If you have not heard Keller Williams has declared they are no longer a Real Estate Company but they are a technology company first. See http://bit.ly/2Fu8ERK.
My Response to this is welcome to the 21st Century and I am glad you realized this now. This epiphany is going to allow you to compete in today’s real estate marketplace. It’s going to allow you to win against those companies that still believe they are in the Real Estate business. (They aren’t, Real Estate is just one of the transactions you facilitate that is not your business. Just like Amazon is not selling books.)
“We are a technology company. No. 1 that means we build the technology. No. 2 that means we hire the technologists …. We are not a real estate company anymore,” Keller Williams co-founder Gary Keller declared today at Keller Williams Family Reunion in Anaheim, California.”
It’s about time that all Real Estate companies realize they are in the business of Big Data and Artificial Intelligence. To take this one step further is applying Business Intelligence to interpreting property related data on a Macro and Micro level to understand opportunities.
In this article, I am going to share with you at least three ways Keller Williams can monetize their data. If they applied these strategies, they would generate revenues and assets more valuable than their current revenues generated through commissions. If you work at Keller Williams and you don’t know my Name or Number, it’s only a matter of time until you should fix that error. If you work for a competitor of Keller Williams, you might want to call me before they do, and they will be calling I can promise you that.
How does data help Real Estate Agents and Clients?
Big Data allows you to have meaningful conversations in real time with the awareness of what is going on at a Macro and micro level. You can be aware of actions you can take to increase the predictability of receiving more offers, or certain offers closing. You can see the possible options that are available like a chess master thinks 6 moves ahead. Data allows clients to make smart decisions and it allows Real Estate Agents to facilitate these victories.
The challenge that most Real Estate Agents have is with the data insight. Being able to apply business intelligence to data so you can understand trends, patterns, and predictions in new ways so you can use them.
Business Intelligence is the ability to interpret data for trends and patterns and allow this insight into your business in real time. Business intelligence helps to identify opportunities and threats in real time.
For example, imagine if as a Real Estate Agent you had the tools to know:
- Imagine if you could know exactly your chancing of winning a listing presentation?
- Imagine if you can justify a properties value with real-time metrics on properties locally and nationally.
- Imagine if you can see the consequences of your negotiation requests in simulation and predict the best responses to resolve the negotiations without losing the deal.
- Imagine if you had the insight to know which of your leads are most qualified and ready to speak with you.
- Imagine if you can know which of your past clients about thinking about listing or buying another place, so you appear to contact them just at the right time.
- Imagine if you knew how to adjust your communication to maximize the performance and happiness of your team so you exceed your goals for the month.
- Imagine if you knew how to adjust your communication to speak and connect directly to your current leads communication style of help them take action faster. This would prevent this lead leaving and going elsewhere. This would help you present the right properties to the right leads saving you hours per day.
All of these scenarios are possible when business intelligence is applied to the currently available big data using Artificial Intelligence. Real Estate Agents already have this data; they just don’t know how to interpret it.
One of the most significant opportunities that Real Estate companies have yet to capitalize on is “Suggestive Matching” or “Predictive Search” rather than the current property search model.
Let me give you an example.
Current Property Search Model:
You are looking for a new property because your family is growing. This means you are basing your decisions on the triggers in your life like School, Work, Doctors, Friends connected to the Vanity metrics of location.
You spend hours searching online, property after property based that meets your needs based on the photos and locations. You are looking for the right kitchen, right size, right backyard, right rooms, right colors, right street. Every search you do results in more properties, but the search does not get smarter removing the properties that don’t meet your requirements based on your past searches.
You might know the area you want, but you have certainly not walked every street yet. You are looking for the right kitchen, the right floor plan and the images on the website help you, but you certainly can teach the search exactly what it needs to find for you. So you spend hours and even months searching.
Then you start attending open houses, and creating your short list you visit with agents. You have spent HOURS in search online and spoken to possibly more than one Real Estate Agent.
Then you find it. You find the one by chance or an Agent opened the door for you and you make your offer.
This is an example of how the current search for property happens every hour of every day in the world. This is also one of the many reasons the buying cycle for a lead is 18 months or longer. From first thought to action it can be 18 months.
Suggestive Matching Model: How Finding Real Estate should happen using business intelligence and AI. (Yes, HelloAlex is making this happen.)
You open the browser on your tablet or App on your smartphone. You login to the AI and connect your social media profiles.
By connecting your social media profiles you authorize the system to analyze your accounts to understand more about you, your family, your goals and your likes.
