It seems like every day there is a new tool that comes out with a promise of productivity, time-saving, and improved customer experience. It can be tempting to jump on to the latest trends and to adopt the latest technology. However, this ‘all in’ approach brings some risks. It might even be disruptive to your real estate brokerage and your team if you’re continuously changing systems and ways of doing things.
In this blog, we’ll look at some of the areas of real estate where new technology is emerging, how they might help and the potential risks to watch out for. We’ll also give you valuable strategies you can use to introduce new technology with a measured and risk-conscious approach.
Available Tools and Benefits
New and emerging technologies are helping to optimize all stages of the transaction process. From online property listings and virtual tours to transaction management software and business process automation, the tools and technology for real estate are aplenty. There’s no doubt that technology is enabling more informed, smarter decisions and improved experiences for buyers and sellers.
Virtual reality (VR) can immerse the buyer within a 3D model of a property, combined with the interactivity of Augmented reality (AR. ). More on Real Estate Virtual Tours. These innovative tools are helping prospective buyers to get an in-depth look at a property before purchasing without the need to even step through the front door. While many prospects follow this up with an in-person inspection, technology is reducing the need for parties to visit a property multiple times, as was the case traditionally. It streamlines the buying process and reduces the time between buyers spotting a property they like online and submitting an offer. Know the risks if you’re considering augmented reality.
Meanwhile, developments in Artificial Intelligence (AI) are making machines smarter and more like humans, boosting efficiency, and helping to improve customer experiences. For example, chatbots can act as an extension of your customer service team. Chatbots can now be easily created and applied to your social media pages and websites to answer FAQs from prospects quickly at any hour of the day. But using AI in real estate also has its risks.
Meanwhile, Customer Relationship Management systems (CRMs) like RealVolve and ZipperAgent are allowing real estate licensees to improve efficiency phenomenally. They automate tedious, repetitive tasks, such as sending personalized email blasts, scheduling appointments, and updating client records. CRMs also provide powerful data analytics capabilities allowing licensees to better analyze and act on valuable customer data. For both brokers and licensees, this frees up your time to focus on other high-value, more strategic activities.
Transaction management software like paperlesspipeline gives licensees a central location to create transaction files. With task reminders, and visibility into every deal for your administrative staff and transaction coordinators, your real estate team runs more smoothly.
For property managers, tenant screening systems like AppFolio and Global Verification Network help standardize your procedures to ensure you’re handling every applicant in the same manner. They help you more easily identify the first applicant that meets your qualifications.
There’s no doubt that implementing nothing is not an option when it comes to the technology space, but should real estate brokers and licensees go ‘all in’?
The Risks of Going ‘All In’
While it’s obvious to most that real estate pros can’t just sit back and have technology pass them by, adopting anything and everything with no due diligence is just as risky.
Here’s why:
Integration challenges with existing systems
It can be challenging to integrate new technologies into legacy systems that have been in place for years. The introduction of new systems therefore needs a high degree of planning to ensure they integrate seamlessly without major disruptions to your business. It’s a lot of work. That’s why it’s important to ensure you’re implementing the right technologies and the right systems — and not simply implementing every new thing that comes your way with a scattergun approach.
Potential resistance to change if there are constant disruptions to your team
There is always potential resistance to change when introducing anything new within your real estate brokerage or within your own team. This isn’t a reason in itself to not forge ahead with something that can help you improve efficiency or transform your business. However, if you aren’t introducing new technologies without a planned and considered approach frequently, resistance can be expected.
Potential cybersecurity and data privacy concerns
It’s important when choosing new software and technologies that they are from reputable sources. Failure to do your due diligence puts your existing IT systems at risk of potential cybersecurity breaches and data privacy concerns.
Financial constraints
Technology comes at a cost and annual subscription fees add up. Make sure you’re only implementing what you need and what can make a positive impact at your brokerage.
Strategies to Introduce New Tech with a Measured Approach
Take a measured approach to the adoption and introduction of new tech for your brokerage, instead of adopting everything that comes out. A useful exercise is to sit down and review what it is you really need using this process:
- Do a regular ‘SWOT’ analysis within your brokerage, so you are continuously aware of any strengths, weaknesses, opportunities, and threats to your business.
- Where you have identified weaknesses and threats, consider what tech and tools might be around that can help you to turn these into opportunities instead. For example:
If you feel you aren’t doing enough to nurture prospects via email and you have inefficient manual processes for communications with prospects, a CRM could help. A CRM can automate the lead capture and qualifying process, centralize information on lead activity, and you can also automate the nurturing process with emails and workflows.
Prioritize what you need and what will make the most impact.
3. Then identify the right technologies to implement through a due diligence process. Consider these questions:
- What are the strategic objectives you are trying to achieve?
- How will the technology help you to improve efficiency and effectiveness?
- What are the financial implications? Does the technology offer value for money?
- What updates, maintenance, and support are needed to implement the new technology
4. Create a phased rollout plan that includes training and education for your team. This is crucial to ensure they are on board, supportive, and will use the tools and technologies available within your brokerage.
5. Continuously evaluate technology in your business using predetermined KPIs. If something isn’t working, it’s time to look for alternatives.
Protect Yourself and Your Clients
CRES is part of one of the largest insurance brokers in the world. We have access to Real Estate Errors and Omissions options, General Liability and Business Owner’s Policies, and more, so you can protect your real estate brokerage. Contact the team at CRES at 800-880-2747 for a confidential discussion today. As part of one of the largest insurance brokers in the world, we have access to more options than just about anyone. Let us find you the best coverage for the best price.
