2005 realtor technology efficiency survey

2005 REALTOR®

Technology EfficiencySurvey

Co-Sponsored by:

Center for REALTOR® TechnologyNational Association of REALTORS®

and

May 3, 2005

2005 REALTOR® Technology Efficiency Survey May 3, 2005 of 43

Table of Contents

Introduction...............................................................................................................................2Authors and Contributors..........................................................................................................3Executive Summary..................................................................................................................5Observations .............................................................................................................................7Survey Details ...........................................................................................................................8Participant Profile .....................................................................................................................8Lead Generation......................................................................................................................11Maintaining Relationships with Clients..................................................................................27The Listing Process.................................................................................................................30Selling Process ........................................................................................................................33Document Management ..........................................................................................................33Transaction Management........................................................................................................37Risk Management ...................................................................................................................41Time Allocation ......................................................................................................................43

Introduction

Understanding REALTOR® technology trends through surveys is one of the tools theCRT uses for its ongoing research. In April 2005, CRT distributed an online surveydesigned to examine the use of technologies within the real estate industry and what canbe done to improve its efficiency and use.

Please direct any questions or comments about the survey to:Mark Lesswing Todd CostiganVice President Senior Manager, Industry [email protected] [email protected]


Authors and ContributorsThis survey and report were authored by the Center for REALTOR® Technology, FBSData Systems and the WAV Group.

Center for REALTOR® TechnologyNAR's Center for REALTOR® Technology serves REALTORS® and Associations as anindustry advocate, implementation consultant and technology information resource. CRTis an NAR resource serving both members and the real estate industry.Mark Lesswing Todd [email protected] [email protected] 329-8273 312 329-8646www.realtor.org/CRT

FBS Data SystemsFBS Data Systems is the creator of the flexmls™ system and has served REALTORS® and Multiple Listing Services for over twenty-five years. FBS focuses on producing NetResults™ for its clients. For further information about FBS and the survey, contact: Michael Wurzer, CEO [email protected] 437-4232 www.fbsdata.com.

WAV GroupWAV Group is a business and technology consulting company providing strategicplanning, business advisory, product development and research services to the real estateindustry.Mike Audet Marilyn [email protected] [email protected] 839-4628 805 473-9119www.wavgroup.com


Special thanksThe authors wish to thank the following participants in the 2005 REALTOR® TechnologyEfficiency Study which served as the basis for this survey.

Malta & Co, San Francisco, CAVince Malta

Pacific Union GMAC, San Francisco, CATim MurrayRay BrownJeannie AndersonBeth Bosco BirogTeresa CallanPatrick CarlisePeggy EconomosGil FleitasSuzanne GoltzAngelas LamDavid LangSteve MavromihalosLiz McCarthyRon MuratoreAngela O'NeilHank Perry

Realty USA, Buffalo NYMerle WhiteheadDan SymoniakRosalie AugustineSharon BearfieldCarol Kolis BurnsKevin DurawaClayton ErtelJudith GenoveseRobert GrovesConnie HolovicsDavid HodgsonSheryl MartinBob RigbyAlan RyerJudy Tolle


Executive Summary

The goal of 2005 REALTOR® Technology Efficiency Survey was to validate findings ofan earlier efficiency study which took place in January and February, 2005. The studyused in-depth interviews and observations with active REALTORS®. The purpose of thestudy and this survey was to uncover opportunity for improvements within the real estatelead generation, listing, sales and transaction closing processes.

The 2005 REALTOR® Technology Efficiency Survey was emailed to approximately50,000 NAR members. The survey had 2554 responses which represents a response rateof 5.1%. The survey respondents included both agents (81%) and brokers (16%)

Findings

The survey substantiated several of the findings identified during the observation andinterview process. It highlights several key areas for potential technology and efficiencyimprovement.

Internet Leads 68% of respondents indicated they receive Internet leads, yet 72% are not satisfied

with the amount or quality of the Internet leads they receive. Nearly 70% of respondents get less than 10% of their leads from the Internet. 40% of the respondents who get leads from the Internet say they do not get any sales

from this lead source. Other than 3rd party lead generation programs, less than 12% use any service or

technology to help qualify Internet leads. 74% have not participated in any type of third party lead generation program. Only 9% of the respondents have participated in any type of third party lead

generation program for 12 months or more. A small percentage, 5% of the total sample is getting over 40% of their leads from the

Internet. This group has, on average, been in the business fewer years but generatesapproximately the same number of transaction sides. This group also relies more onInternet leads than referrals and repeat clients.

Company, agent and MLS public websites are the top sources of Internet leads.

Website Traffic Maximization 68% of respondents indicated they have their own website. 64% of those with a website, however, indicated they do no nothing to maximize

traffic to their site. Only 52% of those with websites provide IDX search capabilities on their sites.