The system will analyze every property photo you have liked on Facebook or Instagram. Review every like or heart on every kitchen, backyard or dream house.
The Application will ask you some questions about what you are looking for in what locations. The system will confirm the age of your children, pets, and property features.
The AI will have already Assessed your personality profile and know exactly how to present properties based on your personality traits. It will know which images you want to see first and what you care about most. It will know exactly how to present this information so it is meaningful to you.
The AI will know your travel patterns and know where you work, your shifts and daily habits based on your calendar and your social tagging geo-locations. It will know your favorite cafe’s, restaurants, hangouts, stores, gym, and the like.
The AI will then scan the 140 Million Properties in the USA to match the ones that you will like most. When the AI scans the available data it is automatically using image recognition to analyze the photos of the property. Assessing the color of kitchen cabinets, color and type of the floor? For example: does it have timber, carpet or tile? Is the house 1 story or 2, when was it built, remodeled and by who?
The AI knows your preferences and is adjusting the matching based on those. The AI can rank the properties and give them a score of which you are most likely to purchase based on your personal preferences and goals. Your preferences have been collated from the various social media profiles and simple questions asked by the AI. For example, most people are unaware that the Facebook open graph provides over 3000 data points on users that can be applied to profiling behavior.
But how does the AI present the properties to you?
The AI shows you the images of the house based on your unique personality profile, showing what is of most important to you first. This may be the outside backyard, or the kitchen first for example.
The AI will present properties to you and you will give them each a Like or Dislike. As you like certain features in one house and dislike others, you are training the AI to match better properties for you.
Then you see it. The full 3d VR tour of the property online allowing you to experience it without leaving the couch. The perfect house and it is only the 3rd property you looked at online. It works for your budget. It has the ideal location. It seems to have all your wants from your dream list.
Now you schedule a viewing, and all of this happened in less than 10 minutes. You haven’t even finished your coffee yet.
This is the power of Suggestive Matching based on Social Profiling. No longer spending hours searching or walking into property after property. (Wasting the time of Real Estate Agents) The AI has matched you to the perfect house because it knows you like your best friends know you.
The AI even shows the Real Estate Agent how it needs to present the house to you and your partner. This applies a personality based closed to each participant in the transaction.
Real Estate Agents are feeding their knowledge into the AI to apply micro knowledge about properties and area’s making the AI smarter at a local level. The Agent is also now providing increased value to their clients saving them time and documenting clear saving or access to better-valued properties.
But we can take it one step further and apply it to the investor’s in Real Estate.
If you have purchased property before you have a buying profile. This means you open the AI on any device or even on Alexa.
You enter the street address of past purchases into the Ai. The Ai analyzes these properties addresses using the 400 available public data sets. This allows the system to know exactly the type of properties you want to purchase.
You then answer some questions on the AI for your goals for the property. This is helping the AI clarify it’s suggestions.
Then it happens you receive a 100% personalized property list that the AI can predict with certainty over 98% you will purchase one of the properties presented.
The Ai presents to you properties and has already completed all the investment calculations for you and shows you CAP rates, Rental Returns, and You can adjust Rehab Calculations and see all your options in seconds,
But why does this matter to Keller Williams business model?
Because they have realized that one of the most valuable assets they have been yet to monetize is their data. Or they have just completed a great marketing stunt and still to work it out. Only time will tell.
Brokerages have been receiving data from all of their 170,000 Real Estate Agents for years. Data like:
- Leads: The social profile of leads.
- Offers: Type of offer received and how it compares to past, and current offers on similar properties.
- Closings: Closing timeline, cycle, banks, requirements, delays, issues and the like.
- Negotiation Requests: The process of negotiation is an art but the science of big data can show how to simplify the communication to achieve those win-win results faster.
- Property Valuations
- Buying cycles: Based on the age, location, family status of the different leads, funding types and much more.
- Conversation data like what is said, what was the response, what is the conversation flow to make an offer, or reject an offer. What are the patterns of conversation that cause an offer not to be accepted?
If you want more details about this data, for example, you can see comparisons between the time of first lead inquiry to purchase. But let’s look at this with more detail. Who enquired, what did they purchase? Where? How many properties did they look at? What are the commonalities between properties and differences? What was their offer? How was the offer structured? Do you know why they choose this property over the other?
