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How Will Technology Change Real Estate Sales & Marketing in the Future?

By
Services for Real Estate Pros with R. Michael Brown LLC Digital Marketing & Public Relations

My last job in the tech world of IBM (wired) and Motorola (wireless) was future vision marketing manager before I "got off the plane" and applied what I learned about digital marketing and PR in real estate.

We looked out 1 year, 5 years, and 10 years to try and imagine what is possible with wired and wireless technology. Then we would go tell customers about it.

My method involved interviewing patent holding engineers, scientists, marketing gurus, and futurists. 

But one of the most valuable sources I had was from the sales force. They told me what was working and would not work, what customers asked for and expected in the future, and they actually gave me requirements for developing future products and programs.

One of the things I realized early on was that I came up with maybe 20% of the good ideas. The rest came from others. That's where you come in.  I've created a starter list below.  Brainstorm!  Let's create the idea of real estate marketing in the future together!

I would like to do that here, and share it with the Active Rain Community. 

BASELINE

Here's what we know as a baseline for the real estate market today:

- Digital imagery (photos, renderings, visual tours) made a big difference and are here to stay. 
- Social Networking and blogging leaped forward and will continue to grow.
- Email marketing is now full of pictures and is working great.
- Websites are including:
  = Listings
  = IDX integration
  = Property locators
  = Mapping
  = Galleries and Slide Shows
  = Some Facebook and blog integration
  = Some Video (in the early adopter phase and will expand in this next year)
  = Links to sites like Realtor.com, Zillow.com, Trulia.com, local community information like schools and shopping, etc., plus many others.
  = Multiple languages in addition to English (Spanish, French)
- Customer Relationship Management (CRM) Systems (Early Adopters using & winning!)
- Electronic "Video" Billboards (just started)
- Newspapers/Media Company Advertising Media Buys Happening on Google (Early Adopters only)
- Direct Mail
- Radio
- TV
- Signs
- Events
- Telemarketing
- Marketing Measurement Systems to track media buys and campaigns (Early Adopters only)

So here's the question:  What will the future of real estate marketing look like?

CURRENT TO 1 YEAR OUT
- Broker and Builder websites will integrate Social Networking technologies for easy sharing and interaction (Facebook, Google Buzz, Twitter, ShareThis, Digg, Delicious, Live, Stumbleupon, LinkedIn, Blogs, etc.)
- Content Marketing will expand
- Direct Mail will include more Newsletter Postcards (smart marketers)
- Email Marketing will include more news - less hype

1-5 YEARS OUT
The biggest change during this period for real estate pros isn't in the technology.  The biggest change will come from you learning how to learn and adapt quicker.  You're selling brick and mortar; but, you're going to be using tools to do it that evolve quickly.  That means software.  Your customers and companies will demand that you know this new way to interact - forcing you to change.
- Mobile enabled websites for advertising, listings, and sales interaction
  = Images
  = Mapping
  = Video
  = Social Networking between selling organization and customers
  = GPS Enabled Listings
- Customer Relationship Management (CRM) Systems - more pervasive use and will center the effort of database marketing
- Newspaper/Websites and Media Buys Dominated by Google
- Content Marketing will become more layered so a buyer can get just the right amount of information they individually want rather than the seller, broker, or builder dictating the amount.
- Email marketing will add video
- Events will become more creative and integrated with other organizations
- Online & Mobile Chat & Texting
- Online Interactive Contracts & Documentation
- Smart Irrigation. Technology is cheap and easy today. Will become pervasive.
- Marketing Measurement Systems will link directly with CRM
  = Google May Be the Integrator

5-10 YEARS OUT
- Will websites become media rich enough to satisfy a customer enough to buy online?
- Interactive Video Television and/or Web [not sure what the devices will be called at this point - interactive displays?] about Properties. You'll be able to select and "see" the systems work in a house.
- Smart Houses (I don't think the house will sell itself but you'll have to know about  these systems to show them)
- Smart Irrigation Standard
- Exterior and Interior Wired and Wireless integration (Security, Power, Appliances,  Entertainment, Info Systems)
- More Audio (Voice) enabled

Ideas?  What do you think?  Add your comments!