Risk Management 75% of respondents indicated that risk management is very important to them and to

their company. Only 15% indicated their company has a formal risk management program in place.

Maintaining Relationships with Past Clients The most significant method for generating leads for REALTORS® in the survey is

referral and repeat clients. Even though referral and repeat clients were the most important source for generatingnew business, only 22% of the respondents were ‘Very Satisfied’ with the methods they use for staying in touch with past clients.

The most popular methods for staying in touch with past clients included:o Mailings - 40%o Phone calls - 31%o Email - 17%.

Transaction Management Only 13% report they use an automated transaction management system. This number may actually be lower since many indicated products which are not

categorized as transaction management systems. There is a stated interest in transaction management with 68% of those polled saying

they are interested in it. Those in markets which require 41 or more documents per transaction use more forms

management software than average. 73% use forms management software versus57% in the total sample.


Observations

High speed Internet access is the norm now, with almost 87% of respondents report theyhave broadband access today.

Respondents are using the Internet to get leads, but there is little satisfaction in the resultsthey are receiving. Many would like to see the timing, qualification and exclusivity ofleads improved. Those that do rely on the Internet to generate leads seldom use any toolor strategy to qualify or nurture the lead.

The majority of respondents report having a website, but few are employing tools togenerate or maximize traffic or improve website effectiveness. Only about half of thosewho mentioned they have sites indicated they provide IDX search capabilities.

A more dramatic gap is noted in the area of risk management. Over 70% report it is ahigh priority for their companies yet only 15% have a formal risk management plan inplace. A large majority have not applied any technology to the area of risk management,relying first on hardcopy documents and second, on handwritten notes. This wouldappear to be an area ripe for automation.

While automated transaction management tools are now readily available, adoption is stilllimited. Few of the respondents are using programs which are categorized as automatedtransaction management systems. Fifty-seven percent of the respondents, however, areusing some type of forms/contract management software and 88% report they aresatisfied with the software they use. While there is interest in transaction managementsystems, it appears that a clear value proposition has not been established to encouragebroader adoption.

Over 40% of those responding report that they use something other than their MLSsupplied CMA program. The need for flexibility and personalization of CMAs is sited asthe reason many are using third-party or self-developed methods and tools. Respondentsalso believe that their unique personalized CMA presentations help differentiate themfrom their competition.


Survey Details

Participant ProfileOver 2,500 brokers and agents participated in the 2005 REALTOR® TechnologyEfficiency Survey. Over 85% of the respondents have been in the real estate business forover 2 years.

81% of the respondents were agents while 16% were brokers.

How long have you been in the real estate business?

0%14%

27%

17%

42% Less than 1 year

1 - 2 years

2 - 5 years

5 - 10 years

More than 10 years

0%14%

27%

17%

42% Less than 1 year

1 - 2 years

2 - 5 years

5 - 10 years

More than 10 years

What is your role?

81%

16%

3%

Agent

Broker

Other

81%

16%

3%

Agent

Broker

Other


If you are an agent, what is your approximate number oftransaction sides per year?The largest group of agents responding, 34%, did between 11 and 20 transaction sides peryear. 39% of the agents did 21 sides or more annually.

27.11%

33.99%

19.76%

9.97%

3.13%6.05%

1 - 10 11 - 20 21 - 30 31 - 40 41 - 50 More than50

27.11%

33.99%

19.76%

9.97%

3.13%6.05%

1 - 10 11 - 20 21 - 30 31 - 40 41 - 50 More than50

Which of the following devices do you use? Check all thatapply?As noted in the chart below, nearly all agents now use cell phones. PC usage is also veryhigh at 79% with over 55% now using notebook PCs. Over 30% of the respondents usePDAs and about 8% now have PDA devices with wireless capabilities.

1.03%

1.66%

1.86%

5.14%

7.99%

33.10%

55.32%

78.73%

95.65%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Tablet PC

Apple PC - Notebook

Apple PC - Desktop

PDA - Pocket PC

PDA with email,e.g.TREO/Blackberry

PDA - Palm

PC -Notebook/Laptop

PC - Desktop

Cell Phone

1.03%

1.66%

1.86%

5.14%

7.99%

33.10%

55.32%

78.73%

95.65%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Tablet PC

Apple PC - Notebook

Apple PC - Desktop

PDA - Pocket PC

PDA with email,e.g.TREO/Blackberry

PDA - Palm

PC -Notebook/Laptop

PC - Desktop

Cell Phone


What browser software do you use to access the Internet?Internet Explorer is the primary browser software, as expected, though a small number ofusers are using alternatives such as Mozilla.

0.08%

0.32%

0.67%

2.21%

4.03%

6.21%

82.52%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Opera

Safari

Don't know

Netscape

Mozilla Firefox

AOL

Internet Explorer

0.08%

0.32%

0.67%

2.21%

4.03%

6.21%

82.52%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Opera

Safari

Don't know

Netscape

Mozilla Firefox

AOL

Internet Explorer

What type of connection do you use most often to go on theInternet?87% of the respondents now say they use broadband of some type, either cable or DSL, toconnect to the Internet while 12% are using dial-up connections.

