E-Business for Real Estate Business - Essay Example

November 2006 Inefficient e-Business Process in Today’s Real E World Introduction Nowadays, more and more companies are joining the “digital” bandwagon. The use of Internet has transcended the way no one has ever imagined. Take the case of E-sales Services, which utilizes outsourcing resources in order to meet its sales at lower labor cost. Companies are delegating some of their core competencies, which are beyond their control, to another company who specialize such competency. This has often been the case for call center companies who take care of customer services, telemarketing, and even technical support. Most inefficient business processes are being taken to the next level. The industry, banking, agricultural, information, technological sectors are taking advantage of the digital age in enhancing their inefficient processes towards a more profitable enterprise. Unfortunately, this has not yet been the case for the real estate sector. Realtors or agents still prefer meeting their clients face to face in order to make a profitable sale. On the other hand, clients travel all the way to the location of the real estate for site inspection. The way things are going, it is no doubt that there is a need for the real estate sector to catch up with the latest technology; otherwise, it will continue to lag behind other less profitable sectors. “Going Digital” In today’s rapidly emerging technological age, “going digital” has not only become a prerequisite towards success. It has also become a necessity and a need that must be undertaken to become more efficient and effective in bringing about change and integration in any business endeavor. In order for the real estate sector to integrate forward, there is a need for the following e-business processes to become more effective and be able to act as tools in enhancing its services, while maintaining customer relations and product quality: a) site inspection through video streaming; b) customer service and support; c) availability of online contractors/designers; d) online contract signing; and e) online payment system. Site Inspection through Video Streaming Crucial to the real estate business is the site inspection of the real property. In this aspect, clients usually weigh-in their first impressions above anything else. Despite having a comfortable home, the imaginative sales talk of the real estate agent, and the price it would cost them, clients still basically base their judgment on their instinct before going for the buy. Hence, it is important for any realtor to make the first impression a “lasting impression.” What clients normally do is that they make the necessary arrangement and appointment with the agent before site inspection is carried out. This simple appointment would entail some time off from work or family. In other instances, clients come across a long way just to make a simple visit to the area. Based from this scenario, one can imagine how inefficient this process can get. A time spent on hunting a house can be equivalent to an hour’s worth of meeting, baseball game with the client’s child, sleep from a 36-hour work shift, a short visit to the hospital, and a whole lot more. Fortunately, this process can be enhanced by means of establishing an online site inspection (Chapter 3 Transaction Enhancement). Through the use of video streaming, clients can now have the luxury of just clicking their computer screens during site inspection. They need not to leave their work, homes, and other important appointments just to spend time house hunting. In whatever location they are, clients may be able to gain full access on a variety of real property options to choose from. On the part of the real estate agent, online site inspection can be made possible by making a full account video clip of each part of the house or real property: bedroom, dining area, living room, lawn, and backyard. Each video clip will be equipped with a voice over that will describe each structure of the house. Clients need not go to the property by themselves; instead, the property is brought to them via video streaming. Meanwhile, clients who do not have the luxury of time to watch all the video clips can have an option of viewing some photo slides on each part of the real property. To make sure that all the information in the online video clip or photo slides are authentic and reliable, agents must be required to get an authentication from the real owner of the property, the National Association of Realtors, or from any local Real Estate Association. With these options, distance is not in itself a hindrance for potential customers to consider purchasing a property. Aside from the fact that this scheme saves ample time, it also saves on money for both the client and the real estate agent. The client need not travel across several states just to inspect a property. On the other hand, agents need not spend money on advertisements and other schemes that would persuade and encourage potential customers. Through the transaction enhancement business model, technology is viewed as a powerful mechanism in bringing out efficiency and effectiveness in the site inspection process. Furthermore, it also enhances the functionality of technology as an essential instrument in saving time and money in the real estate business. Customer Service and Support Due to the various clients that are being handled at any given time, agents have been having a hard time maintaining relationships with his various clients. This has been mostly the scenario for real estate agents with a hectic schedule. To enhance existing relationship between the client and the agent (Chapter 6 Customer Relationship Management), the agent must be available for the client 24/7 or 24 hours a day, seven days a week. In managing this, it would be necessary for the agent to employ an online customer service and technical support scheme available round the clock that will answer all the inquiries of the client, in behalf of the agent. Given the circumstance that only the agent could answer a particular technical inquiry, clients may have an option of being contacted by the agent in a period of time, for example: within 24 hours, 15 hours, 3 hours, 1 hour, etc. Through such approach, customers would feel that they are valued by their agents. Their needs and demands are all being taken cared of by the real estate company. And when clients feel that their presence is being valued by the agent, they will recommend the agent to friends, colleagues, and other potential customers. Customer service could also pave way for improving the quality of service the company provides. No other kind of advertisement would be better acknowledged by potential clients other than the “word of mouth” scheme. In any type of business, there is always a need to delegate a particular core competency. And in this case, real estate agents can now have the luxury of time of not having to follow-up clients or vice versa. Customer relationship can still be maintained, while being able to make the required sales requirement for the real estate company. Online Contractors/Designers Clients who are not accustomed to the do’s and don’ts of real estate hunting up to finding a decent contractor and designer will have a hard time searching through the numerous numbers and advertisements being placed over television, the phone directory, or even the Internet. To remove the step of having to “search” for the right house contractor and designers, agents can provide some web-page links or recommended partners who can competently do the job (Chapter 3 e-Channel Compression). Not only will it save time for the client, it could also provide a suitable and cost-effective measure for the money-conscious client. These web page links will not only provide the basic contact numbers of the contractors and designers, it would also showcase their previous projects that can lure the potential customer to hire them. On the part of the designer, the web page link could also pave way for highlighting an idea for the customer. Overall, by being able to save time from this business process, clients could still divert their time on