10 Keys to Look for in Buying Broker Products

The following is an excerpt from RE Technology's Success Guide to Broker Technology:

If you are like most brokers in America, you probably did not get a degree in systems engineering. That's okay. Most business leaders outside of the technology industry do not. That is why software-as-a-service (SaaS) has become so popular. Here are a few suggestions that you may want to consider when you interview a technology company about a product you like.

1. When was the product built and how long has it been in production? New products tend to have more software bugs than older products, but being new may be the reason you are attracted to them. Be sure to get references from a number of customers that are on the platform and ask about the quality of the product.
2. If the company has an integration with your MLS, ask if they are members of the Real Estate Standards Organization (RESO) and if they are certified. RESO is the non-profit community that manages data standards which allows software to be quickly integrated with MLS data without a lot of custom programming.
3. What is the company's capital structure? Are they a venture-funded startup? Maybe you want to invest, or maybe you are concerned that you may not like who they sell the company to. Be sure that you have the ability to cancel the contract in the event of a change in control.
4. All of the technologies in your company need to work on mobile. Be sure that your test agents spend some time using the product on a mobile device. Agents don't spend hours in front of a computer screen, they use iOS or Android most of the time.
5. Do they support Single Sign-On (SSO)? This will allow your agents to access the software without remembering 10,000 usernames and passwords.
6. Does it work on both Mac and PC?
7. What are the terms of use? Are they getting access to the ability to repurpose or reuse the data that is contributed into the application or do you own your data?
8. Privacy is becoming a major issue with the passing of more restrictive regulations on how companies can use consumer data. How does the company handle privacy?
9. Indemnity is also a key consideration. Make sure that you are indemnified from any litigation involving their product or your use of the product.
10. Customer support is clearly half of the equation in SaaS. If they do not have a good service department, you will need to make sure that you have the staff resources to provide that. Even better, request a few dedicated service staff. It's always better when you or your agents are talking to the same representative when they have a problem. It makes support familiar and can go a long way toward driving agent satisfaction.

Download Success Guide: Broker Technology to learn more about broker technology trends, how to evaluate broker technology, and more.