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How much are those 'green' features really worth? Ask Pearl Certification
I live in a passive house. Don't know what that is? Neither did the listing agent who represented the sellers when I bought my home in 2016, which is why the price was reduced twice before we made an offer (and purchased the property) for $55,000 less than what the sellers wanted for it. A passive house is a type of high-performing home that's much more common in Europe than in Colorado. The insulation envelope, air exchange systems, and HVAC setup are all dead giveaways that the house is highly energy efficient. But because the sellers were using my now-home as a vacation rental, they weren't able to clue in their agent, and so the house was listed and marketed without including any of the amazing features that lower my energy bills while keeping my family perfectly comfortable. It worked out to my advantage, but those sellers (and their listing agent) forfeited a significant amount of money as a result. This is a scenario that probably makes a lot of listing agents' shoulders crawl up around their ears just reading about it. Concerned you might make a similar mistake? The professionals behind Pearl Certification want to teach you how to avoid it. What is Pearl Certification? Imagine a certification program that categorizes homes according to the different energy savings features they possess, documenting all of the little things that add up to a high-performing home and placing each item on a weighted scale. The assessment examines the building shell, heating and cooling systems, baseload equipment, home management features, solar panels, and electric vehicle charging setups. Homes can achieve four different levels of Pearl Certification: Pearl Platinum, Pearl Gold, Pearl Silver, and Pearl Asset. The company also awards "badges" that signify a home's high performance in certain categories, such as a solar badge. The certification report includes details on a home's special performance features, and homeowners who request a report will automatically get enrolled in Greendoor, an app powered by Pearl that helps them understand what upgrades will elevate their property to the next certification level. Pearl Certification includes an official appraisal addendum that's generated in order to provide Green Certification for the home and thoroughly document the extent of any energy upgrades. How does Pearl Certification help agents? Pearl Certification is building an elite network of real estate agents who have been trained on the high-performing home standards. After registering, agents are provided with education and background, then must prove their knowledge before they can fully join the network. Participating agents can request home certifications for their clients, and the network connects homeowners with agents who understand high-performing homes and how to market them. We know what you're going to ask: What's the referral fee? Here's a pleasant surprise — Pearl Certification is not a brokerage and has no plans to become one, so the referrals sent to agents through the network are yours to work for free. And the company also offers training on navigating MLS Green fields (if your MLS has them) so that any energy-efficient homes you're listing can be properly marketed to interested buyers. Heather Elias, Vice President of Real Estate at Pearl Certification, notes that the solar badge could be useful for agents listing homes with solar panels. "Solar has been a bit like the Wild West," she says, "and the solar badge can go along with a full certification, but it can also stand by itself in helping sellers and their agents calculate the equity of the solar system that's on the house and properly market that information on the listing, as well as walk through conversations around the loan or lease that's on the solar systems." And don't forget: Pearl Certification isn't just for passive homes like mine. "It doesn't have to be a house with rain barrels and solar arrays and all the energy-efficient things you'd expect to see," Elias notes. "We can help with any house."
