Coaching Corner

By Lou Ludwig, CIPS, CRB, CRS, e-PRO, GRI, Real Estate Business Magazine, February/March 2007

The Balancing Act

Living in a High-Tech World, Working in a High-Touch Business

Without a doubt, the world of real estate has gone high-tech. The gizmos and gadgets that promise to make work easier keep changing, and as a result, the way the real estate world works changes right along with them. When technology is applied to our industry correctly, enormous opportunities for our businesses, our employees and our clients emerge.

Certain questions continuously surface regarding technology and its applications in our industry:

• Real estate traditionally has been a relationship business, but are relationships still perceived as important with the advent of so much technology?
• How do I take advantage of technology to build even stronger relationships?

Taking advantage of the benefits of technology and maintaining a client-centric business is possible. It's important to watch for possible pitfalls and remember that technology is a key component of doing business — it is not the only component.

Examining how buyers and sellers use technology to purchase and sell real estate will help brokers and their staff understand the best ways to approach both technology and clients.

Use of the Internet to Search for Homes

According to the 2006 National Association of REALTORS® Profile of Home Buyers and Sellers, Internet usage trends among all buyers in 2006 show that 80% of all buyers used the Internet in their home search process. In 2003, 71% of buyers used the Internet in their home search process, representing a 9% increase in buyers' usage in the last four years.

Where Buyers Found the Homes They Purchased

In 1997, 50% of buyers learned about the homes they eventually purchased through a real estate professional. By 2006, that number dropped to 36%.

(The statistics quoted here are from the 2006 National Association of REALTORS® Profile of Home Buyers and Sellers.)

Over that same period, the number of buyers who first learned about the homes they purchased through the Internet expanded from 2% to 24%.

Buyers' Use of Real Estate Professionals

Seventy-seven percent of buyers said they used only one real estate professional in their home searches.

Non-Internet users used the services of a real estate professional 74% of the time, while 87% of all buyers who used the Internet used the services of a real estate professional in the sales process. Buyers who search for a home on the Internet are more likely to use a real estate professional than those who don't surf the World Wide Web.

The recent NAR profile also reveals that the buyer who uses the Internet places a higher value on his or her time and, in many cases, is as knowledgeable as the real estate professional about the market. Buyers look to the real estate professional to help them find the right home, assist them through the negotiating and financial processes and guide them through the maze of paperwork.

According to NAR, most buyers believe the Internet is not a substitute for the knowledge and experience of a real estate professional.

A Web Site is a Must-Have

As the NAR numbers suggest, top companies and real estate professionals must understand the dynamics a Web site plays in the buying process and take full advantage of the opportunities to grow their businesses through this medium. If a real estate company misses the buyer in his or her initial Internet search, that company has only a 13% chance to capture the buyer as a prospect.

What are buyers looking for in an effective real estate Web site? Buyers are not only looking for housing information but are also looking for Web sites that provide quality information about the community. This includes links to school districts, local government and other contacts important for relocation decisions. Web sites must also be professional, easy to navigate, quick and feature eye-catching photos and graphics that all combine to deliver a consistent message. Think of a Web site as a direct reflection of a business' image and brand.

For the CRB Designee involved in sales on a daily basis, a professionally maintained Web site builds strength and awareness for the company brand and assists in building and developing that brand.

But simply because one focus of business is on building and maintaining an often-visited Web site, doesn't mean brokers, owners and managers should lose sight of just who is behind those searches. Web sites should feel personal, making home buyers and sellers feel comfortable. Find ways to build relationships with these potential clients through the technology — use Web forms to find out who the visitor is and what the best ways are to help him or her. Then, follow up with personal phone calls or, if you must, personalized e-mail messages.

Communication Without Conversation

How can we say so much but actually talk so little? For those in the real estate industry, e-mail may be the most frequently used technology tool. Consider each e-mail you or your staff send a

promotional or marketing opportunity. Many real estate professionals are using personal photos as part of the signatures or headings on their e-mail messages. Think about using your e-mail as an even more cutting edge tool. Why can't every e-mail you send be a marketing presentation for your company or for one of the homes you have for sale? Think outside the box about what can be done innovatively to create awareness every time you click "Send."

Depending on who you ask, text messaging is either the new "wow" or the new addiction of the millennium. Sales associates who take cell phone calls or send text messages while with clients have lost sales without understanding why. Clients consider this as a sign that the sales associate does not consider them or their time important. However, text messaging offers an enormous and effective opportunity to communicate with customers if used properly.

E-brochures, online newsletters and Power Point presentations are other high-tech ways to communicate effectively with clients. Just be sure clients know there's a person readily available to talk as necessary. Contact information should be easy to find and read.

Today, as in the past, we are in the people business. Forming lasting business relationships, face-to-face and via high-tech connections, remains key to our overall success.

Lou Ludwig, CIPS, CRB, CRS, e-PRO, GRI, founder and president of Ludwig & Associates, specializes in consulting, training and new home sales. He can be reached at lou@louludwig.com.