Real Estate Tools & Technology By realistiQ http://www.realistiq.com/default.cfm/page/blog/blogid/d8f8e3dc-19b9-f916-adbd4f442dbfa88f/categoryname/real estate/title/Real Estate Tools & Technology By realistiQ.htm Current Domestic Real Estate Industry Synopsis
Domestic Real Estate Market

The United States real estate industry in late 2009 and early 2010 hit a record low and is rapidly evolving. Forward thinking companies are literally re-engineering and right sizing their companies to compete. These changes in the economy and real estate industry are spawning Owners to refine existing budgets and redirect resources—literally reviewing every line item of expense to determine the most strategic allocation of resources. Examples of action steps owners are taking to increase efficiency are:

 
·         Reshaping organizational strategies by downsizing agent rosters, eliminating resources allocated to part timers. (Quality vs. Quantity)

 
·         Maximizing use of office space by reducing number of office locations and relying more heavily on technology to create a semi-, to complete, virtual office environments.

 
·         Reduction of paper processes, via use of technology.

 
·         Acquiring “dying brokerages” or merging with other companies to increase market share and minimize competition.

 
·         Abandoning or focusing less on conventional advertising methods and relying more on technology as the purchasing process continues to become more of an online process.
 
·         Adjusting their recruiting and training programs by targeting a different Agent mindset, meanwhile encouraging or sometimes insisting existing agents to embrace change.
 
The focus on lead generation, incubation and management is becoming the core to a successful and moreover profitable real estate business with the addition of employee based agents to the traditional commission based agent mix.
 
The Economic Census which is conducted every five years (last in 2007) reports the domestic real estate industry was represented by approximately 108,651 companies, 91,813 of which were residential. Such companies range from one person operations to large companies. Due to the economy, this number has decreased considerably and companies with enough resources are acquiring less stabile companies while others are merging to increase market share. Currently, there are approximately 1.85 million active Realtors, 1.1 million of which are NAR members. In May 2006, Reator.Org posted information on its web site indicating that fifty-four percent of members are affiliated with an independent, nonfranchised firm; 32 percent are with an independent franchised company, 9 percent with a franchised subsidiary of a national or regional corporation, and 4 percent with a nonfranchised subsidiary of a national or regional corporation. The median-sized firm has 29 licensees with one office. This industry is employs professionals with a vast mixture of educational and experience levels. The real estate industry was generated about $41 billion in revenue in 2009, marking  
 http://www.realistiq.com/default.cfm/page/blog/cat/entrydisplay/entryid/3e863167-ca13-84ba-65a2ba83f6a799d1.htm Wed, 04 Aug 2010 12:13:56 -0800 What does the job description of the future Real Estate Agent look like? There are many questions regarding the future of the Real Estate Industry. One of these questions is, What does the job description of the future Real Estate Agent look like? There is speculation that Real Estate Agents will soon be technologically savvy employees as home owners and buyers are beginning to do delve deeper into the buying and selling process themselves, needing less assistance from the Realtors. Tools such as Craig's list are growing in popularity. Mega web sites and large brokerage web sites are offering more features. The list of reasons for alternatives to running traditional brokerages goes on and is continuing to grow. What is the major underlying cause? Technology. Sure, the economy has much to do with change in the Real Estate Industry, but in reality, that has simply forced many Real Estate Company Owners to take a harder look at their business model, which in turn, has typically spawned a harder look at their investment in Real Estate Technology.

Technology's increased role in changes to the Real Estate Profession should not come as a surprise. It has been a well known fact that over 80% ostate searches have begun online for years. Now, the figure is around 90%. ology has only eased into the nurturing and management of the prospects technology has generated for years. Even today, the average Real Estate Agent, Broker, or Business Owner for that matter still has yet to become technologically savvy. Having a web site built that provides listings, that ranks high on the search engines and that produces some leads is a start, but that is a start to a race that began a LONG time ago. The technologically savvy Real Estate Professional understands the ins and outs of Social Media, Blogging, Email Drip Marketing and Video at the least. Some understand deeper levels of Real Estate Marketing & Technology such as social graphics and conversion rates. There is no question, the technologically savvy Real Estate Agent has its presence, and that presence is growing throughout the National Association of Realtors.

This wave of the present and the future Real Estate Agent has its positive and negative effects on Real Estate Companies. For starters, it is increasing the necessity for a technology budget, or an increase IN a technology budget, during a tough time in the economy. But even if the economy was booming, there still would be some major Real Estate challenges for Real Estate Companies that still have or are trying to adjust their traditional business models. Depending on how you look at it, one could say these challenges go even DEEPER than budget. No, not deeper than "the bottom line". There is a reason they call it that. But consider an aspect beyond budget that affects the bottom line of a business; Organizational Strategy.

Accenture states, "The correct business strategy is the essential first step to achieving high performance, but it is not enough. To execute the strategy effectively and achieve the high-octane results you require, organizational structure must be aligned with business goals. This is not easy: in a recent Accenture survey, four of the top five business issues identified by senior executives were related to organizational, people and leadership issues."

As a Real Estate Company Owner, the agent classification process and the action based upon it is essential to your Organizational Strategy, and in turn. During this time of change, some Owners may prefer to stick with or form a more traditional Real Estate Business model and recruit only those agents that fit that mold. Others may want to lean towards an unconventional business model. It may make sense for some to choose a hybrid--especially the larger companies.

What does this mean? Well, let's look at what it DOESN'T mean first. What it DOESN'T mean is to throw out technology regardless of the scenario. Technology is here to stay. But how it plays a role in your business is the key. It should serve as a compliment. Not an obstacle. For example, it is important to realize, it is less effective to implement a standard training program that includes classes on Social Media or Email Drip Marketing. These are classes that should be part of a training program geared toward the nontraditional Real Estate Agents. It also doesn't make sense to involve your traditional Real Estate Agents in your Lead Distribution program as they are most likely not going to follow up on half of the tasks your business rules require them to perform. The right Lead Distribution System should allow you to have that control.

What DOES make sense is to invest in a call capture system and train all of your Realtors on how to use the system. Using a Call Capture System is typically as easy as paying a bill via phone, and there are many benefits to such a system. Call Capture technology increases the amount of calls on properties, stores caller data into an intranet, allows well rehearsed, effective custom greetings and property descriptions and it saves all users of the system an immense amount of time answering the same questions repeatedly. Typically, the callers that are interested in a property will opt to connect to the Real Estate Agent and that is a wealth of knowledge in just knowing the caller is interested enough to contact you about a property.

The points above demonstrate a business should have different training programs per Real Estate Agent Type to cultivate their unique skill sets and meet their preferences. Don't train all agents together where answers to questions do not relate to the majority in the class. As an owner, demonstrate genuine care and dedication to your Agents and prospects by outlining a well designed and tailored developmental training program that fits their mold. Invest in the right minds to head up these programs. If you are an owner or executive with a track record of success as a traditional Broker/Agent, get involved in the development of that training program or appoint a qualified partner, executive or manager with a similar background while assigning a technologically savvy leader to head up the training program for your nontraditional Agent training program. Work together to understand where technology will work for the traditional Agent and where it will not. In the end, it will increase efficiency of your agents and increase your bottom line by giving your agents and your company more focus and direction. http://www.realistiq.com/default.cfm/page/blog/cat/entrydisplay/entryid/40f23a86-bd0d-8c36-c942be2fa85855f2.htm Tue, 27 Apr 2010 01:25:36 -0800