14.5: Part V- Real Estate Professional Applications
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\(\newcommand{\avec}{\mathbf a}\) \(\newcommand{\bvec}{\mathbf b}\) \(\newcommand{\cvec}{\mathbf c}\) \(\newcommand{\dvec}{\mathbf d}\) \(\newcommand{\dtil}{\widetilde{\mathbf d}}\) \(\newcommand{\evec}{\mathbf e}\) \(\newcommand{\fvec}{\mathbf f}\) \(\newcommand{\nvec}{\mathbf n}\) \(\newcommand{\pvec}{\mathbf p}\) \(\newcommand{\qvec}{\mathbf q}\) \(\newcommand{\svec}{\mathbf s}\) \(\newcommand{\tvec}{\mathbf t}\) \(\newcommand{\uvec}{\mathbf u}\) \(\newcommand{\vvec}{\mathbf v}\) \(\newcommand{\wvec}{\mathbf w}\) \(\newcommand{\xvec}{\mathbf x}\) \(\newcommand{\yvec}{\mathbf y}\) \(\newcommand{\zvec}{\mathbf z}\) \(\newcommand{\rvec}{\mathbf r}\) \(\newcommand{\mvec}{\mathbf m}\) \(\newcommand{\zerovec}{\mathbf 0}\) \(\newcommand{\onevec}{\mathbf 1}\) \(\newcommand{\real}{\mathbb R}\) \(\newcommand{\twovec}[2]{\left[\begin{array}{r}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\ctwovec}[2]{\left[\begin{array}{c}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\threevec}[3]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\cthreevec}[3]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\fourvec}[4]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\cfourvec}[4]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\fivevec}[5]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\cfivevec}[5]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\mattwo}[4]{\left[\begin{array}{rr}#1 \amp #2 \\ #3 \amp #4 \\ \end{array}\right]}\) \(\newcommand{\laspan}[1]{\text{Span}\{#1\}}\) \(\newcommand{\bcal}{\cal B}\) \(\newcommand{\ccal}{\cal C}\) \(\newcommand{\scal}{\cal S}\) \(\newcommand{\wcal}{\cal W}\) \(\newcommand{\ecal}{\cal E}\) \(\newcommand{\coords}[2]{\left\{#1\right\}_{#2}}\) \(\newcommand{\gray}[1]{\color{gray}{#1}}\) \(\newcommand{\lgray}[1]{\color{lightgray}{#1}}\) \(\newcommand{\rank}{\operatorname{rank}}\) \(\newcommand{\row}{\text{Row}}\) \(\newcommand{\col}{\text{Col}}\) \(\renewcommand{\row}{\text{Row}}\) \(\newcommand{\nul}{\text{Nul}}\) \(\newcommand{\var}{\text{Var}}\) \(\newcommand{\corr}{\text{corr}}\) \(\newcommand{\len}[1]{\left|#1\right|}\) \(\newcommand{\bbar}{\overline{\bvec}}\) \(\newcommand{\bhat}{\widehat{\bvec}}\) \(\newcommand{\bperp}{\bvec^\perp}\) \(\newcommand{\xhat}{\widehat{\xvec}}\) \(\newcommand{\vhat}{\widehat{\vvec}}\) \(\newcommand{\uhat}{\widehat{\uvec}}\) \(\newcommand{\what}{\widehat{\wvec}}\) \(\newcommand{\Sighat}{\widehat{\Sigma}}\) \(\newcommand{\lt}{<}\) \(\newcommand{\gt}{>}\) \(\newcommand{\amp}{&}\) \(\definecolor{fillinmathshade}{gray}{0.9}\)Technology serves a vital role in the real estate industry, and college students will need to learn many computer-based skills to prepare themselves. Basic software was explained above; however, many other types of computer programs and applications are worthy of exploration. In this section, we will become familiar with the tools that professional real estate experts have mastered.
Multiple Listing Service (MLS)
A Multiple Listing Service (MLS) is a subscription-based database of real property listed for sale by licensed real estate agents. MLS services, organized by geographic location (sometimes overlapping areas), are accessed online. To access the listing data, real estate licensees pay annual or quarterly fees to belong to the MLS. A variety of regional, statewide, national, and even international databases are available for real estate professionals.
Another feature of an MLS is access to county tax data, including downloadable property profiles containing the public data about a house (owners, past owners, date of purchase, mortgage loan info, property characteristics, and more). Most MLS services have built-in functions for a “buyer alert” system for newly listed properties that meet a buyer’s search criteria. MLS systems can create a Comparable Market Analysis (CMA) for agents that is based on comparable properties (comps) in the nearby geographic area.
