Under the leadership of new President and CEO Bob Moles, Century 21 ranks among the top three companies in the real estate industry worldwide. And it is one of the first to wholeheartedly embrace Internet technology. In an industry where fewer than 30 percent of agents are Internet-literate, Century 21 is changing the paradigm.
Less than 18 months ago, Century 21 had nothing online, not even a Web page. Today, virtually all communication, with the exception of financial reporting, is conducted online. The company's massive Intranet, 21 Online(sm), profiled in a previous Agent News story, connects more than 14,000 agents, managers, and brokers. Moles is continuing to push his company toward Internet readiness and has already achieved 90 percent office online completion.
Known as an industry innovator and spokesman, Moles is widely recognized both as a policymaker and market analyst. He has led the industry in advocating the creation of value-added services, with a major focus on Internet technology for the dual purpose of recruiting and retaining agents while meeting the changing the needs of today's consumer.
Prior to joining Century 21 in March 1997, Moles was president and partner of Contempo Realty, Inc., in Santa Clara, Calif. Since 1985, Contempo's transaction volume has grown from $85 million to more than $2.4 billion. Ranked one of the 25 largest real estate companies in the United States, Contempo Realty, Inc., joined the Century 21 system in August 1997.
Moles is known as a leader in the area of developing relocation services at the broker level. Prior to becoming president of Contempo, he founded the company's relocation division and was the youngest person to serve as president of the Advisory Board for PHH Relocation. PHH merged with HFS in May 1997, together forming HFS Mobility Services, Inc., now the largest relocation services company in the world.
At the helm of Century 21 for less than one year, Moles is positioning the behemoth company for the millennium. Find out why he is leading the push toward technology and how his ideas can affect an entire industry in this exclusive Agent News interview with Editor Blanche Evans.
A.N.: You are in the minority in this industry, a leader who actually believes technology will advance the real estate industry. Is that maverick thinking? Why?
R.M.: My guess is that it is less and less maverick thinking. My roots are in Silicon Valley, so I am very familiar with technology and what it can do. We are at a place in time where technology is revolutionizing all business. And, I would say, it is specifically affecting the residential real estate business, a business that is fragmented and a bit archaic. Technology gives Century 21 a significant competitive advantage -- we can communicate at the flip of a switch.
A.N.: When you talk about the residential real estate business, what do you mean by 'archaic'?
R.M.: The transaction itself. There are so many people involved -- agents, attorneys, buyers' representatives, loan officers, title insurers, home inspectors -- that it is burdensome process for the consumer. We are headed as a company toward using technology to allow our agents to be more efficient. We have a sister relationship with PHH Mortgage, the ninth-largest lender in the country, and since most transactions require a loan, we need to have a higher degree of communication.
A.N.: What do you suggest to streamline the process?
R.M.: I believe technology will do that. For example, in the two-income-type family, everybody is busy. They don't have time to shop for a house, a mortgage, title company, etc. Technology will allow the agent to streamline all those steps for the buyer. I just relocated myself, and it would have been nice to have all that information at my fingertips. It would have been good to know what kind of settling-in services were available, find out about cable TV versus satellite, that kind of thing. A savvy Realtor can have all that information at hand. Information is the currency that circumnavigates the world.
A.N.: What new technologies do you feel will be indispensable to the Realtor of the millennium?
R.M.: I guess five years ago, I would have been more certain. But there are so many changes happening so fast, it is difficult to speculate more than a year in advance. I believe the agent of the future will be mobile. They will have a central file server with a laptop and connect to an Intranet. Agents will walk into a home, do a presentation on their laptops, and dial up significant information on that community or any community in the world, for that matter. We have Century 21 communities, and we can dial into AOL and get information on all kinds of communities.
A.N.: What proactive measures are you as a company taking to encourage agents to use the Internet as a communication tool?
R.M.: Most of our correspondence is done on the Internet. If people want information, they have to dial in on the computer. Any other information they could obtain could possibly be outdated. End-users are so much more demanding that they are the ones who really drive the use of technology. Any time you can save customers time and energy, you are providing a service they want. The consumer will naturally migrate to the people who can provide those services.
A.N.: What are agents' greatest fears about technology?
R.M.: I think some agents of a certain age are afraid that technology will make the role of the broker/agent obsolete. In the past, the currency was information, but we have found that because the decision to buy or sell a home is an emotional one, consumers continue to want a counselor. I feel the agent's role will be enhanced by technology.
