The Psychology of Location and ‘Happily Ever After’

By Scott Tatro

RISMEDIA, July 3, 2007—The more that real estate professionals allow themselves to be misperceived as simply showcasing houses as a “product,” the tougher it will be for them to establish real value and worth to their clients. True real estate professionals may do well to remember the telling lyrics made famous by R&B legend Luther Vandross in “A House is not a Home:”

“A room is a still a room, even when there’s nothin’ there but gloom, but a room is not a house and a house is not a home.”

Some industry veterans with decades of experience are looking back to the fundamentals to realize that location may actually be the key to “Happily Ever After” for both clients and real estate professionals.

It’s not a coincidence that professionals with advanced training in relocation are more than two times more successful than their average counterparts. When you’re trained to become aware of the location needs of a home buyer, you’re simply better prepared to professionally serve the total needs of that client. You’d be surprised how little a professional agent knows about a neighborhood they don’t currently farm or market in. Agents need to show their knowledge and expertise not by knowing all the answers…but by knowing the right questions and knowing where to get the answers. Instead of merely asking, “What sort of house are you looking for?” you can ask, “what sort of neighborhood do you currently live in and what do you like or dislike about it?”

Location-convenience and neighborhood-lifestyle-benefits contribute dramatically to the overall satisfaction in the sale of a home. Are the neighbors highly educated, white or blue collar professionals; are they retiring or younger families? Are there lots of amenities close by like banks, churches, parks, shopping, doctors, fire departments, restaurants and so on? How many, how close? How are the crime rates and school districts? As a real estate professional your value is derived by helping clients ask themselves the right questions, and knowing how to get the right answers for them.

In today’s information age it’s strange that so many agents and brokers are still relying on thick preprinted packets of prepared neighborhood demographics. How often do these packages overwhelm clients with details that can barely be absorbed? Once a growing multi-million dollar business, this model is now giving way to more technically savvy online solutions.

E-Neighborhood and OnBoard have continually advanced their products to address this fast growing demand for improved location knowledge base. NeighborhoodScout.com is an example of the depth of information and expertise that the market has available. Brokers are beginning to integrate these rich data sets, and their easy to digest and comprehend graphs and charts into their online offerings. According to the company, the results have been excellent. Not only is this a value to consumers, but it’s a tool that begins to help re-establish the level of value and professionalism of the average agent who avails themselves of their use.

Entirely new business models are now being introduced to respond to these information demands. The Web site, www.FindaHome.com takes location knowledge to an extraordinary level with its new real estate search portal. “It’s set to launch in about the next 60 days,” according to Paul Clewell CIO for the company. “Consumers will be able to tour MLS listings from virtually any market in the country later this summer, with more than two dozen international markets expected to be on line by late fall.”

Both neighbor and neighborhood characteristics are integrated visually on a map along with all of the available properties. Everything from crime rates to school rankings to education and income levels instantly create graphical layers. It even overlays the location of churches, hospitals, shopping and almost any other amenity of interest to the average home buyer.

Although only one broker in each market will be able to enjoy access to this particular www.FindaHome.com network, it points to a new paradigm where we expect most progressive brokers will eventually need to follow. Location expertise may be the basis that helps ensure that a “house becomes a home,” which may be the key to “Happily ever After” for home buyers and real estate professionals alike.

For more information, visit www.FindaHome.com.

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