87.07%

11.59% 0.47%

Broadband - DSL/Cable

Dial-up - AOL, MSN, etc.

Don't know/don't useInternet

87.07%

11.59% 0.47%

Broadband - DSL/Cable

Dial-up - AOL, MSN, etc.

Don't know/don't useInternet


Lead Generation

What percentage of your business is from repeat or referralclients?Referral and repeat business is a critical source of business. About 18% of therespondents reported that over 75% of their business comes from referrals or repeatbusiness. About 65% of the respondents say referrals and repeat business account formore than 25% of their business.

14.51%

19.65%

22.66%

23.69%

18.58%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00%

0% - 10%

11% - 25%

26% - 50%

51% - 75%

76% - 100%

%R

epea

to

rR

efer

rals

%of Respondents

14.51%

19.65%

22.66%

23.69%

18.58%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00%

0% - 10%

11% - 25%

26% - 50%

51% - 75%

76% - 100%

%R

epea

to

rR

efer

rals

%of Respondents

With 1 being the Least Important and 4 being the Most Important,rank each of the following as to their importance in generatingyour leads.Respondents confirm that referrals and repeat business are the most important leadgenerator. The Internet and community involvement are the second most importantsources of new leads, followed closely by print advertising.

0 0.5 1 1.5 2 2.5 3 3.5 4

Referrals and repeat business

Community involvement

Open Houses

Floor time

The Internet

Direct mail campaigns

Telemarketing

Print advertising

0 0.5 1 1.5 2 2.5 3 3.5 4

Referrals and repeat business

Community involvement

Open Houses

Floor time

The Internet

Direct mail campaigns

Telemarketing

Print advertising


How much has the DO NOT CALL legislation affected yourbusiness?DO NOT CALL legislation has not affected the business of 54% of the respondents while25% say it has had “somewhat” of an impact. 14% of respondents said they have stopped using telemarketing as a lead-generating tool, due to the DO NOT CALL legislation.

54%

25%

7%

14%

Not at all

Somewhat

Very much

I have stopped usingtelemarketing

54%

25%

7%

14%

Not at all

Somewhat

Very much

I have stopped usingtelemarketing

Does your company provide a method to check a phone numberagainst the DO NOT CALL list?57% report that their company supplies a method to check against the DO NOT CALLlist.

57%

43%Yes

No57%

43%Yes

No


Do you use the Internet for generating leads?68% of the respondents report that they use the Internet for generating leads. There is aclear recognition that the Internet is an important lead source. There does not appear tobe much satisfaction yet with the results coming from the leads or the overall process,however.

68%

32%

Yes

No

68%

32%

Yes

No

With 1 being the Least Important and 4 being the Most Importantrank the following Internet lead sources.Company websites, followed closely by agent and MLS public websites are the largestsources of Internet leads.

1.4

1.8

1.8

2.3

2.5

2.5

2.7

0 0.5 1 1.5 2 2.5 3 3.5 4

VOW

IDX search

3rd party lead generation programs

Realtor.com

Agent website

MLS public website

Company website

1.4

1.8

1.8

2.3

2.5

2.5

2.7

0 0.5 1 1.5 2 2.5 3 3.5 4

VOW

IDX search

3rd party lead generation programs

Realtor.com

Agent website

MLS public website

Company website


What percentage of your leads comes from the Internet?61% of the respondents who stated they use the Internet for leads generate 10% or less oftheir leads from the Internet. 80% generate 20% or less of their leads from the Internet.

2.30%

32.10%26.60%

19.30%12.10%

7.00%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

0% 1 - 5% 6 - 10% 11 - 20% 21 - 40% > 40%

2.30%

32.10%26.60%

19.30%12.10%

7.00%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

0% 1 - 5% 6 - 10% 11 - 20% 21 - 40% > 40%

Group with >40% leads from InternetRespondents who receive greater than 40% of their leads from the Internet are moreinvolved with technology. The largest difference was nearly double the adoption ofsmartphones and Mozilla Firefox (an open source browser) versus the total sample.Internet leads are their largest source of leads instead of repeat and referral clients.

Years in real estate business?Respondents who receive greater than 40% of their leads from the Internet have been inbusiness fewer years. 59% have been in the business for 1 to 5 years versus 41% onaverage. This could signify that newer REALTORS® are using technology to drive theirbusiness.

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

<1 year 1 – 2 2 – 5 5 – 10 >10

Average>40% Internet Leads

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

<1 year 1 – 2 2 – 5 5 – 10 >10

Average>40% Internet Leads


Comparison of number of transaction sides.This group, newer to the business but using more technology, does approximately thesame number of transaction sides as the total sample.

