E-commerce will play important role for real estate companies.

E-Commerce is bringing real estate companies another valuable tool to create profits and increase shareholder value, according to the Spring 1999 Real Estate Report released by KPMG LLP's national real estate practice. With the onslaught of industry consolidation and new products to market, real estate companies are recognizing the need to use the Internet to be more competitive.

"Real estate companies are increasingly understanding the value of the Internet," said Thomas Hanszen, a principal in KPMG's national real estate practice. "The value of the Internet to real estate goes beyond the traditional web site. There are tangible ways to increase competitiveness through strategic use of the Internet and other new technologies, such as distributed computing, component-based server architecture, web developments and more."

According to KPMG. E-Commerce involves much more than buying and selling properties or investing over the Internet. E-Commerce, available to enhance shareholder value, includes the exchange of information - data, money and other assets that creates a supply chain that makes commerce happen, Internet-based technologies will transform the real estate business by helping managers actually implement their strategies.

"We're seeing a trend among real estate companies to use E-Commerce as a means of eliminating much of the paperwork involved in sharing information or distributing applications to individuals or departments," said Hanszen. "Especially in the real estate industry, there needs to be a way for data to be reviewed, analyzed and updated by numerous parties. E-Commerce seems to be the ideal solution. The result from an operational standpoint is reduced costs."

According to KPMG's Real Estate Report, implementing web-based solutions will allow real estate companies to: create new "market-spaces" and business models; create new revenue streams; establish and enhance personalized customer care; reduce operational costs; lower the risks of systems development; and deliver extensive information rapidly.

"The companies that implement these systems will see the positive impact on their bottom line. Those that don't will be at a competitive disadvantage," said Hanszen. "Additionally, the industry is realizing that it is competing with other investment opportunities and must have the same competitive advantages that a financial services firm already has. There's a new standard of efficiency for E-Commerce technologies, and companies must adopt it to gain a competitive advantage."

In addition to the increase of profits and shareholder value, the efficiency of data flow and ease of use are part of E-Commerce's appeal to the real estate industry. Screens that appear like web browsers and are written in XML (Extended Mark-Up Language) help facilitate the adoption of a new system.