Transforming Real Estate Technology Adoption: Insights from MoxiWorks
In a conversation with Eric Elfman, CEO of MoxiWorks, industry trends within the real estate sector come to light, especially as the market undergoes significant shifts. Following a drop from 7 million homes sold in 2021 to just 4 million last year, the push for growth-oriented transformation is critical.
Returning to Fundamentals in Real Estate
Elfman emphasizes that technology alone cannot resolve the inherent challenges facing real estate agents today. Instead, he advocates for a focus on foundational practices that contributed to success in the industry a decade ago. This specifically includes:
- Building a robust contact database
- Nurturing relationships with clients
- Engaging in proactive communication
According to Elfman, agents who commit to these core activities alongside leveraging technology can gain valuable advantages over competitors.
MoxiWorks: Streamlining Technology Adoption
A crucial barrier to technology adoption within real estate stems from the relationship dynamics between agents and brokerage firms. Agents operate as contractors and have the freedom to transfer their contact databases at any time, which can erode trust in brokerage-provided technologies. Elfman notes:
“There might be distrust among the agents themselves to use the broker’s technology — especially because most vendors make it difficult to move your data.”
As a response, MoxiWorks is committed to improving data portability while safeguarding user confidentiality. Their mission is to bridge the gap between brokers and agents, ensuring smoother technology transitions.
Investments in Technology and Market Strategy
The company is currently investing significantly in its technology offerings and market strategies, with plans for a major software launch later this summer. MoxiWorks is engaging key customers in a beta program to refine this next version, indicating their focus on frequent feedback loops and adaptability.
Understanding Market Dynamics
Furthermore, Elfman highlights the shifting financial landscape in the real estate market. As profit margins for brokerages shrink—due in part to higher agent commission shares and declining sales volume—there is a corresponding decrease in the willingness to pay for technology. He remarks:
“As brokerage margins have gotten smaller… the ability and willingness to pay for software has also gotten smaller.”
MoxiWorks envisions a dual-tier system that allows agents access to essential capabilities through their brokerages, while offering advanced features behind a paywall for those willing and able to invest further in their tools.
Conclusion: The Future of Real Estate Technology
Through its focus on foundational practices, enhanced data portability, and adaptive technology solutions, MoxiWorks aims to empower real estate agents amid a difficult market landscape. By strategically addressing the concerns of both brokers and agents, they are positioning themselves to foster greater technology adoption and ultimately drive growth in the real estate industry.