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Majority of Realtors Find Value in Promoting Energy Efficiency in Listings, Says NAR
A majority (63%) of agents and brokers said promoting energy efficiency in listings is very or somewhat valuable, according to a new report from the National Association of Realtors®. The 2023 REALTORS® and Sustainability Report – Residential examines sustainability issues facing the real estate industry. "While each area of the country has a unique climate and community resources, Realtors® are finding the need to embrace their clients' sustainability interests," said Jessica Lautz, NAR deputy chief economist and vice president of research. "Buyers often seek homes that either lessen their environmental footprint or reduce their monthly energy costs. There is value in promoting green features and energy information to future home buyers." Half of Realtors® said they were directly involved with a property with green features – on the buyer or seller side – in the past 12 months. Thirty-two percent of agents and brokers reported that their multiple listing service had green data fields, 37% of which used those fields to promote green features, 24% to promote energy information and 14% to promote green certifications. Almost half (48%) of agents and brokers found that consumers were very or somewhat interested in sustainability. Nearly one-third (32%) of Realtors® were concerned about the effects of climate change events on the real estate market. New to the report this year, nearly one-fifth (17%) of respondents said a significant portion (between one-quarter to more than three-quarters) of their clients consider environmental risk in the purchase process. In addition, 14% of agents and brokers had clients ask for advice about energy efficiency upgrades very often or often. When it comes to a high-performance home – defined as a systematic, building-science approach to home improvements that can increase indoor comfort, health, operational efficiency and durability – approximately one-fifth (17%) of Realtors® said those had an increase of 1%-10% of the dollar value offered compared to similar, non-high-performance homes. "The first words of the Realtor® Code of Ethics are simple, yet powerful, and well understood by members: 'Under all is the land,'" said NAR President Kenny Parcell, a Realtor® from Spanish Fork, Utah, and broker-owner of Equity Real Estate Utah. "Good stewardship of the land – and the built environment – is critical to the real estate industry. Realtors® who can speak with authority about a home's sustainable features and convey the value, health benefits, energy savings, durability and operation costs provide a major advantage in every market." The green home features that Realtors® believed were most important to clients, include windows, doors and siding (39%); proximity to frequently visited places (37%); a comfortable living space (37%); and a home's utility bills and operating costs (25%). In terms of sustainability issues and considerations in their market, agents and brokers mostly listed understanding how solar panels impact a transaction (35%), understanding lending options for energy upgrades or solar installations (33%) and valuation of solar panels on homes (32%). Notably, other green issues and considerations in Realtors®' markets include a lack of MLS data about home performance and/or solar installations (25%), improving the energy efficiency of existing housing stock (24%), valuation of green-certified homes (19%), liability of misrepresenting a property with green features (18%), inability to search for green properties (12%) and the impact of climate change events on the transaction (9%). Access the 2023 REALTORS® and Sustainability Report – Residential online here.
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[Podcast] Erin Shine on Sustainability in Real Estate
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Gen Z Homebuyers Consider Smart Features, New Builds and Prioritize Sustainable Materials, New Survey Shows
With 2022 having seen a notable increase in mortgage rates compared to historical lows in 2020-21, and with many economic factors to watch based on the first quarter of 2023, many U.S. homebuyers and sellers are rethinking their approach to achieving their real estate goals, according to a study commissioned by RE/MAX. The global real estate franchisor released a comprehensive, current analysis of consumer tendencies and professional strategies around buying, selling, or owning a home. The U.S. Future of Real Estate 2023 Report was developed in partnership with the advertising agency Camp + King and conducted by leading consumer insights agency Canvas8. The research, which included a survey of more than 2,900 American homebuyers or sellers, along with expert interviews with real estate researchers and economists, identified six key themes exploring how people's attitudes and values toward buying, owning, and selling homes are shifting. As a real estate franchisor dedicated to helping real estate professionals deliver a better customer experience, RE/MAX commissioned the report to uncover valuable insights for agents. The six key themes identified in the report as main trends and mindsets impacting homebuying and selling in 2023 are: Information Overload – People want help making better sense of the homebuying and selling process. Real Talk – People want real estate agents to offer more human-centered support. Modern Adaptability – People are making compromises in search of stability. Future-Proofed Properties – People are looking for self-sustaining, resilient homes. New Hubs – People are looking for areas that offer them the opportunity to connect with a community. Curated Control – People want spaces they can optimize for work and play. "The events of the past few years have made homebuyers more deliberate about what a home should offer them," said Nick Bailey, RE/MAX President and CEO. "A home purchase is one of the largest transactions a person will make in their lifetime, so it's important for them to have a clear understanding about what they're seeking in a home. Research like this can help a real estate professional guide them in their search." Highlights from each of the six themes identified in the report include the following: 46% of sellers cite more support in understanding the process as one of the two most important areas of need, compared to just 27% of buyers. 40% of Americans say that terminology/language is a key barrier to homeownership – that's up from 17% in 2020. 54% of Americans think trust and familiarity have become more important factors when choosing a real estate agent in the past 12 months. Just 25% of first-time buyers reported satisfaction with their recent experience, compared to 74% of experienced buyers. Economic concerns prompted 56% of Americans to buy sooner than they expected – in 2020, 29% of Americans said they bought sooner than expected, citing reasons related to the pandemic. 52% of Americans say real estate agents' "years of experience" have become more important in the past 12 months. More than two-thirds of U.S. homeowners (65%) who experienced a problem with their property in 2022 recognize that it could have been prevented with routine maintenance and/or inspections. Gen Z buyers are more interested in smart features (78%), new builds (77%), and sustainable materials (81%) than older cohorts. Vibrant local communities are an important factor for younger generations, with 77% of Gen Z saying they consider this when looking to purchase a home. 64% of U.S. buyers say renovation potential is an important factor when looking for a home to buy, compared to 45% in 2020. Download the full report with detailed stats in each of the six themes HERE. "Times change, and in a fast-paced industry like this one, it's important to stay a step ahead. The research shows consumers are increasingly turning to experienced, full-time professionals – and those are the type of agents who make up the RE/MAX network," added Bailey. The U.S. Future of Real Estate 2023 Report is one of two market reports exploring the future of real estate across North America. The Canada Future of Real Estate 2023 Report can be found HERE. RE/MAX and its agency partners examined the homeownership landscape across the United States and Canada to unpack and explore the trends shaping the future of real estate in these two separate markets as a way to see what's really going on in the business right now – and to build a clearer, more informed sense of what's ahead.
