Why End-of-Year Is A Great Time To Upgrade Your Real Estate Technology Platforms

The global real estate industry is said to be at least five years behind the technology curve. And as much as a third of real estate processes are still managed by spreadsheets.

According to the National Association of REALTORS® (NAR) technology survey, only 22% of realtors are looking for new tools to invest in.

If you don’t invest in the right technology for your brokerage, you could quickly fall behind in such a competitive market.

As things start to wind down for the year and transactions slow, now is the perfect time to invest in real estate technology for your business.

In this article, we’ll explain why the end of the year is a great time to upgrade your tech and guide you through the platforms you need to invest in to stay ahead.

What Is Real Estate Technology?

Real estate technology encompasses a range of digital tools, software, and platforms that improve the efficiency, accessibility, and management of:

Real estate transactions.

Property management.

Client interactions.

Real estate technology simplifies complex tasks, improves user experience, enhances data accuracy, and optimizes the overall real estate process for brokers, agents, transaction coordinators (TCs), and clients.

Why Is the End of the Year a Good Time to Invest in Real Estate Tech Upgrades?

The end of the year is an ideal time for real estate brokers to upgrade their tech for several reasons that align with business strategy, financial planning, and market conditions. Here’s why this timing is so advantageous:

Prepare for a smooth new year

With updated technology, brokers can start the new year prepared to capture new business and offer a more seamless client experience. New systems can improve client outreach, data management, and response times, which is critical in a competitive market.

With upgraded tech in place, your team can easily start executing strategies for the new year, such as enhanced client follow-ups, social media engagement, and targeted marketing campaigns.

Implementing new tech in December enables brokers, agents, and TCs to start the new year organized and efficient. 

Take advantage of downtime for training

Real estate transactions typically slow down in late fall and winter as many buyers and property owners put off moves until spring. This quieter time allows you to evaluate, implement, and adjust to new technology without disrupting your busiest months.

Brokers can use this slower time to learn new tools, train staff, and refine workflows with less pressure to manage high transaction volumes. This smoother adjustment period can lead to a stronger rollout when business picks up again in the new year.

Potential year-end tax benefits

For brokers with remaining budgets, investing in technology at year-end can help you fully use your allocated funds, which can benefit both budgeting efficiency and tax planning.

Technology purchases may be eligible for tax deductions due to provisions in the U.S. tax code, specifically through the Section 179 Deduction and Bonus Depreciation under the Tax Cuts and Jobs Act (TCJA) of 2017. 

This enables brokers to lower their taxable income for the year, which is especially useful for higher-cost upgrades. Over 24% of realtors spend over $500 per month on technology, making this an expensive investment without tax deductions.

Positioning yourself for future trends and client expectations

The right technology can help you ensure your business strategy meets client expectations and position your brokerage to handle future trends in the upcoming year. We’ll discuss future technology trends in more detail later in this article.

Access to end-of-year deals and promotions

Many technology providers offer discounts, promotions, or extended trials at the end of the year, which can make upgrades more affordable.

Real estate brokers can take advantage of lower costs on software subscriptions, cloud storage plans, and other essential tools to streamline operations, boost productivity, and enhance customer interactions.

Enhanced security for the upcoming year

Cybersecurity is increasingly vital in the real estate industry due to the sensitive financial, personal, and property data involved in transactions. Year-end is a great time to update security features, implement authentication methods, and ensure compliance with industry standards. 

By upgrading at year’s end, brokers can protect themselves against cybersecurity threats, which tend to rise during the holidays when brokers and agents are distracted, and hackers may see opportunities to exploit weaknesses in outdated systems. In fact, eight million cyber attacks happened during the holiday season in 2021.

Gaining a competitive advantage

Real estate is a competitive field, and staying ahead with technology can be a key differentiator. The end of the year provides a natural reflection point to assess technology performance, compare it to industry standards, and upgrade where necessary.

With updated tools, brokers can offer enhanced features like virtual tours, artificial intelligence-powered property recommendations, and faster client response times, setting themselves apart from competitors and attracting more clients.

What Technology Upgrades Should You Make?

Now that you know why the end of the year is such a great time to invest in technology upgrades, let’s look at some of the platforms you should consider upgrading:

Transaction management platforms

A robust transaction management platform like Paperless Pipeline streamlines the entire real estate process, from initial client contact to closing. Upgrading or adopting a comprehensive platform like ours can save time and reduce errors.

