Douglas Elliman

Dan Sachar

Real Estate Visionary

In an interview with PropTech Outlook, Dan Sachar, VP of enterprise innovation at Douglas Elliman, sheds light on the proptech industry’s current standing on implementing emerging technologies to increase convenience and efficiency in end-to-end property management operations.

Could you briefly chart your career trajectory and what a typical day looks like in the real estate industry?

At Douglas Elliman, innovation means recognizing and embracing the new inventions we discover. To achieve this, a typical day involves engaging in numerous meetings, networking sessions, and pitching events in order to connect with entrepreneurs in the realms of emerging technology.

Our philosophy revolves around the belief that we don't need to develop every new technology ourselves. That's the domain of innovative entrepreneurs. Our objective is to actively seek out these entrepreneurs, meet them, and build relationships. By immersing ourselves in the world of startups and emerging technology, we benefit from their fresh perspectives on industry challenges. These external entities also possess the agility and nimbleness of small teams, allowing them to rapidly develop, adapt, and enhance their capabilities—an ability that large organizations often struggle to match.

Our focus is on discovering innovation by connecting with entrepreneurs who not only generate outstanding ideas but also excel in their execution. This approach has yielded positive outcomes over the past few years, leading to significant investments, successful product launches, and widespread technology adoption. We continued to engage with startups, although most of my time is now dedicated to nurturing long-term projects with the ones we are already engaged with. Additionally, I am actively involved in driving the adoption of products we have launched among our agents at Douglas Elliman, ensuring seamless integration and widespread utilization.

How do you effectively identify the elements that have the potential to drive innovation while mitigating the risk of disruption?

When considering our core business, which revolves around the relationship between real estate agents and their clients, particularly in the luxury market, our primary focus lies in the complexity and expertise required to navigate significant transactions. At the agent level, the value it adds must always be assessed and adapted. This entails identifying areas where technological innovation can enhance efficiency or automate certain processes that were previously perceived as integral to their value proposition.

Emphasizing this shift in focus allows agents to save time and increase efficiency by adopting automated solutions. Consequently, they can allocate more time to areas where their clients truly appreciate their experience and expertise because if it can be easily automated, it implies that the agent's value proposition in that specific realm might not have been substantial to begin with.

Please highlight some of the emerging technology trends that have made a noticeable impact in the past several months

We strongly believe in the transformative power of AI and process automation. These advancements do not disrupt but rather enhance operations by enabling greater efficiency and allowing individuals to allocate their time effectively. For example, we have launched a product in collaboration with our investment firm, Purlin, a real estate AI company. Together, we introduced a product called Ad Pro, designed for our agents. Ad Pro simplifies the process of buying advertising on social media platforms like Facebook and Instagram for agents with property listings. Through the utilization of AI, this platform analyzes listing attributes, such as price range and location, and leverages complex algorithms to target the appropriate audience on social media. This platform provides agents with a user-friendly and advanced tool to efficiently target their desired audience on social media platforms while optimizing their advertising spend. This innovation also saves time for agents who were previously grappling with the complexities of social media advertising, potentially resorting to hiring agencies for assistance. Additionally, we offer a simplified, cost-effective, and time-efficient solution that encourages agents to consider social media advertising for every listing, regardless of its size or magnitude. This opens up opportunities for those agents who were previously intimidated by the perceived complexity of social media advertising.

"We strongly believe in the transformative power of AI and process automation. These advancements do not disrupt but rather enhance operations by enabling greater efficiency and allowing individuals to allocate their time effectively."

Another example involves video production. In the past, agents would typically produce high-quality videos only for exclusive and high-end properties, as it involved engaging production crews, real estate video production companies, and even drones. However, we have launched Infinite Creator, an app-based product from Element Productions, which empowers any agent to create professional-quality videos independently. The app provides guided instructions as agents walk through various sections of a property, and its self-stabilizing technology ensures smooth footage without the need for additional equipment. After uploading the video to our system, it is ready within 24 hours as a professionally produced listing video at a nominal cost of $20. This breakthrough allows agents to maintain their role as marketing experts for their clients. The automated and user-friendly solution streamlines the process and encourages agents to consider video marketing for all their listings.  

What is your advice for peers in the industry?

To foster innovation and remain ahead of potential disruptions, active participation in the dynamic landscape is crucial. I encourage individuals and organizations to connect with startups and directly hear from their founders. It is important to dispel any apprehension that these entities exist solely to disrupt, as in reality, they generally seek collaboration. Therefore, participation serves as a means of education and awareness, ensuring that surprises from future disruptions are minimized. This provides a more future-proof strategy to discover innovative ideas and solutions that can be adopted, as internal development often stimulates solutions that have already been established by industry veterans.

Although an offering may initially appear impressive, it is crucial to invest additional time and effort into research to determine whether numerous other firms have already ventured into similar territory. I strongly recommend that individuals involved in either launching a startup or holding a position within a prominent real estate firm and involved in the evaluation of such products also exercise thoroughness in their assessment. They should strive to discern whether a given market space is overcrowded or if the solution genuinely possesses unique qualities and a competitive advantage that is not easily replicable.