Agency size plays factor in how brokers use technology

Real Estate Weekly, June 4, 1997

At least that's according to the results of a recent survey "How Brokers Use Technology to Run Their Offices," which appears in the May 1 issue of Real Estate Broker's Insider, a twice-monthly newsletter written for agency broker/owners which provides information about how to run a profitable real estate agency. This survey grouped respondents according to the size of their offices - those with 15 or fewer agents, those with 16 to 50 sales associates and large agencies with more than 50 agents and found that the larger the agency, the more likely they are to use certain types of technology.

For example, while almost all survey respondents agreed that cellular phones, beepers (and even automated phone services and voice mail) are invaluable in creating efficiencies and adding professionalism, the use of sophisticated tools such as desktop publishing, CD-ROM and the Internet became more frequent in offices with higher numbers of agents.

But that doesn't mean there aren't any exceptions to the rule. For every small brokerage that has had to tighten its belt and divert more of its expenditures to, say, sales and marketing or other expenses rather than technology, there were those that rated all tools, from the Web to video teleconferencing (for mortgage loan applications) as "very valuable" in enhancing their operations. (In fact, the average expenditures for technology ranged from $2,000 to over $20,000 per year).

Mid-Sized Agencies More Efficient Some technology efficiencies used by mid-sized agencies include external e-mail, which allows home buyers and sellers to respond to listings. And others use desktop publishing systems to cost-effectively produce mailers, brochures, postcards and other materials in volume for their agents.

Agencies with 16 to 50 sales agents reported that they are also concerned with their image, and developing professional-looking listing presentations with digital cameras, CD-ROMs and laptops in order to "wow" the customer.

The most "techno-savvy" respondents, the large agencies with more than 50 sales associates, are clearly taking advantage of e-mail, Web sites, laptops and CD-ROM technology to help them in many different aspects of their businesses.

Many reported that these types of technologies not only help bring in buyers and sellers, but also impress them and help close transactions quicker and more efficiently.

For example, more than one broker/owner reported that they are using: Web pages for agents to get leads from investors or from out-of-towners; digital cameras to develop listing presentations with virtual tours on CD-ROM for home buyers; and video teleconferencing capability for quick mortgage applications.

While all that technology can create one pretty powerful package for brokers, that "techno-power" doesn't come without expense; the average technology investment for these large broker/owners ranges from $20,000 to $500,000 annually. Can they continue to make that investment and still remain profitable? The answer depends on how they combine these resources with the attention, reliability, knowledge and service that the customer now demands.

For more information on which technology tools provide brokers with the competitive edge and how they improve productivity and efficiency, request free copies of the April 15 and May 1, 1997 issues of Real Estate Broker's Insider by contracting Jody Canning at 215 Park Avenue South Suite 1301, New York, NY 10003, or fax your request to (212) 228-0376.