{"id":4642,"date":"2023-08-17T13:46:27","date_gmt":"2023-08-17T13:46:27","guid":{"rendered":"https:\/\/www.realtrends.com\/blog\/2023\/08\/17\/real-estate-brokers-its-time-to-audit-your-tech-spendingr\/"},"modified":"2025-03-13T02:52:42","modified_gmt":"2025-03-13T02:52:42","slug":"real-estate-brokers-its-time-to-audit-your-tech-spendingr","status":"publish","type":"post","link":"https:\/\/www.realtrends.com\/blog\/2023\/08\/17\/real-estate-brokers-its-time-to-audit-your-tech-spendingr\/","title":{"rendered":"Real estate brokers, it\u2019s time to audit your tech spending"},"content":{"rendered":"\n

The first thing we go through when I work with real estate brokerages<\/a> \u2014 whether it\u2019s in helping them to streamline their technology<\/a> or to prepare for sale \u2014 is their financials. And, one thing that I always spot in these financials is excess spending. I\u2019m not judging them on how much they\u2019re spending, rather, on how they\u2019re spending money on products and services that are redundant. Redundancy is one of the best places to save costs.<\/p>\n\n\n\n

It\u2019s not uncommon, whether through acquisition or simply due to the course of time, that a company will have redundant systems providing the same benefits. Sure, maybe one group prefers a certain system over another, but I\u2019ve seen plenty of examples where the spend is across the board. For example, companies that pay for eSignature<\/a> from three or four providers, or multiple transaction management systems and even multiple CRM<\/a> systems. I\u2019ve even seen multiple accounting systems!<\/p>\n\n\n\n

Whether times are good or not-so-good, it\u2019s always good practice to audit yourself. When times are good, most owners will say that they don\u2019t have the time because there\u2019s so much new business coming in the door. When times are not so good, owners will say they don\u2019t have time because they\u2019re too busy trying to get new business in the door. I get it, running a business can be time consuming. But continuous tweaks like this can keep your business on the right path and mean the difference between profit and loss.<\/p>\n\n\n\n

In my previous article about renegotiating your vendor contracts<\/a>, I talked about taking an inventory of your systems, providers and contracts so you can work with your vendors to get better pricing. But in this instance, it\u2019s crucial to take stock of the systems that you\u2019re using so you know the purpose each one serves. <\/p>\n\n\n\n

eSignature: a simple illustration<\/h2>\n\n\n\n

For illustration purposes I\u2019ll highlight eSignature because, if you look at the 2022 Technology Survey conducted by the National Association of REALTORS<\/a> (NAR) you\u2019ll see plain as day that agents find eSignature to be the most valuable tool they use. Further, you\u2019ll find that it\u2019s the most valuable tool that brokers provide to their agents. I don\u2019t find this at all surprising and I\u2019m sure neither does anyone reading this. <\/p>\n\n\n\n

Do you know how many tools you\u2019re using in your business that include eSignature functionality? If you\u2019re like most brokers, probably not. Or, maybe you are and you just like to spend money. Or, someone once said, \u201cI don\u2019t like this one so let\u2019s get a new one.\u201d But the old one just stuck around because someone else said, \u201cI like the old one and I\u2019m not changing!\u201d Maybe you have a dedicated service, then you have one integrated into your forms system, then another one integrated into your transaction management system. You may even have another integrated with your CRM.<\/p>\n\n\n\n

Just recently I was evaluating a brokerage\u2019s spend and saw that they were paying for DocuSign<\/a>, Transaction Desk<\/strong>, Dotloop<\/strong> and Form Simplicity<\/a><\/strong>. There\u2019s no issue with any of these products. Each has its own unique benefits. But, each also has eSignature capabilities. So I asked how they\u2019re using them. It turned out that they were using all of them for different parts of the transaction process. As the one paying the bills, the broker\/owner didn\u2019t even realize that they all have similar functionality and that his agents and staff were using the eSignature capabilities of each of them for different reasons. The combination added up to nearly $100k annually. <\/p>\n\n\n\n

Every dollar going out the door is as important as every dollar coming in the door. You typically have much more control over your expenses than you do your revenue. It\u2019s the area of your business that you should be most critical of since it\u2019s also an area that very typically creates long-term obligations for you. So when we reviewed this, and other seemingly redundant expenses, it was quite eye opening for that owner. <\/p>\n\n\n\n

Putting this into perspective, if you\u2019re hypothetically paying $10 per user for a system and you have 50 agents, would you rather be spending $500 a month or $2,000 a month? That\u2019s what this is the equivalent of and this happens all the time.<\/p>\n\n\n\n

How to avoid this spend<\/h2>\n\n\n\n

For starters, the best advice I can give to anyone is to evaluate your expenses at least once a quarter. Depending on what you use for accounting you should have a vendor list and at least know the category of the expense and who the money is going to. If that\u2019s not enough, go through the credit card expenses, auto-payments and invoices. <\/p>\n\n\n\n

Create a list of vendors and products you\u2019re using, monthly costs and other pertinent details like the sales rep, website and contract terms. If you don\u2019t know what a system does for you, Google it. Look at the website, read about the features and functions, ask questions of your internal teams and agents. What you learn may surprise you.<\/p>\n\n\n\n

It\u2019s also wise to research the products you\u2019re licensing. That might mean sitting through some training videos. It might mean calling a sales rep to have them \u201cre-pitch\u201d you on something. If this owner had done that with the products I mentioned above he would have quickly realized some significant overlap. He may also have found tangible reasons to be spending on all of them. But at least that\u2019s on purpose.<\/p>\n\n\n\n

The bottom line is that the expenses hit your bottom line, so be cognizant of the products and services you\u2019re using. Get to know the products well, leverage the training that the vendors offer and make sure that if you\u2019re spending on seemingly the same thing you at least know why.\u00a0<\/p>\n\n\n\n

Scott Petronis is the founder and principal at Xcentric Consulting, LLC<\/strong><\/em>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Get to know the products, leverage the training offered and if you\u2019re spending on seemingly the same thing, you at least know why.\u00a0<\/p>\n","protected":false},"author":39478,"featured_media":4822,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3255],"tags":[],"coauthors":[3154],"class_list":["post-4642","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-archive"],"acf":[],"yoast_head":"\nReal estate brokers, it\u2019s time to audit your tech spending - RealTrends - Blog<\/title>\n<meta name=\"description\" content=\"Get to know the products, leverage the training offered and if you\u2019re spending on seemingly the same thing, you at least know why.\u00a0\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.realtrends.com\/blog\/2023\/08\/17\/real-estate-brokers-its-time-to-audit-your-tech-spendingr\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Real estate brokers, it\u2019s time to audit your tech spending\" \/>\n<meta property=\"og:description\" content=\"Get to know the products, leverage the training offered and if you\u2019re spending on seemingly the same thing, you at least know why.\u00a0\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.realtrends.com\/blog\/2023\/08\/17\/real-estate-brokers-its-time-to-audit-your-tech-spendingr\/\" \/>\n<meta property=\"og:site_name\" content=\"RealTrends - 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