Go bold in your home! Brighter color combos and loud wallpaper designs are dressing up interiors, but this attention-grabbing trend is being mixed with toned-down natural materials and accents. Houzz, a home renovation and design website, offers its predictions for the home styles likely to have a big impact this year.

1. Keep It Natural

Homeowners are rethinking synthetic materials like engineered quartz, which has dominated kitchen renovations in recent years. Instead, owners are gravitating toward natural materials that they believe add more character and authenticity to a space, Houzz notes. More designers report installing quartzite and other natural stone countertops, as well as marble tile and wood cabinets and vanities—notably in white oak.

2. Curbless Showers

Showers are getting softer edges. For example, designers may run mosaic tile flooring continuously through the entire bathroom, including the curbless shower area. “This approach further enhances the sleek, streamlined effect of a curbless shower design, extends the nonslip surface and helps a small space appear larger than it is,” Houzz notes.

3. Bathrooms Go Black

Though all-white bathroom finishes remain popular, more homeowners are incorporating hints of dark, contrasting colors. For example, 7% of homeowners installed blue vanities, according to the 2022 U.S. Houzz Bathroom Trends Study. Jet black vanities and other black bathroom accents—set against crisp, white backdrops—also are trending. “The white finishes keep things light and airy, while the black creates a touch of drama,” the Houzz report notes. “Brass details and wood-look tile flooring help add warmth to this classic palette.”

4. Seamless Indoor-Outdoor Connections

Homeowners have been craving greater ties to their outdoor spaces: 20% have renovated their kitchens to open it more to the outside, according to the 2022 U.S. Houzz Kitchen Trends Study. Sliding glass doors are among the top features on home buyers’ wish lists, as well as large windows to maximize outdoor views and bring in more natural light. Further, a focus on natural materials and colors, as well as nature-themed wallpaper prints, is helping homeowners feel connected to the outdoors.

5. Modern, Rustic Living Rooms

In living rooms, natural materials are dominating, too. This is prompting a modern rustic style that channels both a rugged and cozy look. “Natural stone fireplaces and surrounds, wood beams and off-white walls mix with comfortable furnishings in organic whites, browns and beiges to create an updated look that feels anchored to a rural past,” Houzz notes.

6. Color Pops Everywhere

Bright and bold colors are one of interior designers’ favorite emerging trends. “The shift away from mostly neutrals and whites is something many pros attribute to the pandemic,” Houzz notes. “These days, homeowners seem more adventurous and willing to take a chance on creating brighter, more vibrant spaces.” To help achieve these more colorful backdrops, owners are turning to wallpaper and embracing eclectic patterns. Houzz data shows searches are up for “paintable wallpaper” (93%), “chinoiserie wallpaper” (71%), “floral wallpaper” (52%), “ceiling wallpaper” (40%), “Art Deco wallpaper” (33%) and “dog wallpaper” (46%).

7. Warm, Relaxing Kitchens

While design pros say a desire for bold color is extending into kitchens, they also say more homeowners are asking for a warm and soft style that’s restful and relaxing. To pull off this look, they’re using greige or off-white cabinets, light woods, muted tile, subdued patterns and warm bronze and brass finishes in the kitchen.

8. Layers of Texture

“Layered texture” is buzzing in home design. Textures are being added throughout a home via the decor, wallpaper, materials and accessories. “We’re seeing a lot of designers layer wood, rattan, stone, metal finishes, concrete and various textural fabrics in one room to create a dynamic style that’s full of visual and tactile interest,” Houzz notes.

9. Traditional With a Twist

From brighter colors to wild wallpaper and layered looks, maximalist decor styles are taking hold. For instance, combine “vintage pieces with lots of upbeat pattern and wall coverings” to perk up a traditional look, Houzz notes. “Think of it as a traditional style returning in a fun way.” Some professionals say ongoing supply chain issues gave rise to this trend by forcing homeowners to look locally for antiques and recycle, repurpose or reupholster pieces “with whimsical details and a pretty patina.”

