We live in times where the truth is a hard thing to find. Journalists present opinion as fact, making it difficult to distinguish between the front page and the editorial page. A journalists’ list-serv was exposed recently for sharing tips on how to present stories to influence a particular outcome. Whatever your politics are, this should be disturbing because we rely on the media for facts we don’t have time to research ourselves.

The same disconnect occurs in the real estate business. Our industry’s own “news arbiters” face the same challenge, I suppose, of generating revenue, so they respond by being provocative and positioning themselves as the hotbeds of innovation and bad boys of real estate.

They make judgments about which companies are the most innovative in real estate, based either on “pay to play” sponsorship dollars, or whoever touts the cool new business model. What they often fail to consider, however, is who is actually doing the business.

Creative marketing is one thing, but too often, reality is something else entirely. Actual results are what truly matter. We should be searching behind the Wizard of Oz curtain to ask, “Where’s the beef?”

When one highly-touted “model of the future” company claims to have 24 average transaction sides per agent – a goal anyone would want to emulate – and in fact did 32 sides in total in the first half of 2010 and is ranked about 75th in the market per the MLS, what’s with that? Certain companies are highlighted in every real estate media outlet, yet no one seems to ask how much business they are actually doing relative to their competitors.

Yes, we should respect new ideas and new forms of competition, but we also must balance hype with results. Accurate statistics paint a true picture of who is doing what relative to whom, how they are improving or declining compared to the market, and the kinds of customers they are serving. That is why – in this age of transparency – numbers reported to real estate news sources must be submitted correctly and validated appropriately so that we can identify the emperors with no clothes.

At LeadingRE, we talk a lot about numbers and performance because they matter. We put a high value on innovation, with our own “Most Innovative Brokerage” award, but to even qualify, the company has to be a market leader within its footprint, regardless of size.

Ideas without execution and marketing without monetization are meaningless.

So let’s pay attention to what’s behind the curtain to see whether ideas are producing results. Talk is cheap. Results require hard work, tenacity and staying power. Regardless of size or business model, the true verdict must rely on how well high standards of performance are generating growth, profitability and market leadership.

Posted By: Pam O’Connor

Four years ago challenger Google passed incumbent Yahoo! for dominance on the consumer web (as measured by market share). Guess what’s happening right now? Facebook is turning the tables on Google, and in less time.

The two graphs below look strangely similar no?

Granted, Facebook is not yet in a position to substitute for Google in search the way Google was for Yahoo!. But I think the analogy still holds well. Yahoo! was not simply a search engine at that time either. It was the gateway to the web of the day, and that’s what we’re talking about.

The point? Even if SEO is working well for your company today, you need to start paying attention to Facebook.

The good news is that Facebook is not another lead generation platform; it is a referral sphere builder for both your company and your agents.

Facebook is a platform for building out both an individual REALTOR and brokerage company’s network with an eye to generating referrals.
As we all know, the majority of any successful REALTOR’s business is word of mouth referral, the minority SEM/SEO/leadgen driven.

Have someone on your team build a Facebook centric marketing strategy for your brokerage and your agents. Those who do so now will get an advantage over their competition the same way the early SEO visionaries did.

Alex Chang is the CEO of Roost, a proud partner of Leading Real Estate Companies of the World^® and a real estate technology company leading the way in innovation in the Social Media space. Roost’s Social Media Toolkit provides free and premium tools for Real Estate Agents & Brokers to get real ROI out of Social Media.

Terms like International and Global are both in heavy use however they are far too broad to be useful.

In our local business, we recognize different consumer segments – luxury, first-time homebuyer, investor, etc. From a macro level, we typically segment our customers at the customer level. Internationally, the macro level is the country level.

The best place to start identifying which countries are most interested in your location is by checking your company website analytics. Analytics from www.relohomesearch.com and www.luxuryportfolio.com reporting can enhance your knowledge of potential consumers and where your marketing efforts should be directed.

With the countries identified, you now know:

• What languages you potentially should translate your website and materials into
• Cultural training to offer your agents
• Where to investigate on and offline marketing venues

To approach your marketing from the micro level, you need to consider the in-market segmentation and detect segments across borders. This is going back to some of our “local” segments such as luxury and investor and identifying the segments that exist in each identified country. Additional research should be performed here as not every segment exists in every country or in the same amount in every country.

Don’t forget the valuable relationships you have through your membership with Leading Real Estate Companies of the World. Other local experts are willing to share the venues that have generated the best response for them and if a reciprocal client base exists perhaps a co-branded campaign can be an option.

While we have the tendency to look elsewhere when we consider the International issue, migration has created another consumer segment to consider when marketing and developing services.

Statistics from the Organisation for Economic Cooperation and Development showed a 61% increase in immigration to the U.S. and a 104% increase in immigration for the combined countries of the EU during the same 9 year period of 1998 – 2007. Although immigration has slowed along with everything else recently, it is predicted to resume as economies improve.

Increasing evidence indicates that diversity is growing in more areas than just New York City and L.A. New U.S. residents are less likely to choose these gateway cities and more likely to opt for a mid-sized metro area. This switch is bringing home the international issue.

Posted by: Sharon E. Michnay, CRP, GMS, WRS, Executive Director, Corporate Business Development, Halstead Property. Sharon is a member and former chairperson of the LeadingRE Advisory Council.

For us, the 4th of July weekend was rainy with no breaks for fun on the beach. Our annual family gathering, which usually takes place outside at Madeira Beach, Florida, had turned into a cocooning event spread out over several condominiums overlooking gray skies and a turbulent Gulf of Mexico. My nieces and nephews, ranging in age from 22-30, were starting to get cabin fever by the second day when one piped up and said “let’s go to Target!”

These college graduates in their first post graduation jobs all agreed in unison with great enthusiasm. I had to ask: “What are you going to Target for?” Their response? “We don’t need anything; we just like to shop there. We like to look at what’s on sale, buy toothpaste and anything else that may be a bargain.” Well, I looked at them like they were speaking a different language and had to get to the bottom of this strong customer loyalty that Target had created in this Millennial Generation. Next question: “Why Target? Why not the other mega retail stores?” Now they were looking at me like I had two heads. “Aunt Jana, we don’t go there.” I won’t convey their reasoning but if you have ever searched the mega retailers by name on YouTube for visual entertainment, you will understand their sentiment.

At this point, it was their turn to question me, the one sitting on the fence between the baby boomer generation and generation X. “So Aunt Jana, where do you buy your toothpaste and deodorant?” My response, of course, was the grocery store. Okay, I got the two headed look again**. In a final attempt to understand this fascination with Target, I inquired again, “What is so special about Target?” My nephew responded, “Aunt Jana, when we all started college and had to furnish our dorm rooms, Target had packaged together everything we needed: a comforter and sheets, a tall mirror, dorm approved microwave and other stuff. It was so convenient and the stores are clean.”

