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Are Electronic Lockboxes Hindering Sales ?

By Christopher Walker

Real Estate Broker/Owner with Mission Grove Realty Inc.

February 15, 2008 04:12 AM

A Realtor posed a question about the effects of using a different electronic lock box than surrounding Boards. A great question is this market and something all of us must consider when making the switch:

We saw the effects of this when our board switched to electronic boxes a few years ago. We are a small community that is completely surrounded by larger ones in all directions. Our electronic boxes are not the same as any surrounding community yet, all surrounding communities share the same.

Our board decided on the change for various reasons yet, in my opinion, the change was made to effectively "shut out" "out of area" agents in an attempt to "protect" local agents. The biggest problem is that more than 80% of those moving to our community at the time were not from our area and had their trusted agent of choice in tow. Did this help our market? Quite the contrary in my opinion. Many homes were sold by agents that included a second lock box.....a combo box just for out of town agents. Choosing a local agent is important but, when representing a seller, my main concern is selling their home regardless of where the buyers agent comes from. Accessibility, as we all know, is an issue. If a home can not be shown....it can not be sold. Electronic lock box, combo box or???? Will it really stop the criminal from entering a home?

Look at REO listings. The respective lenders require combination boxes for easy accessibility. This is for many reasons including easy access for contractors but, there are any agents coming to our market to sell REO properties. Would the bank, or any self respecting agent, want to stop them? Does it truly stop, or hinder, a thief or vandal from doing what they are going to do anyway? Nope. We have had REO properties with missing kitchens, appliances and vandalism. One thing in common with them all is that the lock box was not used to gain entry. They broke a window, a door or picked a lock and in one case, removed the front door altogether. Lockbox still intact and unopened. Issues that will not be solved by an electronic lock box or other method.

Lockboxes are great for one thing. Hindering access from agents out of the area who do not have a particular boards electronic key. Do I want to stop any agent that may have a buyer from showing a property? Would my seller if they knew all of the facts? Buyers are gold and I would not ever think that I will be able to capture the market by hindering accessibility to an "out of town" agent.

One great aspect of electronic boxes is that I can get showing data sent to my cell phone. I know when an agent was there and, who they were. I could then call them and grill them about why I don't have an offer (not the best usage of the system). I can also request that feedback be entered at the time of opening when the agent is using their PDA to access. I like that part, a great tool for sure. One that is used by less than 1% of agents.

I believe that we should all consider having state wide electronic lockboxes. Accessible by all subscribing members regardless of where they are. It would help to foster better relationships between boards, would be of great benefit to our clients (This is why we are here) and add value to our services as REALTORS and real estate professionals.

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Christopher Walker
Mission Grove Realty
Riverside County, CA

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Cindy Jones

Integrity Real Estate Group - Woodbridge, VA

Pentagon, Fort Belvoir & Quantico Real Estate News

I guess the question is how far out of the area can an agent go and still give their client good representation? I can represent a client anywhere in the Commonwealth of Virginia but should I? If my lockbox doesn't work in Richmond or Blacksburg do I know enough about the market in those areas to protect the best interests of my clients or would I be better off to refer them to someone who knows the area and can take care of them for me?

Feb 15, 2008 04:48 AM

Christopher Walker

Mission Grove Realty Inc. - Hemet, CA

Local Broker and Realtor - Hemet & San Jacinto, CA

How far and whether or not a Realtor can provide the representation they deserve is important yet, when representing a seller, is not the responsibility of the listing agent, nor the local board to decide. Yes, an important issue but, one that is not part of our fiduciary responsibility to a seller. The main concern of the seller is that their home sells and at the highest possible price with the best possible terms. If the house can not be shown....it can not sell. Would the agent be better off referring their client when out of town? Probably so but, then again.....not the issue. Thanks for your comments.

Feb 15, 2008 05:00 AM

Jackie Hawley

Coldwell Banker Professionals - Oxford, MI

Southeast Michigan Real Estate

We still use the combo boxes. When our board looked into the electronic lockboxes several years ago, the contract we were presented stated we could not declare that the electronic lockboxes offered a security benefit. If there was an issue, legally, it would have to be taken up in Washington DC. For me personally, I didn't like the idea of one company having a monopoly on our ability to access listings. Then there was the cost. At that time it was eighty-five bucks a box. I typically carry 35 listings (not counting vacant land) and for me that money could be better spent in marketing my listings. The program our office uses to set appointments notifies us whenever a showing is scheduled. It also emails the buyer's agent asking for feedback. I have never heard of a problem with a robbery or any other unlawful entry because of a combo box in the 16+ years I've been selling. Also, not every agent is a Realtor. And I agree- why should the listing agent care if an out of the area agent choses to work with a buyer in an area that agent isn't familiar with? We have a duty to our sellers to make their house available to anybody who can afford it and that access shouldn't be compromised so we have an easier time asking for feedback.