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

1 – 10 11 – 20 21 – 30 31 – 40 41 – 50 50+

Average

>40% Internet Leads

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

1 – 10 11 – 20 21 – 30 31 – 40 41 – 50 50+

Average

>40% Internet Leads

Are you satisfied with the amount of Internet leads you receive?While the Internet is being used as a source of leads there is a clear dissatisfaction withthe amount of leads they are receiving.

26%

74%

Yes

No

26%

74%

Yes

No


Are you satisfied with the amount of Internet leads you receive?For those respondents who receive greater than 40% of their leads from the Internet, theirsatisfaction level is much higher than average.

55.20%

44.80%

26%

74%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

Yes No

>40% Internet Leads

Total Sample

55.20%

44.80%

26%

74%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

Yes No

>40% Internet Leads

Total Sample

Do you participate in any third party Internet lead generationprograms?Only 23% of the respondent report that they participate in any Internet lead generationprograms.

23%

75%

2%

Yes

No

Don't know

23%

75%

2%

Yes

No

Don't know


Do you participate in any third party, Internet lead generationprograms?The group that receives >40% of their leads from the Internet has much higherparticipation in Internet lead generation programs. This group states that 48% participateversus 23% from the overall survey sample.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

>40% Internet Leads Total Sample

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

>40% Internet Leads Total Sample

How long have you participated in these programs?Only 9% of the respondents indicate that they have been using programs like these forover 12 months. The majority of the respondents to this question have been using theseprograms for less than 6 months. Nearly one quarter off all respondents who have triedthese programs have stopped, suggesting dissatisfaction with the effectiveness of theselead generation programs.

22.85%

27.68%

5.73%

9.33%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Did participate, butstopped

0 - 6 months

6 - 12 months

12 months or more

22.85%

27.68%

5.73%

9.33%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Did participate, butstopped

0 - 6 months

6 - 12 months

12 months or more


How many leads have you received per month, on average, fromthese programs?Of the 23% of respondents who indicate they use third party lead generation programs,64% say they get from 1 to 10 leads per month. 13% report they do not get any leads atall, while 4% report they get over 50 leads per month.

12.97%

63.99%

13.48%

5.12% 4.44%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

0 1 - 10 11 - 25 26 - 50 51 - 100

12.97%

63.99%

13.48%

5.12% 4.44%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

0 1 - 10 11 - 25 26 - 50 51 - 100

How many sales per year have resulted from these leads fromthird party lead generation programs?The most important measurement of leads is how many sales result. Over 40% of therespondents report they have not gotten any sales from participation in these programs.39% report they get between 1 and 3 sales annually while 20% report they get 4 or moresales per year through participation in these programs.

40.34% 39.14%

12.07%5.00%

1.55% 1.90%0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

0 1 - 3 4 - 6 7 - 10 11 - 25 > 25

40.34% 39.14%

12.07%5.00%

1.55% 1.90%0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

0 1 - 3 4 - 6 7 - 10 11 - 25 > 25


How many sales per year have resulted from these leads fromthird party lead generation programs?It is interesting to note, that even those who get more than 40% of their leads from theInternet do not report significantly more sales from this source than the total sample whouse these programs. This would suggest third party lead generation programs are nottheir key source of qualified leads.

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

0 1 - 3 4 - 6 7 - 10 11 - 25 >25

Total Sample

>40% Internet Leads

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

0 1 - 3 4 - 6 7 - 10 11 - 25 >25

Total Sample

>40% Internet Leads

How satisfied are you with the results you receive from thirdparty lead generation programs?Almost 62% report a level of dissatisfaction while 38% report some level of satisfaction.Only 6% were very satisfied with the results they receive from them.

6.23%

32.01%26.30%

35.47%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

Very satisfied Somewhatsatisfied

Somewhatdissatisfied

Verydissatisfied

6.23%

32.01%26.30%

35.47%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%



Verydissatisfied


How satisfied are you with the results?Those who state they receive >40% of their leads from the Internet express only slightlyhigher levels of satisfaction than the total sample.

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%



Verydissatisfied

Total Sample

>40% Internet Leads

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%



Verydissatisfied

Total Sample

>40% Internet Leads


How could these third party lead generation programs be moreeffective?Respondents who participate with third party lead generation programs had severalsuggestions for improvement.

59% of the respondents said they would like the leads to be more qualified. Manyof the leads they received were not interested in buying or selling a home. Theysimply had requested information about a mortgage rate or other related inquiry.

Many of the leads were not provided on a timely basis. Many of the leadsprovided had already found another REALTOR® or had already completed theirtransaction.

Nearly 20% of the respondents did not have suggestions for improvement becausethey had just begun using the lead generation source.

9% requested some type of service enhancement from the third party leadgeneration company.