Show All Comments
Donnie Worley
A Team Real Estate Professionals - Johnson City, TN

I am very intrigued by how technology will evolve and change the business.  I feel that being successful as an early adopter will be critical to success. 

The main points of this discussion are what technologies are evolving, how fast they will get here, and how do we use them to build our business.  I am not a developer but an implementer so I will not add my novice opinions to the technology question.  I am just honored, humbled and appreciative to the many intelligent individuals who are willing to share there vision with us simple folk who desire to be better.

What I see evolving as the BIG side-bar question is not what will be the new technology but how we embrace and implement the change.  Each market is unique and we are all innovators in our own rights.  No matter what maturity level you are at on the technology ladder, you have to be well versed and educated in the future waves of technology so that we can provide the level of service our clients expect and DESERVE. 

We are service providers, educators, and consultants.  If you are able to make your clients feel safe and secure in your abilities you will be able to make the magic happen and ensure future relationships.

Feb 20, 2010 11:22 PM
Anonymous
Austin Allison

Mike.

Great post... in fact I cited many of your points in a presentation on "collaborative technology" yesterday at the annual Keller Williams Family Reunion in New Orleans.  I believe that you have hit the nail on the head, and I also agree with some of the other comments with respect to timing.  It would not surprise me if we experienced many of these movements within the next two to three years.  My company recently introduced a technology that automates the transaction process for Realtors, allowing them to create/exchange/sign documentation in a virtual web-based format all from one domain.  After introducing this technology on a national scale at the NAR conference last year, we have seen tremendous growth and our sales team is working in nearly 25 states.  We would attribute this demand to the ease of use and customer demand.  I agree that the buyers and sellers are the primary driver for any new technological shift, as they should be... the customer is king. 

The inspiring thing for me has been the rate at which our industry is already adopting new technologies that allow them to be more efficient and speak on a new level to the clients of today.  We are finding early adopters coming out of the woodwork all across the nation to better serve their clients with today's technology, and the statistics in support of this movement are staggering.  I was recently filtering through some of the NAR stats from last year that supported a 25% increase in smart phone usage amongst realtors last year alone.  This is a serious departure from the norm for an industry that has traditionally been slower to embrace technology due to the "relationship-centric" nature of our business; but it feels like we are picking up on the fact that the right technologies will position us to strengthen relationships with our customers. 

Lastly, I would like to finish on your early comment with respect to the learning curve being the greatest barrier (not the technology).  I agree whole heartedly and believe that the most intuitive solutions will prevail in our industry... this message was at the core of my presentation that I referenced earlier.  Again, great piece... and I would look forward to hearing more from you in the future!

Austin Allison, www.dotloop.com

Feb 21, 2010 12:44 AM
#59
Harcourt Bethel - REALTOR®,CDPE,ABR®,SFR,ePro®,TRC,
Orlando, FL
Harcourt Bethel, CDPE,SFR®, ABR®,ePro®, TRC, NCHSE

Great post Mike! All items + some will be necessary for future Realtors. Thanks for sharing.

Feb 21, 2010 05:28 AM
Eric Robbins
New Rulez Marketing, LLC - Orinda, CA

It takes guts to predict the future...kudos Mike. I especially liked what you had to say about consumers demanding information tailored to their needs and not necessarily the needs of agents and their sellers. Zillow and Trulia embraced this from the beginning and gained significant market share from Realtor.com, whose monopoly on listing information gave them the first mover advantage, but who failed to react as quickly or as thoroughly as they could have. Of course, Realtor.com's monopoly on the listing information may have been the reason for their slow reaction and a tactic required to deflect FTC attention.  Anti-trust issues aside, the dominance of these 3 websites in the residential real estate space supports your point. Any real estate marketing company who fails to heed this lesson will find themselves struggling for relevancy.

Look Ma! Internet VideoCityTourVideo.comMimicc Real Estate Marketing Lab

Real Estate Video

City Tour Video

Real Estate Lab

Feb 21, 2010 08:55 AM
Terkel Sørensen
Real Estate Places - Temecula, CA
Realtor, 951.805.0773 , Bank owned and Short Sales

Hey Mike,

I am back here reading more - still good stuff. 

