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Op/Ed

Technology gurus are marketing you bullshit, here’s what really works

(OP/ED) Technology gurus have fun tools to sell you and tricks to teach you, but I can tell you firsthand that it’s mostly bullshit.

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woman holding phone representing technology

I am known as a technologist. An avowed geek. An unapologetic adopter of shiny new objects. My passion is finding out how technology – specifically the internet, can make my job better, faster, and more profitable. It is also figuring out how the consumer intersects with the internet and how I can leverage this to create more business.

In years past, I bet heavily on internet lead generation, customer relationship management (CRM) systems, and video email marketing. I researched the best platforms and practices, sought the counsel of the foremost experts and hired the best talent.

I had some great wins and surprising losses this year. I’ll get into that in a bit… but I realized that the real estate industry often markets tech on the internet as a replacement for human connection, as a convenience for the agent, and as a crutch for a basic lack of knowledge and expertise. In the real estate industry, technology is marketed as a shortcut to profits and that is complete bullshit.

Fair warning- this post is likely to get you riled up and deny that any of it applies to you. That’s cool. It probably doesn’t, so move along. I am not trying to derail your successful train. But this category of business tools creates stress for a lot of agents who feel left behind or “less than.”

About those gurus on stage at your favorite conferences

Listen to the gurus on stage and the vendors hawking their wares. According to them, the internet can provide a never-ending source of people who want to buy and sell (leads). It can eliminate the need to chase signatures or show homes. It can sell homes without the need to open it to strangers or tell you a home’s value instantly and automatically.

Wow. Get clients without dealing with real-time rejection. Show and sell homes with no physical effort. Find values with no expertise or local knowledge. Makes you wonder what human Realtors are going to do. Flip burgers, maybe?

Internet-based tools are an amazing enhancement to traditional skills and techniques, but it is often promoted as the miracle cure and wholesale replacement of skills and knowledge. I call this bullshit – but our industry is buying it.

The enticement of internet lead generation

Let’s start with internet lead generation. The surface promise is very enticing. Write a check and get a never-ending stream of people interested in real estate who have given up their contact information. No physical effort. No skill is required. No face-to-face rejection. Who wouldn’t sign up for that program?

But here is the problem. It takes a lot of money to do internet lead generation effectively. It takes a lot of resources to follow up and it generally takes time to create a sale. When you factor in all of these resources, internet lead generation is far sexier on paper than in practice.

Now, this does not mean lead generation isn’t a viable way to run a business. But it is best done in a team setting with proper resources to handle these leads effectively. In a team setting, internet lead generation is less likely to divert attention away from relationship building. And, for a single agent, it is a very dangerous place to “bet the farm”.

So I can pay more but get the same results?

The number of portals and agents competing for attention increases every month, so the resources required to stay level will also increase. This means it continually takes more money to get the same result… and this is where I call bullshit. The average agent is only seeing the tiny fraction of people making a profit from internet lead generation and they have no clue how costly internet lead generation actually is.

And that is another problem. How many agents use internet lead generation as a replacement for the much less “sexier” work of face-to-face prospecting? My guess is quite a few. I’ll confess. I tried replacing my traditional prospecting with a lead generation site. It was bullshit.

Another bullshit problem: social media

Here’s another technology coming between the consumer and the agent. Facebook, Twitter, and email marketing- loosely categorized as social media. When used as an easy, thoughtless, broadcast machine (as most agents do) the agent is following the idea that being seen- frequently- is the way to make the phones ring.

Agents have been doing this sort of “look at me!” advertising with postcards and print advertising for years. However, print costs lots of money and most will give some thought and attention before doing each piece. Social media is essentially free and nearly effortless, allowing agents to completely alienate their audience with their avalanche of tone-deaf posts and emails.

Now, at least this stuff is nearly free and the agent has resources left over for traditional relationship building. But, how much damage is done to potential real-life relationships with poor and uninformed social media tactics? The bullshit part is that free and easy should not mean tacky, thoughtless, and loud.