Another 8% requested better agent access to the lead. Only 5%, mentioned the costs of the programs as an issue. 3 of the 386 respondents to this question said they were completely satisfied with

their lead generation service.

5.30%

7.60%

9.10%

19.30%

58.70%

0 0.2 0.4 0.6 0.8 1

Less costly

Better access/agent followup

Product/support improvements

Don't know/too early

Better qualified/timely leads

5.30%

7.60%

9.10%

19.30%

58.70%

0 0.2 0.4 0.6 0.8 1

Less costly

Better access/agent followup

Product/support improvements

Don't know/too early

Better qualified/timely leads


Do you use any other service or technology to qualify Internetleads?While the survey indicates that agents realize the importance of the Internet forgenerating leads and most are using the Internet in some way to get leads, only 12% areusing any other service beyond third party lead generation programs to qualify theirInternet leads.

12%

88%

Yes

No

12%

88%

Yes

No

Do you have a website?68% of the total respondents report they now have a website.

68%

32%

Yes

No

68%

32%

Yes

No


Comparison with high Internet lead respondents.A higher percentage of the respondents who receive greater than 40% of their leads fromthe Internet have a websites versus the total sample. 86% of this group has websites,versus 68% for the total sample.

68%

86.40%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total Sample >40% Internet Leads

68%

86.40%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Do you have IDX search capabilities on your websiteSlightly more than half of those reporting they have websites also have IDX searchcapabilities. Respondents who receive more than 40% of their leads from the Internethave more IDX capabilities. 59% of this group has IDX versus 53% on average.

53.35%43.09%

3.56%

Yes

No

Not allowed53.35%

43.09%

3.56%

Yes

No

Not allowed


Do you do anything to maximize traffic to your website?About 40% of the respondents indicate they do something to maximize traffic to theirwebsite.

39.74%

60.26%

Yes

No

39.74%

60.26%

Yes

No

Do you do anything to maximize traffic to your website?Significantly more respondents who receive greater than 40% of their leads from theInternet do something to maximize traffic to their site.

39.74%

59.02%60.26%

40.98%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%


Yes

No39.74%

59.02%60.26%

40.98%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%


Yes

No


If you are doing anything to maximize traffic to your website,what are you doing?Respondents who engage in methods to maximize traffic to their website use advertisingas their primary tool. 46% use print advertising, direct mail, email and business cards topromote their website. 20% register their website with search engines regularly andcontinue to update their website to achieve better search results. 13% update contentregularly to give customers a reason to come back to their site and 10% provide links toinformation about local neighborhoods, lenders and to Realtor.com.

9.40%

10.50%

13.30%

20.40%

46.40%

0 0.2 0.4 0.6 0.8 1

Paid Search

Links/Realtor.com

Contentupdates/other

Search engineregistration/SEO

Advertising

9.40%

10.50%

13.30%

20.40%

46.40%

0 0.2 0.4 0.6 0.8 1

Paid Search

Links/Realtor.com

Contentupdates/other

Search engineregistration/SEO

Advertising

What is your satisfaction with your lead management tools?Of those responding to this question, 45% were somewhat or very dissatisfied with theirlead management tools.

10.67%

44.39%

27.64%

17.29%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%



Very dissatisfied

10.67%

44.39%

27.64%

17.29%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%



Very dissatisfied


What is your overall satisfaction with your lead managementtools?The group that states >40% of their leads comes from the Internet is significantly moresatisfied with their Internet lead management tools. Data suggests their satisfaction isbeing driven by the success of their own website and the broker website to help generateleads.

9.29%

38.67%

24.08%

15.07%

30.40%

54.40%

12%

0.80%0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

Very satisfied Somewhat satisfied Somewhatdissatisfied

Very dissatisfied

Total Sample

>40% Internet Leads

9.29%

38.67%

24.08%

15.07%

30.40%

54.40%

12%

0.80%0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

Very satisfied Somewhat satisfied Somewhatdissatisfied

Very dissatisfied

Total Sample

>40% Internet Leads


Maintaining Relationships with Clients

What is the primary tool you use to stay in touch with yourclients who are currently buying or selling a property?The phone is the primary tool for staying in touch with current clients followed by email.

0.32%

2.25%

8.15%

29.26%

59.27%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Fax

Meetings

Regular mail

Email

Phone calls

0.32%

2.25%

8.15%

29.26%

59.27%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Fax

Meetings

Regular mail

Email

Phone calls

How many times a year do you communicate with your pastclients?Over 64% of the respondents report they communicate with their past clients from 1 to 4times per year. About 18% communicate with their past clients over 6 times per year.

1.11%

32.46%

31.59%

11.78%

17.52%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

0

1-2

3-4

5-6

> 6

#o

fT

imes

per

Yea

r

1.11%

32.46%

31.59%

11.78%

17.52%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

0

1-2

3-4

5-6

> 6

#o

fT

imes

per

Yea

r


What is the primary way you stay in touch with your formerclients?While the phone leads the list for staying in touch with current clients, about 40% ofthose responding say regular mail is the way they stay in touch with former clients. Thephone is second with about 31% and email is third with 17%.

