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smarter
A Way to Do Business
Why HomeSmart International Believes It Has the Business Model for the Future October 2020 $7.95 Reprinted with permission of RISMedia,Inc., publisher of REAL ESTATE magazine • (800) 724-6000 or rismedia.com • October 2020
smarter
A Way to Do Business
Reprinted with permission of RISMedia,Inc., publisher of REAL ESTATE magazine • (800) 724-6000 or rismedia.com • October 2020
Why HomeSmart International Believes It Has the Business Model for the Future by Paige Tepping
A
s a consumer of any type of news or media today, you are inundated with ads, emails and articles swarming with the latest buzzwords and phrases: “unprecedented times,� “new
normal� and “uncharted territory.� In some cases, companies you have relied on have had to make drastic changes in their business operations. They’ve had to reassure clients that they are working hard to navigate these “rocky waters� and provide the support and customer service their patrons deserve.
When the COVID-19 pandemic began, many brokerage companies had to shift gears entirely. They were forced to focus on finding and implementing technology solutions and easy-to-manage processes their agents could utilize in order to keep their businesses moving forward. Firms brought on third-party software and created new systems that not only allowed them to operate remotely, but also, resourced agents to run a virtual real estate business for the first time. But why did it take a global crisis for brokerages to move their businesses in this direction?
Matt Widdows, HomeSmart International CEO and Founder
do his job efficiently. He created a brokerage with tech DNA—technology ran through the veins of the company; it played a role in every part of the lifecycle of a real estate agent and broker. For two decades, HomeSmart International’s RealSmart Tech Suite has offered agent and broker software that goes far beyond transaction management. It provides com-
plete synchronization and continues to grow and evolve with every passing year. The agent platform, RealSmart Agent, boasts an all-in-one capability that maximizes an agent’s productivity by streamlining business tasks. No more competing pieces of technology that don’t speak to one another. No more keeping track of multiple usernames and passwords. +HOOR (PLO\
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According to HomeSmart International, the company has had the tools, systems and processes in place to easily adapt and continue to support their clients the whole time. HomeSmart International was built on technology. CEO and Founder Matt Widdows originally opened his flagship brokerage in 2000 because, as an agent himself, he felt the real estate industry was outdated and did not offer the tech he needed to
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All brokerage data and statistics are pulled into RealSmart Broker, providing total visibility into the performance of the business at all times. Brokers can analyze their business with detailed real-time reporting.
Reprinted with permission of RISMedia,Inc., publisher of REAL ESTATE magazine • (800) 724-6000 or rismedia.com • October 2020
From one place, using only one login, an agent can do anything from managing transactions to creating listing flyers to accessing training. They can move every aspect of their business forward from a single piece of technology that is free for all HomeSmart agents. And because agents are constantly on the go, touring clients and showing listings, HomeSmart International created the RealSmart Agent mobile app. This way, busy agents can experience all the ease and features of the end-to-end platform from the palm of their hands. Our agents and staff have worked through the global pandemic very smoothly considering the scope of the situation that no one could foresee. With HomeSmart International’s innovative RealSmart technology, we were able to assist all our agents with listings, offers, paperwork, bookkeeping and commissions without ever coming into the office. And because of our systems, we really did not have to modify anything other than in-house, face-to-face meetings. With HomeSmart International’s corporateoffice support, we were able to quickly adjust to all agents’ needs without diminishing the quality of HomeSmart’s brand and services during this difficult time. Our goal was and still is to keep all agents safe and deliver seven-day-a-week support, 100-percent commission, great training and quick results.” -Terry Jones Designated Broker/Owner HomeSmart Real Estate Associates Seattle, Bellevue, Tacoma, Wash.