After thinking about this for a while, it occurred to me that the biggest single shift I can see going from traditional large SOI farming for a successful realtor, to "generated lead" based success (this is my term for those of us with smaller SOI, generating business primarily through lead capture of some sort)... 

Will come in the form of the agents capturing leads, figuring out conversion and fully understanding how to approach that. Then you will see far fewer leads slipping and a much higher conversion rate on internet leads of all kinds. 
Currently, there are lots of negative opinion about lead suppliers - such as housevalues, justlisted etc, just to name someone close to AR. The primary problem that I see, is that the people buying leads, simply don't know what to do with them, once they start figuring that out - hold on. 

Feb 21, 2010 09:10 AM
Don Wixom
RE/MAX Executives Nampa, ID - Nampa, ID
"Looking out for your next move..."tm

Very intriguing! I believe in high-tech, but we cannot forget high-touch either!  I am excited about new applications for customers. I have the new iPhone mapping feature downloadable for iPhone users directly from my website. Tools like this will continue to expand. Google is on the cutting edge...Watch to see what they are doing!

Feb 21, 2010 11:18 AM
Anonymous
Greg Bennett

Mike,

Great information for us whose "noses are on the grindstone" not watching what is changing all around us.   I have been around agents for about 23 years as a morgtgage lender (13) and and a previous Broker/owner  of a nationally franchised brand.  Currently I recruit and train both new and seasoned agents as well as produce myself (too many hats)!  In this position of a sales leader (another nationally franchised office however no ownership thank you) in Houston, I have been elected to spearhead technology for this office.  (hmm...) We have the standard boilerplate websites offered by the franchisor and they do a pretty good job with the basics.  However if you qualify it with measured results it would fail.  We have a long way to go to get the desired results.  The reason I was selected to spearhead technology is my understanding of the "need," not  the nuts and bolts.  We are the last office in Houston (out of 13) to use 70% of the marketing budget on Newspaper advertising!!!  Lord knows I fought it, but this group who decides the budget  thought it is money well spent.  When it was decided i did not have a vote, now I do.  Point is, we are a fairly progressive office but stuck in the dark ages when it comes to technology.  Our firm has a group of "decent" producing agents who make up the decision making committee on the budget and fees to charge agents.  Personally, it's a little like the "inmates running the asylum," each is elected to serve a one year term.  

Agents want ease of use and convenience.  Cheaply.  As a group they are much more generous with their time than their money.  If it makes their lives simpler and more easily managed then it will be accepted.  If it is complex and the least bit difficult it will not be used.  

The consumer needs the ability to sort through all the information.  And then what do they believe.  Recently I looked at some Zillow values...man are they way off!  I simply tell the client to take that information as "a shotgun approach" to real estate: it is very innaccurate and does more harm than good. 

I have ideas on that and other programs to provide consumers with the information they want and need. 

What will technology do to our industry?  Well look at how it has helped us these last 10 years.  Increased efficiency by at least 200%. Clients know have the ability to preview homes online or with the agent at the office before they go trapsing around all over town.  You can eliminate many homes based on information gathered in the office, check the "value" factors, the sexual predators, the tax rates, etc etc. 

Will tech replace the agent? (The bad ones we hope, our real estate commission sure wont, sorry off point)  No.  but the role of the agent will evolve.  A home is not an airline seat, hotel room or a car.  Uh wait, car?  Thats right.  I remeber back in the 90's. y wife was VP Sales of a Major Airline.  She made the comment as soon as the net spooled up: this is going to change our business (and adversely affect the travel agents) which it has all but killed.  And then there were these car salesmen at a bar, all upset about the internet: "we are out of business, it will replace us."  Didn't happen, it only created more opportunities for the industry and information to the consumer.  It revoltionized used cars. 

The common thread that keeps us in business:  human emotion, efficiency and inside knowledge.  They want to trust another human to help them make this decision. 

 

Have a great day.