Feb 15, 2008 06:13 AM

Christopher Walker

Mission Grove Realty Inc. - Hemet, CA

Local Broker and Realtor - Hemet & San Jacinto, CA

Jackie: Kudos to you, your Board and it's members. When I hear "security" as the main issue for a change of boxes that is incompatible with nearby Boards, I have to giggle. I dont care one bit who sells a listing that I have and....neither does the client. Limiting accessability to a nearby Board member, in my opnion, is done with with full knowledge that it will hurt the possibility of a sale. And, with the irrational belief that by doing so will change the consumers view of dealing with their agent of choice.

Feb 15, 2008 08:00 AM

Tracy Riba

HomeTowne Realty, Johnston County NC - Clayton, NC

Residential & Commercial NC Real Estate Broker

In the Raleigh area of NC, they just did away with keyed lock boxes where every agent was issued a REALTOR key because agents were not logging in their showings and just walking into the house without an appointment. So we only have combo boxes that run $25 each. I agree with you that we are locking out our sellers from getting a contract if no all surrounding agents can access the home. But we frequently have keys missing from the boxes because agents walk off with them or sellers take them out and forget to put them back. I love the idea of going electronic, but they are way too behind the times out here.

Feb 15, 2008 08:45 AM

Lisa Hill

Florida Property Experts - Daytona Beach, FL

Daytona Beach Real Estate

I like what Cindy had to say!

And we have the electronic Supra boxes that work with either the D key or a Palm Pilot. I LOVE our Supra boxes. I like being able to go online and see who has opened that box. It's a great way of tracking who has been in the house. It's for the seller's peace of mind. And I did join the MLS of a neighboring city that didn't want to cooperate with us, so I could open their boxes. It's only $400 to be a participating member of a nearby Board. But this particular Board is so difficult that half the time they don't have ANY lockboxes on their listings. I think it's completely unreasonable to ask an agent to pickup a key at the listing office. We've found that in our area, only the tiny cities don't want to cooperate with anyone else. We really should all be ONE MLS in our area, but they refuse. (control issues and staying stuck in the past) However, the large MLS to our west is very easy to work with and they do everything they can to help and cooperate with us.

Feb 15, 2008 02:15 PM

Christopher Walker

Mission Grove Realty Inc. - Hemet, CA

Local Broker and Realtor - Hemet & San Jacinto, CA

Lisa: I liked it too but, this is not really about practice, it's about our client....the seller. I too use my pocket PC for the electronic boxes....we have 2 different kinds with 3 different memberships required if you want to access them all. 4 if you count the non electronic boxes and requires an old school key. I belong to 4 different boards...all within 15 mile radius of each other to have access....we are not a metro area either. Control issues and stuck in the past....rings so true. Our attempt to control the market has done the opposite. Where 20% of local listings were from "out of town" agents.....the number is now 70%+ and.....we are still wondering why. Maybe banning the Internet would solve the issue? The board of directors may be contemplating that one for a long time.....I give it less than 5 years before the majority of smaller boards disappear and state wide MLS systems are adopted Nationwide. :)

Feb 16, 2008 02:49 AM

Sharon "Toni" Brown

Exit Realty United - South Ozone Park, NY

South Ozone Park - New York City Real Estate

Lock boxes have not become a regular part of the landscape here yet. We still have to jump the hoops of getting the keys, leaving a deposit and giving them back. It is considered an open invitation to a criminal. Any vacant properties need to have a security system but then how could we show it?
Unfortunately you can't stop a thief.

Mar 06, 2008 11:11 PM

Kathy Clulow

Uxbridge, ON

Trusted For Experience - Respected For Results

Christopher - I suppose there is some merit to the electronic types of lock boxes but as you say what good are they if they lock out potential showings from out of the area agents.

May 10, 2008 07:41 AM

Mike Frazier

Carousel Realty of Dyer County - Dyersburg, TN

Northwest Tennessee Realtor

Christopher,

We just went to electronic lock-boxes in our MLS and I am glad we did. Our main motivation was people going in the houses without telling anyone. Now, we will know who goes in these houses.

For me, I like them also because the agents have to come to the office to renew their cards at least once a week. I own a small brokerage and like having the agents come in to renew.

May 10, 2008 07:51 AM

Christopher Walker

Mission Grove Realty Inc. - Hemet, CA

Local Broker and Realtor - Hemet & San Jacinto, CA

Dont get me wrong. I do love technology and even have an electronic key in my phone....no key to carry. There are so few that use them though. Because of the number of different agents, it still seems silly to limit access. With so many on the market, the easy show....could get the sale. And that easy show may as well be my clients!!

I also like the point of making them come to the office. I think that many still wont come in because they have nothing to show? Very good points! :) Something that will be pondered for a long time.

May 12, 2008 06:33 PM

Gita Bantwal

RE/MAX Centre Realtors - Warwick, PA

REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I like the ibox. If an agent does not have the key I meet them at the house.

Jul 13, 2008 08:22 AM