All of this was available long before stay-at-home orders. And 100 percent of HomeSmart agents were adopting this technology long before it became a necessity. Through seamless integration with the company’s broker platform, RealSmart Broker, RealSmart Agent gives real estate professionals complete visibility into document review status in real time. Today, when every transaction and every commission matters, automated notifications and instant updates from brokers lead to agents getting paid faster. This is all made possible because HomeSmart International brokerages nationwide run on RealSmart Broker, the business management software that grows with the brokerage and allows brokers to conveniently manage their entire business from—yes, you guessed it—one place. The home screen gives brokers a snapshot of their entire brokerage in an organized and prioritized list so they can set their business up for success. They can manage files from start to finish in one tab and easily add notes to automatically notify agents of document approvals or requests. As a mirror of the RealSmart Agent screen, RealSmart Broker keeps brokers in the know at every stage of review. Yes, the robust platform facilitates document review, billing, recruiting, the educational calendar and more, but what seems most important at this time is big data. Now more than ever, business intelligence and real-time reporting is crucial to business success and evolution. All brokerage data is stored in the system so brokerage owners and operators can instantly pull reports to analyze their business, make better decisions and, ultimately, increase productivity. With back-office tasks, efficient transaction management and data insights in one central location, RealSmart Broker gives complete
visibility and access to run a brokerage wherever you are. And now, brokers and agents aren’t the only stakeholders with complete visibility into the transaction process.
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RealSmart Client is the newest HomeSmart International software release, rounding out the company’s RealSmart Tech Suite. RealSmart Client pulls all client information and transaction documents so buyers and sellers can have full visibility into the progress of their transaction.
HomeSmart International continues to lead tech evolution in real estate with its brand-new RealSmart Client product. The real estate tech giant has built its reputation on consistently pushing the boundaries of how technology plays a role in the industry. RealSmart Client is the company’s latest offering and first platform that gives the consumer detailed insight into the listing and transaction process. Not only does the app con-
Reprinted with permission of RISMedia,Inc., publisher of REAL ESTATE magazine • (800) 724-6000 or rismedia.com • October 2020
tinue to allow clients to search for homes, but now, they can also view their transaction status, manage documents and have more insight into the sale of their home and the purchase of their next residence. RealSmart Client also integrates with mortgage and escrow partners, giving buyers and sellers access to up-to-date information on the entire transaction process in one place. “Launching RealSmart Client to round out our tech suite simply made sense as our next move,” says Widdows. “It has always been our goal to connect and provide complete visibility for all those involved in a transaction, and that also includes our buyers and sellers.” Technology equals adaptability, and according to HomeSmart, the RealSmart Tech Suite allows for business success from anywhere. HomeSmart International is powered by better business operations as
well as people who constantly question the status quo and ask how they can streamline the brokerage business for all parties involved. According to HomeSmart International President Ashley Bowers, “The company prides itself on being hyper-focused on the three Ps of business: people, process and profits. This is what drives the success for the business and where we focus much of our time and resources.” Having streamlined processes in place assists brokerages in meeting their goals and gives them the power to exceed them. From the company’s inception, Widdows made it a goal to limit repeated manual processes and, instead, use technology that eliminates human error. All HomeSmart International franchises utilize the company’s proprietary software, which was developed to standardize the transaction process. This makes business
AGENT SIDE
“Launching RealSmart Client to round out our tech suite simply made sense as our next move. It has always been our goal to connect and provide complete visibility for all those involved in a transaction, and that also includes our buyers and sellers.” – MATT WIDDOWS CEO and Founder, HomeSmart International
more efficient and scalable for owners, brokers, agents and staff. With the brand’s well-known, 100-percent commission model, scalability is key to profitability.
BROKER SIDE
The integration of RealSmart Agent and RealSmart Broker makes transaction management a breeze with paperwork and transaction documentation visible in one place, a collaborative review process with brokers and agents, and automated instant agent notifications and updates. A mirrored RealSmart Agent and RealSmart Broker screen allows agents to see where their transaction is at every stage of review and brokers to better manage compliance.
Reprinted with permission of RISMedia,Inc., publisher of REAL ESTATE magazine • (800) 724-6000 or rismedia.com • October 2020
When analyzing how exactly a company of HomeSmart International’s size—over 19,000 agents strong—can scale at the rate it does while providing the service and support promised, there was one glaring answer: process allows for scalability. Because the model is based on a transaction fee and a low monthly fee, the business relies on large numbers, the use of technology for efficiency, and a streamlined business with a focus on service metrics and service level agreements. By running a lean business with complete awareness of its profits and losses, the company’s brokerages have proven to be successful in any market condition.
I am continually amazed with the multitude of automation tools and proprietary software systems provided within the HomeSmart franchise system. These allow me to grow faster than I ever imagined and inexpensively expand the footprint of HomeSmart throughout the Chicagoland area. We can provide outstanding service to a large number of agents with an incredibly lean support team; yet, agents that join us continually share that they feel more supported here than with their previous brokerage. The system simply works, and we’re loving it!” -Bill Flemming Principal Owner/ Managing Broker HomeSmart Connect Arlington Heights, Algonquin, Chicago, Elgin, Libertyville, St. Charles, Ill.