10. Island Seating

Kitchen islands are being made with seating top of mind. “While the traditional seating arrangement has typically been a row of stools on one side facing the cooking area, some homeowners on Houzz are seeking alternative setups to accommodate a variety of needs, such as the ability to sit face-to-face with guests or sit at a standard dining table height,” Houzz notes. “We’re seeing a lot of islands with creative seating arrangements, like two-tiered designs with seating for 10 people and dropped-down or raised-up areas for various needs.”

©National Association of REALTORS®
Reprinted with permission

On the multifamily front, high costs and a greater concern for the environment are spurring efforts to cut construction time and expense while increasing sustainability.

Three Key Takeaways

• Mass timber products save construction time because of its prefabrication.
• The materials sequester carbon rather than emit it as concrete and steel do.
• Wood exposed on the interior provides a biophilic effect, a boon to aesthetics and healthfulness.

In the multifamily space, the need for new building processes and materials and the possibility of paring construction and labor costs are generating a buzz. This is especially true as rising costs and inflation, labor shortages and an increased concern for the environment continue to impact the industry.

Among a few, one solution, mass timber, stands out as a viable option that could help alleviate builder woes. The “large pre-manufactured, multilayered, solid wood panels” check many of the boxes for developers, according to the American Wood Council. They’re fire resistant, strong, sustainable and reduce construction and labor costs.

Though it took a while to gain traction in the United States, the use of mass timber is on the rise, which means more real estate clients might make the choice to live in a building with this construction.

The Emergence of Prefabricated Wood

Wood has long been used to construct multifamily residential and commercial buildings, but in the 1800s and 1900s, concrete and steel replaced it in many cases. The reason? So buildings could rise higher. European architects and builders focused again on wood as a smart, renewable environmental choice that could take carbon from the air and sequester it versus concrete and steel that emit it, says architect Zac Miles, AIA, with architecture firm KTGY.

In factories overseas, Europeans were first to engineer mass timber pieces into large wood panels for floors and walls, and they attached them through cross-laminated timber layers (CLT), nail laminated timber (NLT), or dowel laminated timber (DLT), says Dan Getz, structures global practice director at global design firm HKS architects. These prefabricated panels provide strength comparable to concrete and steel floor systems and got the code approval go-ahead for use in buildings taller than those constructed from non-engineered wood members, Getz says.

Interest in the U.S. developed slower due to resistance because of building codes that capped heights at six stories and fear of fire. Still, several developers, including architect Jason Korb and his company, Korb + Associates Architects, pushed the envelope and sought approval through variances from local authorities or by showing that their designs would perform successfully. “In all building codes, there’s a paragraph that says the purpose is not to stifle innovation but allow the applicant to proceed if it can prove equivalencies through third-party testing for fire safety. We did that,” he says.

In 2016, the seven-story T3 Minneapolis office building became the tallest U.S. mass timber structure, followed two years later by the 12-story condo complex Carbon 12 in Portland, Ore. Ascent at 284 feet was next, approved despite going higher than the code limit because it met performance tests, Korb says.

Around the same time, the International Code Council (ICC) approved proposals that would allow other mass timber buildings to go up to nine, 12 or 18 stories as part of its 2021 International Building Code (IBC).

Volatility in lumber and resin prices due to the pandemic, bad weather where plants were located, and other challenges caused some issues in 2021. “Supply chain disruptions caused a step backward,” says Christian Beard, director of building products research at John Burns Real Estate Consulting. Once prices stabilized, however, interest was reignited, he says.

Already 1,571 residential and commercial multifamily mass timber buildings have been constructed, according to WoodWorks, a nonprofit that tracks these numbers and provides education and other support related to U.S. wood buildings, says Bill Parsons, chief operating officer. Almost 200 are under development with the majority in the seven to 12-story range and designed for multifamily housing. While there were once few factories in North America, the domestic numbers are increasing, says architect Susan Jones, FAIA founding architect of atelierjones LLC. Among her current projects is the eight-story Heartwood building in Seattle for the nonprofit Community Roots Housing. Jones and others point out that tall wood, mass timber buildings will appeal more to others as their benefits are recognized:

Shorter Timetables and Lower Costs

Because these buildings are comprised of prefabricated members, construction time is less, and labor costs are lower. Korb estimates the installation time for Ascent was cut by one quarter versus other construction. The project also required a crew of 11 versus a typical team of 40 for a comparable concrete building. The shorter time cycle also means that these buildings generally get to market and into the revenue stream faster, says architect Rockland Berg, AIA, NCARB, principal and director of business development at the Dallas-based architecture firm, three. This appeals to developers watching timelines because of higher interest rates, says Vaughan Buckley, CEO of Volumetric Building Companies, a vertically integrated volumetric modular construction technology company. To boot, work at sites to lift panels is also quieter, Jones says.

