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Investing in New Technology? Five Things to Consider First

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Investing in New Technology? Five Things to Consider First

Know where your dollars will make the most sense and why

By Desiree French

RISMEDIA, December 11, 2006-New technology products hit the real estate market almost daily. But the hottest appear to offer what brokers and agents need to be more profitable and successful-ease of use and assistance with marketing, sales, and leads.

"Technology exists to make people more productive," insists Brian Wildermuth, president and co-founder of Sharper Agent, the Denver-based provider of custom contact management and marketing software, "so it must save time and increase their chances of making money."

Expert's advise the following when considering technology investments:

· Before jumping to keep up with the latest technology, first consider your needs. "Where is the technology going to take you five to ten years from now?" asks Renwick Congdon, president and chief executive officer of Imprev, a provider of marketing solutions. "Are you buying a specific solution that will work today or a platform that is also going to work in the future?"

· Whatever you do, keep it simple. "One basic principle that people forget is that people in real estate are not technology people, and they never will be. It's not in their DNA," says Michael Russer, president and chief executive officer of Russer Communications, an Internet and business transformation firm. His suggestion: use virtual assistants and consultants, the off-site specialists hired to handle transaction coordination, lead management and listing-marketing coordination. "They already know the technology, and when new technology comes up, they know how to use it," he says. "It's the least expensive way to get things done. If you have agents running technology, it takes away from selling."

· Integrate your systems-public records, contact management systems, broker back-office systems-as best you can to standardize your operations. "You will need to go to different vendors because there is no one product that covers everything," says Brian Wildermuth, president and co-founder of Sharper Agent. "Avoid duplication and select vendors who are collaborative and willing to work with you."

· Continue to invest in your infrastructure and security. Gregg Larson, president and chief executive officer with Clareity Consulting, says many brokers are using unified threat management appliances, or security devices to protect their networks from hackers, viruses and spam.

· Everyone agrees that any technology that can be Web-based should be Web-based. This allows agents, as well as virtual assistants, to access the technology from any computer at any time.


Making Transactions More Manageable

The recent trend toward online transaction management systems and automated forms management, as well as online marketing tools and global positioning systems. The technology helps to eliminate paper trails, allows agents to efficiently market to existing clients as well as new ones, and promotes Internet displays that benefit consumers and agents.

According to the 2006 Technology Survey by the National Association of Realtors, online transaction management systems appear to be the fastest growing technology in real estate. Twenty-six percent of Realtors use them-up 100% from the previous year-and another 72% are "very interested" or "interested" in using the systems, which are primarily provided by brokers to improve document management, process control and communication tracking during the transaction.

"The real estate office becomes more efficient because people can access files from anywhere," says Gregg Larson, president and chief executive officer of Clareity Consulting, a real estate information and Internet consulting firm. "The office also benefits from lower storage costs and improved quality because automated check lists are built into the work flow."

Customer satisfaction is enhanced as well. After the transaction closes, consumers can access their files on the Internet using a password and ID or the agent can burn a CD for their use. Dickson Podley Realtors in Pasadena, California, has implemented mandatory transaction coordination using Sure Close, a Web-based, paperless solution for real estate. The product has helped the company to streamline operations and increase agents' productivity.

"Our fall-out rate on deals has gone down, agents are doing less clerical work and we have a 60 percent-plus capture rate for our ancillary escrow company," says Chris Dickson, president. He is also pleased with the technology software that Dickson Podley built to handle incoming lead generation. "I'm getting better conversion from the traffic coming from our Internet and advertising, and I'm getting a better fee from agents for the service," he says.

An Internet-centric Phenomenon

Obviously, the Internet has become a very powerful and necessary tool for reaching consumers. John L. Scott Real Estate in Bellevue, Washington, was the first real estate company to use Microsoft Virtual Earth, which offers interactive mapping software and provides aerial views of all property searches, a feature it believes is becoming increasingly crucial to Internet data display. Also the first major company to display MLS sold data, it spends $2.5 million a year on the Internet and partners with Real Tech, which provides Web-based business solutions for brokerages.

"Technology is a continuing investment," says Lennox Scott, chairman and chief executive officer. "If there's a giant leap forward that will improve service, then it's time to invest."

Jerry Kidd, vice president and brand executive at Pacific Union GMAC Real Estate in Orinda, California, agrees. "You cannot ignore the fact that buyers are going to the Internet first. If you ignore that, you proceed at your own peril." To make the company's listings attractive, a professional photographer takes photos of all Pacific Union listings, which are strung into a virtual tour and can be burned onto a CD. "It's a relatively inexpensive thing that pays big returns," he says.

Useless Without Buy-in

Brokers use an assortment of products-from mobile devices, such as palm pilots equipped with telephones, to enlisting their own e-mail servers-to keep agents center to the real estate transaction and increase profitability and productivity. However, getting buy-in, particularly from older agents uncomfortable with technology, can be challenging.

Technology gurus say the best way for brokers to ensure buy-in from staff and agents is to first have the right solution. Technology solutions are being introduced almost daily, but you only need those that will solve real-world problems and provide benefits. It is also beneficial to get input early on from agents and staff to identify the challenges they face and to determine what technology can best resolve them. Then the key is to get key influencers, such as top producers and management, to use it. Everyone else will generally follow.

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