HomeSmart International’s ecosystem allows for business success no matter what. Due to the nature of the market, the real estate industry ebbs and flows. But HomeSmart International has seen some of its biggest growth during down markets because, in those times, agents and brokerage owners can clearly see the benefit of partnering with the brand. The HomeSmart model is as close to recession-proof as possible. Take HomeSmart agents for example. In a good market, agents receive free technology and responsive broker and agent support. These resources help them close deals faster, get paid quicker and return back out to the field to do more business. In a down market, agents can find financial relief by paying minimal brokerage costs, receive exceptional support and training needed to help them move their business forward, and get 100-percent commission every time they close a transaction. Broker/owners in a good market have systems that allow for efficiencies so they can move through transactions faster and, in turn, pay agents quicker, which helps them do more business. And in a down market, these operators have streamlined costs by using one tech suite, and have low overhead, thanks to a model that allows for smaller office space and less staffing due to technology solutions. HomeSmart International’s SmartReception virtual reception technology reduces the number of employees in offices, as does the utilization of the company’s Centralized Services offering, where corporate staff handle paperwork processing, recruiting and agent support for the franchise. This allows the broker/ owner to focus their time and attention on things that help them generate the most revenue, like partnerships with mortgage, title and home
As we look ahead, everyone is talking about technology being the future, but we don’t have to worry about it because HomeSmart International has it done and has been a tech company for 20 years. It provides us the ability to focus on developing the person and making sure they understand the current market and current trends when branding themselves. Aside from our revenue-friendly model, we’re also preparing our agents for the future by providing them with the proper training and support to go out and succeed in the market. In the end, the biggest/best way to succeed is to have a positive revenue cash flow, which will allow agents to better serve their clients.” -Elias Trejo CEO HomeSmart Premier Realty Idaho Falls, Chubbuck, Idaho
warranty companies rather than clerical work, which takes the most time. Bottom line: HomeSmart International believes it has created a better way—a smarter way—for the future of real estate. To put it simply, HomeSmart International’s success is foundational with technology in its blood, operational excellence at its core and a culture that puts the agent first in its heart. That’s why Widdows and Bowers believe this industry-leading, rapidlygrowing real estate company is the way forward. RE For more information, please visit www.homesmart.com.
Reprinted with permission of RISMedia,Inc., publisher of REAL ESTATE magazine • (800) 724-6000 or rismedia.com • October 2020
{Broker Best Practices} Driven to Succeed by Paige Tepping
Roger Lee Broker/Owner
Abe Hamideh Executive Officer, CFO HomeSmart Realty West Carlsbad, Calif. https://homesmart. com/real-estate-office/ california/carlsbad/46homesmart-realty-west Region served: San Diego County Years in real estate: Roger: 19; Abe: 11 Number of offices: 4 Number of agents: 712 What’s your secret for remaining relevant in today’s ever-changing real estate landscape? Abe Hamideh: Part of it is the fact that we’re revamping our marketing and social media. In addition, our prices are competitive, and we have the right group of people around us. We’ve also instituted an open-door policy within our offices, which shows our agents that we’re always available to answer any questions or concerns they may have. It’s also important to note that we host at least four classes a week, so our agents are up to date with disclosures and marketing trends, as well as what’s going on within the industry. Roger Lee: Our drive to succeed is another key factor in remaining relevant. Abe and I are always putting back into the company in order to give agents what they need. Thanks to our affiliation with
HomeSmart, we’ve been able to offer our agents an all-in-one solution for leads, management, marketing and getting new business. How does your company make its agents’ jobs easier? AH: By taking care of their paperwork. Our RealSmart Agent backoffice has allowed us to streamline the entire process, so the only thing the agent has to do is scan their paperwork. It then goes to our back-office, where we have people who put everything in the right place and let the agent know if anything is missing. Not only is it very effective, but it also helps our agents be more efficient and spend their time with their clients or on their marketing. We like to engage with our agents, as well. We’re 712 agents strong, and each agent has their own unique ideas, so we push them to get out of their comfort zone and bring their ideas to the table so that we can make them a reality. RL: HomeSmart’s 100-percent commission transaction fee structure gives our agents a lot of flexibility as far as making the transaction work in their favor. Because of the fair commission structure that’s in place, we’re seeing our agents succeed. In what ways do your agents use technology to better serve their clients? RL: Our agents have access to a host of tools that allow them to stand out among the competition, most notably the listing presentation they can grab when heading out on a listing appointment. The
presentation outlines the tools we provide, which include a YouTube video, flyer and website for each listing. As soon as a listing is put into the system, it generates these components. It also syndicates the listing to other sites. AH: Agents can access the listing presentation on their iPad and even incorporate a picture of the home into the presentation so that they can show the seller exactly how they’ll be marketing their home.