0.08%

1.30%

1.78%

1.94%

16.81%

31.51%

39.78%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Fax

Meetings

Electronicnewsletters

Market updates

Email

Phone calls

Regular mailings

0.08%

1.30%

1.78%

1.94%

16.81%

31.51%

39.78%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Fax

Meetings

Electronicnewsletters

Market updates

Email

Phone calls

Regular mailings

What is your overall satisfaction with your efforts to stay intouch with past clients?74% of the respondents report they were either very satisfied or somewhat satisfied withtheir efforts to stay in touch with past clients.

21.83%

52.27%

18.78%

5.81%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%



Very dissatisfied

21.83%

52.27%

18.78%

5.81%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%



Very dissatisfied


What would help you stay in touch with your former clients moreeffectively?30% said they would like to stay in better touch with their past clients by providing moreeffective and frequent emails or direct mail pieces.

They would like the pieces to be more personalized and provide relevantinformation about housing values, mortgage rates and other local issues.

Many also mentioned the need for a better way to get email addresses and to keepthem up to date.

20% said they needed to get more organized and provide more focus on thisimportant activity. This group said they did not need better tools. They needed touse the tools they already had.

18% would like some kind of a system to send pieces out automatically or sendthem reminders to send communications regularly. This automation could comefrom software, a database or their assistant. They get busy and forget to follow-upas often as they should.

16% expressed the need for more personal follow-up using phone calls, meetingsor events. They believe this is the best way to secure a client for life.

Nearly 16% said they did not need to do anything differently since a large part oftheir business comes from repeat customers and referrals already.

15.70%

16.30%

18.10%

19.50%

30.40%

0 0.2 0.4 0.6 0.8 1

Nothing/Don't Know/Other

Personal folllowup/hire assistant

Automated reminders/systems

Better personal organization/focus

Effective emails, direct mailings, updatedemail lists

15.70%

16.30%

18.10%

19.50%

30.40%

0 0.2 0.4 0.6 0.8 1

Nothing/Don't Know/Other

Personal folllowup/hire assistant

Automated reminders/systems

Better personal organization/focus

Effective emails, direct mailings, updatedemail lists


The Listing Process

Do you include a Comparative Market Analysis (CMA) as part ofyour listing presentation?96% of the participants report they include a CMA as part of their listing presentation.

96%

4%

Yes

No

96%

4%

Yes

No

What do you use to create your CMA? (Check all that apply)49% of respondents use other tools to extend the MLS supplied CMA.

69.12%

18.94%

30.05%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

CMA on MLS system 3rd party CMA product Create my own

69.12%

18.94%

30.05%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

CMA on MLS system 3rd party CMA product Create my own


What is your overall satisfaction with your CMA program?Regardless of the method for preparing CMA’s most are satisfied to some extent with their CMA program with 40% being very satisfied.

40.09%

48.44%

6.72%1.70%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%



Very dissatisfied

40.09%

48.44%

6.72%1.70%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%



Very dissatisfied

Choose the areas of CMA tools that need to be improved themost. Check all that apply.The ability to personalize the CMA is the number one improvement suggested. The nextrequirement is the ability to make adjustments, followed by ease of use. CMApersonalization may be why users build their own CMAs or use third party products.

25.54%

26.73%

27.16%

30.25%

30.49%

35.98%

41.56%

52.83%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Seller net sheet

Statistics

Reporting flexibility

Supporting graphics

Selecting comparables

Ease of use

Making adjustments

Ability to personalize design

25.54%

26.73%

27.16%

30.25%

30.49%

35.98%

41.56%

52.83%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Seller net sheet

Statistics

Reporting flexibility

Supporting graphics

Selecting comparables

Ease of use

Making adjustments

Ability to personalize design


How satisfied are you with the statistical capabilities provided byyour MLS system?81% of the respondents expressed a level of satisfaction with their MLS system statisticalcapabilities.

26.26%

55.20%

12.14%

3.68%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%



Very dissatisfied

26.26%

55.20%

12.14%

3.68%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%



Very dissatisfied

Suggested improvements to CMABetter statistical reporting was the largest improvement request for CMA programs.

30% expressed a desire for historical data for trends analysis and neighborhooddata. Several expressed a need for more flexible search capabilities to allow formore customized statistical analyses.

21% of the respondents outlined a specific system improvement request. 14% suggested improvements to comparable analyses. This group also requested

access to non-MLS data like tax information and adjustments for private sales. 12% would like the CMA systems to be easier to use and to operate more quickly.