Best, 

 

Greg Bennett

         

Feb 21, 2010 01:09 PM
#64
Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

I think our role in marketing will be forever changing thanks to the internet.  Those of us that can change and adapt to the next new way to reach out to the consumer will survive in the end.

The naysayers are complaining that we need to tighten up our data or we will lose.  I find the MORE that is given out (even with educational material) the MORE the consumer NEEDS us.  Confusion from info overload does set in!

Feb 22, 2010 12:05 AM
DotLoop Company
The DotLoop Company - Blue Ash, OH

Great discussion, everyone! 

Here's my take:

Everything will get simplified.  The whole Mac vs. PC will become archaic because consumers just won't tolerate it anymore.  Software that doesn't work with other software won't be marketable.  Just look at the iPad: no Flash, no cash. And you won't even have to think about codec anymore when you try to shoot video for the web.  It'll take time, but eventually, it will all work together seamlessly.

Your computer will be more of an idea and less of a physical object.  That is to say, cloud computing will take off.  No more floppy discs or even USB hard drives.  Even your OS will be downloadable.  Information will flow like water, not go clunkily from one gadget to another like it does today. 

Consumer demand will drive technology.  We used to think that the future would have flying cars and instant food, but we forgot one thing: who would buy that?  Who would buy a car that can kill them in a mid-air fender bender?  Who would buy a robot to help get them dressed when it's easier (and cheaper) to do it themselves.   Now, technology that entertains is the technology that will sell.  So, look to the consumer side and not the sci-fi side.

Instant access.  As mentioned before, people will go to one place to access everything they need; they won't stand for software that can only do one small task.  They will demand more convenience and more simplicity.

As for home buyers and sellers: it will all go digital.  The younger Gen X and especially Gen Y buyers barely tolerate the mounds of paper needed to buy a home.  Within the next decade, when the Millenial Generation are in the market for their first home, they'll demand that their agent do it all paperless.  They won't stand twenty page contracts having to be signed and re-typed eight times.  Not only will they view it as immoral (the green movement is very much tied to an ethical understanding of reducing waste), they will view anything less than paperless as archaic.  Remember: they don't even remember dial up Internet.

Luckily, DotLoop is helping to simplify the home-buying process by creating one domain where agents can access their paperless forms, electronic signatures, and CRM functionality and that speaks to the next generation of home buyers.

Just my thoughts.  As for predicting the future, remember that recessions and bad economic times are rarely taken into consideration.  And not every futurist or predictor (including me) can easily or even successfully predict anything.  This article from 1995 predicted that the Internet was a fad.

What will the home buyer or seller of the future want?  The same things we want: convenience, transparency, and simplicity.

Thanks,

Nick Sweeney
(The DotLoop Team)

Feb 22, 2010 07:41 AM
Terkel Sørensen
Real Estate Places - Temecula, CA
Realtor, 951.805.0773 , Bank owned and Short Sales

Mike - 

I'm back, this is the kind of thing where the comments take off and have so much information to sift, that I just need time to compute... I am going to run through your specific questions, because they are really good and a pointer to where we are heading.

- Will you implement videos on your website to show a property? YES, running a video channel on Youtube, I don't think it is a coming thing, it is a must have now. 

- Which social media channels will you explore to attract more leads & relationships? How many do you think you can personally manage? Can you quantify the hours per week you spend today?
AR, FB, Twitter, LinkedIn. Roughly 1 hour a day, scheduled on daily todo list.

- Are you using a Customer Relationship Management System now? Which one? Do you use it for database marketing? Has it enhanced your relationships with customers?
YES, a whole slew of them, Marketleader, Vision, HBM, and testing on GoPro. Also using Vobre for VOW/doc management. 

- What is your marketing mix today? What will you try 3 years from now? Mostly online, Open houses and door knocking - print is gone, a little direct mail. 

- How are you competing with Zillow.com and other sites? I am not trying to compete with Zillow, I am not trying to be the hub where everyone lands, there is no way I can out advertise them or Realtor.com. I buy leads, and I direct anyone I come in contact with to websites with lead capture, or I just take down their information.

