The Shift in Real Estate Technology

Real Estate Technology is Shifting
We are seeing a significant shift occurring in real estate technology that will impact our industry dramatically in the years to come. Like most shifts, it didn't happen all at once but if you look carefully you can see the seeds of this shift many years back. It is the result of natural pressures building up, just like those that move plates in the earth that eventually cause earthquakes. Pressure builds slowly but when it reaches a critical point changes occur quickly and we believe for a number of reasons that is what we are seeing today.

What's Driving this Shift?
Pain and pressure! Pain and pressure is what causes most things to shift in business, or government, or even at a personal level. When things get uncomfortable, when things aren't working anymore, when we are pushed out of our comfort zone, we change. If you look at most cases where major change takes place, things have to get pretty bad first. Needs go unmet. This is what we are seeing happen today for real estate companies and their agents on the technology front. This pressure is behind what we see as a fundamental shift in how technology will be used to conduct business in real estate.

Our world today is about connections. Just like Social Media is about connecting people, activities, interests and influence at the speed of light successful real estate software today needs to connect people, and data, like listings, contacts, leads, web information, sales trends, marketing information, as well as deeper external data like foreclosures, demographics and marketing lists. It has to be easy to use for non-tech savvy agents and it has to integrate multiple business functions for brokers and agents and it has to work everywhere, even across multiple MLSs when needed. Technology that does not provide these connections is like buying a computer without Internet access and yet much of what is being used today operates at this level. As a result, pressure is building and many brokers and agents are looking for next level solutions.

There is another pressure driving this evolution. We believe it will impact the playing field in the broker world just like the Internet did in the MLS world in the 90's. The change we are referring to is the migration from "brick and mortar" being the hub that brokers used to keep their agents closely tied to their companies to "technology" being the new hub that businesses are built around. Successful real estate companies of the future may not have any offices at all. They may simply provide access to meeting rooms and services. We believe what they will do is provide a central point of integration for agents. Technology will be the "new glue" of the real estate industry and it will occur because the needs are real. Broker Brands will be built around tools that serve their agents in the way they really do business today, meeting their real needs. What are some of the needs?

• The need for connections and integration – Brokers and agents need to have data flow across their entire business. Web data needs to work with CRM systems and CRM systems need to feed marketing products, etc.

• The need to move beyond MLS limitations – Many real estate companies today work in multiple MLSs that may mean multiple MLS systems, interfaces and data formats. This creates more expense and overhead and can restrict their efforts to provide services company wide.

• Data – Today brokers and agents need data well beyond MLS data. They need tax data, REO data, foreclosure data and marketing list data. They need demographic information and statistical information and the list goes on and on.

• Control – Brokers need control over their technology solutions in order to train their agents consistently and deliver consumers with a common service experience through each of their agents. With control they can deliver services efficiently and can truly differentiate themselves in their marketplace at every brand touch point through the products and services they deliver with their agents.

• Ease of Use – If systems aren't easy, agents won't use them, it's that simple.

Agents don't need an office to be successful today. They don't need a big building and they certainly don't want to pay for it. What they need is a brand and a company that gives them the tools to stand above their competition when they are working with buyers and sellers. They need tools that support them the way they really work today. These tools are the glue of the future that will create brand and company loyalty and that glue will be largely supplied by company-wide, enterprise level software that agents cannot effectively do on their own.

This is the first in a six-part series from the WAV Group whitepaper. If you'd like to read the entire whitepaper at once, you can visit the WAV Group website.