When it comes to real estate, having a good property on the market is only part of the battle; Real estate agents must also have effective marketing and advertising strategies to reach many potential buyers. With that, it’s no surprise that agents use a lot of technology in their day-to-day operations.
However, investing in technology is certainly not a small amount of money. This shows how important technology has become in the real estate agent’s arsenal. The most successful agents invest in the latest digital marketing tools and constantly explore new strategies to attract new customers, which can result in a significant return on investment.
Below we provide an overview of what the average real estate agent spends per year on technology.
Why invest in technology?
To stay on top of their game, they need powerful and reliable technology to help them do their job as efficiently as possible. Same real estate investors find it essential to invest in real estate technology! Sometimes real estate businesses need a technology overhaul to follow the latest technological trends. It is essential for real estate agents to keep abreast of new technologies, which can enable them to engage clients in meaningful interactions and create personalized experiences.
How much does the average real estate agent spend on technology per year?
According National Association of REALTORS® Research Group 2021 Technology Survey36% of real estate agents spend between $50 and $250 per month on technology tools.
While 17% of respondents said they spend less than $50 per month on technology, there is a staggering number of those spending more with 18% of real estate professionals spending between $251 and $500 and even more 23 % of respondents spending more than $500 per month on Technology!
Translated into annual spend, the data means that the average cost real estate agents spend on technology per year was $600 to $3,000. It might be less than $600 for some, but interestingly others spend up to $6,000 and even more!
However, the cost of real estate technology varies from agent to agent and from year to year. It is impossible to identify a specific figure for how much is spent when it comes to marketing a home. But for agents determined to succeed, the costs are well worth the investment.
Common technology tools used by the real estate industry
The real estate industry is full of technology. It is practically impossible to list all the tools used, but there are a few that stand out above the rest. Here are some of the most common:
Based on the results of the National Association of REALTORS® Research Group 2021 Technology Surveyreal estate agents indicated that e-signature software (78%), local MLS apps/technology (54%), social media (53%), locked mailboxes (48%) and video conferencing (39%) were the five most valuable technology tools. used in their business.
To give you an idea of the costs real estate agents typically pay for technology, we’ve checked how much each of them pays for the top three tech tools.
1. Electronic signature
The “Electronic Signatures in Global and Domestic Commerce Act” became legally effective for all transactions on October 1, 2000. No special technology is required for electronic contracts; all parties simply need to agree on a method of electronically authenticating contracts or documents.
eSignature is one of the most useful tools for real estate agents. It is not only useful for real estate agents and brokers, but also for their clients. The process of signing documents can be cumbersome and tedious, especially when it comes to legal documents. Additionally, physical signatures can be subject to fading or even damage over time if not stored properly. Electronic signatures allow you to sign your name on any device with an internet connection without having to worry about the document getting damaged or lost.
DocuSign, one of the most widely used electronic signature tools for real estate transactions, charges $10/month for its Starter plan and $20/month for DocuSign For Realtors.
2. Local MLS Applications/Technologies
The Multiple Listing Service (MLS) is a database that combines the listings of many local brokers into one larger database. The platform charges user fees to all agents and brokers who access it to pay for the privilege of accessing information about homes for sale.
MLS apps and technology allow agents to access MLS through their smartphones, providing instant access to property information. Many MLSs offer free apps for real estate professionals, allowing them to manage customer relationships as well as bid on existing listings.
The cost of MLS membership usually ranges from $20 to $50 per month, depending on the MLS you choose. If you link your MLS listing to a website through IDX or RETS, the fees for that service will also increase. You will have to pay an additional fee.
3. Social media
Although social media is free to use, real estate agents must spend on advertising – a well-planned advertising campaign can greatly improve the appeal of your properties and speed up the sale.
Therefore, when selling a property, it is difficult to do without online advertising. To sell your home quickly and for the highest possible price, advertise to as many people as possible. The more people you attract to your ad, the greater the competition among potential buyers and, therefore, the success rates will be.
Facebook ads are a great way to reach potential customers for your real estate business. The best part about ads is that you can target specific types of people, like those who live in neighborhoods where you’re looking to sell homes.) The ability to get hyper-local ads (super important for realtors) is facilitated by the fact that you can set a geographic area radius, as well as other criteria when setting up ads on this platform.
Facebook ad campaigns work well for offer-based ads, such as a free guide or market report. With this type of campaign, you can expect to pay around $2-5 per lead generated through Facebook Ads.
You can agree with the numbers we put forward in this article based on the results of the National Association of Realtors survey. However, this is only a guide and you may find that some Agents spend significantly less or significantly more on different aspects of technology, and some may feel that certain categories deserve more importance than others. . Ultimately, it’s up to the real estate agents to assess their needs and make a good plan for their business.