- Do think the independent broker/agent business model will change because of technology? If so, how? If not, why not?
I am not seeing the current model change, fairly simple, unless the brokerage takes a much bigger stake in their agents success, it won't - IF they do, it might. For now, our team is in full on mode and we are responsible for our success - not the managing broker. 

- How will texting & short messaging come into play in your business? With customers? Advertising programs? Texting is as common now as dialing the phone, and many clients find it more convenient. 

- What's the time frame? Is 5-10 years too long to forecast? Should we adjust to 6 months, with 5 years being the outer edge?
 I don't think the 10 year frame is too far out, but it is a bit more blurry, I just don't know what we will be looking at for both technology and implementation, we at least have an idea about what might happen in 5 years. The 10 year outlook is very good though, it serves to keep us on our toes and keep in mind that even if we are using the latest now, something else is about to poke it's head out at us, and it will be a completely new and different approach to something we do. How will we receive that and how will we implement it?

- Will you have a brick and mortar office in the future? 
Can't say for sure, I think so - group collaborations will still work better face to face - I think... I doubt that the agent farms will be productive in the future though, I see more focused coherent teams working under a sign than just piles agents on low splits - again, this will apply to the big winners - there will be agent mills everywhere, but they will struggle. 

- Are these changes good for the real estate business? (Don't want to go off on a tangent here with society as a whole). Too big a topic for this channel. - What other questions should we ask?
If the service that comes out of this improves the way clients are taken through a transaction, then yes, it will be good, if all it does is to create a number on a head, then it will backfire - I believe the individual company's implementation will dictate how it affects them. 

The other big question is - How do we take these tools and make our business work better with them?

 

Feb 22, 2010 12:55 PM
Anonymous
Tom Sykes

That technology is availavle NOW, TODAY, and I offer it FREE for my R.E. agent referral partners to use. Our system has been extensively beta tested and has resulted in boosting sales thru the roof for the agents that use it. It IS the future and it's here now!

Feb 22, 2010 12:57 PM
#69
Terkel Sørensen
Real Estate Places - Temecula, CA
Realtor, 951.805.0773 , Bank owned and Short Sales

To, that is an interesting thing - I have to admit that I have not come across a singly system that offers all the above, if you have it, I would be interested in hearing about it. 

You might want to update your profile, to the point where one can check you out and contact you. Just a thought. 

Feb 23, 2010 03:23 PM
Jeff Stone
Douglas Elliman - Port Washington, NY
Seniors Real Estate Specialist

Thanks Mike, yes the future of real estate is here now and the train is leaving with or without you. ALL ABOARD!!!

Feb 24, 2010 05:34 AM
R. Michael Brown
R. Michael Brown LLC Digital Marketing & Public Relations - Lake Placid, FL
Communication that increases sales!

Thanks to everyone for contributing so much to this discussion.

Because of this topic, that I've post here and in other channels, I've received over 500 emails so far from real estate pros, software and service providers, and marketing gurus.  It will take a while to organize it and report back.

In the meantime, keep it coming!  The more ideas the better.  Make sure you read the posts from everyone above.

This web and email "overload" brings up an important point that has been mentioned by several in the posts above.

Knowledge is power.  Informing yourself is really important so you can "check" an expert's work; but, at the end of the day - if you are paying an expert a fee or commission to help you sort through all the gigabytes of information available and distill it for you - and they provide sound expert recommendations, they are worth every dime.

Yes, homebuyers can find a lot of information because of the websites available and what will be available in the future. But buying a home is a complex process with a lot of personal business, financial, and legal pitfalls.  More information usually makes decisions more complex, not simpler.  Knowledge, on the other hand, makes decisions easier.

You have the knowledge.  There is nobody better suited to help in the real estate sales and buying process than licensed real estate professionals.  I would argue that it's even more important today BECAUSE of all the information available. You don't control the information like you used to, but you still have a lot more knowledge than the average homebuyer with an Internet connection.  That's far more helpful to your client than just information.

All that info that your client brings will just make you be on your 'A' game - knowing how to use the information sources, tools, and providing recommendations that make common sense and help your client be happy with the decisions they make based on your input.