Yes, they used this word and being a clean store was important to them. Add to that Target’s convenient locations near most major universities in Florida (and probably nationwide) and their extended hours and you have a winner as far as college students are concerned. It seems that Target has effectively captured the attention of the freshman college student, managed to keep their attention throughout the student’s college career and secured a loyal following with this generation as they enter their first job/apartment/house.

How can this information be used to develop a customer base for real estate companies? Can effective marketing and delivery of multiple services (real estate, mortgage, title, insurance, home warranty) neatly bundled together to the Millennial Generation be the competitive edge needed to capture and retain this generation of first time home buyers? Is there something else unique that real estate companies located in college towns do to cultivate these same college students with the goal of turning them into loyal customers once they get that first job/apartment/house? If it takes on average of five years (average time to get college degree) for Target to create these dedicated customers, how does this translate for the average real estate broker and their customer outreach program?

The tastes and preferences of the Millennial Generation will most likely change once significant wealth accumulates, and only time will tell if this steadfast faithfulness to Target will fade. In the meantime, Target will continue to enjoy the strong loyalty and purchasing power of the Millennial Generation, or at least the allegiance of those in my family!

*(Minneapolis-based Target Corporation (NYSE:TGT; © 2010 Target.com. All rights reserved. The Bullseye Design and Target are registered trademarks of Target Brands, Inc.)

**Apparently, my nieces and nephews don’t shop for groceries at a grocery store – they go to the gourmet market which offers primarily food items. Their food buying/consuming habits are a customer loyalty story for another day!

Posted By: Jana Coleman

The web is inherently international, but does just placing something on the web equate to international marketing?

How do we reach the greatest audience? Place the listing on the company website, syndicate it out to multiple locations and maybe write a blog post or “share” it on social networking sites. These are all very good tactics, but there is a less glamorous side that is equally important: making sure the information is understandable from multiple language and location perspectives.

Selling clients search for and want to find their home on international sites like www.relohomesearch.com and www.luxuryportfolio.com, and we place them here and on other sites. The websites they will search to see their home marketed and their interpretation of the content can be quite different than that of someone from abroad.

When marketing to a global audience, it may not be possible to include “apartment” “flat” and “condo” in the same web description. That would just be weird. Taking a closer look at those descriptions is definitely warranted.

Someone from London will connect “apartment” and “flat”; however, what will he/she make of “C/A/C?” And really – will someone explain to me what a “tear – off roof” is? Here are some more of my favorites: “mn lvl office”, “surrnd snd” and “wndw”. English is my first language, and even I had difficulty getting some of these.

Look at it this way:

German: Zimmer
English: Room
Web Description: Rm

Getting from “RM” to Zimmer requires at least a 3-step process whereas if “Room” is used the translation becomes much easier for the reader. In addition, if you are participating in a site using an automated translation system or if a user attempts to use the Google Translate tool, the meaning of these abbreviations will not be correctly expressed.

Another issue arises when syndicating website listing information to third-party websites. Most listing descriptions are written in the context of their appearance on the main corporate website. Most of these sites contain rich content further describing the neighborhood/town and its amenities which in that context would not necessitate inclusion of that information in the web description. If the syndication site doesn’t also contain this information, the property description will be less effective as readers are unable to identify the location and lifestyle benefits of the property.

In a global context: Stay away from colloquialisms, slang and abbreviations. Write property descriptions as stand-alone articles expressing every benefit and feature of the listing.

I would love to hear your favorite abbreviation nightmare or colloquial confusion story.

Posted by: Sharon E. Michnay, CRP, GMS, WRS, Executive Director, Corporate Business Development, Halstead Property. Sharon is a member and former chairperson of the LeadingRE Advisory Council.

In Part I, I suggested that our business had become as global as it is local. Real estate is a local business in a global economy. It is undeniable that we must know our neighborhoods and local real estate practices in order to provide superb services to our clients, but that isn’t the complete picture.

Every client that comes from further than across the street has the potential to be accompanied by a different real estate culture and, with it, many different assumptions and expectations. The MLS system is probably one of the most obvious examples of this.

The U.S. and Canada have an extensive, well regulated listing sharing and cooperation program between brokers that rarely exists elsewhere. The impact to real estate culture and the expectations of services available from real estate professionals is immense.

If you are an American, you will expect your broker to work on your behalf and to share with you every property that meets your parameters. In the reverse, a French national may impede a search in the U.S. by working with multiple agents and gaining the full attention, resources and benefit of none of them.

Add in the culture of homeownership and different tax and legal issues for an even better look at the depth of complexity we aren’t really addressing with an exclusively local focus. It is just as important to understand our local business as it is to understand how it is the same or different than others.

The opportunity exists to improve services by learning some of the major differences that exist between our own and other markets. When working with a client from another country, take a few moments to do research on his/her real estate market and business culture.

It’s easy to look at “International” as a challenge, but there are also many benefits. New information brings new knowledge brings new ideas. Even if the concepts are foreign, they have the ability to spur innovation and the creation of beneficial programs and services at home.

Posted by: Sharon E. Michnay, CRP, GMS, WRS, Executive Director, Corporate Business Development, Halstead Property. Sharon is a member and former chairperson of the LeadingRE Advisory Council.

Over the past several years, I have had several opportunities to speak on the subject of “International.” Over this time, I’ve seen interest peak and would consider the current state as waning in the real estate industry.

Is this because we have a limited view of what “International” is? Perhaps all the information we’ve gathered has simply created a confusing interpretation of an overused term.

While International can be defined by its opposite – local – doing so leads not only to confusion but an unadressable issue. Using this definition, how exactly can you create a program, develop a solution or offer services to essentially the rest of the world?

This is the age of localization, market segmentation and specialization, and we need to learn how to translate that for the international arena. So much of our conversations have been about developing international business, but I would argue that in today’s world our business of real estate is as global as it is local. Globalization continues to escalate rapidly and our challenge is how to deal with, derive benefit from and add value to it.

We need to be the local experts, but not to the exclusion of everything else. We need to better understand marketing our exclusive listings in a global environment. The definition of “International” as “Everything outside my country” needs to be re-examined and addressed in the manner in which we address the rest of our business. And ultimately, we need to develop a more Global Mindset.

In light of the global economic crisis which has slowed migration, dampened foreign investment in real estate and made higher priorities of other issues, that is a lot to ask. It is also quite challenging to accomplish because there are no established best-practices to follow.

This is part one of five segments that attempt to explore some of these topics. As one voice with an overwhelming subject, I hope you will join me by adding your comments, asking your questions and sharing your knowledge and experience along the way.

Posted by: Sharon E. Michnay, CRP, GMS, WRS, Executive Director, Corporate Business Development, Halstead Property. Sharon is a member and former chairperson of the LeadingRE Advisory Council.

