The future doesn't have to be so complicated

LAS VEGAS -- What is Web 2.0 and what does it have to do with real estate? How do real estate brokers make sense of new applications while dealing with changing market conditions? Many today are still struggling with these questions.

Sherry Chris, CEO of Better Homes & Gardens Real Estate, the latest brand to join the Realogy real estate empire, gave some sage advice this morning to brokers interested in how to navigate the fast-changing world of real estate and the increasingly complicated and crowded world of Web 2.0. With 70 million blogs, 400 million social network accounts, and 400 million instant messaging users, the participatory world of Web 2.0 can't easily be ignored, she said.

Brokers should remember that technology is a business enhancement, and they should create a strong but simple technology strategy that's not overly complicated or full of layers, she said. Pay attention to what the research shows you about your consumers and be transparent in the way you provide information to them, she added.

What is Chris' formula for a 2.0 real estate company that's ready for the future? Know your customers, learn their habits, "rightsize" your company by cutting unnecessary expenses and overhead, spend as much effort on generating revenue as you do on cutting costs, and develop a strong yet simple technology strategy.

Brokerage companies most vulnerable to collapse in a tough market are those with high fixed costs, empty desks and unproductive agents, those lacking experience in shifting market conditions, those lacking supportive affiliations and those that are unable to make quick decisions, Chris said.

Chris identified brokerages that will benefit in changing times as those that have capital set aside for opportunities, know their competitors' vulnerabilities, are prepared for unforeseen influxes of agents, and have strong recruiting strategies in place.

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