E-sigs aren’t the next coming of Christ

Here’s another thing. I thought electronic contracts and e-signatures were the best technology tool since sliced bread. And, used properly, it still is. Contracts can be signed at the consumer’s convenience and that can be a huge benefit for busy lives. All too often, though, e-signatures serve the agent or brokerage more than the client. There are situations where the client is best served with an in-depth explanation of the documents, but they are given an e-signature package instead.

This was one of my hardest realizations – I was completely guilty of choosing convenience over great representation. I told myself it was for the convenience of the client, but it really made my job a lot easier. This is not cool, it is bullshit.

I love technology, but…

Now, don’t get me wrong. I am still the technology fan girl you know and love. But with each passing day, I am convinced that a lasting and enduring business is made with an authentic connection to the people in my community. Technology simply gives me the opportunity to make more of those connections.

I meet and interact with hundreds of people on local Facebook groups and these interactions have led to wonderful real-life meetings and lasting relationships. It is an amazing and efficient layer to my traditional community building and prospecting. But it is a layer. Nattering on Facebook all day long does NOT create enough engagement to create a business.

So, what were my wins?

I used technology to publish my internal checklists to my clients, bringing a new level of transparency and accountability to our transactions.

I went deep on an unreasonable number of CRM systems and I am getting close to having a system that enhances both the creation of business as well as the transaction.

I went even deeper into the concept of the paperless office. There are a lot of benefits to a paperless office, but for the consumer, it means anyone on my team can answer any question, anytime, anywhere.

And my losses?

What were my losses? The biggest loss was my investment in internet lead generation, and that was a real surprise. I invested heavily in the platform, in the tools, and in the human resources necessary to make a profit.

I learned what it takes to make this business strategy work, but I also learned that I would rather use my resources to build a local community.

Another “loss” was the lesson learned on e-signatures. I have retooled my process to make sure that certain critical points in the process- the purchase contract, escrow instructions, and going over disclosures, are no longer a simple e-signature packet.

Moving forward – join me?

As I enter the next year, I am focused on a few principles. Belly to belly rules. Technology done right is invisible. Build a community to build long-term trust. Make a difference.

Wanna join me?

Kendyl Young is Division Chief at DIGGS, and an industry veteran. She has been named to the Inman 100 Most Influential Real Estate Leaders, contributed to industry books and speaks about social media and technology. However, her purpose is to help people buy or sell their perfect home in Glendale, La Canada and La Crescenta, CA.

Op/Ed

5 ways consumer behavior has changed due to the pandemic

(EDITORIAL) The pandemic has changed the way a lot of people look at and act in the new world. These are the biggest 5 changes you should be aware of.

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5 cards showing what people think is most important due to the pandemic.

COVID is still affecting businesses in multiple ways, all dependent on the industry. One thing that affects every business, regardless of industry, is customer behavior. It’s no surprise that customers are changing their behavior to meet the challenges of the pandemic. Near the start of the pandemic, Google released a playbook of information regarding behavior that may help your business. Use this information to help you shift your marketing efforts going forward.

  1. Consumers are using multiple devices more than ever before.
    With kids home trying to do school, parents who are working from, and people who are still searching for their next job opportunity, content is being consumed at record rates. According to Google, Americans are watching 12 hours of media content each day.
  2. Increases in search for critical information.
    Online grocery shopping and cooking videos are top searches these days while more Americans are staying home. Telemedicine is another hot search topic. People are looking for ways to stay to themselves and be protected.
  3. Consumers want to stay connected online.
    Google announced that in April 2020, Google Meet hosted over 3 billion minutes of video meetings. YouTube has seen an increase in “with me” videos. People are filming themselves going about their day to connect with their friends and family. Virtual events have changed how people meet up.
  4. Routines are changing to be “internet-first.”
    Telecommuting is a top search these days as consumers try to find ways to work from home. People are looking for exercise options that can be managed at home. Consumers are using the internet to find options that keep them socially-distanced but connected to their routine.
  5. Self-care is taking a higher priority.
    Meditation videos are being consumed at a higher percentage than before. People are looking for books, games, and puzzles to stay occupied at home.

Consider your business against consumer behavior: COVID restrictions may be easing, but consumer behavior will forever be changed. Your business can use this information to change your marketing to meet consumers at their point of need.