Earlier this year, my husband and I decided to sell our condo and upgrade to a single family home. We called our trusted real estate agent, talked to her about our plans and started our next adventure.

Luckily, I get to read home selling tips on a daily basis from our Propopoly^® bloggers. I remember one of our bloggers, Julie Sarton from Keefe Real Estate, writing about how to stage a home. She did a series of posts on how to stage your kitchen, bedroom, living room, and more. Her posts were very helpful and offered great advice. After reading them, we took action and started staging our home to sell. We…

1. Rented a storage facility to eliminate some of our “clutter” (i.e. our Wii Rock Band set, etc.)
2. Displayed fresh cut flowers on our kitchen table
3. Cleared off our kitchen and bathroom countertops
4. Bought new towels to display in the bathroom
5. Stopped using our elliptical as a closet

We were surprised at how many showings we had within the first week our condo was on the market. On day six, we had a couple coming over to view the condo for the second time. Four days later, they became our buyers.

So… how did we sell our condo in 10 days in this market?

1. Listing Price: We listened to Steve Harney’s advice on pricing your home to sell.  We looked at what other similar units were selling for today and used this to set our price
2. Staging: We made our condo look neutral and uncluttered so that perspective buyers could picture themselves living in it, not us
3. Sensible upgrades: Due to lack of storage in the unit, we transformed a recessed wall into a closet
4. Started with a good asset: Our condo was nice, in a great location near public transportation, great restaurants, bars and shopping.  This is what originally sold us and is what sold the current owner
5. Worked with a great agent: She helped us think through the major decisions but always took our final decisions in stride

Did we make bundles of money on our sale? No, but we achieved our goal of selling our property quickly at a fair price and now have capital available for a single family home. 

Posted By: Jennifer Sciortino

We’re back from an exhausting but hugely gratifying conference week in Las Vegas at the beautiful Encore at Wynn hotel. So many members, speakers, sponsors and industry leaders contributed to making this a terrific learning, networking and energizing experience to help us all turn 2010 into a great year despite market challenges. Thanks to every single one of you!

And, we had a special tribute to a special lady, Ruth Ann Pepple, as she opens the next chapter of her life post-retirement. In a “This is your life” tribute with several surprise guests including Steve Murray, Cris Collie, Joe Aveni, Shel Detrick, Wes Foster, Rose Marie and Bob Phillips, Chip Roach, Dick Christopher, Dick Elsea, and – via video – Senator Johnny Isakson, Ruth Ann was feted in fine fashion to celebrate her outstanding 37-year career. Congratulations, Ruth Ann! (You can reach out to her in person at 312.424.0430 or rapepple@leadingre.com ).

The buzz on Twitter throughout the conference was fast and furious (#Leading2010) and some bits of the awards evening are even on YouTube.

From the great tech minds at work during MarTech, to the many broker insights in the Sales Managers Leadership Symposium and broker tracks in the main conference, to our top producers at the Luxury Portfolio SUMMIT, to terrific relocation and referral sessions, to a wonderful shared general session with RESPRO featuring FHA Commissioner Dave Stevens, Ron Peltier and Guy Kawasaki, it was simply a fabulous week.

And now, the challenge for all of us is to roll up our sleeves, make a list of the top two or three take-aways, and execute back at home. Recessions are fertile territory for those who understand opportunity. Let’s get to work Making the Best Brokerages Better…our LeadingRE mantra.

Posted By: Pam O’Connor

Mortgage assumability is a great way to stimulate additional real estate sales and also prevent many properties from being foreclosed!

In the 1970’s and early 1980, there was not a “due on sale” clause in mortgages. If this clause was removed, the number of foreclosures would drop significantly over the next six months. We would have buyers to take over these mortgages since it would require little or no down payment. Home owners and investors would be willing to pay more than the current comparable because there is no qualifying requirement and very little cash required and the belief that the market value will be going up in the next few years.

The new buyer would receive a deed which would have a clause “by accepting this deed, the buyer (Grantee) agrees to accept and assume the mortgage and become personally liable.”

The only negative is the possibility that a new buyer may not live up to their new obligation because of the ease of acquiring the property. Thus, a good credit history should be a requirement of the buyers. The positives are saving the foreclosure, stabilizing or increasing the real estate values, preventing future credit problems for some sellers, increased State revenue by State Stamps on Deeds and providing housing for a lot of good individuals who lost their employment and now have a regular job but cannot qualify because of credit issues.

This type of program would excite investors, since most investor loans for single family rental properties are 30% down (or at best 20% down) plus closing costs. My estimate is that this could reduce foreclosures by 20% within one year and would not be a subsidy by the Federal Government.

We don’t like the Government telling the mortgage industry what they can put in their mortgages. Unfortunately, they are already dictating to the mortgage industry.

Mortgage assumability is a simple answer whose time is right in 2010.

Posted by: Bill Watson, Chairman of the Board,
Watson Realty Corp.

Throughout the past 10 years, approximately 15% of my incoming referral business has been generated from 3rd party company referrals. When looking at my 2010 business plan I questioned that business. Is the time and money spent to manage this business worth it? Should those efforts be redirected to securing other more profitable business?

Real estate brokerages are comprised of independent contractors who affiliate themselves with a company because they feel they will be provided with the best business platform to be successful. The company’s success is determined by the professionalism of those contractors.

Corporate clients want their relocating employees to be provided with a comprehensive relocation program. The core of this program is to assist their employees with either the purchase or sale of their home in order to facilitate their relocation, and they typically outsource this task to relocation management (3rd party) companies. As long as these corporations believe that their programs are being administered in their best interest and at a reasonable cost, they will continue to work within those 3rd party relationships.

Read the complete article >

You might think that my trip to Las Vegas is for a chance of luck. But it is quite the contrary. If I don’t go to Las Vegas for the Leading Real Estate Companies of the World^® Annual Conference I would be taking a huge risk. This year’s conference is an exceptional value and is worthy of your time and money. The return on your investment is a sure win!

If you are uncertain if you will attend, consider these reasons.

• Re-Energize Yourself: The conference has a history of high energy and exciting experiences, and this year will be no exception with the partnership of the lights and dazzle of Las Vegas.
• Re-Tool Yourself: The conference is known for the quality sessions and speakers, and this year will be no exception. In fact, the conference program has been expanded and enhanced to provide a broader audience with valuable take home information.
• Re-Kindle Relationships and Make New Ones: It has long been known that conference is the best time to build relationships and re-kindle old ones. It is a wonderful opportunity to put faces with those voices we have long been talking with. It is commonly known that people want to do business with people they know, and if they don’t know you, how can they do business with you?

Read the complete article >

Thank goodness 2009 is over! What a tough year it was for all of us. But… we survived!!

