of the rental broker diminishes signifigantly when one of their primary services has been replaced by technology.

If you read my entry carefully you would have noticed that I mention that Avalon Chyrsite Place does have an onsite office but I also stated that it would most likely be a relic of the past with the Onsite Management tool. The idea of brokers being outsourced is not a new concept. The internet has provided another revenue source for the real estate industry and has become another point of sale for real estate purchases. Go take a look at Inman news and my post on The Perfect Storm and you will see a copious amount of stories about how the internet is changing the way business is done. Why do you think the DOJ is filing antitrust suits against realtor groups all across the country? Because these groups are trying to pass laws that would require discount brokers to provide a certain amount of services to the customer. It sounds all well and good but under that guise of providing customer service it limits the choices for the consumer which is a very big no no. Even now you can buy a home online without physically interacting with a broker elminating any need for their presence. In a recent article in Inman, a seller actually sold a her home on craigslist without a broker and got even more money than she would have had she used a broker.

Do your readers a favor and remember that this blog is interesting because you can provide in-the-trenches information to normal people. If you must do economic analysis that you're not qualified for, at least try to put some more thought behind it.

Do me a favor and stop trying to dictate what I should write. Its my blog and I go where I want to go with it. If you don't like it than I recommend other activities like reading a rich dad book, playing a game of cashflow with your buddies and bragging about how much of a fortune you are going to make in your investments in Buffalo. Remember that your opinion on why this blog is interesting is your own personal reflection and the last time I checked you do not represent the readers that view this blog.

I never stated that my analysis had any economical backing. In fact its more anecdotal and I am the first to admit that I have no hard numbers to back up my position. But from my experiences in working in IT and my understanding of the real estate industry I firmly believe that the time will come when rental brokers will be outsourced through technological means and that will be the beginning of other changes that will affect the industry.

The purpose of any business is to make a profit. If there any barriers that prevent that purpose from being fulfilled it will be removed or circumvented. Real estate is no different. If an opportunity arises to increase the profit margins of a property by the elimination or replacement of a rental broker you can damn well be sure that owners will jump on that bandwagon.

If you think that I am completely out of line and being arrogant you couldn't be further from the truth. If you read my first entry I make it clear that this blog is not a guide to investing in real estate and whenever anyone has ever asked for guidance from me I have always stressed that they should exercise due diligence by discussing their questions with other authorities and not to solely rely on my opinion.

The harshness of my response is due in part that you offered no evidence or even a decent arguement against what I posted. Instead you resorted to the classic reponse of utilizing emotional attacks against my credibility through a poorly disguised use of saracstic wit. I have no problem being corrected or criticized. I am human. I make mistakes. But I refuse to become the focus for someone's frustrations and be used as a personal punching bag.

Real estate humbles me on a daily basis and it is no different for a newly licensed agent or Donald Trump. Because there are outside forces that are beyond the control of anyone that affect the industry. Technology is one of those forces and if you are unwilling to accept that well I bid you the best of luck with your investments in Buffalo.