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6 Things Every Agent Needs to Know About Solar Energy for Homes
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Realtors See Sharp Increase in Homes with Green Features
The number of Realtors involved with buying or selling a property with green features has significantly increased in the past year, according to a recent study from the National Association of Realtors. The 2022 REALTORS and Sustainability Report surveyed NAR members nationwide regarding sustainability issues currently facing the real estate industry. Half of agents and brokers surveyed said they helped a client buy or sell a property with green features during the past 12 months, a notable jump compared to 32% in 2021. Nearly two out of three respondents – 63% – said that energy efficiency promotion in listings was very or somewhat valuable. Over half of agents and brokers – 51% – found that their clients were somewhat or very interested in sustainability. And 35% reported that their multiple listing service features green data fields. Among those with green data fields in their MLS, the top ways they were used were to promote green features (35%), energy information (24%) and green certifications (13%). "Sustainability continues to play a growing role in consumers' purchasing decisions, and this is becoming even more prevalent in the real estate market," said NAR President Leslie Rouda Smith, a Realtor® from Plano, Texas, and a broker associate at Dave Perry-Miller Real Estate in Dallas. "With the residential property market, in particular, home buyers have expressed increased interest in eco-friendly factors like solar panels and energy efficiency." Roughly three out of four Realtors® – 77% – said that properties with rooftop solar panels were available in their market. These numbers were highest in the West (89%) and Northeast (86%). Thirty-six percent said that homes with solar panels increased the perceived property value, compared to 30% that said they had no effect. Source:  The report also noted rising anxiety among Realtors® about the effect of climate change and extreme weather events on their businesses. More than one out of three respondents – 34% – said they were very or somewhat concerned about the impact of extreme weather events on the housing market. Jessica Lautz, NAR vice president of demographics and behavioral insights, said that the increased focus on sustainability in recent years is a win-win for all homeowners. "More sustainable homes bring benefits to homeowners like cost savings from energy efficiency, health benefits from improved indoor air quality, and increased comfort and durability from material use and construction, and may also increase resale value," Lautz said.
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The Best Eco-Friendly High-Tech Home Products
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Standout Marketing for October: HalloGreen
Holiday time is approaching. Don't scream about losing out on the fun of one of the most widely celebrated holidays of the year. Now is the time to turn Halloween into HalloGreen. HalloGreen is an opportunity for you, as the local real estate agent, to come up with fun and creative ways to celebrate with your community the value of an eco-friendly lifestyle while promoting your business. In fact, utilizing just one or more of these ideas can help generate smiles in your market that will have you remembered and appreciated!
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Top 8 Eco-Friendly Home Features in Demand
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A Green Guide to Becoming a Sustainable Realtor
With Earth Day on Wednesday, sustainability is top of mind for many. At one time a niche, sustainable practices are now demanded by consumers, with 81% of the global consumers believing it is important for a company to have an objective of improving the environment, according to Forbes. Home buyers are becoming increasingly aware of green alternatives, and an influx in energy-efficient housing and eco-friendly materials is likely to be seen. So what does this mean for Realtors? Having knowledge in the sustainable real estate landscape is beneficial now more than ever, and there are multiple tools to get you started.
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4 Ways to Market Eco-homes to Buyers
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Green Home vs. Smart Home (and the Top 9 Features)
Smart homes and green homes are growing in demand in many parts of the country. Yet, when people think of a smart home, some may think it is the same as a green home. Yes, they work beautifully together, but they are actually different. This article will highlight each and show you the key features that buyers are looking for now.
