Reconstructing the Real Estate Business Model A Case for Document Management Software

The real estate industry is facing unique challenges, according to a report commissioned by the National Association of Realtors. These concerns can be addressed with document management software (DMS) and improved business process management.

One of the most important concerns cited in the report is the lack of education and training of real estate agents. The typical commission of 6% that real estate agents charge is also under attack, because that fee is high compared to other countries. As a response to high commissions, real estate agencies now have to compete against brokers and agents who are exploring new business models. Last but not least, most real estate agencies face compliance issues with federal regulatory policies.

All of these issues and emerging trends can be drastically simplified and streamlined by using DMS.

Education and Training of Real Estate Agents

There is no question about it—becoming a real estate agent is probably one of the quickest career paths. In most states, it takes only 70 hours of training or less to receive a real estate license. Consequently, a lot of real estate agents don’t really know enough about the business they’re in.

While your agency can’t change the education requirements on the state level, you can certainly ensure that your employees have the information and tools they need to succeed at their job. First, you can institute additional employee training where established agents show new agents how things get done. Second, you can use DMS to ensure that agents can find the information they’re looking for.

Use Workflows and Templates to Streamline Processes

Real estate agents have to deal with a lot of paperwork when listing, showing, or selling property. Fortunately, you can use work - flows to streamline each process and make sure that nothing gets left out. You can also use templates to help agents create the paperwork they need. For example, your agent may need to ask the seller to perform upgrades or re pairs found necessary during the home inspection. Your template can make it easier for your agent to draw up a legal document that leaves nothing out.

Explore New Business and Pricing Models

Your agency may be interested in exploring new business and pricing models that allow ing their property, reviewing or drafting a purchase contract, or researching a deed. You can even offer a hybrid of old and new ways, where you’ll still use the commissionbased model for buyers and sellers who prefer to do it that way.

One of the advantages of not tying your earnings to a commission percentage is that your real estate agents won’t feel obligated to show only higher priced listings. This in turn will draw customers to your agency.

Compliance with Regulatory Policies

Realty brokerages have to comply with many regulatory policies. In reality, most agencies are in violation of the Consumer Financial Protection Bureau’s anti-kickback and referral-fee rules governing brokers’ financial arrangements with title companies, lenders, and others. But in the “DANGER” report commissioned by the National Association of Realtors, it becomes apparent that most brokerage companies are either ignorant of this fact or believe mistakenly that they’re in compliance. That’s a huge concern for the industry.

Eagles may soar, but weasels don't get sucked into jet engines.

consumers to save money while still keeping your agency running. When you use DMS for your business process management, it can be easier to find where you can cut operational expenses without limiting the quality of interactions between your organization and your customers.

One of the things you can do to lower your expenses is to move to a paperless organization. It can be challenging for the real estate industry to reduce paperwork, but contracts and agreements are legally binding in electronic form as well.

Your agency may decide to offer services separately to its customers. For example, your customers may decide to pay for list -

The good news is that DMS can help your organization streamline its operations which will make it easier to become compliant with all of the applicable policies. At the same time, DMS can keep your documents safe and secure and prevent unauthorized access.

Streamline Operations with Document Management Software

Realtors and title companies can greatly benefit from streamlining their operations with DMS. DMS can save your company time and money because your agents will no longer spend hours looking for documents. You can also streamline your processes and ensure that no step is forgotten by utilizing workflows and templates.

A twisting tower clad in reflective aluminum tiles, designed by Canadian-American architect Frank Gehry (89), is going up in the south of France. Gehry, who was awarded the Pritzker Prize in 1989, designed the tower for the Luma Arles complex, an arts center. Gehry has had a reputation for rejuvenation projects since his Guggenheim Museum Bilbao in Spain in 1997. And already, the undulating building of titanium, glass and limestone has been credited with attracting so much prosperity to the port, locals have coined the term “the Bilbao effect”.