Developer Jeff Klotz, CEO of The Klotz Group of Companies, who has built wood-framed garden-style apartments, now uses factory-built panels more since they allow for continuous work with few weather delays.

The industry has had to adapt to the faster building process, though. “You don’t have six months in most cases to decide where to place a light switch,” says Buckley. Architect Jonathan Delcambre, managing partner for BKV Group in Dallas adds, “Everyone on the team has to work on a faster track to keep up the pace.”

Better Quality Control and Savings on Materials… Maybe

Because of factory fabrication, which uses a digital building process, problems are typically resolved before installation, which is a boon to builders.

Of course, as a commodity like any other, the cost of mass timber fluctuates. “Over the last three years, there’s been a roller coaster with building material prices, including the costs of wood, resins, and other materials,” Getz says. Rather than focusing on the cost of materials, though, Getz recommends a wide-lensed view.

“It’s better to look at the holistic cost. Mass timber framing might be more expensive, but one might not need as many finishes, have lighter foundations, and have a shorter construction schedule with its prefabricated efficiency,” he says.

Also, today’s lumber is at pre-pandemic pricing and it’s readily available, Klotz says. Also, foundations are generally lighter with wood than with steel and concrete structures, often at a lower cost, Berg says.  

Environmental and Climate Advantages

Mass timber presents a lower embodied carbon footprint and reduces off-gassing, which improves interior air quality. Prefabrication also minimizes construction waste at a site, and leftover pieces can be recycled for other projects or converted to mulch, Buckley says. There’s no dearth of resources. “It would take only 25 minutes of natural growth in North American forests to replenish the wood Ascent used,” Korb says. “The key to healthy buildings,” he adds, “is healthy trees that come from sustainably managed forests where trees are harvested properly to maintain the health of remaining trees. The amount of carbon sequestered is equivalent to taking 2,400 cars off the road.” 

Aesthetic Positives

Mass timber can create an appealing repurposed industrial vibe in the interior when the wood is left exposed, Berg says. The exposed wood also contributes a biophilic effect. Architects at HKS say preliminary research shows that the exposed natural materials improve workplace productivity. Jones adds, “It offers a contemplative, calm, living-in-nature experience right in the heart of the city for residents.”

Fire Resistance 

Though it seems counterproductive, mass timber’s fire resistance adds to its popularity. “Mass timber products have inherent fire resistance because they char on the outside while retaining structural strength, slowing combustion, and allowing ample time to evacuate a building,” Parsons says. “Wood’s rate of char is predictable and well established in U.S. building codes and standards.” Some remain wary. “The possibility of fire scares people but more understand that everything burns—even concrete and steel. Each material requires different ways to protect it,” Korb says

One Answer to Affordability Issues

As an example, KTGY designed a five-story, 100-percent affordable building, 330 Distel Circle, in Los Altos, Calif., the first of its kind in that city. Jeff Spiritos’s firm, Spiritos Properties, with partners Beulah Land Development and HELP Development, are developing 340 + Dixwell with state low-income tax credits, a four-story, 69-unit, affordable, passive house building in New Haven, Conn. Though the mass timber products were shipped from Austria, they emit less carbon than ones shipped to New Haven by truck, he says. Jones’ Heartwood features 126 units of workforce housing that average 400 square feet.

Outlook

Throughout the country, there’s activity with U.S. developers, builders and architects playing catch-up to European counterparts, says Korb. His firm is constructing a 29-story mixed-use project in St. Louis near the new MLS soccer stadium. A key, Jones says, is for those new to the niche to take advantage of the knowledge now available. “We’ve focused on mass timber for a decade and work exclusively with it all over the country,” she says. 