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4 Green Marketing Ideas Agents Can Try this Earth Day
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Home Energy Costs Play Vital Role in Marketing Listings
The real estate market is shifting—again. While upgrades like a swanky new kitchen or contemporary outdoor living space still draw attention, many buyers are becoming increasingly aware of the costs and benefits behind the walls. Home energy consumption levels are top of mind for many consumers who recognize that making the monthly mortgage payment is just a portion of the total amount needed to operate a household. Discerning homebuyers want to fully understand costs such as heating, cooling, lighting, electronics and even laundry. The trend is no surprise considering recurring variable expenses consume up to 4 percent (roughly $2,200 per year) of the average household's income, before taxes, according to the Insulation Institute. Those dollars speak volumes to every conscientious buyer and can be a valuable marketing tool for sellers and agents.
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Sustainability and Real Estate: How to Keep Up with the Growing Demand for 'Green'
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Going Green in 2017
Real estate agents and brokers know that having a transaction management program today is a must-have to remain competitive, compliant and become more productive. But there's another huge benefit to a paperless transaction that is often overlooked: it's remarkably Earth-friendly. Being more eco-friendly remains important to a vast majority of Americans. In fact, 79 percent of Americans "agree that they consider themselves an environmentally conscious person," while only 6 percent strongly disagree, according to a Harris Poll conducted last year. The impact of paper Consider for a moment the amount of paper the average real estate agent handles during a single typical transaction—from the marketing materials and often hardcopy of a CMA at a listing presentation, to the contract, addendums, title, appraisal and documents at the closing table—the stack of paper would likely be as thick as an old telephone book for a major city! Now think about the fact that there are typically 5-6 million new and existing homes sales each year, and the fact that the typical sales transaction still provides multiple sets of paper documents for all the parties involved, and we are talking a huge negative impact on our environment. Now according to experts, it takes a little more than half a tree to make 10 reams of 100 percent, non-recycled 20-lb. copier paper. One ream of 500 sheets of paper uses about 6 percent of a tree. The bottom line is that if every real estate agent went paperless, we could potentially save millions of trees each year.
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The Future Is Now: Sustainable Homes for the Booming Millennial Market
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3 Apps for First-Time Home Buyers
Owning a home for the first time can be scary. With that new set of keys comes concerns about property upkeep that former renters have never had to worry about before. If you sense anxiety from first-time buyers that you work with, direct them to the following apps. They ease the apprehension by helping new homeowners understand how their home works and offering actionable steps for keeping up with critical maintenance tasks. Homeselfe Today's generation of first-time buyers is more eco-conscious than their predecessors. Homeselfe is an energy management app that helps homeowners understand their home's weak points for energy efficiency and how they can lower their energy bills. Homeselfe does this by walking users through a digital representation of their home and asking questions about energy efficient features in each room. The questions cover topics like the type of insulation, location of ducts, whether certain appliances are Energy Star certified, if there are aerators on the faucets, etc. Once your client has answered all the questions, Homeselfe generates a report that lists areas where energy efficiency could be improved, and how much the homeowners can save on utility bills if they upgraded to a more energy efficient option. The report also shows available rebates for upgrading. In my area, for example, Homeselfe tells me that my power company, PG&E, offers up to $700 in rebates for upgrading to an energy efficient water heater. Tip: This app is handy for your seller clients, too. Use the app to help identify areas where energy efficiency could be improved before listing. Or, if the home scores well, mention those strengths in the listing description--the lower utility bills that come with energy efficiency is a definite draw!