“We’ve been able to offer our agents an all-in-one solution for leads, management, marketing and getting new business.” – ROGER LEE Broker/Owner, HomeSmart Realty West
What sets HomeSmart Realty West apart from other brokerages? AH: Our back-office and the technology we have that allow us to be more efficient in how we support our agents. Instead of having to invest our money into third-party systems, we’re able to provide our agents an all-in-one platform to help them with marketing, CRM, and more. RL: What sets us apart from other brokerages is the fact that the agents within our firm have a lot of flexibility, more options and a lot more tools at their disposal.
For more information, please visit www.homesmart.com.
Reprinted with permission of RISMedia,Inc., publisher of REAL ESTATE magazine • (800) 724-6000 or rismedia.com • October 2020
The Importance of Having a Tech-First Brokerage Commentary by Matt Widdows
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hen I became an agent in the early 1990s, the real estate industry was lagging in technology and systems to support agents in their day-to-day business needs. I knew there had to be better, more efficient ways to operate utilizing technology to automate, streamline and provide exceptional service, and I wanted to combine traditional real estate concepts with innovation and a technology approach.
My vision was to utilize technologies that supported systems and services to make both the agent and brokerage successful. This would provide long-term growth and stability for the brokerage and ensure success for the agent, giving them the power to have 100-percent control of their business and life. That’s what agents want and deserve: 100-percent commission, useful and purposeful tech, on-demand training, and expert support staff. That’s what a real estate professional needs to be empowered to build the business
and life they desire. But lately, it’s been easy for all of us around the world to feel like we’ve lost control. Due to the spread of COVID-19, we are in an unprecedented time socially and economically. So much has transpired in a relatively short period, and I understand that this event is bound to affect our industry, which it already has. We’re seeing an effect on the marketplace, and it’s crucial that you consider what your business should look like moving forward. There will be consolidation in the industry. Many brokerages will feel the revenue loss and no longer be able to operate at the level necessary for success. Additionally, agents are looking for ways to operate remotely and run their businesses in a tech-first environment. Brokerages who aren’t built this way will have a tougher time competing in the current market and beyond. By offering technology and systems that allow an agent to take their life in their own hands—providing them the ability to do transactions and operate their business remotely, take webinar-based classes or host virtual open houses using a proprietary tool—a brokerage will not only be able to remain 100-percent
operational, but also thrive in uncertain situations by remaining constant and reliable without skipping a beat. The firms with access to these tech tools that are offering them to agents without charging additional fees will come out on top. For example, without making any operational changes except for sending staff to work from home, HomeSmart agents are still being paid in less than an hour, oftentimes via electronic checks. This was not a tool we had to put in place due to the pandemic, but rather, technology we built in-house and were using prior to the crisis. Real estate is about entrepreneurship. Agents go into this industry for the lifestyle. They want control of their own destiny. Providing tools that give them power is important, especially in times when they feel they’ve lost control. That’s all brokers should be doing for their agents, not only in times of uncertainty, but always. The world is learning a tremendous amount as a result of this tough lesson, both economically and socially. It is my belief that this situation will drive our industry forward many years when it comes to utilizing technology, realizing remote workforces can work when done right, greater utilization of remote education, and many other things. With that said, I wholeheartedly believe that HomeSmart, other similar brokerage models, and the agents and brokers affiliated with them will emerge from this in a far stronger position than before. When a brokerage company runs off a technology-driven model of low fees and high service, they are poised to grow tremendously during and after this unfortunate event. RE
Matt Widdows is the founder and CEO of HomeSmart International. For more information, please visit https://homesmart.com/ franchising.
Reprinted with permission of RISMedia,Inc., publisher of REAL ESTATE magazine • (800) 724-6000 or rismedia.com • October 2020