12.10%

13.50%

21.40%

23.30%

29.70%

0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1

More user friendly/faster

Comps/non-MLS data,accuracy

Systemchanges/upgrades

Don'tknow/nothing/other

Better stats/betterreports

12.10%

13.50%

21.40%

23.30%

29.70%

0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1

More user friendly/faster

Comps/non-MLS data,accuracy

Systemchanges/upgrades

Don'tknow/nothing/other

Better stats/betterreports


Selling Process

Document ManagementApproximately how many documents are required to complete atransaction in your market?About 39% of the respondents say it takes from 11 to 20 documents to complete atransaction in their market. 23% report that it takes over 21 documents with 7%,reporting that it takes on average over 41 documents to complete a transaction.

35.90%

38.87%

16.05%

4.94%

2.10%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

1 - 10

11 - 20

21 - 40

41 - 60

> 60

#o

fD

ocu

men

ts

35.90%

38.87%

16.05%

4.94%

2.10%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

1 - 10

11 - 20

21 - 40

41 - 60

> 60

#o

fD

ocu

men

ts

For agents in markets which require 41 or more documents, the study revealed someinteresting differences in their responses.

73%% of this group versus 57% on average are using automated formsmanagement software.

36% of this group versus 29% on average state their forms management softwareautomatically loads data from the MLS system.

This subset also has slightly higher adoption of risk management programs.. 80% versus 72%, on average, believe risk management is important. 22% of these respondents versus 15%, on average, had formal risk management

policies in place.


Do you currently use automated forms management softwaresuch as WINForms®, Instaforms, ZipForms?57% of respondents use some type of forms management software.

57%

43%Yes

No57%

43%Yes

No

Do you currently use automated forms management softwaresuch as WINForms®, Instaforms, ZipForms?For those in markets which require 41 or more documents per transaction, 73% use formsmanagement software versus 57% for the total sample.

57%

72.60%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total Sample >41 Docments per Deal

57%

72.60%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total Sample >41 Docments per Deal


Does data load automatically into your forms managementsoftware from MLS or in-house systems?An important feature of forms management software is the ability to auto-populate theforms with existing data. Only 28% say their forms management software provides thiscapability. 57%, say they do not have or do not know if they have this capability .

28.55%35.27%

22.10%

11.19%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

Yes No Don't know Don't use

28.55%35.27%

22.10%

11.19%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

Yes No Don't know Don't use

How satisfied are you with your forms management software?Over 88% of the respondents that use forms management software say they are eithersomewhat, or very satisfied, with their software.

25.00%

53.35%

14.84%6.81%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%



Very dissatisfied

25.00%

53.35%

14.84%6.81%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%



Very dissatisfied


Suggested improvements to forms management software.While many respondents are now using forms management software they have severalrequests for improvements.

28% would like the software to be easier to use. They would like to be able toeasily send the information to their clients electronically and would like toincorporate e Signatures.

27% would like information to auto-populate from MLS listing data and othersources. They would like to eliminate the need to enter the same data on severalforms and contracts.

13% would like the ability to customize the reports. They would like the ability tochange forms and add custom reports required by their company. Manymentioned that the font sizes are too small and difficult to read and they wouldlike the ability to change them.

10% of the respondents expressed a desire to be able to access the forms softwarefrom their computer when they are off-line from the Internet. They would like tobe able to work on the transaction while they are working at an open house orwhen they are not in the office.

5.80%

10.00%

12.60%

15.80%

27.20%

28.40%

0 0.2 0.4 0.6 0.8 1

Forms in logicalfolders

Offline version

Customization

Other

Autopopulate data

More easy to use

5.80%

10.00%

12.60%

15.80%

27.20%

28.40%

0 0.2 0.4 0.6 0.8 1

Forms in logicalfolders

Offline version

Customization

Other

Autopopulate data

More easy to use


Transaction ManagementDo you use an automated transaction management system?Only a small percentage, 13%, report that they currently use transaction managementsoftware. Many respondents indicated using products that are not categorized astransaction management software so the actual number is much lower..

13%

87%

Yes

No

13%

87%

Yes

No

If "NO" how interested are you in using an automatedtransaction management system?Of those that do not use transaction management software 22% are very interested in itwhile 46% are somewhat interested in it. 20% are not interested at all. These numbersreflect the slow adoption of transaction management in the industry. The ambivalence ofthese responses suggests a clear benefit still needs to be established.

22.38%

46.03%

20.17%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

Very interested Somewhat interested Not interested

22.38%

46.03%

20.17%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

Very interested Somewhat interested Not interested


If you answered "YES", who provides the system?The recommended provider of a transaction management system is not clear. 38% ofthose who use some form of transaction management say they receive it through theirbrokerage. 37%, receive it through the services form their MLS.

37%

38%

9%

16%

MLS

Brokerage

Title Company

Other:

37%

38%

9%

16%

MLS

Brokerage

Title Company

Other:

Who enters and maintains the transaction managementinformation?39% of those using transaction management report that office staff are responsible forentering and maintaining the transaction information. 36% report that agents enter andmaintain this information. 17% use transaction coordinators.

