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Embracing Technology: Business in a Virtual World | May 2021 ELEVATE Magazine
The pandemic has certainly changed the way we do business, and thankfully in Florida, the real estate business has charged forward. Along with determination and grit, we all have technology to thank for keeping the real estate business booming, for redefining networking, events, and programs, and for maintaining an overall healthy, local commerce. Many business hurdles we faced before simply do not exist anymore thanks to technology. But now that we have all become Zoom, Teams, and Slack experts, the question arises, “what’s next?” The technology we depended on over the past year has now gained a stronger appreciation as a major convenience and necessary tool towards a more efficient way of doing business. So… what are the next tech trends?
RASM EMERGING TECHNOLOGY COMMITTEE
The RASM Emerging Technology Committee meets monthly to continually monitor and evaluate new technologies that are emerging, which have the capacity to affect general real estate, brokerage operations, property management, and association management. The group acts like a “thinktank,” exchanging new concepts and information.
CRYPTOCURRENCY AND BLOCKCHAIN
“One of the hottest things that I’m observing now is a shift to blockchain and cryptocurrency,” said Peterson. “What’s fascinating is that people are using blockchain to buy houses, and even though I’m not yet an expert, I am taking crypto and blockchain classes to better understand it. If our customers are using it, then we need to be educated and prepared to assist with our more tech-savvy clients.”
WHAT IS CRYPTOCURRENCY?
Cryptocurrency is a digital currency that is encrypted using cryptography (a method of protecting information and communications using complex codes), but it’s not backed by a bank. It’s bought and sold in a similar manner to stocks on the stock market. The most well-known form of cryptocurrency (and the first) is Bitcoin, but there are thousands more like Ethereum, Binance, Tether, Litecoin, Dogecoin, etc., each one offering its own unique set of features.
Cryptocurrency can be converted to U.S. currency by means of a global cryptocurrency payment service provider. This is an app or site that allows cryptocurrency users to convert and send funds directly to their bank or to anyone else, similar to PayPal.1
“Many buyers, both international and domestic, are looking to conduct real estate transactions with cryptocurrency,” said Tate Blockchain Analyst & Sales Associate, and Founder of Currency Cadets. “It’s becoming more prevalent and Realtors® need a basic understanding. Understanding this could literally make or break a transaction.”
“Cryptocurrency is a very safe means of transferring funds, as it makes it nearly impossible to suffer any security issues,” said Tate. “Let’s use Bitcoin, as an example. It uses a 34-caharacter alphanumeric, case sensitive address (like an account number), making it extremely secure. I often refer to Cryptocurrency as ‘programmable money’ that is global, and you can easily verify transactions related to its address via a blockchain explorer.”
It’s always a good idea to rely on an expert who has a good understanding of cryptocurrency, because the value of a coin can fluctuate, and typically once a transaction is made, it’s not reversible.
WHAT IS BLOCKCHAIN?
Simply put, a blockchain is a type of database – a stored collection of electronic information designed to store large amounts of information. Blockchain technology and cryptocurrency go together – they are really two parts of the same system: a cryptosystem. Blockchain is a secure series of ledgers (or databases) that hold a record of cryptocurrency transactions. It tracks all transactions and digital assets, and the record is shared among all verified users, to greatly reduce the opportunity for fraudulence.
Blockchain can be used for storing all types of real estate documents, such as titles, deeds, and surveys. Blockchain technology can eliminate the need for title insurance in the future, due to the transparency of the transaction and secure data storage of the title and other documents of ownership. This not only speeds up the buying and selling process, but also allows for greater confidence in the purchase from clients. 1
“Think of it like this, if Bitcoin is a train, then Blockchain is the rails it runs on,” said Tate. “Blockchain is changing the way we gather, store, and use information. Realtors® need to know how blockchain works and what to do when a client wants to use cryptocurrency to buy or sell property.”
EDUCATION
Cryptocurrency and blockchain are definitely intriguing and exciting new technologies, but it’s imperative to have a solid understanding before diving in. It is recommended that Realtors® hire a professional with proven experience and take classes themselves to be better prepared to handle their clients’ needs.
“Technology is constantly evolving and the RASM Emerging Technologies Committee is dedicated to researching and analyzing the technologies that could affect the real estate industry,” said Jesse Sunday, RASM IT Director and Staff Liaison of the committee. “As these new technologies are vetted and become more mainstream, education is the next important step in the process. RASM is committed to educating our members so that they can be ready to utilize new technology, and members can expect to see new class offerings in the coming months,” added Sunday.
HOME SHOWING MADE EASIER
Another new hot tech trend that’s becoming mainstream is a new way to schedule home showings. What happens when you can’t be in two places at once and you need to schedule a showing across town? Most agents frantically search their contact list asking for a “favor” to drop what they are doing to help you out. Showami simplifies the entire process. There is no awkward conversation regarding sharing a client, or a commission or even negotiating a showing fee because the cost has already been agreed to.
“I was a busy agent in Denver and tried to take one day off and go skiing,” said Matthew Kuchar, Founder and Entrepreneur of Showami. “As soon as I was about to hit the slopes, I get a call that someone wants to see a house right away. So, I called and texted all my fellow agents, but nearly everyone was either too busy or too far away to help me out on such short notice. Once I finally did get ahold of someone, I found it time consuming to relay all the information she needed, even though this was just a simple second time showing for a client that was already quite interested in the home. I knew there had to be an easier, more professional, and more efficient way.”
