Beth Butler has done a little bit of everything in the industry, from owning her own company to opening a consulting firm, Big Mouth Consulting, to helping brokerages solve problems. After doing consulting work for ONE Sotheby’s, Butler was tapped to become the firm’s president this month. While consulting with the company, she was instrumental in the release of the ONE Sotheby’s free iPad app. She talked to The Real Deal about the impact of technology and social media on how brokerages work, the state of the residential market in South Florida and how distressed sales are changing the industry.
Last month, the firm announced a new iPad app. How are social media and technologies part of the ONE Sotheby’s strategy going forward?
One of the things we initially implemented [when I was consulting with the company] was to have some sort of social media/technology edge. One of the things the company did was come out with the iPad app. I have been very involved in social media — it’s a big part of our marketing plan. We host “tweet-ups,” and we’re about to launch a FourSquare contest.
How has the iPad app been received thus far?
We have received positive feedback. I think the great thing about it, as a tool, is for things like looking at houses. With the geo-locational technology, you can open up the app, and it will show you what’s available, the 25 closest properties, what recently sold. You’re getting an overall look at the market by opening the app.
How has the business of brokerage changed?
I think the overall change in the real estate business, in the last 10 years, has been the impact of technology on the way real estate agents and companies do business. I think the big shift has been to heavier, increasingly large adaptation of technology at the broker and agent level. When I first got into the business, I can remember doing brochures. I’d take pictures and go to the drug store to get them developed, and then paste them on paper and get copies made — literally copying and pasting. That is a small glimpse of how technology has revolutionized the way this business functions. How firms adapt to these tools will determine their success in the future.
How is the market South Florida market now compared to a year ago?
Overall, [it] is seeing a small recovery; it’s a little sluggish. But I think today we can say that it is slightly better than it was a year ago. Some other markets are markedly better than a year ago, but I think most people feel the worst is behind us.
How are distressed sales affecting the industry?
Some real estate companies, as a brokerage model, have moved their whole sales platform to selling distressed properties. I think it has affected some brokers tremendously — with some seeing 60 to 70 to 80 percent of their business from distressed sales. For ONE Sotheby’s, though, it’s less than 5 percent of our business.
Is that because there are fewer luxury distressed properties?
It’s not that we don’t see it and run into it. It does impact the luxury market. I think you see that in the price level, luxury homes are still expensive, but the price per square foot has certainly come down and made them attainable for people to buy again. In that indirect way, I’d say distressed sales have affected the market. But to ONE Sotheby’s, it’s not a significant portion of our business nor do I expect it to be.