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Going Green: 3 Marketing Tips for Real Estate Agents
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Checklist: Going Digital
"Digital" is an often used, frequently misunderstood term. In the case of real estate professionals, "going digital" can easily be replaced with "going paperless." It describes the transition of business functions from antiquated techniques (like filing cabinets and ballpoint pens) to modern computer technology. Are you ready to make this transition? We'll provide a checklist of the key tools you'll need. Before we do, let's have a little reality check. Your business will not be completely, 100% paperless – at least, not in the foreseeable future. There will be some documents and marketing collateral that you simply must put on a piece of paper. Your goal should be to aim for maximum paper reduction to honor the planet, reduce expenses, save time, and allow you to make more money selling real estate. The Checklist This checklist may not be inclusive, but it's a great place to start. These are the tools that can help you ditch the printer. 1. Electronic Signatures. The biggest offender for paper waste in real estate is contracts. With the multiple versions that most transactions go through, the number of pages printed can be truly terrifying. Thankfully electronic signature providers like DocuSign have digitized this process. Their technology has become incredibly advanced, offering remarkable functionality with an ease-of-use that surpasses even pen-to-paper signatures. With the addition of a mobile app like the DocuSign mobile app, you have your documents and forms with you no matter where you go, helping you close deals more quickly and conveniently.
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8 Resources for Saving 'Green' this Earth Day
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Spring Clean Your Business Processes
How organized is your work life? If you're like a lot of agents, your desk is probably scattered with random paperwork, sticky notes, and more. Your unofficial other office--your car--is probably not faring much better. You're not alone. According to a survey by staffing firm Adecco, 57% of workers admit to judging colleagues based on the tidiness of their workspace. Your co-workers, however, are likely to be far more forgiving than potential clients. Luckily, spring is finally here, and now's the perfect time to get your professional life and space organized. Deep Clean Your Business Processes Spring cleaning your work life should, yes, include your physical space, but should also be a time to take a critical eye to your business processes and technology use. Why? Because while it's easy to get organized, it's far more challenging to stay organized. Start by honestly examining your weaknesses. What are your obstacles to staying organized? Are there technological tools you can use that would help? If you find yourself buried in mountains of paper, for instance, consider purchasing a solution like zipForm® 6 that digitizes transactions and eliminates unnecessary paperwork. Conversely, are there any tools that you're paying for but not using that you could eliminate? Cleaning up your bottom line is as important as cleaning up your personal space. For the most efficient use of your time and budget, focus on acquiring tools that integrate with each other. For example, when your transaction management solution offers digital signature capability, just think how much easier it would be to collect signatures from all parties, and how much faster you could submit offers or close a deal.
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The Hidden Cost of Paper Transactions
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Learn how to be a Paperless Agent™ with the GoodLife Team and RE Technology!
"I've begun to wonder how many agents who own iPads actually know how to use it in their business. I've speculated that the majority of these agents do not. Anyone can buy an app from the app store – that's a piece of cake – but what they're missing is the knowledge of what to do with the application once it's been downloaded." -- Krisstina Wise, Why You Must Be A Paperless Agent RE Technology is proud to present a free webinar with Krisstina and Garry Wise of the GoodLife Team next Wednesday, January 23. Whether you're an iPad expert or a rookie, you'll learn how to use your tablet for everything from home tours, listings presentations, transaction management, and more! See the video below to learn more about becoming a Paperless Agent™, then register for the webinar.
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Best of 2012: Why You Must Be A Paperless Agent
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Going Paperless: 3 Tips to Get Started
Now that I have sort of become known as the "Real Estate Technology Geek," I receive calls and e-mails daily about how REALTORS® can become paperless. I highly doubt that it is possible to be 100 percent paperless in our business, but here are three tips that will get you darn near close to never using a printer, ever again. 1. Daily Real Estate Task: Printing "Agent Full Report" from MLS. It is something that we must have when showing a property. It has the details that customers/clients don't have in their "Customer Full Report," such as days on the market, the listing agent's contact info, private remarks, etc. For PC users — Instead of printing this report, download a program called CutePDF. It is a free PDF converter that will set up as a printer in your print menu, BUT... drum-roll, please... it will not print! It will save your report as a PDF. This program is great and saves you the hundreds of dollars it would cost to purchase a similar Adobe product. I simply save the reports in Dropbox or Box (another must-have) and simply open it up on my iPhone or iPad.