other pertinent matters. Furthermore, it could also save time and energy for the agent in contacting various contractors and designers that would suit the client’s taste. Meanwhile, it would also be easier for contractors and designers to gain more clients who believe they are competent enough to handle the job. Real Estate Online Buying Schemes In today’s trend of real estate business process, agents make it a point to pay for advertisement just to market a particular condominium unit or real property. Imagine how much a simple television commercial or newspaper advertisement would cost on a daily basis? Not only does it get counterproductive, it also increases the value of the property as the clients are the ones who are shouldering the cost for such schemes. Aside from this, the agent does not have a guarantee that he could recover his expenses at a short time. Since more and more people are now taking advantage of the Internet, building a website would be much cheaper that spending money on print ad and commercials. On the other hand, the agent could also have an option of advertising online through Google’s advertisement scheme. Every time a user makes use of the search word real estate or real property (or any other related term), advertisement on the agent’s company would appear. Such advertisement schemes will not only reach the United States, it would also appear in other parts of the globe. This is what one could call an “efficient advertisement scheme;” this e-Channel innovative approach makes use of technology to develop new channels to satisfy unmet customer needs (Chapter 3 e-Channel Innovation). Included in the advertisement is a discounted price for online sales of condominium and apartment units. By purchasing online, clients would save money up to 20% once purchase has been made. The same goes for the housing packages, includes the number of payment years, contractor and designer, and the location of the real property, that could be purchased online at a relatively cheaper price at a given period of time. Real estate online buying schemes would not only encourage potential customers to utilize the Internet as a medium of purchasing real property, it would also save them time from visiting the property and up to the actual payment transaction. Furthermore, it would also save them money from having to shoulder the advertisement cost for television and print ads. For the part of the agent, it would be cost-effective for the real estate company to utilize the Internet as a tool for selling and purchasing real property. Online Contract Signing Once the client has agreed to purchase the real property, today’s contract signing schemes are being done in an office or on a person-to-person basis. Given the fact that a client plans to build a house in Chicago, but would have to travel all the way from New York just to close the deal is such a waste of time, money, and energy for the client. To take advantage of what technology has to offer, contract signing could be done via the Internet (Chapter 3 Transaction Enhancement). With the use of a secured account (which includes personal details given by the client) provided within the real estate company’s website, the client will use his/her account in purchase deals. Before the deal is made, the client first logs on to the secured account. Next step is the signing of the purchase agreement. This could be done by using an authentic digital signature or a digital security measure wherein a certain combination of numbers are typed so as to ensure that the client is the one making the transaction. Afterwards, the client waits for a 24-hour period for the verification process that the payment, or downpayment, has been made on behalf of the client’s name. In these three easy steps, the client can already purchase a real property through the Internet. Because it is assured that the aforementioned purchase is well-secured, the client need not worry that they might get swindled or robbed of their money. Furthermore, it would also save their time from being away from the office or their family. Instead of going out of their way to make the final purchase arrangements, they could already make the deal right at their place of work or their personal computer. Although this scheme may be initially quite expensive for the agent, from building a website to using security measures, such investment is worth the risk as it does not only entail short-term goals, but as well as long-term deals for the company. But once the market for online real estate property deals boom, the amount of investment the company made could be easily returned. As technology progressed over the years, it is highly inevitable for the real estate sector to integrate its business schemes to the next level. Indeed, the demand for real estate never ceases to exist. But the number of companies who are joining this real estate bandwagon also increases by the number. To be able to cope with such technological change, and the never-ending competition among various real estate companies, there need to upgrade the real estate business into a higher functionality methodology; and online contract signing may be one of these features. Online Payment System Of course, online contract signing is never complete without an online payment system. In today’s real estate system of operations, real estate payment transactions are being done with the agent and client, meeting face to face. Payments are usually being done through checks or credit cards. Through this online payment system, clients are now unburdened of making delicate transactions in a public manner. They would also be assured that all payments being made online are still being verified by the bank company to which they have an account with. On the other hand, real estate companies could also venture into an option of accepting payments via debit cards. In this manner, non-credit card holders can now have a chance to purchase real property, especially for those immigrants who do not have a credit history. Another advantage of this scheme is the fact that clients are assured that their deed of sale can be processed in the soonest time possible. Since contract signing and payments are done digitally, it would be easier for the part of the real estate company to process the necessary legal requirements on their database. This would also save time from unnecessary office “red tapes” and the hassle of having to wait for the necessary parties to sign the document or deed of sale. On the other hand, agents are spared from the nitty gritty work of processing and following up the papers by themselves. Such scheme could also lessen the time frame of being able to make a deal and the time of processing the necessary papers for the sale. Agents will also have more time to attract more potential clients, as well as maintaining existing clients on their list (Chapter 6 Customer Relationship Management). Because a business would not be a business without the integral part of its system, the customers, the digital technology would allow the real estate business to expand its operations on a global scale. Not only will it be able to focus on a specific location, the company can venture into real properties outside the country. Local counterparts will serve as their representative in the specific country, while being able to maintain the quality and integrity of the company with the help of the mother company. The online payment system is one step that would make a complete turnaround in the real estate sector. But for this to push through, agents must exert more effort in persuading potential clients to make online purchases. With this, real estate business can subsist on a longer, sustainable basis, like other sectors of economy. Conclusion Technology has become a powerful tool and mechanism in bringing about and implementing change in society. Although somehow lagging behind, the real estate business is here to stay. It is up to the agents and the powerful innovators in this sector to be able to cope with the changes being dictated by the technological age. And maybe 10 to 20 years from now, real estate would never be the same, as it once been, again. Read More