Whitepaper: How to Choose a Technology Partner

An Interview with Bryan Foreman, President of MarketLinx MLS Solutions, as originally published on Frogpond.com.

As an "industry visionary", what do you see as the major changes occurring in the real estate industry?

Consumers are responsible for most of the change occurring in the real estate industry today. First-time buyers are increasingly tech-savvy and want more and different kinds of access to property and transaction information. Consumers want "one-stop shopping" at significant discounts as available through Coldwell Banker’s Concierge and Weichert Gold Services programs, for example, but only large brokers can offer these services economically, contributing to the trend of broker consolidation. Consumers are demanding more value from their real estate professionals and want to drive the real estate process more than ever before.

While I think REALTORS® will always remain at the center of the transaction, they are having to reinvent themselves and offer information and services that are not readily available on the Internet such as zoning regulations, local government plans, general contracting knowledge, etc. Brokers are still searching for new profit opportunities as their margins continue to decline, and are being forced to implement more efficient lead management systems because they have fewer people handling more business.

What major "corporate players" are driving change and what may be their impact?

Ultimately, I believe that consumers are driving change, not corporate players. The most relevant corporate players are those that can recognize and adapt to consumer demand the fastest.

That said, very large organizations will continue to flex their muscle to influence legislation and effect changes that best serve industry interests. The National Association of REALTORS® and Cendant Corporation fall into this category—NAR’s political weight can affect public policy in addition to its ability to dictate membership policy, and Cendant’s majority share of the REALTOR® population obviously gives them a lot of clout.

Additionally, technology companies that help consumers directly access real estate information (e.g., property listings, aerial photos, online tax data, FNMA quick appraisals, etc.) will continue to drive change as they enhance the home buying and selling process.

Who are the "individual trendsetters" that are shaping the future real estate industry?

Other contributors to this forum have identified individuals who have helped make the real estate industry what it is today. Whether these individuals will have the same level of influence in the future is difficult to predict. Tomorrow’s trendsetters will be those people who really listen to the consumer and offer solutions that satisfy their demands.

What are the expectations of the emerging real estate consumer?

I think many of today’s consumers want to do as much legwork as they can before contacting a REALTOR®, and then they want a friendly, knowledgeable and responsive professional who will act as their real estate consultant, not as a high-pressure sales person. This is pretty much true in all markets. The emerging consumer also expects to use e-mail and the Internet as much as possible while still having immediate telephone access to their agent. Furthermore, consumers are coming to expect "one-stop shopping" at discounted rates when they decide they are ready to buy or sell.

How should the Brokerage and Realtor Association / MLS respond to these real estate consumer expectations?

It’s vital that they recognize that the consumer is king. To ignore the changing needs of the consumer and simply go about business as usual will ultimately be fatal. REALTOR® Associations and brokers must learn to accommodate evolving consumer demands while maintaining control of the transaction process. REALTOR® Associations should use their purchasing power to provide timesaving technologies to their members; brokers must do the same to find innovative ways to differentiate themselves and attract prospective buyers and sellers. VOWS and other Internet-based solutions will continue to be among the most cost-effective ways to meet consumer expectations.

What changes should a Brokerage implement to ensure profitability in the future?

It’s important that brokers employ technology that will increase their qualified leads, create new efficiencies in the transaction process, and free agents of mundane tasks so they can spend more time selling.

In terms of customer-facing strategies, the best thing brokers can do is provide top-notch service and implement a program that lets them track and measure customer satisfaction. Again, consumers are also looking for a "one-stop shop." If well implemented, a concierge-style service can go a long way toward fostering customer loyalty for the broker’s brand and offer additional sources of profit.

Brokers also need to find innovative ways to reduce their expenses and solve the commission paradox. No one solution will work for everyone, but hiring sales employees in addition to using independent contractors, offering fee-based a la carte services, and using virtual offices in addition to their bricks-and-mortar business are among the trends that are being tested.

What role do you see the Realtor Association / MLS playing to ensure Broker profitability?

REALTOR® Associations can indirectly help ensure broker profitably by using their collective buying power to provide products and services to members at a reduced cost. Associations can also indirectly help brokers by raising the perceived value of REALTORS® by consumers through enhanced education services and knowledge of related professions such as home inspection, remodeling, etc.

Based upon your vision of the future of the real estate industry, what are you doing to help influence positive change?

The most important thing we can do is to listen to our customers—MLS Associations and agents— so that we can provide technology solutions that meet their evolving needs. We also have to listen to and understand the changing needs of the technology-savvy consumer so we can provide tools to REALTORS® that satisfy the demands of their customers and clients.

What books would you recommend as a "must read" that have influenced your vision?

Lincoln’s Virtues by William Miller. This novel is another look at one of America’s bravest and most moral patriots and citizens. Rarely has any human faced as much adversity as Lincoln. His life permanently changed America’s destiny.

The Hearsts—An American Dynasty by Judith Robinson. Randolph Hearst’s life is fascinating. His deep love of California and his instincts about the future value of Real Estate 100 years ago were remarkably accurate. This book offers a rare glimpse inside one of America’s most famous families and the lavish way in which they lived.

Straight from the Gut by Jack Welch. One of America’s greatest business leaders shares his insights on management and how he made General Electric one of most successful companies by integrating new and innovative practices into their various lines of business.

What advice would you give Brokerages and Realtor Associations / MLSs to assure they stay relevant and successful in the future?

Again, listening to the consumer and satisfying their changing needs is crucial. Likewise, REALTOR® Associations and MLSs must listen to their members and assist them by identifying and providing appropriate solutions (technological or otherwise), and by using their buying power to cost-effectively provide these solutions to their constituents.

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