THE INTERNET is radically changing how real estate agents and brokers initiate, process and close property transactions. It’s estimated there are more than 100,000 real estate-related Web sites.
Industry analysts say it’s only a short technological leap to the point where agents and brokers will be able to manage all aspects of real estate transactions online, including loans, title searches, appraisals and related services critical to closing such deals.
The exploding use of technology in the real estate business is profit driven. Brokers and agents say their time online can result in profits that are equal to or greater than those achieved by other means.
New multiple listing services such as MLS-USA allow agents and brokers to search online, print listings and automatically e-mail information to prospective home buyers. Advertiser-supported MLS-USA is only accessible to agents and brokers, while similar services and realty sites designed for consumers create traffic and sales leads.
The MLS-USA database contains the equivalent of 80 million residential property records, including historical data. About 90% of metropolitan statistical areas in 45 states now have online real estate listings available, according to Realty Times magazine.
Another Internet service called GTE Multiple Listing similarly lets brokers and agents partially manage transactions online. Such business-to-business utilities are designed to be used in tandem with consumer sites like Realtor.com from the National Association of Realtors, which offers an online database of home listings.
A new direct e-mail service developed by Best Image Marketing Inc. in Middletown, CA allows agents and brokers to generate and respond to e-mail leads. Best Image electronically publishes customized advertising for real estate professionals seeking to target consumers through Web sites. Participating advertisers get responses by offering home shoppers free advice and answers to questions via e-mail.
Not all agents and brokers are keeping pace with the technological revolution. Incredibly, 42% of agents and brokers take more than five days to answer e-mail, according to a survey by Jupiter Communications.
* The United States has more than 1.2 million licensed real estate agents and brokers. The number of new agents and brokers entering the profession is shrinking, even as the market expands for agents who specialize in working with buyers rather than sellers.
* As an industry, real estate generates 24% of the gross national product. Agents and brokers driving this sector are typically about 52 years old. The average age of their customers is 32.
* Agents and brokers tend to receive commissions ranging from 5% to 7% on sales split 50/50 between those who obtain property listings and those who line up buyers. A new trend-agents specializing in working with buyers rather than sellers-is prompting industry debate to restructure compensation based on salary and commission, rather than commission only.
* Top-producing agents and brokers have one thing in common: They develop scripts that guide business conversations in a logical sequence and help them tailor responses to frequently asked questions.
* Agents and brokers at the most technologically advanced real estate companies now e-mail digital photos and video tours of homes to prospective buyers.
* The most popular Web site where agents and brokers advertise 95% of residential property listings is Realtor.com. Other sites favored by advertisers include Cyberhomes.com, HomeSeekers.com and HomeAdvisor.com.
* One of the hottest cities for agents and brokers to earn commissions in is San Francisco, a seller’s market where the median home price is $311,100 and buyers bid on properties like an auction.
* San Francisco leads the nation in residential real estate price increases. Prices rose 13.2% in the city during the first quarter, compared with an average 4.5% increase nationwide. Prices went up 6.9% in the West, 5.6% in the Midwest, 4.6% in the East and 2.9% in the South.
ABLE REAL ESTATE AGENTS, BROKERS AND CONSULTANTS 2.4 million names
Act One Mailing List Services Inc.
Marblehead, MA
ACCEPTED REAL ESTATE MASTER FILE 1.3 million agents and brokers
Market Street Lists Inc.
Stratham, NH
BUSINESS DIRECTBASE 53,000-name agent/broker select
List Services Corp.
Bethel, CT
INT’L REAL ESTATE INSTITUTE 7,000-name agent/broker select
Managed in-house
International Real Estate Institute
Alexandria, MN
REAL ESTATE AGENTS/BROKERS 1.3 million names
American List Counsel Inc.
Princeton, NJ
REAL ESTATE AGENTS/BROKERS 1.3 million names
Fred Woolf List Co Inc.
White Plains, NY
REAL ESTATE BROKERS AND SALES AGENTS MASTER FILE 1.3 million names
Compiled Solutions Inc.
Plainsboro, NJ
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