Now it’s time to start thinking about 2010 if you haven’t done so already. One of the best ways to get your New Year started off in the right direction is to finish up 2009 and bag it for good. In other words, “Clean Some Things Up” and get a clean start in 2010. Listed below are some good tips to help us complete that clean up and set ourselves up for Great Success in 2010.

1. Clean that Computer up!

• Now is the time to clean up all those old e-mails.
• Go through your Contacts and make sure they are all correct and needed.
• Purge your My Documents file. Transfer all of the documents and files you want to keep to your Server, an external hard drive or to a thumb drive for safe keeping.
• Check your computer out for performance issues. Do you need a new one? Is it time to transition to a laptop? Check your memory and see if you may need to add additional memory. How about your virus software? Is it up to date? Have you defragged your hard drive recently? How about your software? Do you have the most up to date versions? Great sales going on right now, and it is the perfect time to upgrade.
• Finally, it’s time to update all of your Social Networking sites and information. Do you need to un-friend some folks on Facebook or My Space? Do you have all the right contacts in Linked In and other Business Networks? How about your Profile? Is it correct and up to date and do you have an up to date photo?

Read the complete article >

You may have been reading the various “top 10 2009 real estate stories” assessments while relaxing over the holidays, as I have.

On CBS MoneyWatch.com, Alison Rogers viewed 2009 from a macro consumer perspective in her analysis, citing things like increasing foreclosure numbers, the ongoing credit crunch, and increasing rentals.

A more cut-to-the-chase recap was that by Steve Harney. Steve just states the “facts of the year” rather than his opinion, backed by statistics. While it’s not necessarily fun reading, the good news is that we’ve navigated it so far, and his real service is to underscore the areas where great real estate professionals can make a difference. Creating strategies to solve these specific problems for clients provides a powerful action plan for 2010 for real estate practitioners.

A more internally-focused review of 2009 comes from Stefan Swanepoel on Active Rain’s blog. Several of Stefan’s picks were right on the money – the impact of the housing credit on sales, foreclosures and short sales, RPR – while some others seem a bit random. The change of one brokerage franchise brand to another? The creation of NAR’s credit union? GMAC changing its name when that had been expected for over a year? One comment on the post read, “I didn’t know about a lot of these happenings before,” perhaps because they didn’t really rise to “top 10” status?

Read the complete article >

Hosting a local talk show, All Things Real Estate, has created a synergy, goodwill factor and an opportunity to show our company culture of service to the public. This educational marketing strategy has fostered immediate benefits for our company and associates.

The talk show format is upbeat, conversational and real. The guests come from all tangential industries to ours such as attorneys, appraisers, lenders, other brokers, interior decorators, insurance representatives, inspectors and clients who all have a story to tell. The weekly topics are easy to fill and there is no shortage of guests willing to come on the show and share their valuable information.

We are not selling anything on the show other than straight information. People can say all the right things but if they have an ulterior motive in trying to sell a product, service or property, it comes across as disingenuous. We are transparent and if we are not genuinely sharing information for the public good, we would be found out rather quickly. The indirect benefits of appearing on the show are reward enough. The seeds are sown with the potential future customer listening to the show.

The radio format helps me to establish instant credibility not only with the public but with our guests who are in many ways, our partners. And it helps me foster even better relationships with our most important adversaries: our brokers.

Read the complete article >

Yes it can! In September 2004, prior to the devastation of four hurricanes and the recession, Pruitt Real Estate had seven offices and 207 agents serving Brevard County. As the largest independent company serving the Space Coast of Florida, we enjoyed a commanding 19% market share in our primary market area.

Back to back active hurricanes at the end of 2004 coupled with the economic recession resulted in a 58% decline in sales from 2005 to 2008. This downturn required us to take immediate cost cutting measures; however, I along with my management team was cognizant not to make the wrong decisions and risk losing key producers.

Today, we have 3 offices and 142 agents serving the same territory. Market share now stands at 12.3% in our primary market area, a declined shared by most companies ranked in the top ten. Market share fragmentation has occurred in the last two years due to the rise in small start up companies. When asked how I was able to accomplish this productive retention rate of agents and market share, I can attribute this success to these factors:

Read the complete article >

As real estate marketers dive with enthusiasm into the lastest social networking and cloud computing offerings of the web 2.0 world, there are some basic questions to be asked. Concerns regarding the ownership of content, security, and what could happen next are discussed in this prezi.com presentation below. This is the first in a series on this topic - please post any thoughts and comments below.

Posted By: Neil Elver, Sr. Web Developer - LeadingRE

There has been plenty of gloom and doom in real estate for quite a while now, but I’m fortunate to be exposed to shining confidence and enthusiasm for the future of our industry. There are many who inspire me and others with their positive attitudes and willingness to share.

Some of the best examples come from our Power Producers, an elite group of top performing sales associates participating in the LeadingRE Institute, our network’s education portal for sales associates, brokers and managers. These professionals meet monthly to network, brainstorm and share success tips on various topics. In between calls, they have ongoing dialogues via a listserv.

What we’re hearing from them is energizing and validates why we have every reason to be optimistic. They are reaching out to one another, and even to competing agents in their markets, working together to overcome new hurdles in the closing process and ensuring positive outcomes for their clients.

Read the complete article >

Many brokerages across the country have managed their online presence and successfully served clients on their websites for years. Others know they need to…and it’s never too late. A successful strategy to serve consumers on your website, often referred to as Internet Lead Management (ILM), must first start with an analysis of your goals, your company cultural, and your resources. I’m a firm believer in the under promise and over deliver philosophy.

So what is your goal when creating this ILM strategy – fast response times, 24 hours a day coverage, and the ultimate in lead capture? How about quality consumer engagement and a real a value added for sellers…or is it more about agent appeasement? Maybe it’s some version of all of the above. How will your agents view this new initiative – big brother or helping hand?

One misstep firms often make is to create a strategy where consumer inquiries on their agents’ listings are routed directly to the listing agent with no company follow up or notification (and no support). In these same firms questions on competing companies’ listings are immediately engaged by a company staff member, receiving a rapid response and connection to a quality agent. I understand the original thought behind this approach, as it takes away a lot of the “big brother” factor, but when you boil it down are you not simply providing a higher level of service to your competitors’ listings than your own?

Read the complete article >

How many times have you either asked that or thought that? Today, it’s a tough question being asked in the relocation industry. In fact, I’m not aware of one organization – whether corporate, third party, or brokerage – that isn’t being asked to redesign our service menu, reduce the bulk, offer leaner items, and create a healthier diet for us all.

Challenging? Yes, it is…it’s not easy to slim down. Achievable? Yes, it is…when we set our goals and work towards them.

Everyone’s financial diet is being trimmed; there are no “seconds” available on our tables. We are doing this at home and at work. We are cutting back on out-of-date and unnecessary expenses, overhead, and jobs, while trying to increase and grow revenue at a time when not too many companies and transferees are biting.