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Op/Ed

Redoing your home office for the new year? Get rid of these 5 things

(EDITORIAL) Since many of us are working entirely from home now, we are probably getting annoyed at our home office, so let’s take a crack at minimalism!

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Home office set up with monitor, keyboard, and mouse.

The pandemic has changed human behaviors. As more people stay home, they’re seeing (and having to deal with) the clutter in their homes. Many people are turning to minimalism to reduce clutter and find more joy in their own space, including their home office. There are many ways to define minimalism. Some people define it as the number of items you own. Others think of it as only owning items that you actually need.

I prefer to think of minimalism as the intentionality of possessions. I have a couple of dishes that are not practical, nor do I use them very often. But they belonged to my grandma, and out of sentimentality, I keep them. Most minimalists probably wouldn’t.

They say a messy desk is a sign of creativity. Unfortunately, that same messy desk limits productivity. Harvard Business Review reports that cluttered spaces have negative effects on us. Keep your messy desk, but get rid of the clutter. Take a minimalistic approach to your home office. Here are 5 things to clean up:

  1. Old technology – When was the last time you printed something for work? Most of us don’t print much anymore. Get rid of the old printers, computer parts, and other pieces of hardware that are collecting dust.
  2. Papers and documents – Go digital, or just save the documents that absolutely matter. Of course, this may vary by industry, but take a hard look at the paper you’ve saved over the past month or so. Then ask yourself whether you will really ever look at it again.
  3. Filing cabinets – If you’re not saving paper, you don’t need filing cabinets.
  4. Trade magazines and journals – Go digital, and keep your magazines on your Kindle, or pass down the print versions to colleagues who may be interested.
  5. Anything unrelated to work – Ok, save the picture of your family and coffee mug, but clean off your desk of things that aren’t required for work. It’s easy for home and work to get mixed up when you’re working and living in one place. Keep it separate for your own peace of mind and better workflow. If space is tight and you’re sharing a dining room table with work, get a laundry basket or box. At the start of the workday, remove home items and put them in the box. Transfer work items to another box at the end of the day.

This might seem like a little more work, but all these practices will give you some boundaries.

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Op/Ed

Decades in the making, real estate’s innovation propels industry through pandemic, into the future

(EDITORIAL) Our minds are plagued with uncertainty as the pandemic reshapes all sectors, but this unique insight helps us to see the clear path forward.

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Bob Goldberg, CEO at The National Association of Realtors

In unprecedented times, people reflexively become gripped with fear and trepidation, but industry leaders can assess the bigger picture and not only take stock, but forecast what emergence will look like. The following guest column from Bob Goldberg, CEO of the National Association of Realtors® does just that – he takes stock of today’s realities and offers unique insights into changing the status quo.


Commercial real estate, an industry many feared would suffer broad, lasting distress as a result of the pandemic, fared better in 2021 than just about anyone expected.

The multifamily market, in fact, had a historic year, as the National Association of Realtors®’ Commercial Market Insights Report pointed out last month. Vacancy rates hit 35-year lows and median asking rent grew at a record pace amid a recovery in household formation.

Meanwhile, demand for U.S. industrial space continues to significantly outpace supply, and NAR economists expect the demand for commercial real estate to strengthen throughout 2022.

Given where we were less than two years ago, it’s natural for us to ask, how did this happen?

How, when offices were left vacant, urban cores were abandoned, and even more existing business activity turned online, has commercial real estate survived, or, in some cases, thrived?

The reality is that real estate – both commercial and residential – has been evolving alongside a changing market for decades.

Innovations which had been years in the making were perfectly positioned and perfectly timed when the pandemic began. New, cutting-edge technologies allowed families to relocate, transactions to close, and commerce to continue even as much of the nation ground to a halt in early 2020.

Indeed, without the broader market activity that has been catalyzed by our industry – with home sales hitting 15-year highs and demand for multifamily and industrial real estate booming – this period of relative economic prosperity would have been more distant, more elusive. 

As is the case for most things in life, hard work and sacrifice are to thank. But we can also credit a principal that is perpetually in focus at NAR – innovation.

