Intuit releases software that revolutionizes accounting.
Microsoft releases Vista.
Apple releases the iPhone.
Nintendo launches Wii.
Lines snake around city blocks. Downloads ensue by the millions. Average, everyday people, motivated by technology, inspired by innovation, obsessed with creating efficiency in their lives, act on their desire to tap into the future — today.
People today know about these products before they buy them. They master them days after they break open the packaging.
Saving time, enhancing life, defining individuality – these are just some of the critical triggers that influence our behavior.
Manufacturers invent on that premise.
Advertisers help them express it.
Synergy with the consumer is achieved.
Real estate has been graced with its own innovations. From blog systems to e-signature software, online communities, CRM and TMS ” this list goes on. But adoption is slow. There are no lines. Only a handful download. Few display an obsession for creating efficiencies or breaking new ground. From vendors to brokers, and brokers down to agents, adoption of progressive technologies and practices has been far slower than it is outside of real estate.
Why?
Could it be that at the end of the day, despite the grand assortment of innovations for real estate, adoption lags because most real estate technologies fail to deliver what they promise? Or are they just poorly marketed?
If that’s not it, what is? Aren’t real estate people just as interested in creating efficiencies in their life and business as the rest of the world? Don’t they want to grab a piece of the future and live in it today?
I think both things are at play here.
How do we make products created for real estate more anticipated? How can we effect greater adoption and a greater appreciation of what change can bring to the table naturally, on its own, without having to offer it as a side dish at an office presentation competing against the deli platters, bagels and donuts?
- Davison
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I think you're right, Marc, when you point out that there's probably a combination of things going on here…some of our tech tools don't deliver on their promise, some aren't marketed particularly well and realtors as a group may seem to be less willing to embrace change.
It would be nice if each technology-based tool that's introduced to the marketplace was designed to deliver a signficant benefit. But history shows us that this isn't the case or even necessary. Consider Microsoft Office — arguably the best-selling software application in history. Yet not one of its components broke new ground. Lotus 1-2-3 gave us spreadsheets long before Excel. WordPerfect preceded Word. But Microsoft learned at an early stage how to out-market its competitors. Mass adption followed. Lotus 1-2-3 and WordPerfect are answsers to trivia questions and Bill Gates is the richest man on the planet.
If we focus on marketing and user adoption, we may get a couple of clues about what's going on in the real estate industry.
First and foremost, resistance to change is the rule rather than the exception when it comes to human nature. People begin to consider change and adopt new tools and technologies when they start hearing the same message from a variety of trusted sources and they begin to understand what's in it for them.
If I had a new technology-based tool to share with the real estate industry, the first thing I would do is seed that industry with evangelists. People exactly like you, Marc. For example, the adoption of Web 2.0 thinking in the real estate community probably owes an awful lot to your evangelism. So I'd start by having everyone in my company read most anything written by Guy Kawasaki — the first official evangelist for Apple Computer.
But evangelists can only plant the seeds of change. Leadership can demand it. Unfortunately, much of the broker community is made up of former agents who made their own success without the benefit of much technology. They don't place a value on it, and so that's the message that is too-often communicated.
All it would take (where "all" = "a sea change of behavior") is for a broker to sit down with the handful of newer agents who are already at home with technology in other areas of their lives, and establish an "e-team" within their office. The "e-team" would receive the necessary training and support so that they could use tablet PCs, secure signature software, web 2.0 lead generation tools, they would hold "virtual open houses", send video email messages instead of recipe post cards and, most importantly, they would become the illustration of success.
As each e-team starts illustrating efficiency, better time management and a more effective means of building a successful business, other agents will want in. You'll always have your hold-outs during this period of cultural shake-out, but they will become the ever-shrinking (but always vocal) minority. And change will occur. Those lines for new product introductions will form, excitement for new technology introductions in our industry will extend beyond the roomful of folks at an Inman Connect conference.
Real estate may be one of the last frontiers in American business to not already have experienced this transition. The good news is that we can look back at how other industries behaved and understand that the same circumstances will probably affect real estate in the same way. In other words, to look into the future of real estae, we can confidently look into the past.
I think part of the problem is an industry one. While their are plenty of very smart Brokers, Agent and Vendors in the arena, a large slice of the population are for lack of better word "TECHNO IDIOTS" Things have to be KISS simple or they won't work for the vast majority of Realtors currently on the front lines. I think this is less likely to the new breed, but a lot of the old timers are fighting like cats and dogs. They don't and won't embrace technology until it squarely hits them in th head and forces them to adopt or perish, even then they will kick and scream all the way. When the bar to entry is so simple…and their are no follow up exams to test ones knowledge in the tools of the modern day trade. Well we reap what we sow don't we ?
Great comments. And yet, even the old timers buy new cars, use the latest cell phones, have plasma TV's and take exotic vacations. So why not apply that basic sense of consumerism to real estate?
You're conflating direct to consumer technology and direct to professional tech. Direct to consumer real estate tech doesn't create lines because most people aren't buying homes at any given time. Direct to professional tech doesn't create lines because no one wants to place a huge bet on a new technology; tried and true is much better than something that looks pretties and cooler, but might be a disaster.
Yes. There is a fear of new technology. We here are at times times a bit conservative recommending things too early into its inception for the reasons you documented.
As an example we're not yet sold on Cover Flow as a web app for example in regards to displaying real estate data. We're not sold on certain social network ideas for real estate either and understand clearly why others in real estate are slow to embrace them.
The distinction here is that contrary to the general marketplace that seem eager to learn about new technologies and experiment with them, we find real estate moves almost too carefully and often times too slowly in some directions and way too fast in others – as you pointed out in the direction of tried and true despite the fact that these days they might actually be more tired and false than anything else.
