Earlier this year, NAR came out with their annual technology survey. And if you haven’t read it yet… You should!
The real estate technology report is packed with information that can help you, a real estate professional, to see where and how technology is moving.
If you still don’t want to read it, I’ve outlined NAR’s findings and provided some ideas of how real estate agents could benefit from the info.
Real Estate Technology Survey Review
The survey summarizes technology usage by REALTORS® and includes:
- Technology Sourcing
- Lead Generation
- Third Party Leads
- Client Relations
- Comparative Market Analysis (CMA)
- Mapping
- Forms and Contract Software
- Transaction Management
- Security
Technology Sourcing
Technology sourcing was broken into three sections:
- Technology Spending
- Broker Sourcing
- MLS Sourcing
Technology Spending
It was no surprise that 95% of the REALTORS® surveyed use a digital camera. What was surprising, however, was that only 90% of the members used a cell phone. If even kids in elementary schools are using cell phones, it seems that all (100%) of real estate professionals would be using cell phones. Okay, that’s not really a fair comparison, but c’mon… an agent without a cell phone? (I know, I know… They’re not all agents). Maybe those are the people with a thing called a “life.” 
What you need to know
There was a significant increase (8% to 21%) in PDA/Smartphone/Internet device usage this year. Why is this important? This could be an indicator that people are starting to see the importance of immediate email and data access. With excellent PDA phone software and bundled data and Internet access, agents on the go can do things like:
- Fax signed offers while still at a showing,
- Access live MLS data while on the road with a client
- Send and receive critical emails while sitting by the pool at a NAR convention
Can you do these things yet?
Broker Sourcing
67% of the REALTORS® surveyed agreed that their broker should expand the amount of technology they offer. If you’re a broker, you better find out what they need. You don’t always have to have the top-of-the-line, bleeding edge technology, but you sure better provide the necessities.
Real Estate Technology Necessities
I hope this is not too much of a cop out, but it depends. Appropriate technologies for your real estate business will differ from someone else’s business. You need to evaluate the needs of your agents, as well as prospective and existing clients. Your research will tell you whether you should invest in a new website, new GPS devices, a new VOIP or Virtual PBX system, etc. As a designated/managing broker, your main technology mission is to empower your agents to do their job well by simplifying or eliminating the stuff they don’t really need to do.
MLS Sourcing
Do you have a say in your MLS board? If you don’t think so, you better figure out how to make your voice heard. 84% of the respondents said that their MLS technology should be improved. The survey doesn’t specify how, but I can make a few guesses. If you want to be an effective agent for your clients, know how to do things like:
- Search the MLS while on the road
- Setup automatic listing notifications
- Provide market activity reports
Lead Generation
Referral clients are the majority business source for 34% of the agents. And only about 21% of the agents said that they were satisfied with Internet leads.
For the tech savvy agent, this should be great news. Although there are many agents creating websites and using the Internet as a potential lead generator, most don’t know how to deal with leads they receive. If you work the right plans, the Internet can be the most profittable and cost-effective form of lead generation. For one of my clients, their books showed that 33% of their revenue came from Internet leads, while their total Internet expenses were only 1% of their entire budget (or 10% of their advertising budget). Get the calculator out and figure out why we cut some of their print marketing and doubled their Internet marketing.
Third Party Leads
The biggie here was lead generation programs. Did you know that over half (51%) of the agents that used third party lead generation programs received ZERO leads? What does this mean? Buyer (or agent) beware! There are a few good lead generation programs out there. But the majority that I’ve seens are worthless. So if you get a call at 2:00pm on Friday afternoon from someone promising a world of leads, just say, “No!”
My best advice is to have a quality information, easy methods of contacting you, and aggresively market your website(s) both on and offline. By doing this you can easily attract and develop loyal clients and customers. You can also hire me.
Client Relations
My personal opinion: Get comfortable with email. With the high dollar value of Internet home buyer leads, you can’t afford to be one of the 87% that do not use email (which makes me wonder about the potential skewed validity of this survey). Whether it’s mid-transaction communications or periodic newsletters, email is the most time and cost-effective way of communicating with your clients. Use it.
Comparative Market Analysis (CMA)
Nothing much has changed with CMA’s. Most agents use it as part of a listing presentation and majority are satisfied with how things work. 27% of the respondents said that they wanted a better way to customize the CMA’s furnished by their MLS.
My suggestion: Learn unconventional ways of accessing your MLS data.
Most people generate CMA’s directly from their MLS software. But did you know that you can export your data and customize it in Word or Excel. By importing your CMA data into another program, you give yourself the freedom and flexibility to really stand out from the pack.
Mapping
I’m currently exploring with programming different mapping options so this was a particular area of interest for me. However, nothing too exciting otherwise. The responses show what have been some of the most useful map elements for the real estate agents answering the NAR survey. The real question is what elements would be useful to clients and potential clients?
Forms and Contract Software
Again, nothing too exciting here. The majority of the agents are either satisfied or very satisfied with their forms/contract software. However, 68% don’t have software that automatically loads MLS and contact data.
With the right real estate software and/or service, you can get something that is pretty efficient. A few good companies/software to look at are:
Transaction Management
Only 26% of NAR real estate agents use a transaction mangement system while the majority still operate with hard copies. What you need to know here is that there are a variety of very good transaction management companies out there such as Settlement Room. Software like this is very inexpensive (Settlement Room currently retails about $25 per transaction) and can really streamline transactions while preventing things from falling through the cracks. Whether you are a team of agents or a one-person operation, you could benefit from a transaction management system.
Security
The statistics here were very staggering. The majority of the respondents were somehow affected by spyware, viruses, hackers, or some kind of service interruption due to a security breach.
First of all, change your passwords often. And don’t use passwords with birthdates or names of family members or pets. Second, get a decent hardware firewall… or at least a good sofware one.
Summary
Do your homework. Don’t try to implement everything all at once. Figure out where you are the most vulnerable or where you can reap the most benefit. Pick one or two things that will help you along those lines. (Contact me if you have to) Then go make some rain!
If you haven’t lived under a rock for the last few months, you’ve probably heard of MySpace, Friendster, and other social networking websites. Maybe you’re a member, maybe you’re not. Well now there’s a social networking place just for real estate professionals. It’s called ActiveRain.
