Next Generation Real Estate
By J. Lennox Scott
Chairman and CEO
John L. Scott Real Estate

December 2004 - As the real estate industry continues to evolve in new, exciting directions the basics have remained the same. Technology continues to enhance the real estate process; but what remains the same is the trusted relationship that exists between the agent and the client. Now more than ever, this relationship is vital to an agent’s real estate career.

In the next five years, the real estate industry will be bombarded with media companies vying to compete with real estate professionals for their clients. They want to intercept clients through advertising and then sell these clients back to the real estate professionals.

With that being said, agents will win listings, meet buyers, earn referrals, and enhance their client’s experience by becoming relationship focused and technologically empowered through the use of information source marketing. Clients want agents who are market savvy and who will act as an advocate on their behalf. In essence, what they really want is an agent who specializes in personalized service enhanced with the power of technology.

A concept known as real time real estate provides the opportunity and enhances the relationship that exists between the
agent and the client. Real time is now, it’s instant, and it’s all about offering the ultimate level of client service. In
real time, what formerly took three or four days now takes only seconds thanks to the Internet. The Internet is the ultimate
‘accelerator’ in the relationship between the agent and the client. Accelerators enhance the speed of completing tasks while
creating a higher level of agent productivity.

As is in any profession, it is essential for agents to have a business plan, but even more importantly, the agent needs to
develop a life plan. In this business, it is very common to get wrapped up in the career and not take time to enjoy life.
It’s important to not loose perspective of having a balanced life. A life plan addresses not only a business plan, but all
elements of an individual’s personal life including the following five areas:

1. Spiritual Life
2. Personal Life (growth, relationships, health, hobby, passion)
3. Family and Friends (raising children)
4. Work Life (contribution of service, finances, investments)
5. Community Life (helping those in need, enhancing the community, protecting the environment, teaching future
generations)

Once your life plan has been created, the next step is to focus on a business plan. An agent business plan leads to a great,
long-term career. It focuses on business development activities, client relationship management, transaction management,
integrated marketing strategies, becoming a quick response agent, and offering premium services to the client.

Client Relationship Management: Client Relationship Management is the number one, core agent activity and it’s the key
element to establishing long-term relationships with clients. Client Relationship Management (CRM) is the perpetuation and
ongoing communication between the agent and client that works to deepen and maintain client loyalty. CRM is an essential
business investment because it is proven to generate repeat and referral business. It allows agents to send targeted
information to niches within their client base. By providing this level of service, agents enhance and deepen the relationship
with their clients. In addition, by keeping in contact, it elevates top-of-mind awareness level to perspective clients.

Transaction Management: Real estate agents have three primary functions: client relationship management, business development, and real estate transactions. With all of these demands, the secret to higher productivity and creating a more balanced life is using a personal assistant or transaction coordinator. The purpose for doing this is to enhance the level of service for clients and to make the overall real estate process more efficient for all involved. It’s estimated that transaction management
frees up about 30 percent of an agents time which can lead to a more balanced work-life plan.

By 2010, I believe we will see all agents using online transaction management. Online transaction management provides a
centralized online location for every aspect of the transaction, from the purchase and sale agreement to the property
inspection, appraisal, lender approval, and title and escrow work. The various steps involved in the transaction process are
managed by transaction coordinators, hired professionals who charge on a per transaction basis.

Integrated Marketing Strategies: The Internet is truly the greatest marketing tool in the history of real estate. It allows
for each listing to have its own unique web code. Once a client sees a home that they would like to see, all they need to do
is access its web code and then they can go right to the listing. Here they can have instant access to virtual tours,
multiple photos, audio descriptions, open house information, mapping, and so much more.

Broker Reciprocity which is now commonly referred to by the National Association of Realtors® as Internet Data Exchange (IDX)
or Virtual Office Website (VOW), is the process of sharing listing information from competing brokers so that companies can
display their competitor’s inventories on their own web sites. This concept allows brokerages to increase their exposure.
This increased exposure not only can take place on a local competitor’s website, but increased exposure can take place on a
national level such as Realtor.com as well. This concept has increased real estate activity exponentially and has allowed
companies to provide an enhanced level of service that would never be possible without it.

Wireless World: Becoming a quick response agent has never been easier thanks largely in part to the Internet but more
specifically to the wireless world. Agent tools including wireless email, wireless laptop computers, and other forms of
technology that adapt to their work environment. Real estate agents rarely sit behind a desk; they spend most of their time
in the field, and they need technology that enables them to communicate effectively from the field.

If it’s not instant, it’s not fast enough. Same day phone calls and emails are crucial to the business because clients don’t
want to wait for correspondence. If they are forced to wait, chances are they will be lost as clients. In addition, agents
need to begin to respond to email in the same fashion that they respond to phone calls. Responding to phone calls and emails
throughout the workday is a good way to avoid a backlog of messages at the day’s end. However, it’s important to remember
that the cellular phone has a power button, and that work-related phone calls not be taken during personal time.

The Complete Transaction: Real Estate companies will either manage or partner with outside vendors to remain as the trusted
advisor throughout the complete transaction. Offering premium service to a client revolves around providing support throughout
the entire homeownership experience. Homeownership is a cycle that continues throughout a client’s life, and includes buying,
selling, and living in the home. Real estate companies should prepare their agents to provide services to their clients
through all stages of this homeownership experience which includes a one-stop shopping, premium services concepts. These
services include residential mortgage, escrow, title, homeowners insurance, and warranty assistance.

Political Survival: We need to protect and enhance our business practices and promote quality of life issues. And, without
the support of the Realtor Association these concepts would not be possible. By supporting the Realtor® Political Action
Committee (RPAC) Realtor® endorsed candidates are supported. Because dues dollars can’t be used for political campaigns,
RPAC seeks voluntary donations. By electing Realtor® endorsed candidates, the Realtor® agenda can move forward.

Being a Realtor® is about providing excellent customer service, and so much more—it’s about making an impact in society. The
Realtor’s agenda is America’s agenda promoting quality of life issues such as housing opportunity, economic vitality, and
good stewardship of the environment. At National, State and Local Associations across America, we are making an impact in
society while protecting and enhancing our business practices.

Realtor® J. Lennox Scott is the chairman and CEO of John L. Scott Real Estate. Concepts in this article are taken from his
book, Next Generation Real Estate, to purchase a copy of his book contact NSBAR at 847-480-7177.