Weighing In:

1. Can the relocation industry continue to support the zero-fee pricing model as a viable solution? No.

2. Can broker referral fees and supplier participation fees continue to be increased either internally or by their valued clients? No.

3. Can a corporation see relocation costs continue to rise, yet achieve more with less? No.

4. Can we really expect each other to survive if we continue with the same old diet? No.

What if we don’t change our old habits? Will we be the next ‘biggest loser’?

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Can you effectively introduce a business unit which is counter-intuitive to the very foundation that your company was built on? The answer is an emphatic YES! Michael Saunders and Company started in 1976 as the premier luxury real estate firm serving the Sarasota elite and expanded over the years to meet the demands of the affluent along Florida’s Gulf Coast.

For years, their sales price has been significantly higher than the MLS in all areas serviced and $1MM+ sales were the norm. But even then, while known as the luxury leader in Sarasota, they did in fact handle less expensive homes by appealing to the wants and needs of those buyers.

In 2008, in response to the changing real estate market, the company continued to adapt to the times by actively seeking and obtaining key REO accounts to augment revenue. By creating a completely separate division (BEST Opportunities & Bank Owned Properties) with a unique logo but similar color scheme, MS&C has successfully integrated a profitable division which might to some seem, detrimental to the core foundation on which the company was built. As a result, their market share continues to grow while their competitors on the sidelines look on.

Since the inception of the program, MS&C has experienced a 35.8% closed conversion rate for properties in the program. According to recent website statistics, a Best Opportunities property attracts 4-5 times more visitors than an IDX listing. In addition to this, clients stay on a Best Opportunities property detail page 35% longer than IDX listings and 97% of the visitors view two or more properties.

“Our mission is to be the market leader,” comments Michael Saunders, “and that requires us to be nimble in dealing with whatever market is handed to us. But we believe we can still do that in the context of the brand we have built…as the brokerage of choice of the most discriminating consumers.”

Posted By: Jana Coleman, LeadingRE Regional Vice President, Southeast

Recently during a lovely dinner with colleagues, the conversation turned to a common one for any industry: Generations X and Y.

Even the names allotted to these generations give them an air of mystery, and there are many seminars, studies and conference sessions that try to examine how to attract, communicate with and serve these groups both as consumers and real estate agents.

Common solutions often discussed include recruiting new real estate agents from these generations. According to NAR statistics, 70% of Realtors come to the industry from non-related fields, the inference is that most real estate professionals do not enter the real estate industry right out of college. Although there are many solid reasons why real estate is a good career, one can hardly fault anyone facing substantial student loan debt from not starting their career in a commission-only position. Most of us in the real estate industry recognize that real estate is often a second, third or fourth career. The average age of the “older” GenX crowd is in the early 40s and GenY is just entering their 30s. If the studies showing the average time GenX spends in a job is 3.5 to 4 years are correct, and the assumption is made that not every job change equals a corresponding career change, then as a workforce, GenX is just now entering a potential second career phase, and GenY has a long way to go.

Read the complete article >

The last several years, a confluence of social and technological events have altered our industry in ways we could never have imagined.

Consumers today have access to a huge repository of data made available by sources outside of a conventional real estate destination. These entities have accessed our knowledge base, acquired our service position and offered it to our customers in ways we have never imagined.

As a result, each of us, from brokerage business owners and management to individual sales associates, have had to take stock of our surroundings in order to shift with the times and position our businesses to survive and thrive. Actions taken to position a business to grow are the mark of vigilance and vision. The time has come for brokerage companies and agents to reset their business and personal models to persevere. This will speak volumes about the people we are and our commitment to our clients and our brands.

Read the complete article >

Given the proliferation of social media over the past few years through such venues as Blogs, Twitter, Facebook, Yelp, Flickr, YouTube, etc., and the growing engagement of the consumer public, along with our desire to market our company and our associates in new ways, we are pursuing a corporate strategy of dedicating a new position – Social Media Manager – to maximize these new social media opportunities in the most skilled manner possible.

As this video illustrates, the power of social media is undeniable.

The Future of Real Estate - Avery-Hess, Realtors from Amit Kulkarni on Vimeo.

It is well documented that the companies who embrace these networks are witnessing greater connection with their constituents. By conversing and connecting through this manner, these companies are able to better translate their inherent value proposition in new ways, building brand loyalty in a manner never before available. The impact this is having across all corporate and sales channels – from brand awareness to sales – is noteworthy. We have a lot to learn from Zappos in the shoe business and many other industries that are using social media to strengthen their brands, engage new customers, and ensure repeat and referral business through viral marketing.

Our new management team member, David Tra, who brings a background in social media and possesses significant writing and communication skills, will be compiling our interactive video content, managing all our social media outlets (Twitter, Vimeo, YouTube, Facebook, blogs) and training/coaching our associates on how to incorporate social media into their personal business.

To our LeadingRE colleagues, stay tuned for updates on how this focused strategy is working for our company…and how it might be something to consider for your own.

Learn more about Avery-Hess, and search for home in the DC Metro: www.averyhess.com

Posted by: Amit Kulkarni, Director of Marketing & Technology, Avery-Hess, Realtors^®, northern Virginia suburbs of D.C.

I was watching a movie last weekend, never mind which one (okay, it was “Forgetting Sarah Marshall,” and I give it two and a half stars), and I realized how often I see people using webcams and internet services to communicate in the movies. I only know a handful of people who use Skype and webcams in my day-to-day life, but it made me wonder why we are not embracing this technology more in our professional lives. It would save us money on long distance and toll free numbers; it allows us to stay on the cutting-edge of new technology, and the real bonus is the relationship-building fostered by the fact that we are “seeing” each other daily.

Right now we all pay for a toll free number, which is still necessary so consumers can reach you easily. But if you are paying for a long distance service – like I know we are – you can save costs by making a free phone call over the internet.

The added equipment is not expensive. If your computer does not already have a built-in webcam and microphone, you can purchase a webcam for as little as $29, and a good microphone is about the same cost. The actual web service is provided free using a company like Skype or another service. The software is typically something you can download for free.

Read the complete article >

Inman Connect San Francisco 2009 epitomized the current deconstructivist nature of the real estate industry.

Deconstructivism in contemporary architecture stands in opposition to the ordered rationality of Modernism...One example of deconstructivist complexity is Frank Gehry's Vitra Design Museum in Weil-am-Rhein, which takes the typical unadorned white cube of modernist art galleries and deconstructs it, using geometries reminiscent of cubism and abstract expressionism.

Real estate data and content in the form of IDX, blogs, etc. is fragmentized and atomized. Client relationships are similarly situated when considering the many different ways real estate professionals can interact and communicate with clients in a Web 2.0 world. Further, in the midst of this rapidly changing client relationship matrix, one could legitimately argue that the recent financial crisis essentially shattered any lingering "modernist" real estate practices regarding branding and client engagement.