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Two Approaches to Commute Calculation
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"The Cloud" 101
Prabakar Mahalingam of GoPaperless Solutions says: You've heard so much about "the cloud," but do you really understand what it is and what the impacts are for your business? Maybe it's time to get back to the basics – with a crash course in Cloud Computing 101. Definition The cloud isn't up in the air; it's actually a bunch of servers in a data center, somewhere on the ground. What most real estate agents need to understand about cloud computing is that it is essentially any form of computing (particularly applications or storage) that takes place on the Internet. It's obviously more complicated and technical than this, but that other stuff matters for our developers – not for you, the end consumer. Use in Real Estate Each industry leverages cloud computing in a slightly different way. Some of the primary uses for real estate include: Storage – Saving and accessing data is one of the primary applications of cloud computing in any industry (just look at the popularity of Dropbox). In real estate, this is certainly true as agents seek to store signed documents, forms, contracts, photos, and other crucial information. The online vault is an example from our Real Estate Dashboard solution, where agents can access their contracts and documents anywhere, anytime, plus provide permission-based access to their clients and contacts. Fax – Sending and receiving fax electronically with cloud-based systems can help agents reduce the waste and inconvenience of paper fax. This is one of the popular features in our REDfax solution.
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Why You Must Be A Paperless Agent
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Going Green is Better for Your Clients, Too
We’ve talked a lot about the benefits of going mobile and paperless – but we’ve done it mostly from the perspective of agents and brokers. Today we’re looking at it from a different angle. We want to point out that these smart business decisions can be beneficial for clients as well. “Remember,” says RE Technology CEO, Victor Lund, “your client may be as busy, or busier, than you are. Imagine that you are juggling a career, family and the prospect of moving – that’s a lot to carry. If you can make their real estate transaction smoother, that could give them some much-needed simplicity.” “I Want it Now” Consumers today have an “I want it now” attitude. They’re used to instant gratification in many areas of their lives, due to all the mobile and paperless technologies they’re accustomed to. These include: banking, paying utilities or other bills, preparing/paying taxes, sending invitations, purchasing tickets – and infinitely more. Dealing with “I want it now” customers used to be quite a challenge for on-the-go real estate agents. After all, if you have to dig through the paperwork at your office to respond to a client request, but you’re on the road showing properties to a potential buyer, you’re in quite a pickle. The key to making this work is to utilize mobile, paperless options for sharing documents and information. These resources allow you to keep moving without compromising your customer service.
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Virtual vs. Brick-and-Mortar Offices
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When Is Your Office Going Paperless?
    Today's post was written by Austin Allison and appeared originally on the DotLoop blog. Using digital materials for marketing, advertising and other purposes has a number of benefits compared to using printed materials. Digital files are much easier to transport, distribute and can save a company thousands of dollars in printing costs. The cost-effective nature of digital documents has been a strong incentive for many large companies to cease using printed materials. One such company, Lockheed Martin, switched from using printed materials for policy manuals to emailing an electronic version to employees that saved the company $250,000!
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Going green, easier than you think!
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Are You Meeting Your Goals for 2011?
June is officially here, marking the middle of the year. It's time to start asking yourself if you've accomplished, or set the wheels in motion to accomplish, the goals set early in the year. For many Realtors®, that goal was to ditch traditional real estate practices and adopt the right technology solution to make their business interactive. The end of 2010 promised the future of real estate as more people were adopting smartphones and tablets – meaning Realtors® would quickly need to adopt a solution to meet prospective home buyer and seller demand.
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Going Paperless: A Smart Choice
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Trends in Technology… Where Will We Be in 2020?
      It took us 20,000 years to invent the automobile, and it’s only been 30 years since home computers started showing up in our office cubicles.  And last year saw an explosion of tablets, smart phones and 3D TV’s, along with new ideas in software and advances in cyber security. Just think what can happen in the next 10 years.  It boggles the mind.  It’s likely that the things mentioned here will be fully realized and as common as the stapler on your desk in less than two years. What will be everyday in 2020 is anybody’s guess.  But here is what’s current now and is likely to improve in the near future.
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Need a New Year’s Resolution?
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What is Green?
Spreading from the coastal regions of the US to its center is the new “green” movement.  This movement captured the spotlight and now is a bandwagon most businesses and business owners are trying to jump on to boost their public image and increase their revenues.  Its followers spout ambiguous terminology like it were indigenous to the English language.  In truth it is an evolution.  It is an addition to the original Webster’s Dictionary definition, dating before the 12th century: “of the color green.”  In 2010 there are now 10 definitions for the word “green.”  So the question is, what is “green?”  The progressive term “green” is largely unrelated to the pigment that calms the mind and colors landscapes. “Green” in this case is more than an adjective, it’s a noun.  It’s an idea.  It morphs easily into an action with terminology such as "being green" or “going green.” But what IS it?
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