External and Internal Factors in Real Estate
External and
Internal Factors in Real Estate
Jim Butcher
Introduction
In
the real estate industry e-business, diversity, and ethics have a profound
impact on the four functions of management. Communication technologies are
creating dynamic changes in the world of real property transactions. It changes
the way brokers must think and act with regard to everything from devising
strategies to leading and inspiring agents. Real Estate is still tactical, and
still strongly interpersonal and human, but now it also must happen via the
Web. Diversity refers to more than skin color and gender. It is a term used to
refer to all kinds of differences including religious affiliation, age, disability
status, military experience, sexual orientation, economic class, educational
level, and lifestyle in addition to gender, race, ethnicity, and nationality.
Real Estate ethics are the moral principles and standards that direct behavior
in the world of real property. E-business, diversity, and ethics have had an
extreme influence on the four functions of management in the real estate
industry.
E-business
E-business
is creating changes in real property, making brokers think and act with regard
to everything from marketing strategies to leading and encouraging agents. The
internet has enabled brokers to market their product to a larger group of
people, increasing sales and productivity. The use of MLS (multiple listing
services) has allowed brokers to find products for their clients at the click
of a button, creating an industry with the most up-to-date information about
the real estate market. The internet has opened new lines of real estate
marketing, such as on-line apartment locating and virtual tours for new homes,
increasing productivity and sales. It has also made it possible for the Texas
Real Estate Commission along with other state, and national organization to
distribute information about law changes, and contract modifications. E-mail is
a vital part of communication in the high pace market of today, and has made instant
communication between clients and brokers possible. The use of personal
organizers and cell phones has changed the face real estate, making
communication instantaneous and business immediate. Cell phones as personal
organizers have made planning and organizing swift, and effortless, creating
efficient offices focused on productivity, complete customer satisfaction. With
personal organizers, planning real estate is painless, this involves creating
events to show the products listed by a broker, and “pressing the flesh”. In
real estate sales and leasing, planning is the difference between success and
failure, and involves creating techniques and working on sales pitches. By
planning brokers are able to anticipate questions potential client may have and
even address them before they arise, leading to satisfied and content
customers; It especially helps in smoothly closing the deal.
Diversity
Diversity
represents more than ethnicity and gender, also referencing religious
affiliation, age, disability status, military experience, sexual orientation,
economic class, educational level, and lifestyle. HUD (Housing and Urban
Development), and federal regulations, such as the Equal Credit Opportunity Act,
influence diversity in real estate. With the growing population of Hispanic
Americans in Texas,
there has been a large request for bi-lingual agents to fill an increasing
demand. Diversity in a sales team allows a broker to market to larger amounts
of cliental, increasing profit and product marketability.
Ethics
Real
Estate ethics are the moral principles and standards that direct behavior in
the world of real property. All members of the National Association of Realtors
“Realtors®” adhere to the Realtor® Code of Ethics, which distinguishes a
Realtor® from someone who is merely licensed by the state to sell real estate,
which requires Realtor® to put their clients' welfare first at all times. The Realtor®
Code of Ethics, adopted in 1913 has voluntary and became mandatory in 1924. Holding
a real estate agent's or real estate broker's license does not make someone a
Realtor®. Membership in the National Association of Realtors® are, entitled to
use the term Realtor® on their business cards and in their marketing materials.
A Realtor® is committed to continuing education, professionalism, and integrity
and a majority of them participate in a local multiple listing services (MLS),
which is a distinct advantage in selling a home or looking for a property. The National
Association of Realtors® is one of the world's largest professional-membership
organizations, and a large number of Texas’s
75,000 members belong to organizations on the local level. (Texas Association of, 2005)
Conclusion
E-business,
diversity, and ethics have a profound impact on the four functions of
management in the real estate industry. Communication technologies have created
changes in the world of real property transactions, requiring changes in the
way brokers think and act with regard to sales strategies and tactical
marketing. Real Estate remains strategic and highly dependant on strongly
interpersonal that must happen via the Web. Diversity, referring to not only
skin color and gender but also, religious affiliation, age, disability status,
military experience, sexual orientation, economic class, educational level, and
lifestyle has changed the landscape of management, and leaders interact with
their employees. Real Estate ethics are principles that directed behavior in the
world of real property, creating a better business environment for both brokers
and clients. All of these things, e-business, diversity, and ethics have
profoundly effected management in the real estate industry.
References
Thomas S. Bateman, & Scott A. Snell. (2004). Management-- The New Competitive Landscape
(6th ed.) (McGraw-Hill/ Irwin, Ed.). Boston:
McGraw-Hill/ Irwin. (Original work published 1990)
Texas
Association of Realtors. (2005, Jan/Winter). REALTOR® Standard Code of Ethics
(REALTOR® Standard Code of Ethics, p.
all) [Electronic version]. Austin, TX: Texas
Association of Realtors.