Thanks again for your thought and time that you have put in toward helping everyone with this post!

Feb 25, 2010 09:16 AM
Jean-Paul Peron
The Outer Banks Real Estate Copmpany - Corolla, NC
Carova Beach - Living & Working in 4-Wheel Drive

Mike - it is exciting to see someone predicting what real estate will be like 10 years form now. I can't wait to look back from that point ans think WOW look at how things have changed.

Feb 27, 2010 03:06 AM
Matt Robinson
Professional Investors Guild - Pensacola, FL
www.professionalinvestorsguild.com

Hopefully the future will include us smiling in our blog pictures.  LOL!  Anyway, great post!  I have a hard enough time keeping up the the stuff that came out in the last year, so trying to figure out the next 3-5 is way too exhausting.  I'll leave that up to you.

Feb 28, 2010 12:43 PM
R. Michael Brown
R. Michael Brown LLC Digital Marketing & Public Relations - Lake Placid, FL
Communication that increases sales!

What? That is my smile! ;)

Feb 28, 2010 01:05 PM
Timo Yannopoulos
Platinum Realty Licensed in Missouri - Kansas City, MO
Buying and Selling Kansas City Homes

Dear Mike

Great thoughts, yes indeed the high tech train is moving fast, if we don't catch it we are going to be left behind.

In general I advise all my friends young and old, especially those who reject and/refuse to learn technologies and modern media. I say to them " IF YOU DON'T TRY TO LEARN HOW ELECTRONICS ARE WORKING AND OPERATING THE E DEVICES, THE DAY WILL COME WHERE YOU WILL BE SEATING IN YOUR WHEELCHAIR AND YOU WILL NOT BE ABLE TO USE IT. SO YOU'LL BE STACKED" Hm!

Timo

www.asktimo.com

Mar 02, 2010 09:35 AM
Anonymous
James Chai

This is a good conversation but I believe it misses a larger point.  The term early adopter is mentioned quite a bit above but at this point who hasn't heard of search engine optimization, social media, blogging etc.  

The better question is how long before professionals make the required investment in their Brand (business) to bring themselves into the current digital marketplace.  

Their are countless tools and resources (alot which are free) that can assist real estate professionals in their marketing needs.  These tools are robust and flexible and can also address other components such as blogging, search engine optimization, social media optimization etc.  

Professionals like everyone else are skeptical when it comes to the advantages that are clearly defined and outlined in numerous case studies.  What we have is an understanding gap.  Those that know do and those that don't know stay in the dark.  

For the price of a couple months of leads professionals can re-launch their Brand and impact their current market in a big way.  The conversation stays around how to generate the leads and keep them flowing when it should be how is your Brand positioned (Web Presence).  

There are numerous ways to develop premium interactive web 2.0 real estate web sites that are cost effective and offer high returns on investment.  

We would like to see professionals utilize what is currently available let alone discuss what the future may or may not hold for real estate marketing.  

As we have all seen it is a bit of luck and best guess.  Who knew Facebook was going to have over 400,000,000 million users and counting?

James Chai

Realtorpress "Real Estate Marketing Tools, Tips, Resources & News"

 

Mar 07, 2010 07:24 PM
#77
Terkel Sørensen
Real Estate Places - Temecula, CA
Realtor, 951.805.0773 , Bank owned and Short Sales

Hey James, 

I see your point here - however - I think the outlook that was offered originally was more about the future, and less about who can build a web 2.0 site (which btw is ancient tech in the rest of the world). 
To me, the point is, that if I can catch the next facebook or twitter when it is early on, I may get an edge on you... And I am using a lot of tools to managed the 1000s of leads we have, and I don't even have a web 2.0 site... I just work hard - and I used to be a software engineer, so maybe I saw through a couple of sales spiels as I used to deal with vendors for everything under the moon... 

The point is, how do we use it and what is next. Templated web sites are not the answer to anything that I know off... And all those who have them, don't seem to be getting much out of their web presence...

Just saying.

Mar 31, 2010 08:15 AM
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