by Philip Lemanski and Paul Gillett
“Computers sell houses” is the kind of controversial comment that causes howls of derision in the average estate agency office. If they do not, however, a large number of firms seem to be wasting substantial amounts of money.
Over the past few years many agents have decided to install computerised residential agency systems. Most firms buy “off the shelf” packaged software which, when added to the hardware and training, is likely to produce a total-system cost of between £12,000 and £30,000 for a three-screen single-office system from one of the more established suppliers. Some of the larger institutions have taken a decision to develop their own systems, the total costs of which are likely to be well into seven figures. So what are the benefits agents are hoping to derive from such an investment?
Most firms with computerised agency systems use them for matching applicants against properties to produce labels which are then used to send out copies of details. While this is certainly a vital function does it really justify the cost? Almost certainly not, but it is only recently that firms are realising the additional scope of modern agency systems and the benefits they can bring to the office.
Personal service
Computerised agency systems are often criticised for not providing the personal service which is so important in the biggest investment decision of most people’s lives. Although this attitude can be understood it derives from a fundamental misunderstanding of the function of a computer system within an agency. They are not there to replace the negotiator; their role is instead as a tool to enable the individual to perform more effectively.
All negotiators understand personal service but very few have the time to provide it to all their vendors and applicants. One of the obvious ways in which a computer system can help is by using the powerful letter-writing capabilities which are available with many modern system. For instance:
- Introduction letters to vendors welcoming them to the agency and thanking them for their instruction;
- Introduction letters to applicants;
- Letters to applicants who have not received property details for a month, explaining that no suitable properties are currently available: how often are agencies criticised by applicants who have never received any details?
- Letters to applicants after a certain period, listing their requirements to ensure these are still correct;
- Letters to vendors detailing numbers of people who have viewed their property or been mailed with details.
Competition
As the market-place becomes more competitive it is vital that the firm takes every opportunity to get an edge over the competition. With minimal effort a computer system has a role to play here:
- Potential vendors often ask a number of firms to value their property. If a negotiator arrives with a list of applicants who may be interested, the chances of converting a valuation to an instruction are considerably increased;
- By carefully entering an applicant’s requirements it can be ensured that applicants are not bombarded with irrelevant properties, which often seems to happen with manual mailing and produces a stream of criticism for the agent;
- Most people’s main contact with a firm is the details that arrive through their door. Generally, these tend to be poor-quality photo-copies of the property details. With an effective system this can be replaced with high-quality personalised property lists and full details if thought appropriate. Laser printers can produce output which is at least as good as a typewriter, and have the additional capability of handling different typefaces and, if necessary, logos. This can present the firm as a professional and modern organisation;
- Multi-office firms have the advantage of large numbers of properties and applicants on their books. However, few take advantage of this. A linked computer system means that applicants and properties can be made available to all offices immediately, without having to rely on people to mail information between offices or phone around.
Marketing
The average agency offers a wide range of services, but are people made aware of these? The obvious staff to market such services are the negotiators who should be in day-to-day contact with the general public. However, in a busy office this takes second place to the main business of selling property.
A number of firms have set up financial services departments to provide mortgage and other insurance services. With all applicant names and addresses available on a computerised system every new applicant can be informed of the financial services which the firm can offer, immediately on registering.
Management information
The production of management information within the average agency tends to be a time-consuming and laborious process. Also, when the information is produced it tends to be out of date and practically useless as a basis for making decisions about the business.
Examples of reports which can be produced from such systems are:
- Property statistics by status, eg on market, under offer, exchanged etc;
- Daily property schedules detailing all changes in the property register since the previous day;
- Analysis of sales that have “fallen through”;
- Properties that have been “on the market” for more than a certain time;
- Applicants who have not been contacted for more than a certain time;
- Commissions earned by the firm for the current month and year to date;
- Commissions earned by office and by negotiator;
- Cash flow forecasts.
Efficiency
The maintenance of records is always a problem for staff in an estate agency office. Negotiators are employed to sell properties and inevitably administration tends to take second place. Examples of how this process can be eased by using a computer system are:
- As discussed above, there is a limit on the number of applicants which a negotiator can service effectively. By maintaining contact with “lukewarm” applicants a computer system (supported by the negotiator) is capable of producing additional sales, and can quickly make a significant contribution towards paying for itself;
- If a centralised computer system is used, any changes to properties or applicants have to be recorded only once. Accordingly, up-to-date information is available to every office and negotiator, without having to update manual records individually;
- The handling of redundant applicants is normally a time-consuming process. The computerised production of a letter for all applicants who have been on the system for more than; say, three months should simplify and speed the process;
- Comparative valuations normally involve staff scrutinising old files looking for equivalent properties. A computerised property archive enables a rapid inquiry on all previously sold property;
- Certain reports which are time-consuming to compile manually can be speedily produced. Examples of these are property lists in price ascending or descending order;
- Control of advertising and copy normally involves a large number of manual files and very well organised staff. Some systems are capable of performing these functions and should ensure that the firm is fully aware of which properties have been advertised, the costs involved and the copy used.
The future
One of the advantages of computerising operations at an early stage is that as new technological developments become available, the uptake is less of a culture shock to a “computer familiar” agency than it may be to an agency with no experience of such systems. Technology continues to advance at an ever-increasing pace and the field of estate agency is no exception.
Probably the next major advance will be the introduction of photo videotext systems. This will provide the facility for matching properties on screen, but instead of just written details, colour photographs of the property will appear on the screen. These systems are currently in their infancy, with photographs taking vast amounts of computer storage and making electronic transfer between offices unacceptably slow. However, it is likely to be only a question of time before cost-effective systems appear in the market-place together with colour laser printers which will be capable of reproducing a hard copy of the screen display.
Looking further into the future it may be possible to have systems where people are able to inquire into property databases from their own homes. Services like Prestel are already able to display and capture information for various other organisations. It may be thought that people would be unwilling to use such a service, but this would not appear to be borne out in other sectors. Banking, for instance, has been revolutionised by the appearance of cash dispensers, and the uptake of home banking services is likely to become commonplace over the next few years.
So, to summarise, what are the lessons to be learned? First, there is undoubtedly a role for computer systems to play in estate agents’ offices. Second, that role is likely to be much greater than originally envisaged if the systems are viewed as an aid to the office and not a staff replacement. Finally, a word of caution. The selection of a suitable computer system is a minefield and the processes which need to be gone through are time-consuming and hazardous. So beware, but look to the future, because if you don’t, you can guarantee the competition will.