Connect SF 2009 was a crucible in this regard.

Throughout the conference there was a steady stream of collaboration, interactivity, and collegiality (obviously juxtaposed against thinking of ways to outshine your competition). The conference sessions were geared to get one's idea juices flowing by showcasing best practices and incenting open dialogue. Some of the sessions that peeked my interest included:

• Building a Brand that Matters, which was delivered by Zappos COO Alfred Lin
• Broker/Owner Breakout: Start on the Road to Reinvention, which was three hours of sessions moderated by 1000Watt Consulting focusing on issues brokers/owners face regarding branding, technology, and normative changes with respect to client relationships
• Blogging by Numbers: How to Measure, Analyze and Optimize Your Social Media Plan, which was a fascinating discussion about the critical role metrics plays in driving effective social media marketing strategies
• Ruby on Real Estate: How to Apply Agile Development Principles to Your Project, which discussed iterative product development principles and the competitive advantages related thereto
Read the complete article >

Based on a recent Real Estate Beat blog post, I started thinking about WETAG’s efforts in Social Media and how these efforts have affected our business so far. About a year ago, we started thinking about how we should deploy all these web 2.0 things. We knew most of the tools are very U.S. centric and that it would be hard to adapt them for business in Europe, but on the other hand, we knew also that most of the best things in the Internet started in the U.S. and later spread across the world. So we decided to jump on and start blogging, Twittering, running our own Facebook fan page and uploading video to our own YouTube channel.

Our blog, SwissMediterraneanLifestyle.com has had the most impact for WETAG. The SEO value from our blog is the most important aspect of all these new tools to us. Given the fact that we are a rather small market regulated by certain laws that make it a bit more complicated to purchase a property if you are a foreigner, and also considering that we’re in a beautiful, but not too well known, luxury second home market, we’re always looking for ways to increase interest and web site traffic.

So far, we’ve received a very good, and increasing, number of interest and visitors to our own web site through our blog. Numbers of foreign visitors multiplied by many times over the “normal” and so did the number of qualified buyers in the end. Our ranking in search engines improved so much that we are on page number one with a lot of search terms our clients are actually using when looking for real estate. Our blog also provides the opportunity to present ourselves as being the experts in luxury real estate in our market and, as a result, to that, people actually started calling us because they’ve agreed with what we’ve posted on our blog and trust that we know what we are talking about. Right now, we have two qualified high-end buyers who are looking at some properties and they came solely through our blog. Without a doubt, blogging has been our most valuable new tool so far.

Read the complete article >

One of the charters of Luxury Portfolio Fine Property Collection^® is to help our members stay up-to-date on the latest stats and information on the luxury consumer. The data, of course, is always good, and we find that through proprietary and primary research, sponsored studies and generally reviewing trends. The ultimate resource though is our members. We have unique insight into consumers’ hearts and minds through the brokers that are part of the Luxury Portfolio Fine Property Collection^®, as they are our eyes and ears on the street. We usually share our findings through our Be Your Luxury Self^® education program but thought we’d share a bit with The Real Estate Beat as well.

Much as we’ve reported in the past, today’s affluent buyer continues to define “luxury” as something that is highly personal. It’s interpreted more and more by the individual and something that a person judges for him or herself.

The more we as real estate professionals can make our service customized, individualized and personal, the more today’s luxury consumer will value us.

This trend towards personal experience and interpretation is reflected in general in a move away from conspicuous consumption and buying to impress. Just as John D’Ambrogio of Rubloff, Inc. in Chicago recently noted in this post, it’s not so much about a trend towards ”luxury shame,” but more a redefinition of what constitutes luxury. Global trends definitely point to a decline is conspicuous consumption.

Now that doesn’t mean gloom and doom for luxury. It simply means today’s luxury consumer is spending their money more wisely. Today’s affluent consumer is more likely to value the customized services of a personal shopper than they are an oversized designer bag. In fact, when asked to define “luxuries,” the item that often rates highest is time and being able to spend that time with family.

Tere Foster, a contributing blogger and luxury real estate professional with Windermere in Seattle recently shared how this trend is being reflected in the Seattle market with a demand for more manageable and family-friendly floorplans. As she points out, it’s not so much about square footage but about what you do with that space.

So what does that mean for our real estate professionals? Helping a buyer to understand and see how a home with a large kitchen/family room will enhance their family time is something that will resonate. According to a recent study by the Luxury Institute, vacation homes are still the most desired luxury item by wealthy U.S. consumers. In the study 19% of wealthy consumers currently own a vacation home, but a remarkable 42% are considering purchasing one.

So if time and family are the ultimately luxury this is good news for the real estate industry over the long run. There is no question but that the affluent consumer is still out there; it’s just about understanding the factors that influence their buying decisions and getting a pulse on their hearts and minds.

Posted By: Stephanie Pfeffer

Valid points are being made about how other industries are doing a better job than real estate operators in leveraging social media to enhance their brands, boost business in a down market, and touch customers. In fact, we focused on this same opportunity a few months ago.

We can all do a better job of taking bold steps to extend our reach via these wonderful new channels by learning from best practices outside of our industry. That said, let’s not assume that it’s just sales associates who are leading the way in the social networking world of real estate. Just because we see regular tweets and Facebook posts from more agents than brokers doesn’t mean that brokers aren’t aware and active in this space, albeit below the radar in many cases.

As examples, JLS Connect is a new brokerage-sponsored way to allow consumers to comment on listings using new Microsoft software. And dozens of our brokers have brought in LeadingRE and Institute specialists to teach social networking classes to their associates – including two-day CE courses – to arm them for this new kind of prospecting, with best practices being shared company to company because they understand the importance.

Real estate company channels are emerging on YouTube, fan pages on Facebook and profile pages on LinkedIn.

When it comes to blogging, member brokerages large and small have adopted Propopoly to provide an easy, turn-key micro-blogging solution for their agents. Some of the earliest and most successful examples of integration integration of company websites and blogs have occurred with our LeadingRE members.

What is the true ROI test of social media? Whether these efforts get you to page 1 of Google as evidenced in this search that takes you to Latter & Blum. In that test, many of the best-optimized websites are brokerage sites or agent sites that are sponsored or hosted by brokerage firms. Just because the broker’s face isn’t front and center on Twitter doesn’t mean there isn’t some social networking leadership going on behind the scenes. And while there is lots of opportunity to make much greater headway for real estate brokers in social media, let’s give some credit where credit is due. As with so many things, brokers don’t do a great job of tooting their own horns, but many of them are definitely working to move their agents and brands forward using social media.

Posted By: Pam O’Connor

Wow. Take a moment and let that sink in. According to an article by Ruder Finn I read on emarketer.com that is one of the reasons half of those aged 18 – 29 go online. More than 2/3 also went online to post comments on social networking sites.