©National Association of REALTORS®
Reprinted with permission

Last year, the visual search engine Pinterest(link is external) recognized “biophilic design” as a trending search term. Searches for “biophilic architecture” had risen 150%, while searches for “biophilic design bedroom” were up 100%. For real estate professionals, it’ll be important in coming months and years to understand this particular trend and how to incorporate it into a space.

Though it’s making a comeback, this design philosophy is not new. Biophilic design was pioneered in the 1980s by biologist Edward O. Wilson, whose work focused on humans’ need to connect with nature, according to Brooke Lang, interior designer and owner(link is external) of Brooke Lang Design in Chicago.

Everything old is new again, but how are millennial and Generation Z homeowners and tenants making biophilic design their own? Interior design experts offer insights on how this trend is being incorporated now.

Biophilic Design 101

“Biophilic design is all about human connection to nature through architecture,” says Ariana Lovato, interior designer and owner(link is external) of Honeycomb Home Design in Arroyo Grande, Calif. In other words, a house infused with this kind of design should make its residents feel like they are stepping into the natural world: soothing, inspiring, and supportive of physical, mental and emotional wellness.

Lang quickly points out that biophilic design requires more than just scattering a few potted plants throughout the house. She describes it as a whole-building design style that includes layout, lighting, a seamless indoor-outdoor connection and natural materials.

Why It’s Trending Again

True biophilic design is about more than pleasing color palettes and potted plants. The goal is for the space to feel like nature feels: relaxing and restorative. And interior design clients have been craving mood-boosting spaces, according to Lang and Lovato.

“We’ve learned through COVID that our surroundings have so much impact on us,” says Lovato. “Manufacturers have been paying attention to this.” For example, she points to Sprig, Kohler’s recently launched aromatherapy infusions system for showerheads.

For Lang, the biophilic design comeback means more requests for office and home workspaces designed to positively impact well-being through connections with nature. For one of her current projects, a coworking space in Chicago’s Englewood neighborhood, she is prioritizing natural light, indoor-outdoor gardens and floor plans with an organic feeling.

5 Biophilic Design Trends

1. Seeing green

One of the easiest ways to add a touch of biophilic design? Go green—literally.

“Colors in greens are huge this year, and it’s been proven how much of a relaxing color green can be,” says Lovato. “We’re seeing green in cabinetry, wall color, even toilets this year.”

While painting an accent wall emerald or lime isn’t enough to say a home has biophilic design, it’s an accessible way to ease into the trend. For younger, budget-conscious tenants and homeowners, incorporating biophilic concepts through paint and artwork is often the first step, says Lang.

2. Living walls

Homeowners are getting creative with plants. As HGTV(link is external) has pointed out, living walls—walls covered with living plants—are trending. They’re also a classic example of biophilic design.

“Millennials in particular are using elements of biophilic design by adding [living] walls,” says Lang. “For example, our firm just completed a design of a zen room for a client, where we have added a backlit green plant wall to bring the outside in.”

3. Natural, native materials

There’s nothing that connects an interior to its natural surroundings like nature itself.

“Natural stone is having a huge resurgence this year,” says Lovato. Homeowners are opting for “authentic” materials, even when they cost more, she adds. That includes natural stone countertops over engineered quartz and hardwood floors over luxury vinyl plank.

For some clients, natural materials that reflect their immediate surroundings, rather than imported from another area, is important. “It’s also not uncommon for clients to request interior decor choices that reflect elements from the natural habitat, whether it’s sourcing furniture or beams made from a local hardwood or incorporating greenery from the local area,” explains Lang.

4. Emphasis on landscape design

The days of shiny new builds on lackluster plots might be coming to an end. Today’s biophilic-minded clients want their outdoor spaces to feel like a true extension of the home.

That could be using the same plants or potted trees in outdoor landscaping and indoor living. Or it could simply mean that transition spaces, such as screened-in porches or outdoor kitchens, get just as much design attention as the main bedroom, bathroom or kitchen.

From sliding glass doors to glass walls, indoor-outdoor connections are on the rise. Indoor-outdoor gardens and dining and entertainment spaces are especially popular right now, according to Lang.

5. Zen spaces and meditation rooms

“Millennials in particular are using elements of biophilic design by adding [living] walls, zen areas and meditation areas to the homes,” says Lang.

