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Self-Serving Customers
At $1.1-billion Long & Foster Cos. in Fairfax, Va., a brokerage with 16,000 agents serving the mid-Atlantic region, keeping pace with consumer demands led to a Web site relaunch in June. The 90-person IT department combined search tools and document management capabilities into a customer-facing online planner that allows consumers to manage a host of activities through one interface, from searching to selling, says CIO Michael Koval. Users can save property searches, schedule home showings and sign up for new-property alerts. "It's a unification of all the different processes in a simple presentation to the customer," says Koval.
ZipRealty, a $100-million brokerage in Emeryville, Calif., with 1,500 agents in 18 markets across the country, seeks to differentiate itself through a hybrid service model, which combines traditional agent service with extensive online research tools for consumers. Because consumers can do so much work up front, Zip has challenged the established realtor fee structure by offering buyers 20% and sellers 25% off the commission Zip collects. Zip's operating costs are kept low because agents work at home. And agents use the homegrown ZipAgent Platform, a CRM system that is standardized throughout the company -- an anomaly in a sector made up of independent contractors who often use their own manual systems. "The platform is centralized. That's a key differentiator for us," says VP and CIO Joe Trifoglio.
As more consumers conduct property searches on the Internet, other brokerages are using CRM to improve service and capture client information. At Long & Foster, agents use the elective My System, a homegrown system that entitles agents to online leads and allows them to manage client interaction through a personalized website. Windermere also uses a lead management and CRM system.
The Next Big Thing
Transaction management systems are the next tool to bring back-office efficiency and meet customer demands. These Web-based systems store documents and streamline workflow associated with a home sale, such as the purchase-and-sale agreement and inspection report. Checklists and alerts help agents complete each step of the home-closing process. And consumers and third parties can access documents electronically. While these systems help cut costs by eliminating paper and mailing fees, they also satisfy consumers' demand for centralized information and efficiency. "Customers want a paperless transaction," says Koval. "They want a standardized, simpler process."
Windermere is implementing a homegrown transaction management application. Now in phase one of a pilot deployment in five offices, the brokerage has begun scanning contracts and other documents related to the purchase-and-sale process as PDFs. "It's a ridiculous number of documents. So you get a huge gain by having everything centralized and standardized; less falls through the cracks," says Rahmn. Third parties and consumers will become part of the process by the end of 2007. The ultimate goal is an end-to-end system that extends from client search to transaction closing.
Long & Foster is using its online planner to move toward transaction management as well. Clients can upload and store documents such as the sales contract and loan applications, even birth certificates. The system also supports digital signature (though many third parties don't yet), allowing for a totally paperless transaction. "This is your biggest transaction, so we want to support it completely," says Koval.
While consumers may be driving the real estate market, persuading agents to adopt new technology is another story -- a task made more difficult because many real estate offices are individually run and agents work as independent contractors rather than salaried employees. For CIOs, a big part of the job is selling agents the value proposition of standardized systems. "There are a lot of agents out there doing things the traditional way," says Koval. "We need to help these agents move along." So for agents and brokerages that want to remain vital in the real estate process, adopting standardized technology and process is the essential next hurdle. "All these technologies," says NAR's Lesswing, "are enhancing the human relationship, not detracting from it."
Lauren Horwitz, former managing editor, production, for CIO Decisions, is now managing editor for TechTarget's Data Center Media Group. Write to her at lhorwitz@techtarget.com.
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