Now, while the world doesn’t revolve around real estate and this “rage” will be directed at many different industries and companies, it is something we need to consider seriously. If you listen to Matt Ferrara, he’ll tell you that this is the real estate buyer of now and for the foreseeable future.

It’s enough to strike fear into any business, especially if the furthest you’ve looked into social media is creating a fan page on Facebook. There are enough fear-inspiring articles out there, so let’s discuss something else – customer service.

Most people won’t submit a “comment/suggestion” form on your website to tell you about a problem they had with your company. They call, email, status update and blog about it to their friends. It’s not an IT issue because it involves technology. It’s not a marketing issue because it happens in a visible location. It’s a customer service issue because it specifically relates to a customer’s experience with the company.

Social Media presents an excellent customer service opportunity. Just as we have customer service staff and escalation plans for issues that come through internally, we need to further develop those for issues that rise to our attention through other locations.

Who in your company is monitoring your brand online? Who is responsible for responding to posts about your brand – both good and bad? Is there an internal distribution system based on topic? Have you had success in solving the issue behind the “rage”?

Posted by: Sharon E. Michnay, CRP, GMS, WRS, Director, Corporate Business Development, Halstead Property. Sharon is chairperson of the LeadingRE Advisory Council.

If this recent article by Marc Davison in Inman News makes you uncomfortable, that’s a good thing. No pain, no gain. There are some very good lessons here.

Posted By: Pam O’Connor

When we left the 2009 Annual LeadingRE Conference in Scottsdale in late March, we challenged ourselves to make something happen in the next 90 days.  We even provided a checklist to help us stay on track.  Many of our brokers have told me that the conference was a turning point for them in the way they view and manage this market.

As we move into June, we’re closing in on the final 30 days.  Have we done everything in our power to make a difference by 1) educating buyers on why this is the best time to buy in decades – especially first-time buyers, 2) providing sellers with data to show them why waiting to price for this market costs them money, and 3) arming our managers and associates with the data, language and inspiration that will empower them to make things happen, and 4) being the voice of real estate in your community through the media, as evidenced by this press release from Watson Realty?  It’s all about leadership.

Yes, there is activity out there.  Buyers are dipping their feet in the water, and sellers are coming to grips with reality.  And because of that movement, when many listings come up for renewal at the end of June, those sellers may now be inclined to move that listing, using the logic, “Before, nothing was selling, but now, some things are, so the problem must be my agent.”    

Read the complete article >

At a graduation party the other night, I ran into a friend who is a U.S. Airways pilot and asked him if he’d ever met the Hero of the Hudson, Captain "Sully" Sullenberger. “Of course,” he replied, “I’ve known him for years.” And when I asked if Sully was as special as he seems, my friend said, "Absolutely.  What you see is exactly what you get.”

This last year has been full of challenges we’d rather not have to face again, against a backdrop of widely varying political and economic views. Maybe because of this angst, we were all particularly receptive to the two special people who emerged during that time. One, of course, was Sully, and the other was a different kind of singing sensation, Susan Boyle, whose reprise performance this past weekend continued to amaze.  

What was it about Sully and Susan that captured our imagination and made us smile?  

First, they are ordinary people doing extraordinary things.  They have a passion for what they do.  They have practiced for years to be able to perform during that moment of truth.  They inspire us to be all that we can be.  They represent an energy source rather than an energy drain.  They are heroes, just as are all the men and women in uniform whom we honored on Memorial Day.

Even if we never get the same opportunity to be center-stage in an obvious under-fire situation, we have the power every day to influence those around us, simply by being that energy source, and by knowing our craft, practicing it, and performing on all cylinders every day.

Character, connection, and competence.  Sully and Susan have those traits in spades.  We can learn a lot from both of them.

Posted By: Pam O’Connor

Steve Studley, Vice President, Marketing & Business Development from The Hasson Company in Portland, OR discusses how The Hasson Company has provided their agents with new tools and training that are necessary in today’s market.

What areas are you still investing in despite the economic climate and why?

At The Hasson Company, we pride ourselves on being surrounded by the best of the best. Mike Hasson has never strived to be the biggest company. His goal is to offer agents the best services so that they in turn can provide their clients with the best possible real estate experience. We invest heavily in strong management to support our associates.

Read the complete article >

Sharon E. Michnay, CRP, GMS, director of Corporate Business Development for Halstead Property in New York, NY, shares this commentary on the direction of relocation departments.

Relocation is a very specialized industry, but take away the ERC BMA forms, buy-outs, inventory and corporate sponsorship of moves and what you’re left with is good old-fashioned customer services.

For those of you who remain befuddled by these divisions, perhaps this will help:

Sphere of Influence = Corporations, Relocation Management Companies, Other Brokerage Firms, Agents and increasingly – individual consumers

Customers = Transferees and individuals who need to buy/rent/sell/invest in real estate

Just like an agent, the Relocation Department markets to their SOI in order to create business. The only difference is that they do it for the company as a whole rather than themselves. The Relocation staff counsels, connects, tracks, and provides an extra layer of support for both these groups. Who doesn’t like that?

Today, “Relocation Departments” are looking a lot more like “Corporate Services Divisions.” REO’s and investment property don’t involve a relocation yet these customer segments are just a few that are benefiting from the programs and services provided by these divisions.

Read the complete article >

At one of the hottest venues for technology and social media that I recently attended, the SXSW Interactive Conference in Austin, three buzz words kept popping up: engagement, transparency, and authenticity. Some thoughts on each:

Engagement - Social media experts constantly say “engage with your customer.” Ok, ok. But what does that mean? Well, you wouldn’t walk into a cocktail party and start handing out your business cards to everyone you meet, right? In a social media environment such as Facebook, the equivalent would be to “spam” all of your friends with your contact information and constant reminders to call you if they are selling or buying real estate. Equally bad would be to “friend” all of the friends of your friends on Facebook even if you’d never met them, just to grow your sphere. Read the complete article >

Ken Baris, president of Jordan Baris, Inc., Realtors in New Jersey, shares these market insights.

Where is your housing market in terms of “the bottom,” what do you forecast for 2009 and why? How are you preparing for it?

So many people are speculating as to where in terms of price and when the bottom of the market will be. The reality is nobody knows. Frankly, it does not matter as we cannot control it and even with an immense amount of information it is impossible to predict.

I agree with those whose guess is that the bottom is not here yet and when values level, they will not jump back very quickly.