Realty websites and agent websites often display listings information taken from the MLS. However, these sites do not show all of the data that agents can see when they access their MLS. Comments, for example, are not shown to the public; neither are commissions (compensation) offered from the listing agent to the buyer’s agent.
If you have visited Realtor.com, Redfin.com, Zillow.com, or other home search sites, you are looking at programs that obtain the information from MLS systems throughout the nation. This data may not always be the most up-to-date, and agents need to be aware that their clients also search these sites.
REALTOR® Property Resource (RPR)
A service similar to the MLS is the REALTOR® Property Resource, known as RPR, which is a database product from the National Association of Realtors (NAR). REALTOR® members can access data on nearly every residential property in the United States, including public data about a house such as owners, past owners, data of purchase, mortgage loan info, property characteristics, and more. In addition, current and previous MLS listings are included for most properties, which makes the RPR a wealth of information.
Online Contracts
For California REALTORS®, zipForm® hosts a collection of real estate forms created by attorneys and licensed by the California Association of REALTORS® (C.A.R.). The online forms include fill-in-the-blank contracts, required disclosures, suggested advisories, reports, and other forms for sales and property management.
The CAR forms number in the hundreds, each for specific property and transaction types (such as residential, commercial, manufactured homes, income property, vacant land, and property management). They are available to REALTOR® members in California as part of their paid membership. Note that each state uses different standard forms.
Contact Database
Successful real estate salespeople use a contact database to store their client and (prospective client) information. Often called Client Relationship Management (CRM), these databases keep names, emails, and phone numbers organized so the real estate professional can follow up for sales purposes. Features include:
- Place for people’s contact information (name, phone, email).
- Ability to “tag” people that belong in certain groups; for example, prospective buyers, past clients, etc.
- Ability to keep track of specific conversations with each person.
- Follow-up alerts
- Birthdays and anniversary dates
- Ability to send email and other messages to groups of people; for example, “New House Listed for Sale” message could be sent to all potential buyers.
While some real estate brokerages offer agents their own proprietary CRM systems, others use standard off-the-shelf technology products. Some real estate firms will charge agents a technology fee for the use of their software. One example of a popular CRM is LionDesk, which is fee-based. A free CRM app is HubSpot. Other programs or products offer a free trial period.
Financial Calculators
In representing real estate buyers, mortgage lenders and real estate agents will need to be able to calculate mortgage loan payment amounts. Online mortgage calculators, such as Karl’s Mortgage, accurately display mortgage payments and can include additional housing costs such as taxes and insurance (once input by the user). One example is Karl’s Mortgage Calculator, which is accessible on a website, as well as a free phone app.
Other online calculators can compute the mortgage payments, as well as overall interest savings from prepayments or extra payments made by the borrower. The Mortgage-X program includes a page for prepayment calculations and is free to access.
Practice Zone
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Practice visiting Karl’s Mortgage Calculator and inputting data or install the phone app for on-the-go convenience. You can also install the Karl’s Mortgage Calculator phone app, which is free. Karl’s Mortgage Calculator: https://www.drcalculator.com/mortgage |
Graphic Design and Publishing
As a real estate professional, you will need to prepare flyers, social media ads, and other marketing materials. Eye-catching materials that attract clients require software tools and expertise with graphic design apps. For advertising and marketing documents, Microsoft® offers Publisher® as part of their office suite. Many real estate agents prefer Canva, which offers both free and paid versions. Another high-quality design service is Maxa Design, in which professional designers prepare a custom suite with template marketing documents readily available for creating ads.
Photography and Videos
Professional-looking photographs are critical for real estate marketing. Agents who plan to do their own photography need to be familiar with photography software, as well as photo editing apps, such as Photoshop and Canva. Virtual tours featuring 360-degree views are now common, and drones are being used more frequently for still aerial photos and short videos of properties. (See Module 1 for more on real estate photography.)
Social Media and Online Presence
Real estate professionals must have a robust online presence. Social media platforms are proving to be effective as marketing mediums for advertising listings and generating leads. Common social media sites include Facebook, Linkedin, Instagram, X (formerly known as Twitter), TikTok, and Pinterest. Professionals should be aware of advertising regulations and the legal compliance required.
Lead Generation
A vital aspect of marketing for clients is known as lead generation, which is most often completed online or using technology. Real estate agents, for example, may use automated phone dialer applications to generate business. An program used by investors who purchase real estate online, known as iBuyers.
