| July 12, 2001 |
Industry Leaders Speak Out |
|
Automation of the real estate industry is to many people, an oxymoron. Though not without its challenges and critics, this industry is moving forward – and here’s just a few of the truths I’ve learned along the way. Truth #1 - Never hire a developer or engineer who has not bought or sold a home I cannot tell you the number of conversations I’ve had with 20-something developers who didn't have a clue as to how this industry works. The conversations go just one way: Unbridled enthusiasm about how agents will use their technology and the industry will elevate them to hero status. Only problem is, until you program a system to understand and account for the 100 or more variables that affect a home sale, you will never get agents to fit neatly into the technology box. Truth #2 - All software will be abandoned, misused and bent to the will of the agents Bear Bryant, the great Alabama football coach, had a famous saying about passing the football: “Only three things happen when you pass a football and two of them are bad!” That saying very much applies to Truth #2. Software in our industry is occasionally accepted and used, but much of it is abandoned or misused in the way the average agent thinks it should be used. Case and point: Several months ago we bought thousands of virtual tours for our agents. We put digital cameras in every office and created training so agents and managers would use it. Well, they used it all right. I got a few e-mails of properties that had been listed, but I also received plenty of footage of people having lunch and office parties. Truth #3 - Be cautious of developers who have a product that is now looking for a use The approach goes something like this: “I have a product that is ‘way cool’. It allows your client to have a 3-D perspective of San Francisco and to take the city turn it on its side!” The problem is the application is way ahead of an industry that is still figuring out how to e-mail an attachment. And in truth, the application, no matter how “cool” doesn't really serve the client nor the agent in adding value. Truth #4 - The promise of technology doesn't actually do much So often we are given a promise of technology that will streamline the process, make us faster, or make us excel above a competitor. These are promises that are rarely kept because there is a tremendous amount of lift and haul needed to get a result. Or as one of my transaction coordinators said, “with this software I can go from doing 20 transactions a month all the way to doing 20 transactions a month.” Truth #5 - There is no such thing as a paperless transaction I wish it were true that a paperless transaction were on the horizon…we are currently doing serious damage to forests with the production of paper. But alas, until everyone is working in cyberspace, and comfortable in doing so, the paperless transaction is a ways off. If we can find a way to work in a paperless environment, I believe the agents will be happier and so will the clients. Truth #6 - Take all estimates of time and expense and multiply by three For anyone who has ever worked with a contractor on the remodel of a home, the rules pretty much apply for software development. Everyone involved has the best of intentions, but technology roll-outs are continually mired in missed dates and cost overruns. Not to mention by the time they actually roll-out, they are already in need of modification and updates. Truth #7 - Those who don't give up will succeed - eventually! Pay no attention to the preceding six truths. Every industry on the verge of major change goes through growing pains, and the real estate industry is no exception. There’s never been a better time to be a part of the real estate business. Opportunities abound, and those that risk and move forward are those that will differentiate themselves with the public and reap the reward as the next generation of service providers in the real estate industry. |
With an award winning staff of writers providing up to the minute real estate news and advice, thousands of REALTORS® in North America reporting daily market conditions, and a nationally broadcast television news program, Realty Times is the one-stop shop for real estate information. That's why over 10,000 real estate professionals have turned to us for their publicity needs.