The Showami app is free to sign up, with a pay as you go, pay as you show concept that has been compared to Uber. The fees are negotiated between the buyer’s agent and the showing agent averaging between $39 and $49 per home shown. “We have always helped each other out with showings and needed someone’s help once in a while” said Kuchar, “but Showami has systemized this problem. Most people don’t recognize that they have a ’problem‘ until they really do need help.”
Apps like Showami are also a great way for a new agent or a less busy agent to earn extra money and experience. They gain market knowledge, more experience showing homes, learn more about different communities, and build relationships with other agents. In addition, showing agents can use social media to post their real estate activity. Even though they are not the listing agent, they gain visibility.
“Apps like Showami are also great for the highrisk Realtor®,” added Peterson. “Some agents have health issues or have families at home who are more susceptible to Covid or any other contagion, and this is not an easy time for them to be out showing homes. Showami solves that issue beautifully.” For more information, visit the company website at www. showami.com.
RPA AND AI
The next big thing in technology is Robotic Process Automation (RPA) and Artificial Intelligence (AI). And even though it might sound like some futuristic technology from The Jetsons, this technology is quickly gaining popularity today, and for good reason. By utilizing RPA and AI, companies like Diversified Robotic are changing the way business is done. RPA software takes anything that a human being can do on a computer that involves logic and automate that process. Now the many mundane and time-consuming tasks that most businesses face, can be handled using artificial intelligence. Tasks such as data entry, filing out loan documents, scheduling, human resource tasks or payroll, can all be done with automation.
“A robot is not going to show a house or take away the human component,” said Mark Melnicoff, Managing Partner with Diversified Robotic, “but when it comes to processing the details of a real estate transaction, such as searching for the best insurance companies, or going to Google Earth to calculate the square footage, determine the year it was built and survey the area schools, etc., software (bot) can now gather all of those important fields and enter the information quickly and efficiently, speeding up the process tremendously,” said Melnicoff.
One of the most interesting things about RPA is that any size business can benefit because a bot can be completely customizable, continuously updated with the latest upgrades and advancements, and can essentially “learn” to do the job as efficiently as possible with close to 100 percent accuracy.
Now, I know what you are thinking… won’t technology such as RPA take away jobs from actual people? The answer is yes, and no. RPA technology can simplify and automate so many mundane tasks that are often boring and unfulfilling – jobs that require employees to sit at desks for hours on end, often times making mistakes simply from the repetitive nature of the task. Technology doesn’t get bored, doesn’t require sick days or health insurance or office space. It is incredibly cost-effective for companies, allowing them to allocate funds to different areas of their business. It frees up employees to take on a more interesting and challenging role in the company; a career that will inspire them more than a monotonous data-entry position.
“What we often see in businesses utilizing RPA is that they typically add employees because their business picks up so much,” said Melnicoff. “Employees are free from the daily grind and can engage in customer facing issues instead of just paperwork. And it does not have to be expensive. Our company customizes each bot to meet our clients’ needs, including their budget needs. The price they pay for RPA ends up paying for itself in efficiency and productivity.”
One additional advantage to utilizing RPA technology is regarding security. Every action that a bot does is recorded, so if something goes wrong in a financial transaction, for example, you can easily go ten minutes back from the point of the error or fast forward and retrace its steps. A bot can also be programed to text or email the moment something occurs outside of its programming. “At Diversified Robotic, we monitor the bots 24 hours a day, 365 days a year,” said Melnicoff. “If there is a software change or upgrade, or notice of a login change, we receive all pertinent information and update the software automatically. Our companies are notified and its one less detail they need to worry about.” For more information on Diversified Robotic, visit www.diversifiedrobotic.com.
STRESS REDUCING TECHNOLOGY
Stress… we all struggle with it one way or the other. In the fast-based world we live it, it’s nearly impossible to escape. Today technology can even help us to limit our stress so that we don’t burn out.
“There are several great apps available to remind us to take a deep breath, or remind us to drink more water, or to meditate,” added Peterson. “I really encourage all agents to embrace technology for their stress levels as well as for their business needs. Technology is truly saving our lives and a device such as a smart watch can help you realize that you’re not getting enough sleep, or it might detect some medical condition by monitoring your heartrate.”
There are several apps that are designed to help us fall asleep, or to track our exercise, or even help us to lose weight. A quick search in the app store on your phone will reveal all sorts of options to fit your needs. The app “Calm,” for example, provides relaxation exercises as well as bedtime stories to aid in relaxation and promote sleep. The app “My Fitness Pal” helps you to track eating patterns and make healthy decisions. Smartwatches and Fitbits have a wide range of options to help the wearer count their steps, track exercise, and even remind you to wash your hands for at least 30 seconds. There are even more advanced devises available to help monitor blood pressure and blood sugar levels, although these should be discussed with your medical professional.2
Technology is enhancing every aspect of our daily life and business today. And perhaps every new device, app or software that hits the market is not for everyone - everyone can truly benefit from the ease and productivity that technology provides. •
SPECIAL THANKS TO OUR EXPERT CONTRIBUTORS:
Jessica Peterson, WOW Power Player Real Estate Agent; Luxour Team brokered by eXp Realty. Chair of the RASM Emerging Technology Committee. Tony Tate, Blockchain Asset Analyst, Founder of Currency Cadets Matthew Kuchar, Founder and Entrepreneur of Showami Mark Melnicoff, Managing Partner with Diversified Robotic
SOURCES
1 | www.cresinsurance.com/blockchain-cryptocurrency-and-your-real-estatebusiness/ 2 | www.verywellmind.com/stress-relief-apps-that-can-transform-yourlife-4147565