Customer relationship management (CRM) systems

An effective CRM helps real estate professionals manage client interactions, track leads, and automate follow-ups. Upgrading to a CRM that integrates with a transaction management platform ensures seamless data flow and enhances client service.

Digital marketing tools

Enhancing your digital presence is crucial if you want your brokerage to stand out and be the business of choice in your area.

Upgrading your website to include responsive designs, virtual tours, and AI-driven chatbots can attract and engage more clients. According to the NAR survey mentioned above, real estate websites drive 18% of leads for realtors, so it’s a good idea to upgrade yours.

Now is also the time to consider investing in tools to help you maintain and grow your social media presence. For example, automated social media scheduling tools, such as Buffer, Social Sprout, and Hootsuite, are a worthwhile investment because they take the manual work out of scheduling social media posts and keep your posting consistent.

Virtual tour and augmented reality (AR) tools

Investing in virtual tour software and AR tools allows clients to experience properties remotely, broadening your market reach. Showing potential buyers a property without them having to visit in person may help you close more deals.

AI platforms

Over 28% of realtors have started using AI in their businesses. AI can enhance property valuations, market trend analysis, and client matching. 

Implementing AI-driven tools can give your team deeper insights and predictive analytics, helping with strategic decision-making.

For example, AI tools can assist in property valuation and pricing, making the buying and selling process faster and more efficient for your clients, improving your reputation.

Some examples of AI platforms you might want to consider include:

• HouseCanary: Provides real-time property valuations and market analytics, aiding brokers and agents in making informed pricing and investment decisions.

• LikelyAI: Uses advanced algorithms to predict when homeowners are likely to sell, enabling brokers to focus on marketing efforts effectively.

• Reevaluate: Analyzes data points to identify individuals likely to move within the next six months, assisting target outreach.

Cybersecurity measures

In 2023, there were 94,000 cyber attacks in the real estate industry. With increasing cyber threats, upgrading your security protocols is essential to protecting your brokerage and clients. 

Implementing two-factor authentication, regular security audits, and staff training can protect sensitive client information and guard your brokerage against data breaches.

Cloud-based collaboration tools

Adopting cloud-based platforms facilitates real-time collaboration among your team members, ensuring everyone can access the latest information and documents. Many cloud-based tools offer analytics and built-in client portals, enhancing transparency and efficiency.

Some cloud-based collaboration tools you might want to invest in include:

• Proton Drive for Business: Offers end-to-end encrypted cloud storage with real-time collaboration features, ensuring data privacy and compliance with regulations.

• Samepage: Combines team chat, video conferencing, and real-time document collaboration, keeping teams informed and productive.

• Box: Provides secure cloud storage with robust file-sharing capabilities, ensuring sensitive real estate documents are accessible and protected.

Mobile applications

Ensuring that all your platforms and tools are mobile-friendly allows agents to manage tasks while they’re not in the office, improving responsiveness and productivity.

You may also want to consider developing an app to enhance your business and accessibility for your clients. You could create a client portal that allows clients to view everything related to their transaction, and you can use it to ensure they submit all the necessary documentation to close a deal.

Now is the right time to ensure all the apps you use are updated to their latest versions, whether it’s social media apps that enhance your marketing efforts or transaction management tools. This ensures you have the latest security features on each app, lowering your chances of being hacked. 

How to Choose the Right Technology for Your Brokerage

Choosing the right technology to invest in is critical for real estate brokers as it directly impacts efficiency, client satisfaction, and profitability. Below is a detailed approach to help you make informed decisions:

Assess your business needs and goals

Start by pinpointing your brokerage’s biggest challenges. Common areas include time-intensive document management, communication lags, or difficulty tracking leads.

For example, a more robust transaction management platform could be the best solution if transaction delays are an issue. 

You should consider whether you’re aiming to:

Scale your operations.

Enhance client experience.

Improve team collaboration.

Increase data security.

Each objective may lead to different software solutions.

Evaluate your current tech stack

List the tools you currently use, such as your CRM, transaction management software, and marketing platforms, and assess their effectiveness. Look for any redundancies or gaps.

For example, if your brokerage already has a CRM that doesn’t integrate with your transaction management system, this gap could hinder productivity.