Renowned economist Theodore Levitt once said that creativity is thinking up new things, while innovation is doing new things.

It’s been American real estate’s collective, remarkable ability to continue doing new things that has made this revival possible, a phenomenon which has benefitted consumers everywhere along the way.

Through our tech growth program, REACH, and our association’s investment arm, Second Century Ventures (SCV), NAR has been on the cutting edge of innovation in real estate technology for more than a decade.

Some of the more than two dozen companies from the REACH portfolio which were instrumental in the industry overcoming lockdowns and social distancing measures include BoxBrownie.com and Immoviewer, which specialize in 3D 360 tours and floor plan renders; UbiPark, a contact-free smart parking solution; and Loop&Tie, a bespoke gifting platform that helps real estate professionals engage with clients and employees from afar.

Overall, SCV has allowed Realtors® to seed some 160 technology companies that engage in everything from digital title and escrow transfers to virtual staging tools and automated marketing campaigns. E-signature services provider DocuSign and remote notarization platform Notarize are a few of the most recognizable entities, but a host of others have imagined the revolutionary resources which will soon be commonplace in our industry.

Residential markets reaching 15-year highs in the midst of a pandemic without tools like these is simply unimaginable.

In the commercial sector, too, these innovations have proven invaluable. Some of the 30 new technology companies supported by REACH Commercial which have been leading the charge these past two years include Lulafit, Pear Chef, and Cove. Indeed, just months after the pandemic broke, Cove launched new software platforms to help tenants and building owners return to work safely once stay-at-home orders were lifted.

As Bisnow highlighted at the time, these innovative new resources were created to help companies track the occupancy of their spaces, set cleaning schedules and conduct health checks, while their employees could reserve desks, stagger arrival times, and form elevator queues.

Looking ahead, we must retain the aptitude for progress that propelled real estate through COVID in order for our industry to thrive through the seemingly endless string of market transformations.
 
One of the true bright spots in an otherwise tragic circumstance is that this pandemic has made people more aware of the places and spaces we occupy. How all of us live and work in these spaces has changed forever. Naturally, this new mindset has generated a renewed focus on sustainability.

Real estate’s motivation to engage is obvious.

The First Street Foundation, which developed the Flood Factor tool employed on realtor.com® and elsewhere to provide flood risk assessments for hundreds of millions of properties, engaged on a recent study which estimated structural damage from U.S. flooding will exceed $13 billion in 2022.

More severe flooding events and property damage are the most widely known consequence of climate change, but its impacts do not stop there.

CoreLogic’s 2020 Wildfire Risk Report reported more than 1.9 million homes – with an associated reconstruction cost of almost $650 billion – were at elevated risk of wildfire damage. The regions most at risk, perhaps unsurprisingly, are metro areas in California. 

NAR offers grant resources to state and local Realtor® associations in effort to make communities more resilient, encouraging new and unique strategies that foster sustainability and combat the potentially damaging impacts of climate change. In Oregon, for example, the Rogue Valley Association of Realtors® – a region devastated by wildfires in recent years – used a Consumer Advocacy grant from NAR to coordinate a two-day training and certification program for home inspectors conducted by the National Fire Protection Association.

Henry Ford is claimed to have noted that if he had asked his first customers what they wanted, “they would have said faster horses,” rather than the automobile. Whether Ford said this or not is today the subject of some digital disagreement. But that’s irrelevant.

Truth is, we often don’t know what we need until we’re faced with a moment of distress or distraction or despair. A once-in-a century global pandemic, for example.

No one knows the future, and very few know what they will want at any, undetermined point in it. All we know for certain is that the future will be different than today.

And if we’re not changing the status quo, we might just find that we’ve become it.


Bob Goldberg is CEO of the National Association of Realtors®. Since assuming the role in August of 2017, Bob has overseen transformations that have positioned NAR as real estate’s leading figure in the fight for diversity and inclusion; the industry’s primary driver of technological innovation; and as an association lauded for a genuine, unwavering commitment to its members. As part of the responsibility NAR has to more than 1.5 million REALTORS® worldwide, Goldberg has overseen the formation of a number of initiatives which have influenced the market and proven immensely valuable to NAR’s general membership.

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