Real estate document management software can do the things realtors wished they were capable of–keeping track of everything.
Realtors and title companies are likely to update their business models within the next few years. According to the National Association of Realtors, the industry is facing several unique challenges that may hamper its success in the future.
In this article, we’ll discuss how these concerns can be addressed with document management software and improved business process management.
Although the industry has fewer barriers to entry than ever, this phenomenon has created an aura of distrust among both brokers, realtors, buyers, and general analysts of the industry. With so many pressing challenges on the industry’s plate, there seems to be cold feet ’round the table, and technology will be needed to get the ball moving in the right direction for realtors. But real estate document management software can solve this problem.
Using Real Estate Document Management Software to Handle Industry Challenges
The real estate industry is facing unique challenges within the next several years. According to a frank report commissioned by the National Association of Realtors, the real estate industry must face the challenges to successfully overcome them.
One of the most important concerns in the report is the lack of education and training of real estate agents. The typical commission of 6% that real estate agents charge is also under attack, because that fee is high compared to other countries, allowing room for cutting the costs of services via real estate document management software.
As a response to high commissions, real estate agencies now have to compete against brokers and agents who are exploring new business models. Last but not least, most real estate agencies face compliance issues with federal regulatory policies.
All of these issues and emerging trends can be drastically simplified and streamlined by using document management software.
Education and Training of Real Estate Agents
There is no question about it—becoming a real estate agent is probably one of the quickest career paths. In most states, it takes only 70 hours of training or less to receive a real estate license. Consequently, a lot of real estate agents don’t really know enough about the business they’re in.
While your agency can’t change the education requirements on the state level, you can certainly ensure that your employees have the information and tools they need to succeed at their job.
First, you can institute additional employee training where established agents show new agents how things get done. Second, you can use document management software to ensure that agents can find the information they’re looking for.
Use Workflows and Templates to Streamline Processes
Real estate agents have to take care of a lot of paperwork when listing, showing, or selling property. Fortunately, you can use workflows to streamline each process and make sure that nothing gets left out.
You can also use templates to help agents create the paperwork they need. For example, your agent may need to ask the seller to perform upgrades or repairs found necessary during the home inspection. Your template can make it easier for your agent to draw up a legal document that leaves nothing out.
Explore New Business and Pricing Models
Your agency may be interested in exploring new business and pricing models that allow consumers to save money while still keeping your agency running. When you use real estate document management software for your business process management, it can be easier to find where you can cut operational expenses without limiting the quality of interactions between your organization and your customers.
One of the things you can do to lower your expenses is to move to a paperless organization. It can be challenging for the real estate industry to reduce paperwork, but contracts and agreements are legally binding in electronic form as well.
Your agency may decide to offer services separately to its customers. For example, your customers may decide to pay for listing their property, reviewing or drafting a purchase contract, or researching a deed. You can even offer a hybrid of old and new ways, where you’ll still use the commission-based model for buyers and sellers who prefer to do it that way.
One of the advantages of not tying your earnings to a commission percentage is that your real estate agents won’t feel obligated to show only higher priced listings. This in turn will draw customers to your agency in the long haul.
Compliance with Regulatory Policies via Real Estate Document Management Software
Realty brokerages have to comply with many regulatory policies. In reality, most agencies are in violation of the Consumer Financial Protection Bureau’s anti-kickback and referral-fee rules governing brokers’ financial arrangements with title companies, lenders, and others. But in the “DANGER” report commissioned by the National Association of Realtors, it becomes apparent that most brokerage companies are either ignorant of this fact or believe mistakenly that they’re in compliance. That’s a huge concern for the industry.
The good news is that document management can help your organization streamline its operations which will make it easier to become compliant with all of the applicable policies. At the same time, eFileCabinet can keep your documents safe and secure and prevent unauthorized access.
Streamline Operations with Document Management Software
Realtors and title companies can greatly benefit from streamlining their operations with document management software (DMS). DMS can save your company time and money because your agents will no longer spend hours looking for documents.
You can also streamline your processes and ensure that no step is forgotten by utilizing workflows and templates.
To learn more about how eFileCabinet can make a difference for your organization with its real estate document management software, fill out the form on this page to start your 15-minute demo.