New cars, the latest cell phones, plasma TVs and exotic vacations all aim to elevate and enhance one's ego. (How many old timers even begin to use half the technology built into that cool new cell phone that they had to have?) These kinds of items are purchased so that the owner's "hip" card gets punched. When you see me in that new car, with that new iPhone, etc., it tells you something about me that I want you to know.
There isn't the same ego relationship to real estate technology because outside of you and a virtual handful of other folks, no one else is out there to appreciate the "cool factor" associated with the latest web 2.0 mashup or the fact that MySpace and Facebook are becoming the greatest targeted marketing arenas in the world.
I would think there would be a huge ego boost when sitting in front a prospective client and presenting a listing presentation in Keynote or showing what you've already done to market a sellers home by rolling out a Real Estate Show built 2-days prior to the listing presentation.
I think that building a Blog specific to a house and allowing the seller to post and comment would be a no brainer of an idea and really cool and easy use of new technology.
Let's put aside trendy things like social networks and such. I ache to understand why every agent isn't syndicating their listings everywhere. Or doing virtual tours. Or building address specific websites. Or taking 100 pictures and demanding Realtor.com allow more pictures per listing.
I would think more agents would bring lap tops to their open houses and offer buyers a view of their website IDX page to see what else is in the market.
I'm searching to try and figure out what exactly is the extra mile everyone says they go for the consumer.
Maybe the comparison between the consumers rush toward new technology and real estate's snail pace towards it is a bit lose but the way I see it, if consumers are all over new technology and line up for the companies and products that offer it, wouldn't some of that juice and interest spill over onto any real estate company or individual brand if they marketed and presented themselves as truly advanced?
Realtors chose a business based on face-to-face communication because they preferred that to technology. If they liked technology, they would be working for Intel. There are exceptions of course, especially with high tech refugees washing up on the shores of the real estate industry, but for the most part realtors would rather talk to a person than use a computer.
My specialty is bridging the gap by presenting the technology in relevant terms. I don't sell technology as a silver bullet, which Marc alluded to when he mentioned technology that failed to deliver. I position technology as a way of enhancing existing processes and look for opportunities to tempt agents to use the same technology to go beyond existing processes.
Another factor is that the best solutions providers have failed to penetrate the real estate industry while hopped up mom and pop developers with good political connections have turned off agents with poorly designed programls built with inferior technology.
Your description of an e-team describes an organization to which I belong,CyberStars(www.cyberstars.net). This group of Realtors are early adopters of technology in our business (most of us had a web presence in the mid-90s).You can find us in those lines waiting to purchase the newest tool on the market that will enable us to work smarter, improve the quality of our personal time and enhance the service to our clients.The high point of our attendance at the NAR convention is the trade show.
I believe I would embrace technology regardless of the industry in which I work.
I am very familiar with e-teams and believe this is really the wave for agents to ride as time goes on.
I am also familiar with how progressive e-teams are technologically so perhaps you could lend some voice to what you think about the tools and technology created for real estate. From websites to social networks to IDX systems to TMS, marketing tools, etc.
What works? What doesn't? What is your overall impression of the entire lot of real estate tech tools. Are they big on hype and short on usability?
I don't think big companies fear change.
The problem is they think they need to simply throw money at the problem.
I need a "killer website," let's throw $1Million at it, that ought to do it.
I know some huge local companies that blew millions for a website that looks very 1998.
Meanwhile they hire people that are clueless about the industry and they make a $1M site full of Gee Whiz, but it sucks. They don't get it.
Can you say KISS?
Money isn't the solution, innovation is. And that, for the most part, can't be outsourced or purchased.
And those with the innovation, don't have the money to throw $1M at a few ideas.
Web 2.0 is where the next killer MLS app is. But trying to figure out how to navigate the MLS rules that led to a Redf1n $50,000 fine for home reviews, is a tough hurdle. But it can be done. I'm gonna do it, but it will be on a super tight budget for now.
Frank Borges LL0SA- VA Broker
http://Blog.FranklyRealty.com
Marc
Let's take blogging for example, one person, say Teresa Boardman, walks into her office with sale after sale. An agent asks T how she does it, T says "blogging." That agent runs to get a blog–posts a recipe for crumbcake and nothing happens.
That agent then tells everyone else in the office that this new "tech" thing called "blogging" REALLY doesn't work. So that "anti-everything" group categorically shuns technology and advancements by saying they really don't work.
It is easier for that group to denounce it and forget about it than "take on" yet another new thing to learn.
I wish I had the ability to do that, I'd still be sending out "Just Listed" cards. It's easier for sure.
This really isolates an issue in real estate that I have yet to discuss Kevin. The "follow the leader" mentality – an inherently good idea based on the premise of modeling behavior and practices of other successful people. However, instead of modeling the premise by which "T" creates success – her polished talent as a writer and the topics she writes on based upon her specific beat, agents may be simply modeling the idea of blogging and nothing else.
In that sense, they are not really learning anything. Seems to me, this brushing lightly over the tools and the process can hardly produce anything stellar or positive from either their efforts or the product.
Seems as if there is just too much at stake here, agent careers as well as the well being of their clients to simply gloss over anything today.
After "follow the leader" write "hire someone else to follow the leader for me."
It never ceases to amaze me that agents think they can differentiate themselves by sending out canned newsletter content and having cookie cutter websites.
The second biggest competitive advantage any agent has is those things that make them rare or unique as individuals.
No service can provide that benefit for them, but a good marketing consultant can help them find it in themselves and use it to generate business.
The biggest competitive advantage any agent has is persistence because 90% of the agents out there will not be persistent. This advantage can't be bought either.