There is massive value in this data that Keller Williams and other companies are yet to monetize. I believe that they need to work or partner with other companies that can provide this service for them. Until they are hiring hundreds of big data and AI specialists, they can not do this themselves. The hiring of mathematicians, data scientists, programmers, Ai specialists, business intelligence analysts require a significant investment and skillset.
But step back and think about it further. Real Estate Agents currently know your exact stage of life and the property you just purchased. An AI can predict the property you will next purchase and when? An Ai with business intelligence should be able to review the triggers that will influence your decisions for action.
I would challenge you that why can’t Keller Williams starting applying this type of Business Intelligence for their agents. With 173,000 agents they have millions of leads, listings and personal data that can be crossed referenced to see the patterns of human behavior. It is clear they have not even scratched the surface of this challenge yet, and Kelle is certainly not it.
This also means that when they apply the AI of Business Intelligence to their business they can see when and how they should re-engage this client and how to help them with their next transaction.
But it is not even that if Keller Williams were really the Technology company they claim. They would know your house age, and the items in your house. When are you going to need to replace, change or handle the warranty on those items? When do you need to replace the heater or the roof?
Why does your Agent not broker all of your property warranty issues? This alone is worth billions and would save you a lot of time and trouble. They could also manage the transfer of warranties between owners without issue. This would all be handled by the AI, and take minutes to initiate. So the Agents reading this don’t fret it is not more work you would have to do. But it’s certainly a high-value proposition.
What do you need to be fixed after the storm that just happened? How are your agent’s assisting you during each weather season?
These are the opportunities for further monetization through referrals or partnerships in business. This is the type of data that companies like Amazon leverage and monetize.
The problem is that most Real Estate Agents leave the relationship at the closing table when they pick up their commission cheques. This is a mistake that is costing them billions.
The data that is left on the table is worth billions. If you are a Real Estate agent and you don’t want this data you are kidding yourself.
My Challenge to Gary Keller and Keller Williams Team… Or those that want to dominate and compete with them.
I understand you believe you can build this yourself but the reality is you will need more than $1 Billion dollars to do this yourself. But I can show you ways to make it happen.
You will be mistaken if you don’t take advantage of the crowd and crowdsource some of this technology. You are better off to start acquiring the 100’s of startups and companies out there that will allow you to compete in this world. Just like Amazon and Google does. Start running hackathons and get connected to startups sooner than later.
You should be running your own pitch days and create an open channel that allows developers to builder solutions around your data. You will be amazed at what people can do in their spare time when they are passionate.
I know you are launching Kelle but the Conversational Dialogue Management that HelloAlex could provide you would turn your 2-year old into a 10-year-old within weeks rather than years.
Create a community where you reward innovation and foster that advancement. You have 173,000 people who have ideas and suggestions for improvement and optimization of their company. Listen to them and challenge them to provide solutions. Because right now they are coming to the companies like us for that solution.
Innovation needs to happen rapidly in today’s world. But you need the right team to lead that innovation. Make sure you have the right players on your team and you will always be able to capitalize on any opportunity.
Create a platform and open the API to developers and reward them to develop applications leveraging your framework. Think Amazon AWS… if you don’t know what AWS is then review it and you might be amazed and the opportunities. Apple did the same thing with their App Store, They have millions of App developers creating apps. They get to see exactly what people want, use and then acquire or build their own versions with this insight.
Your greatest asset would be creating a platform that developers could plug-into and build their applications around your data. Providing your agents with better solutions they mean their specific needs.
To the Agents that are looking to capitalize on this new epiphany, you have a lot of options. There are very smart people around the world working on solutions in their garages right now that are going to disrupt your industry in mega ways. You have not yet felt the full disruption of smart contracts and crypto-currencies. There is a massive way of change coming and I would recommend that you prepare to ride the way rather than fight it.
The sooner you realize that your Database is valuable and you are yet to monetize it. The sooner you can start asking the right questions.
About the Author: Benjamin Bressington CEO, Founder of HelloAlex.io
Benjamin Bressington is the driving force behind defining the technology vision of HelloAlex and working with the developers to turn lines of code into magic (because that is, in fact, what it is). Previously, he spent time building e-commerce websites, helping create sales systems, consulted to million-dollar companies and authored multiple books. (Can you say overachiever much?) When he has spare time, he loves cycling. In fact, he loves rides that are 60 miles long. With hills. So he clearly has us beat in the fitness department. Around the office, Benjamin is known as the “guy who talks funny.” But before you think we’re being mean, know that it’s because he’s Australian. Alright, mate?
Schedule a demo of helloAlex here http://bit.ly/2xbhimB