But millennials aren’t the only ones craving dedicated relaxation spaces. Though Lovato’s baby boomer clients rarely use the term “biophilic design,” they too are requesting designated rooms designed for meditation or therapeutic activities like taking a sauna or steam.

“They are asking for the same feeling that biophilic design is meant to create,” she says.

©National Association of REALTORS®
Reprinted with permission

Demand for outdoor features has boomed since the start of the pandemic. These projects stand to earn the most at resale, according to a new survey.

Many homeowners have turned their attention to enhancing their outdoor space since the pandemic began—and that may pay off at resale, according to a new survey from the National Association of REALTORS® and the National Association of Landscape Professionals. Ninety-two percent of REALTORS® say they recommend that sellers improve their curb appeal prior to listing, finds the 2023 Remodeling Impact Report: Outdoor Features. REALTORS® most often recommend general landscaping maintenance, standard lawn care service and tree trimming.

“It’s no surprise that nearly all REALTORS® and most homeowners place a high value on the curb appeal of a well-maintained yard,” says NALP CEO Britt Wood. “Healthy outdoor living and green spaces help the environment, increase home values, make communities more desirable and improve people’s mental and physical health.”

The COVID-19 pandemic changed the way Americans use their homes for daily living, relaxation and entertainment, adds Jessica Lautz, NAR’s deputy chief economist and vice president of research. “Homeowners have embraced their outdoor spaces, transforming them into oases with pools, patios, plants and greenery,” Lautz says. “These outdoor features … can also attract buyers if the owner wants to sell.”

Prioritizing Outdoor Projects for Resale

Most homeowners indicate a desire for an in-ground pool or an outdoor fire feature, but the ROI on these items may not be as high as simple lawn care and landscape maintenance, the report finds. The survey defines “standard lawn care service” as six seasonal applications of fertilizer and/or weed control on a 5,000-square-foot lawn and “landscape maintenance” as mulch application, regular lawn mowing, pruning shrubs and planting about 60 perennials or annuals.  

The features that make homeowners happiest, however, aren’t necessarily the ones that earn the most at resale. The least expensive projects, such as standard lawn care service, have the highest cost recovery but one of the lowest “joy” rankings from homeowners, according to the survey. Instead, the report found that the following outdoor projects received the highest satisfaction marks among homeowners:

• In-ground pool
• Landscape lighting
• New patio
• New wood deck
• Fire feature

On the other hand, the items that ranked the lowest on homeowners’ “joy” scale were:

• Outdoor kitchen
• Tree care
• Standard lawn care service
• Installing a yard irrigation system

The majority of landscape professionals surveyed say the size and scope of outdoor home improvement projects have increased since the pandemic began. REALTORS® surveyed say the landscape projects they’ve seen most often since the pandemic began are the addition of an in-ground pool, landscape maintenance and a new patio.

©National Association of REALTORS®
Reprinted with permission

Four reasons offices should consider following workers to the suburbs.

Recent surveys show that consumers are looking to move out of cities, and in one report released in June, 82% of workers indicated they’d prefer to work from home at least two days per week. Here are four reasons offices should consider following workers to the suburbs.

• Rental cost: Office space in the suburbs often rents for about 75% of the amount charged for comparable space in the local central business district. And sometimes the difference is even greater: The average cost of office space per square foot is $29.50 in downtown Chicago but $15.75 in nearby Oak Park, Ill.
• Parking rates: Average monthly parking costs are $430 in New York, $300 in Chicago, and $220 in Los Angeles. In the suburbs, parking is often free.
• Amenities: Suburban areas naturally offer greater space and ability for social distancing than cities, but they are increasingly offering other conveniences such as walkability, grocery delivery, restaurants, and bars and nightlife.
• Access to workforce: Even before the pandemic, millennials and younger Generation Xers were already leaving the cities. 2018 was the fourth year in a row that cities with more than half a million people lost residents aged 25 to 39 to lower-density areas.

©National Association of REALTORS®
Reprinted with permission

Proper hand hygiene is a key ingredient for staying healthy. Indeed, the Centers for Disease Control and Prevention says regular hand-washing is one of the best ways to remove germs and prevent their spread—important in fighting the coronavirus. That raises the question: What are the most effective hand sanitizing options? Here’s the rub on five variations:

Soap and water. There’s a reason surgeons scrub for surgery instead of grabbing a wet wipe. Washing your hands for 20 seconds in plain old soap and water is the gold standard. Scrubbing your hands lifts up stubborn dirt and allows the soap to bond to the dirt or chemicals and tear germs apart.

