CRE Technology and the Impact on Brokerage Firms
The evolution of technology has created enormous efficiencies in many industries, yet in real estate, one of the largest industries in the US, the evolution has lagged as brokers and companies have been slow to adopt new technologies.
Why is this? Real estate is often considered a relationship business. The industry would not function without the relationships of human professionals who have built trust working with clients and each other over many years.
However, real estate at its core is also an information business, where clients depend on the quality of data; and brokerages with the best data ultimately will make the most money and thrive.
In today’s environment, there is no reason for real estate businesses to operate without the benefits of faster and more accurate data, or the efficiencies created by workflow automation and online collaboration.
This brings us to the innovation in today’s environment which is about equipping brokers and companies with software platforms to harness data and run their businesses more effectively and efficiently.
Brokerages who relied on pen and paper or Excel spreadsheets can now access real-time information in cloud-based databases, and collaborate more effectively with their firms, and teams based on a common centralized system. Workflow automation technology is making brokers and companies more efficient by eliminating the need for repetitive tasks that they previously did manually. Ultimately, these tools save brokers, time, and their companies, money, leading to leaner and more profitable businesses.
The average broker wants to spend as little time as possible at his or her desk. Time spent on administrative tasks is time that could have been spent working on, or closing deals, which is how brokers get paid. Given the on-the-go nature of brokers, they need mobile applications that automate and streamline the repetitive aspects of their business so they can focus on building relationships and completing transactions.
That said, the benefits created through real estate technology will far outweigh the costs, and the industry will continue to see efficiency gains as information speed and accuracy permeate the real estate industry.
For those who embrace all that technology has to offer, not only will their businesses and their brokers become more efficient, but more importantly their agents will become more productive, which translates to more profits when all is said and done.