Coldwell Banker chief is bridging Internet, personal touch in real estate

Phil Levine

Wednesday, Feb. 23, 2000 | 10:58 a.m.

Alex Perriello says high technology likely won't replace the human side of real estate, and "the era of part-time Realtors and mortgage burning parties is over."

As president and chief executive officer of real estate giant Coldwell Banker Corp., Perriello believes 21st century real estate success requires building a bridge between today's technology and the personal service associated with days gone by.

He describes the balancing act as a combination of "high tech and high touch."

"Our business is changing, and we try hard to anticipate where the trends (in real estate) are going," Perriello said. "What we are trying to do is offer a customized service approach. We want to provide online information for clients who desire it, while offering in-person service for those more comfortable receiving information that way."

Perriello says real estate clients -- and the companies serving them -- must continue to change.

"Both the customer and the industry are evolving," he said. "These days, you don't hear about people holding mortgage burning parties because there's such a readiness to renegotiate mortgages when interest rates decline.

"Things have also changed on the business side, driven by the demands of customers. You can't just hang a shingle outside your door and say 'I'm an agent.' The kind of marketing, technology and service required makes it virtually impossible to be a part-time Realtor."

Perriello, along with 9,000 of Coldwell's most successful sales people from around the world, are in Las Vegas for the company's annual international business conference at the Venetian hotel-casino.

The current real estate boom is also lifting Coldwell's Las Vegas franchisee, Coldwell Banker Premier Realty, to new heights. Last year, the company sold 2,200 homes, racking up $355 million in transactions.

"Our sales were up 17 percent last year and we're currently in a definite growth mode," Premier Realty Vice President Molly Kay Hamrick said. "We're expecting another very strong year in this market." The company currently employs more than 130 agents.

On both a local and national level, there's little doubt much has changed in real estate since Coldwell Bankers' 1906 founding by San Francisco real estate agent Colbert Coldwell; a few years later, Coldwell was joined by partner Benjamin Arthur Banker.

Today, Coldwell Banker is one of a triumvirate of real estate giants owned by New York-based Cendant Corp.; Century 21 and ERA Real Estate are also owned by Cendant.

In 1999 Coldwell Banker affiliates at more than 3,000 franchises worldwide closed $163.2 billion in sales, up from $141.6 billion the year before. The company operates offices throughout the U.S., Canada, Mexico, Central America, Western Europe, Israel, China and Singapore.

Perriello is particularly proud his company was one of the first in its field to recognize the growing importance of the Internet in promoting real estate sales.

"Today in real estate, your storefront is really your webpage," he said. "On our site, we offer customers several ways to research properties and personalize service."

The company's website features a "Personal Retriever" that searches and e-mails specific property listings, as well as other information designed to meet buyers' needs. Also available online are 360-degree virtual tours of homes, as well as the recently-introduced "concierge service."

That service helps new home buyers find reliable contractors, movers and other home-related vendors.

"We see that service as a one-stop solution for everything required after you've bought your home," said Perriello. "We see ourselves as not just in the real estate business, but the home ownership business."

Perriello's brave new world view extends beyond real estate information, to the cyclical nature of the industry.

"We're definitely in what I call a bull market for real estate," he said. "And while I don't say that there won't be a downturn at some point, I believe today's demographics -- particularly the aging of the baby boomers -- means we won't see a dramatic decline in real estate over the next few years."

Las Vegas is one of several Sun Belt markets that will continue to benefit from an increase in aging boomers and a strong economy, he said.

"By comparison to many cities, this is still an affordable place to buy a home," said Perriello. "With a growing economy, the relocation side of our business (in Las Vegas) also grows.

"Our California experience also tells us that as housing prices rise in this market, we can expect the type of product to change. I expect you may see less single-family detached homes, and a move towards multi-family dwellings."