PDF Documents
PDF, an acronym for Portable Document Format, was popularized by Adobe Acrobat as a method to share documents that are not designed to be edited. A PDF document is similar to a piece of paper, except it is digital (online). The real estate contracts discussed earlier, such as ZipForm® documents, are published in PDF format. In today’s work environment, real estate professionals must learn how to navigate PDF software for creating, publishing, sending, and editing documents.
Digital Signing
Printing documents and signing with pen and ink have been replaced with electronic signing, e-signing, of digital documents online. Many agents and other professionals use DocuSign for electronic signing services. PDF documents, discussed above, can also be signed online through PDF software or applications. E-signing offers a secure and efficient way to collect signatures from any location, saving time, paper, and frustration for everyone involved.
Transaction Management, Metrics, and Compensation
Individual real estate agents are required by their broker to maintain a file management system for current transactions. Transaction management software may include functions such as calendar scheduling of due dates and deadlines, document e-signing, calculating transaction stats, and even compensation.
Brokerage firms use specific transaction management checklists as required by state regulations, local laws, and customary procedures for that location and type of transaction. Some brokerages maintain their own proprietary transaction management software, while others rely on brands such as BrokerMint and Skyslope. Typically, a transaction coordinator (TC) will maintain the file system on behalf of the brokerage firm.
Comparable Market Analysis (CMA) Presentations
Real estate agents create reports called Comparative Market Analyses (CMAs) to show potential home sellers the value of their property. A CMA summarizing the property details, comparable sales data, and estimated market value is key to help home sellers understand a realistic asking price for their property based on similar properties that have recently sold in the area.
Several software programs that can assist real estate agents in creating Comparative Market Analyses (CMAs) include the following plus others:
Cloud CMA is specifically designed for creating CMAs and presentations. It allows agents to enter property details, access market data on comparable properties, and generate professional-looking reports with custom branding.
MoxiPresent offers a suite of tools including CMA creation. It integrates with MLS data, populates reports with relevant details, and provides presentation features.
kvCORE is a comprehensive real estate platform that offers a variety of tools, including CMA creation functionalities.
Additional software options for CMA creation include iHomefinder, Realtair, ToolkitCMA, Mashvisor (focusing on investment properties), Netty, iSite Lite, and Top Producer. To select the most appropriate software, consider the features, ease of use, integration with other tools, and cost. Regardless of the software chosen, real estate agents still need expertise and knowledge to interpret market trends and create a compelling CMA report.
Office Operations
Operating a real estate business, however small, needs office tools and technology such as a phone system, video conferencing, and e-fax service. Two popular phone systems are RingCentral and Google Voice, which can be used to screen and forward calls, protecting the privacy and security of the real estate agent’s personal cell phone number. For video conferencing and remote meetings, Zoom and Microsoft Teams have skyrocketed in popularity, but in the past, many people used Skype. For personal communication, Slack and What’s App have recently gained in popularity.
Bookkeeping, Banking, and Tax Prep
Many real estate professionals, especially those who are independent contractors, use basic bookkeeping software to track expenses for tax reporting. Even with an assistant and a tax preparer, the small business owner needs to become familiar with some type of computerized bookkeeping. Two of the most popular are Quicken and Quickbooks, but many others are available at affordable prices. “Cloud” bookkeeping and banking are also options, including bookkeeping apps that sync with a bank account automatically. And, some tax preparers recommend use of an automobile mileage tracker. ADD COMMENT ON Excel (as mentioned earlier). How about one or two of the apps I’m seeing advertised on TV for banking, improving credit score, etc.?
Artificial Intelligence (AI)
Artificial Intelligence (AI) assistants like ChatGPT, Bing, Gemini and others are changing the game for real estate agents. These tools can help craft captivating listing descriptions, freeing up agent time to focus on client relationships and deal-making.
But before you hit autopilot, remember: clients expect authenticity, and generic computer-generated text can feel...well, robotic. So, use AI as a springboard, not a replacement. Let it spark your ideas, then weave in your unique voice and expertise.
Affiliated Career Applications
Depending on the real estate field, a myriad of technology tools and computer software applications. A few others follow.
- Property management software
- Mortgage loan underwriting software such as Calyx Desktop Underwriting (DU)
- Broker Price Opinions (BPO)
- Title apps for calculating escrow and title fees
- Safety and security while showing houses for sale
- Transportation routing (example: Waze)
- Reputation branding apps
- Appraisal software
- Home inspection software
- Local zoning and building permits
- Tax assessor office
- Homeowner association (HOA) documents
- Economic reports
- Demographic trends
- Credit reports
- Settlement statement and related documents