Antibacterial soap. Antibacterial soap may seem like an improvement over traditional hand soap, as it helps kill bacteria, but it actually does more harm than good. While the additives in antibacterial soap do kill germs, their chemicals are no faster at killing germs than regular soap, even though most consumers think they are. This false confidence means people using antibacterial soap tend to wash more quickly, believing they have received a more thorough cleaning than they really have.

Natural soaps. Natural hand soaps can be as effective as chemical-based hand soaps. However, soap making is still a science, whether you’re using olive oil or sodium lauryl sulfate. Imprecise measurements can lead to ineffective, irritating soaps.

Hand sanitizer. If there isn’t a sink nearby, hand sanitizer can be a hand hygiene hero. The caveat? It only works on mostly clean hands. Read: If your hands are filthy with soil, sweat, or grime, the sanitizer will be consumed by the gunk and won’t be able to kill the germs on your hands. Also, many people greatly underestimate how dirty their hands are and throw on only a little spritz of sanitizer, which won’t do the job. So remember to thoroughly wet all parts of your hands to avoid undersanitizing.

Hand wipes. Hand wipes, both antibacterial and traditional, are another a great option for people on the go, but they need to be used properly. If your hands are gross to start with—like after a messy lunch—you may have to use multiple wipes to clean your hands thoroughly. Using hand wipes properly takes longer than smearing around sanitizer or soapy water.

©National Association of REALTORS®
Reprinted with permission

Led by strong demand and pricing, industrial real estate is expected to flourish in the year ahead.

Led by strong demand and pricing, industrial real estate is expected to flourish in the year ahead. These four factors are fueling factory and warehouse gains.

1. Cold storage needs are rising. Food and beverage e-commerce is driving the demand for cold storage facilities. An additional 75 million to 100 million square feet of freezer and cooler space is expected to be needed over the next four years to meet the demand for direct-to-consumer food delivery.
2. Technology developments are shaping industrial spaces. Robotic piece-picking machines, autonomous vehicles, and more efficient sorting and picking have led to the construction of larger and taller distribution facilities—the total number of buildings with ceiling heights of at least 40 feet have increased from fewer than 200 in 2017 to a projected 275 in 2020, and new industrial developments of at least 500,000 square feet jumped from 180 in 2017 to 210 in 2019.
3. Distribution speed is blurring the lines between storage and retail. Mega retailers like Amazon and Walmart now offer one-day shipping. In addition, Walmart and Target use their retail stores as distribution points, creating a combination of warehouse and storefront.
4. Artificial Intelligence and machine learning are driving efficiencies. Automation technologies such as transaction processing, order trading and delivery, and supply-chain planning can reduce manual work, costs, and errors. In addition, businesses are projected to create more domestic supply chains as a result of the pandemic. If business inventory increases by 5%, an estimated 400 million to 500 million square feet of additional warehouse space could be necessary to accommodate the new level of goods stored in the U.S.

©National Association of REALTORS®
Reprinted with permission

Don’t know exactly what you want from a customer relationship management tool? Ask these questions to identify which options will address your true needs.

Choosing the right customer relationship management tool may be one of the most frustrating aspects of setting up your real estate business. Many practitioners have tried several systems but still can’t seem to find the one that fits their needs. If it works correctly, your CRM should serve as a silent partner, providing the structure to organize and nurture your contacts and relieve you of repetitive, mundane duties so you can focus on building your business. But too often, real estate pros find that their CRM doesn’t offer enough of the support they wanted.

Before choosing a CRM, you have to know what you want out of it. Blindly trying out systems can quickly become a waste of time. Micah Olson, associate broker at RE/MAX Results in Orem, Utah, advises that pros pass on CRMs that aren’t real estate–specific because they won’t be able to address your specialized needs. “I don’t see why anyone would want to customize a non-real estate CRM,” he says. “There are enough systems available today that are already set up for how real estate professionals work and the information they need,” he adds.

