2005 realtor technology efficiency survey
TRANSCRIPT
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, 2005Page 2 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]
2005 REALTOR® Technology Efficiency Survey May 3, 2005Page 3 of 43
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
2005 REALTOR® Technology Efficiency Survey May 3, 2005Page 4 of 43
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
2005 REALTOR® Technology Efficiency Survey May 3, 2005Page 5 of 43
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.
2005 REALTOR® Technology Efficiency Survey May 3, 2005Page 6 of 43
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.
2005 REALTOR® Technology Efficiency Survey May 3, 2005Page 7 of 43
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.
2005 REALTOR® Technology Efficiency Survey May 3, 2005Page 8 of 43
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
2005 REALTOR® Technology Efficiency Survey May 3, 2005Page 9 of 43
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
2005 REALTOR® Technology Efficiency Survey May 3, 2005Page 10 of 43
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
2005 REALTOR® Technology Efficiency Survey May 3, 2005Page 11 of 43
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
2005 REALTOR® Technology Efficiency Survey May 3, 2005Page 12 of 43
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
2005 REALTOR® Technology Efficiency Survey May 3, 2005Page 13 of 43
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
2005 REALTOR® Technology Efficiency Survey May 3, 2005Page 14 of 43
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
2005 REALTOR® Technology Efficiency Survey May 3, 2005Page 15 of 43
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
2005 REALTOR® Technology Efficiency Survey May 3, 2005Page 16 of 43
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
2005 REALTOR® Technology Efficiency Survey May 3, 2005Page 17 of 43
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
2005 REALTOR® Technology Efficiency Survey May 3, 2005Page 18 of 43
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
2005 REALTOR® Technology Efficiency Survey May 3, 2005Page 19 of 43
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%
Very satisfied Somewhatsatisfied
Somewhatdissatisfied
Verydissatisfied
2005 REALTOR® Technology Efficiency Survey May 3, 2005Page 20 of 43
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%
Very satisfied Somewhatsatisfied
Somewhatdissatisfied
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%
Very satisfied Somewhatsatisfied
Somewhatdissatisfied
Verydissatisfied
Total Sample
>40% Internet Leads
2005 REALTOR® Technology Efficiency Survey May 3, 2005Page 21 of 43
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
2005 REALTOR® Technology Efficiency Survey May 3, 2005Page 22 of 43
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
2005 REALTOR® Technology Efficiency Survey May 3, 2005Page 23 of 43
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%
Total Sample >40% Internet Leads
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
2005 REALTOR® Technology Efficiency Survey May 3, 2005Page 24 of 43
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%
Total Sample >40% Internet Leads
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%
Total Sample >40% Internet Leads
Yes
No
2005 REALTOR® Technology Efficiency Survey May 3, 2005Page 25 of 43
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 satisfied Somewhatsatisfied
Somewhatdissatisfied
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 satisfied Somewhatsatisfied
Somewhatdissatisfied
Very dissatisfied
2005 REALTOR® Technology Efficiency Survey May 3, 2005Page 26 of 43
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
2005 REALTOR® Technology Efficiency Survey May 3, 2005Page 27 of 43
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
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
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
2005 REALTOR® Technology Efficiency Survey May 3, 2005Page 28 of 43
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
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
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 satisfied Somewhatsatisfied
Somewhatdissatisfied
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 satisfied Somewhatsatisfied
Somewhatdissatisfied
Very dissatisfied
2005 REALTOR® Technology Efficiency Survey May 3, 2005Page 29 of 43
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
2005 REALTOR® Technology Efficiency Survey May 3, 2005Page 30 of 43
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
2005 REALTOR® Technology Efficiency Survey May 3, 2005Page 31 of 43
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 satisfied Somewhatsatisfied
Somewhatdissatisfied
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 satisfied Somewhatsatisfied
Somewhatdissatisfied
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
2005 REALTOR® Technology Efficiency Survey May 3, 2005Page 32 of 43
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 satisfied Somewhatsatisfied
Somewhatdissatisfied
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 satisfied Somewhatsatisfied
Somewhatdissatisfied
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
2005 REALTOR® Technology Efficiency Survey May 3, 2005Page 33 of 43
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.
2005 REALTOR® Technology Efficiency Survey May 3, 2005Page 34 of 43
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
2005 REALTOR® Technology Efficiency Survey May 3, 2005Page 35 of 43
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 satisfied Somewhatsatisfied
Somewhatdissatisfied
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 satisfied Somewhatsatisfied
Somewhatdissatisfied
Very dissatisfied
2005 REALTOR® Technology Efficiency Survey May 3, 2005Page 36 of 43
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
2005 REALTOR® Technology Efficiency Survey May 3, 2005Page 37 of 43
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
2005 REALTOR® Technology Efficiency Survey May 3, 2005Page 38 of 43
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
2005 REALTOR® Technology Efficiency Survey May 3, 2005Page 39 of 43
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 satisfied Somewhatsatisfied
Somewhatdissatisfied
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 satisfied Somewhatsatisfied
Somewhatdissatisfied
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!!!”
2005 REALTOR® Technology Efficiency Survey May 3, 2005Page 40 of 43
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
2005 REALTOR® Technology Efficiency Survey May 3, 2005Page 41 of 43
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
2005 REALTOR® Technology Efficiency Survey May 3, 2005Page 42 of 43
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
2005 REALTOR® Technology Efficiency Survey May 3, 2005Page 43 of 43
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