Sometimes, upgrading an existing system or finding an integration solution might be more cost-effective than investing in new technology.

Prioritize based on return on investment (ROI)

Over 54% of realtors say that the fees for the technology they invest in correlate with the value provided by the tool. 

Look at the potential revenue growth or cost savings each technology could bring. For example, a CRM that helps convert more leads or a transaction management system that reduces paperwork could justify your investment.

Calculate how much time and manual effort a new tool could save your real estate agents, TCs, and admins. This translates into more productive hours and potentially more closed deals.

Look for user-friendly and scalable options

Complex platforms can lead to long onboarding times and slower adoption rates. Brokers should choose tools with intuitive interfaces and ensure all your staff can quickly learn and use them effectively.

Consider if the technology will grow alongside your business. For example, if you plan on expanding in the new year, you’ll need a transaction management platform that can handle higher volumes, more users, and advanced features.

Evaluate integration capabilities

The ideal tech should integrate smoothly with other essential real estate tools. For example, your CRM should integrate with your transaction management system to streamline workflows, providing agents with the ability to move seamlessly between lead management and transaction processing.

Check if the tools you’re considering investing in support APIs or work with integration platforms like Zapier to automate repetitive tasks and improve data flow between systems.

Focus on mobile accessibility

You should prioritize mobile-friendly or app-based technologies, as your agents often work outside the office. 

Mobile accessibility for CRMs, property management software, and transaction management tools allows agents to manage tasks, track real estate transactions, and communicate with clients from anywhere.

A real estate brokerage platform designed with mobile functionality can ensure that agents have full feature access, even on smaller screens.

Consider security features and compliance

As mentioned earlier, you naturally deal with sensitive client data in the real estate industry, so security features like encryption, secure logins, and multi-factor authentication are essential.

As a broker, you should also choose platforms that comply with industry standards and regulations, such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), which is crucial for maintaining client trust and avoiding legal issues.

Evaluate customer support and training resources

Check if the software company offers comprehensive training and onboarding sessions. Some platforms include video tutorials, one-on-one training, or extensive knowledge bases that can ease your team’s learning curve.

Real estate transactions often happen in real-time, so technology issues can be disruptive. You should look for a software platform with responsive customer support, ideally with 24/7 availability or dedicated support reps.

Consult with team members for feedback

Your agents and support staff will be the primary users of your new technology, so their input is crucial. Only 34% of agents agree that their brokerage provides them with the technology they need to be successful in their jobs.

You should ask your team for feedback on usability, which features they find most valuable, and any pain points they encounter with the tool.

After implementing new technology, regular feedback can help identify any further training needs or areas for improvement.

Real Estate Technology Trends You Need to Know About

The real estate industry is undergoing some significant changes driven by technological advancements. Key emerging technology trends include:

AI and machine learning (ML): AI is enhancing various aspects of real estate, from customer interactions to property valuations. Machine learning algorithms can analyze market data and predict property values and investment opportunities.

Virtual and augmented reality (VR and AR): These technologies are revolutionizing property viewing experiences. They enable potential buyers to take immersive virtual tours of properties, facilitating informed decisions without physical visits. Currently, only 20% of realtors report that they are somewhat familiar with AR and VR, but this is set to change in the coming years as this trend progresses.

Big data and predictive analytics: Big data enables real estate professionals to analyze market trends, consumer behavior, and property performance. Predictive analytics assist in forecasting market movements, helping investors and developers make data-driven decisions.

Property technology (PropTech): These solutions encompass a range of digital innovations aimed at improving real estate services. They include platforms for property managers, investment analysis, and client relationship management designed to enhance efficiency and user experience.

Sustainable and green technologies: There’s a growing emphasis on sustainability in real estate, with technologies focusing on energy efficiency, renewable energy integration, and eco-friendly building materials. These advancements reduce environmental impact and meet the increasing demand for green properties among consumers.

Why Paperless Pipeline is the Only Tech Upgrade You Need to Make This Year

If there’s one tech upgrade you must make before the year ends, it’s investing in a purpose-built transaction management system like Paperless Pipeline. Here are a few reasons why:

Visit our website to learn more about our software and claim your free Paperless Pipeline trial. We’re excited to show you why our platform is the best investment you can make this time of year.