But Olson has learned that it’s rare for a single CRM to have all the features and functionality a practitioner needs. So how can you find the one that comes the closest? Here are some questions to ask as you look for the CRM that will work best for you.

1. Is it compatible with other tools you’re already using? Olson, who uses Top Producer(link is external), found that he could easily integrate video service BombBomb(link is external) and the Riley lead management system(link is external) into his CRM. Focus particularly on a CRM that will be compatible with your lead generation tools, Olson suggests. “Talk to your top three sources of leads and find out which CRM integrates most naturally with their system so you won’t have to enter [customer] information manually.”
2. Does it have robust automation features? A CRM’s capacity to set up and automate routine correspondence and marketing campaigns is probably most important for real estate professionals, Olson says. He’s created automated communication plans for a range of business opportunities, such as buyer and seller leads, new listings, valuation requests, buyers under contract, and follow-up with clients. “I can even set auto emails to go out six months after doing something like a valuation request, asking a client if they would like an update,” he says.
3. Does the CRM provider offer sufficient customer support? It’s important to know that if you run into problems using your CRM, you’ll get adequate assistance. When Joe Pryor, CRS, broker-owner of The Virtual Real Estate Team in Oklahoma City, upgraded to RealtyJuggler(link is external) four years ago, one of the aspects of the CRM he appreciated most was its video tutorials and step-by-step guides on how to use its features. “So you don’t have a huge learning curve,” Pryor says. And if he needed to call or email customer support, a representative was always quick to respond, he adds. “I really appreciate how personable, available, and responsive customer support is if you have a question.”
4. Does the company behind the CRM have staying power? Newer companies may be creating CRMs with more state-of-the-art features, but if they haven’t established longevity in the market, you could be stuck looking for another CRM if they go out of business. Mary Pope-Handy, CRS, CIPS, a sales associate with Sereno Group in Los Gatos, Calif., was using one CRM but the company folded. As a result, she lost all of the email records that were attached to her contact list. She wanted assurance that her next CRM provider would be around for the long haul, so she decided to use PropertyBase(link is external), which integrates with SalesForce.com(link is external), a longstanding company. “SalesForce is a big platform, and it won’t go out of business,” Pope-Handy says.
5. How much time are you willing to invest in learning a CRM’s features? “You can find a CRM system with basic functionality that’s easy to use—but it doesn’t do much,” Pope-Handy says. “Or you can choose a system that will do whatever you want, like track referrals, but you have to be willing to invest your time to learn how to use it.” She says her CRM can “do anything you can imagine,” though it took her about a month to learn how to navigate the system. So when you’re evaluating CRMs, first look at the basic features you need, then determine how many extra features you have the patience to learn.
6. Will the CRM be appropriate for everyone on your team? Chris Kallin, a sales associate at Realogics Sotheby’s International Realty in Seattle, says that when he joined the brokerage’s four-person Seattle by Design team a year ago, each team member was using a different CRM. “One of the first questions I asked was, ‘If we are going to use a CRM, why not implement the same system for everyone?’” Kallin says. Over several months, he sought recommendations from other real estate professionals, researched dozens of options, and tried several before narrowing his list down to the top three, based on factors such as price, user interface, and intuitiveness of the software. User interface in particular is an overriding factor when choosing a CRM for a team, Kallin says.
7. Do you want your CRM to focus on sales or relationships? When you launch your CRM, what kind of information first pops up? “If it’s a sales funnel and weighted opportunity figures, then it’s a sales-focused CRM, and that purports to be its primary value,” Kallin explains. “If it first presents you with contact records, then it’s more people-focused.” His team members emphasize client relationships, so they chose IXACT Contact(link is external) as their team CRM. Kallin especially likes a feature that includes the name of a client’s partner or spouse in each contact entry and uses both names in automated correspondence.

Remember that choosing a CRM is a personal decision and should reflect what you consider most important in your business, Kallin says. Once you’ve compiled a short list of potential solutions, the best proof is in their use. “Most CRMs offer a free trial,” Kallin notes. “Spend a couple of hours under the hood seeing how records are set up, what kind of action plans it provides, and how much of the work is already done for you. Then you’ll know which one is your best choice.”

©National Association of REALTORS®
Reprinted with permission