A.N.: What are you doing as a company to address those fears?
R.M.: We have a primary communication device, the Century 21 Communities. Those are the kinds of things that will lead people toward the use of technology. We are making it an ever-increasing part of our training to assist offices in the management of their businesses, but ultimately, it is up to the individual. Our job [at the corporate level] is to put the structure in place and make it a valuable tool to use. With the right systems and by providing training, we are seeing more than 90 percent of our offices using online technology. I know they are using e-mail because I get hundreds a day.
A.N.: How can agents give the customer vast, updated amounts of information and still be needed?
R.M.: Agents are realizing that an informed customer is a better customer. All of this information is really an advertising device. The customer is easier to serve if they know where they want to live and what kind of house they want to buy. When you go to a store, you browse for a while. Then you want someone to help you make a choice.
A.N.: Should the consumer have access to the same information as the agent?
R.M.: I think they will have the access. Most of the information will be there. In some cases, the homeowner doesn't want some information made public, so a homebuyer may find a house on the Web that doesn't post the address. Then they need to contact the agent.
A.N.: What are the pitfalls for the consumer?
R.M.: I don't think it is a bad thing. It is good for them, and they will ultimately employ someone to represent them.
A.N.: Why do we need agents?
R.M.: Not all information is disclosed. You may want someone to screen potential buyers. There's all kinds of evidence that having a third party smoothes the transaction because of what can happen between the two principles. Each one of them has an emotional stake in the outcome. Agents are also needed for their guidance. Most sellers and buyers prefer to lean on a highly trained professional.
A.N.: You are known for creating value-added services. What other kinds of services can agents provide, besides information-sharing, that will make them indispensable to the real estate transaction?
R.M.: At Century 21, we are the largest real estate sales organization in the world. The world is ever more global. Because of our sheer size and scope, we have the world's largest real estate advertising budget. Forty-five percent of national advertising is done by Century 21. Fifty percent of the people in the United States recognize Century 21 as the leader in residential real estate. Twenty-eight percent of consumers prefer to list or buy with Century 21. That's strong -- one in four buyers and sellers want to list or buy with us. It's [Century 21] a very recognizable name. We've been able to go into brand extensions such as Century 21's Fine Homes and Estates, a luxury marketplace for the global marketplace.
A.N.: Will technologies like the Internet decrease the number of agents?
R.M.: I am not certain that the number of agents working is a technology-driven issue, but there is a trend toward consolidation. The world is just changing rapidly. There will be fewer brokerage firms and fewer agents as a result.
A.N.: How do you plan to keep Century 21 on top?
R.M.: When I came to Century 21 a year ago, I went through a process of discovery. I looked at products and services. In June, we changed the distribution system to make it the best system in the world for brokers, agents, and our customers. We are encouraging strategic alliances with brokers and creating mergers and acquisitions so that our brokers are getting bigger and commanding a larger market share. Some brokers are saying they need a national presence and state-of-the-art technology, so we are seeing more qualified people joining Century 21 -- more than any other time in our history. Here's an example. In Dallas, Judge Fite was a $4 million gross commission organization, but as they came through our door, they merged with two other organizations. Now they're a $10 million gross commission organization. Another example. 1996 was a record year in real estate due to the expanding economy, with July as the highest-grossing month of the year. In July 1997, we were already 19 percent ahead of last year.
A.N.: How unique in the industry is 21 Online(sm)?
R.M.: I think it is extremely unique. Coldwell uses their listings on the Web, and they do a very good job. Very consumer-friendly. ERA has also done a lot of interesting things with technology.
A.N.: How do you use your company's Intranet?
R.M.: As a communication device. I make jokes about this, but I am outnumbered 5,000 to one. To field the volume of calls is significant, because I try to live up to a 24-hour response time. We put messages on the Intranet. We just had a big event, and the message went out on the Internet. It is a great [method] communication for individuals, or for mass communication.
A.N.: What are your company goals for the millennium?
R.M.: It's perfect timing. They named the next century after us!
A.N.: What are your personal goals for the company?
R.M.: I can look back over the last 10 years and look at what I have built, and I feel a lot of pride. I want to look back at the fact that we retained our leadership position and that our associates are running better and more significant business.
Published: November 7, 1997
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