17.47%

35.94%

7.68%

38.91%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Transactioncoordinator

Office staff

Agent

Agent assistant

17.47%

35.94%

7.68%

38.91%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Transactioncoordinator

Office staff

Agent

Agent assistant


How satisfied are you with your transaction managementsystem?Satisfaction levels are high with almost 80% of those responding reporting that they areeither very or somewhat satisfied. This may also suggest that current methods forprocessing transactions are satisfactory, with many still using manual systems.

27.96%

51.85%

13.67%6.53%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%



Very dissatisfied

27.96%

51.85%

13.67%6.53%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%



Very dissatisfied

Explain your answer.Automated transaction management is not clearly understood. Many of the comments inthe open-ended question revealed this lack of understanding. It appears awareness levelsof these technologies are still pretty low among REALTORS®. Those that were awareexpress concerned about the transition. One respondent stated “Just getting it up and running…think it probably will be too much duplicate work…”

Others are concerned participation by all parties in the transaction will be limited.“Everyone that I know from the attorney to the home inspector to the buyer or seller does not want to send additional emails, especially the attorneys who charge theirclient for all paperwork– It’s ridiculous”.

Others are concerned about a lack of confidentiality or control a transactionmanagement system may create. “I don't want anyone dealing with my customers on sensitive issues. I depend on my income to support my family, and any mistakes madeshould be made by me!!!”


With 1 being the Least Important and 4 being the Most Important,rank what you believe are the benefits of transactionmanagement?Communication of the transaction status was the number one benefit of transactionmanagement according to respondents. Automation of forms/contracts/ disclosures wassecond. The third highest ranking was document storage. Ranking at the bottom of thebenefits was electronic signatures.

0 0.5 1 1.5 2 2.5 3 3.5 4

Not sure

Electronic signatures

Speed of settlement

Ordering of services

Risk management

Electronic documentstorage

Automation-forms/contracts/disclosures

Communication oftransaction status

0 0.5 1 1.5 2 2.5 3 3.5 4

Not sure

Electronic signatures

Speed of settlement

Ordering of services

Risk management

Electronic documentstorage

Automation-forms/contracts/disclosures

Communication oftransaction status


Risk ManagementHow important is risk management to your company?There was clear agreement that risk management is important. 75% responded it was veryimportant and another 21% saying it was at least, somewhat important. Given this highlevel of importance it is interesting to note how little is being done on a formal basis tomanage risk, according to answers to the following questions.

75%

21%

4%

Very important

Somewhat important

Not important

75%

21%

4%

Very important

Somewhat important

Not important

Which of the following methods do you use to document yourreal estate transactions? Check all that apply.The most popular method to document transactions is hardcopy documents and thenhandwritten notes.Email comes in a distant third with “Fax to digital documents” fourthand ahead of transaction management software. While there is a recognized need for riskmanagement there has been little automation applied to this area.

7.28%

11.74%

20.25%

47.49%

58.09%

87.66%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Voice to email, e.g. Freedom Voice

Transaction Management software

FAX to digital documents

Email records

Handwriten notes

Hardcopy documents

7.28%

11.74%

20.25%

47.49%

58.09%

87.66%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Voice to email, e.g. Freedom Voice

Transaction Management software

FAX to digital documents

Email records

Handwriten notes

Hardcopy documents


Do you have a formal risk management program in yourcompany?With 96% of all respondents indicating that risk management is important to theircompany only 15% have a formal risk management program in place. 43% are not awarewhether there is a program and 42% say they do not have one. While there is arecognition that risk management is very important, the industry has not responded withformal programs to address this need.

15%

42%

43% Yes

No

Don't know

15%

42%

43% Yes

No

Don't know

What do you believe represents the highest area of risk to you inthe transaction?Property disclosures were the greatest risk concern with multiple offers and acceptancebeing the second highest area of concern.

11.11%

14.99%

20.96%

41.87%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Agency disclosure

Ethical compliance

Multiple offers andacceptance

Property conditiondisclosures

11.11%

14.99%

20.96%

41.87%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Agency disclosure

Ethical compliance

Multiple offers andacceptance

Property conditiondisclosures


Time Allocation

Approximately what percentage of your time is spent on each ofthe following areas?According to the survey, the time spent in each area from getting leads to closing thetransaction was fairly even.

22%

25%

26%

27%

0% 20% 40% 60% 80% 100%

Generating andsetting up listings

Generating Leads

Closing theTransaction

Selling thehouse/accepted

offer

22%

25%

26%

27%

0% 20% 40% 60% 80% 100%

Generating andsetting up listings

Generating Leads

Closing theTransaction

Selling thehouse/accepted

offer

2005 realtor technology efficiency survey

Documents