Every industry is undergoing market pressure—and market opportunity—from automation and more comprehensive software solutions. For some, software represents a potential threat or challenge, as it can take away clients who are looking for technical capabilities at the cheapest possible rate. For others, it represents an opportunity to streamline their operations and trim away time-consuming costs so they can focus on nurturing leads and making meaningful client connections.
The real estate industry is no exception, and realtors who specialize in (or at least serve) property investment clients are seeing the beginnings of a complete technological transformation through AI and increasingly smart tools, such as property investment software.
As 2024 approaches, you might be thinking about the year ahead: your professional growth goals, changes you want to make in your work processes, and how you’re going to retain business against competitors, both human and software.
This guide can help orient the start of your resolution. We’ll examine how your role as a Texas realtor might change over the course of the next year, especially in relation to property investors. Then, we’ll look at the most crucial types of property investment software you’ll need to have so you can continue to thrive as the markets shift.
How the Job of ‘Realtor’ Is Changing in 2024 and What Property Investment Software Can Do For You
The nature of being a real estate agent is unchanging. You’re an advisor, a guide who manages the negotiations and technical contract elements of a real estate transaction while helping your clients steer their own buying and selling strategies.
While that core objective remains the same, the methodology is changing wildly. You might be marketing to clients through social media posts and email campaigns or using real-time data streams to compile complex custom reports for all of your leads—all through the use of increasingly sophisticated software.
Here are some of the most dynamic aspects of real estate that you’ll encounter throughout 2023.
Your Clients Demand Near-Real-Time Market Insights
In Texas especially, markets are in flux, and there remains a severe shortage of inventory. While there aren’t immediately competing offers on newly active properties anymore, it’s still important to be able to move quickly and filter through potential properties for showings and offers. The importance of providing near-real-time insights cannot be overstated for any type of buyer or scenario:
- Buyers look to their realtor as the source of information. Otherwise, they may look elsewhere for insights. With sites like Zillow routing inquiries through agents paying for leads, you might even lose clients.
- Realtors provide insights for pricing strategies. Your buyers, especially if they’re investors, need to know the prices comparable properties are being sold for, both during and after renovations.
- Give your investor clients better insight into rental prices too. While many investors are flippers, others will be looking for long-term buy-and-holds (especially those newly transitioning into the investment world).
All of these insights will require software that powers through raw streams of data, sends you reports, and updates your clients with regular nudges and custom search results.
Many Real Estate Clients Are Investors
The real estate investment market is tempting for a lot of Texans. Established landlords want to acquire more holdings, and people downsizing or upsizing are considering retaining their old residences to try their hand at rental investment. In fact, over 10 million Americans make income from rental properties. Reorienting your business to serve their needs is an excellent tactic, especially if you want to retain your existing clients with this expertise.
You May Have Your Own Real Estate Investments
Realtors of all types are also in an excellent position to become investors themselves. You may want to leverage your market insights into a new revenue stream, or you think it will add credibility to your team’s reputation if you are a real estate investor yourself (and this is often the case). Instead of relying on your tried and true methods, testing out software for yourself as a realtor and an investor makes you an expert.
Offer a Competitive Advantage That DIY and Cut-Rate Options Don’t Provide
This is the most nuanced—and the most challenging—change in the industry to consider. Smart software can do a lot of the heavy lifting that realtors do and which buyers, sellers, and investors used to not be able to do. If you aren’t vigilant, the capabilities of software might completely outstrip what your business offers, causing clients to start turning to cheaper, more convenient services. So use these tools and strengthen your business to offer what clients are looking for in addition to the great human element only you can deliver.
6 Key Types of Property Investment Software Every Realtor Needs
Now that you know why property investment software is a priority for 2024, it’s time to determine which software elements are important. Here, we briefly examine six features you may find in real estate software. Read through the list and organize them in order of priority for your business. Then you can start building up your tech stack to suit your needs.
1. Document Management Tools
Document management tools are especially vital if you serve investors. Strong software options will offer you and your clients these capabilities:
- Easy e-signature and contract-filling options
- The ability to organize documents by property to track multiple offers, owned properties, and active listings (across buy- and sell-side transactions)
- Maintaining in-depth records for buy-and-hold properties, especially if you act as the realtor for finding tenants
- Security for bank documents, proof of funds documents, and attachments to offers so you can piece together offers at a lightning pace
2. Analytics Software for Real-Time Market Insights
Smart analytics software allows you to converse with leads, clients, and other agents about up-to-the-minute changes in the market. You can assess different regions and neighborhoods, see the effect of changing interest rates and inventory levels, and demonstrate niche knowledge. Just as importantly, you can provide this information for your investor clients. These applications may look like:
- Automated, personalized emails that reach your clients on a weekly or monthly basis
- Newsletters that you can send to cold and hot leads without your active attention
- Alerts on your phone so you know when something changes and how it impacts your business
3. Pricing Software That Offers Intuitive Answers
Pricing is one of the most important strategic decisions that people can make in real estate, especially on the investment side. After all, investors make their money when they make the purchase. That means you and your investors need to know things like:
- The anticipated price for listing a flipped fixer-upper
- The maximum price they should offer on a property based on its location and comps
- Rental rates in the neighborhood based on real-time activity
- What price they should list a property at in order to get the best possible engagement
4. Property Organization Software
When you are targeting investor clients, the more services you can offer, the better. They each represent a large amount of potential, and the more realtors they interact with, the more likely they are to eventually get pulled out of your network.
To handle the needs of investors, robust property organization software helps you reach out at the appropriate time and offer essential services. Even if you don’t explicitly act as a property manager for your client, having this organizational system allows you to:
- Build a profile of the types of properties each client values
- Manage tenant changes and showings on the property owner’s behalf
- Tell clients about market changes that affect their properties
- Keep a customized search report rolling for each client so you can inform them of relevant listings
5. Lead Management Software
Smart lead management software (rather than just a Rolodex or spreadsheet) is vital. It can help you organize outreach pathways like the famous ‘8 by 8’ method and integrate with your marketing automation tools. Today’s property investment software can even automatically score your leads and recommend courses of action when leads and clients are going cool.
6. Network and Contact Management Software
While CRMs are handy for leads, realtors achieve greater success with a network of vendors, business partners, and other professionals. You may need to know commercial real estate agents you can refer business to, property management services with an excellent record, contractors that can manage flips within 30 days, etc. This resource can greatly enhance your value to your clients.
Transition Into 2024 as a Property Investment Realtor With the Right Tools and Software
Before 2024 begins, understand how your role as a realtor is changing and what software will strengthen your business throughout that transformation. ListingSpark’s robust set of tools can help during every step of that journey. We offer a full platform of pricing tools, market insights, and leads that are the right fit for your business. Reach out today to see how our software can support your business growth and entrance into the modern property investor realtor market.
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