Future of Real Estate, Pt 1

This topic is one that I plan on commenting on quite often as it is something that I think about almost every day. As most of you may know, I became a real estate professional to 'escape' the corporate vice president role that included way too much travel and kept me away from my family and my city. You can read all about that on my old web site and other bio 'spots' out there.

Ok, back to the future. All of my experience after graduate school was in technology, primarily software, so I am constantly looking at ways to utilize technology better in my business. I think I do a decent job, but I know that I am not maximizing technology. My web site needs to get a lot better, my tracking software and CRM software can be better, and my systems of providing information and feedback to customers can improve, just to name a few things.

What I really question is how will technology and the internet especially improve the process and costs of buying and selling real estate? Look, I am currently paid to do just that so I understand the position of the majority of real estate professionals against increasing effeciency and reducing costs because they see their income being pinched.

From my experience in technology you better be in the front of that curve and be a part of that change because technology will make virtually every process more effecient. Some just take more time and are more challenging. I have seen way too many very smart people figure out how technology can solve very challenging systems and create incredibly useful tools and efficent results in a short period of time.

Enough about the set up - what are the elements? You have a buyer, a seller, and a piece of property. those are the essential parties to the deal. Then you add 'others' to help make a certain part of the process easier, possible, or more efficient. For example, a mortgage broker is there to help bring money to the exchange. A real estate agent is there to help put the transaction together and currently handles much of the process (that can be made more efficient). They can help research properties, negotiate the terms, coordinate the closing process, and keep the parties at the table, among many other items. An attorney can be there to help with title (or a title agent), write and/or approve contracts, and other tasks. Of course, there are home inspectors, pest inspectors, surveyors, appraisers, and a myriad of other professionals that are also involved.

As I look at my job, my primary role is to provide professional advise and representation. For my sellers, I would also place marketing strategy up there with the advice and representation. There are about 62 (yes, we have written them down) other responsibilities that I do as a normal course of action for my customers. Perhaps at the top of the list is to provide all of this in person.

Since it is getting late, I want to wrap up this as the intro to this topic. What I have been trying to solve is how can I look at those items identified and numerated above and supplement and/or replace them with technology and subsequently reduce the cost to the consumer. I tried almost 1 year ago to create a fee-for-service model so I could match up a customers expectation with the services so that the process was more efficient for all and increased customer satisfaction. Well, I haven't found that perfect model yet. I tried to do this with some customers but in the end it came out more expensive. I will get there, and I welcome your input!

Yes, I have looked at the online companies. They each seem to offer pieces of the process, so that is a promising start. If I could minimize the process where my clients hired me to advise based on experience and continued education but left the leg work to automation - everyone would be happier. We just need to make sure it is better and less expensive.