Our approach is to take a thought leadership position. That is to say:

1. Attention bargain shoppers: real estate is on sale at 25% or more below the peak of the market!

2. People who buy real estate today will be seen as geniuses in ten years.

Read the complete article >

Dick Christopher, principal broker of Patterson-Schwartz in Wilmington, DE, shared these observations with his associates about dealing with the current market:

As we enter the second year of this severe Buyers’ Market, I’d like to take a moment to share my perspective, with the hope that it will be helpful to you in your business. I have experienced many Buyers’ Market cycles since beginning my career in real estate as a salesperson in 1961, and while the elements of the current market are similar, there are many unique aspects as well.

Please know that I recognize how complex and difficult the relationship with a Seller has become. Having to change someone’s perception of their home’s value – one that’s ingrained in their minds and a significant component of their net worth – is an awesome task. If you like the challenge of doing something different every day, and you have the right attitude, tools and data, this is a great job; and an abundance of time, patience and persistence is required.

Read the complete article >

Michael Guthrie, CEO/managing broker of Roy Wheeler Realty Co. in Charlottesville, VA, tackles some of our questions about the future of the real estate industry.

What do you think will be the key real estate trends in 2009-2012, and how are you preparing for them?

The key trend over these next few years (2009-2012) will be understanding the impact and successfully engaging in the social media/networking marketing strategy. It has been amazing to watch how what was a small niche in our industry has reached “the tipping point” stage. It can no longer be ignored by agents and – more importantly – companies, without the risk of losing opportunities that could be the difference between future success or failure. Many of us do not like change, and if we had our choice, we would rather do business the way we have always done it. Our company believes that we need to lead our Realtors into the world of Facebook, LinkedIn, Twitter, etc. It is uncomfortable for most of us, but something we need to have a handle on if we want to communicate with this next generation of buyers and sellers. Therefore, we have been proactive in offering social media/networking classes, from a general overview to agents sharing how it has impacted their business. At the same time, we are not allowing the agents to forget that nothing replaces the time honored and tested fact that however they create business relationships, personal follow-up (hand written notes, phone calls, dropping by to say hello) is what will always set you apart from everyone else.

Read the complete article >

Rob Sibcy, President of Sibcy Cline, Realtors in Cincinnati, OH, discusses stabilizing the housing industry by issuing a $15,000 tax credit.

The best single solution to ease the housing crisis – the $15,000 tax credit for all homeowners – did not make it into the stimulus bill after passing the Senate, but remains our best hope for a real estate recovery. We need an influential Democratic champion of this provision, and I believe that our LeadingRE members have connections that could help us win the ears of some of those individuals in Washington. A $2,000 tax credit in the 1970s – equivalent in today’s dollars to this proposal – was instrumental in turning that recession around. While today’s situation is much more complicated, this tax credit could be a similar tool. We need this desperately and we need it now. Unfortunately, partisan politics makes it difficult for anyone but a Democratic leader to lead this charge….but whoever does that will be doing what is right for our country and will be a hero in the weeks and years to come. Please get involved to try and develop this support. More details here.

– Rob Sibcy, Sibcy Cline, Cincinnati, OH –

Read the complete article >

Linda Anderson, broker/owner of Diablo Realty in Walnut Creek, CA, discusses how the company cut costs, servicing REOs and Short Sales, restructuring offices for the future, and more.

What have been the best cost-saving measures you have taken? We began tightening our belts in August 2007. By the end of the first quarter we reduced staff by 39%. This was a bold step and one we agonized over because these people were part of our “family” at Diablo Realty, and we were offering the best service to the agents of any office in our community. Looking back, it was the best move we could have made — one position was eliminated altogether, one position became a part-time position, and one position was taken over by me and two agents. With the cooperation of the agents and the remaining staff stepping up to the plate to take on additional tasks/roles, we are running as before in most areas. The agents and the staff are very close and supportive of one another in this “survival mode.” The second important thing that we did was to rearrange the office to again accommodate a meeting space within our office for staff meetings, speakers for training sessions, socializing and networking, and a space for agents to provide workshops for their clients on the issues of the market today. It has been an excellent move. The agents really like being able to stay in-house for meetings. We provide snacks so they don’t have to purchase a meal, and the room can be arranged around a large conference table or in a more informal seating “around a coffee table. When we have speakers, we arrange the room with rows of folding chairs, which accommodates all agents plus the presenters.

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When we look at how the credit crisis has evolved, despite alarms raised in the mid 2000s, and the ineffectual steps taken thus far to boost housing, concerns remain about whether our political leadership in both parties truly understands what is necessary to restore consumer confidence in housing.

While the new stimulus contains some supportive measures for housing in the form of a first-time buyer tax credit of $8,000, higher loan limits and some loan modifications to avoid foreclosure, those gains could be largely offset by the administration’s proposal to reduce the interest rate deduction for homeowners earning $250,000 or more, a long-standing provision that has been integral to the appeal of home ownership. Both NAR and NAHB are opposing this measure.

Read the complete article >

In the current environment, it’s not enough to passively commiserate about buyers being unwilling to bite the bullet to purchase homes. Here are some tips on how to take control to convince buyers of the validity of that decision, from LeadingRE broker Ken Baris.

Patty Scarafile, CEO and president of Charleston’s Carolina One, talks about steps her company is taking now to be well positioned and stronger when the market turns.

What areas are you still investing in despite the economic climate and why?

We are still investing in new initiatives. Although we have reduced our expenses by 45% in the last two years, we have tried to make each hard decision based on what is necessary to reduce expenses in today’s environment but with our five year vision clear. We believe it is necessary more than ever to continue to position ourselves so that when this market recovers we will be well positioned and stronger. Some examples:

1. We have integrated the “Ninja Program” into our company. It teaches our agents a system to make people who know them, like them, and trust them the center of their business. We have had Larry Kendall speak at a company meeting, offered two Ninja CRS courses, and added a trainer to deliver weekly coaching in every office within the last year. It has kept our agents actively engaged in the business, held them accountable, increased their business both short term and long term and has brought energy to our company.

Read the complete article >

Read on for industry insights from Peter Rabitz, director of Wetag International, one of LeadingRE’s Swiss members.

What steps are you taking, or would you like to take, to increase your lead generation and conversion, and how are you managing online (e-leads) and offline (broker, relocation referrals) in terms of personnel and organization?

SEO, PPC and PR will be the key factors of our lead generation. We also started to use Propopoly which is happening to be a great success. Editorials are another issue we are looking into, but due to our company size and clientele, it’s quite hard to get good editorials since we have to be very discreet with our most popular and elite listings.

Read the complete article >

Matthew Dollinger, performance coach for Chicago’s @properties, responds to our questions on the direction of the real estate industry.

What do you think will be the key real estate trends in 2009-2012, and how are you preparing for them?

Personally, I believe that the key trend in real estate will revolve around the agent and their ascendency from typical “RealtorR” to Real Estate Advisor. I have created a Facebook group specifically for this movement called “Real Estate 2.0”. This “Migration to Real Estate Advisor.” With the help of wonderfully generous leaders of our industry including Marc Davison of 1000 Watt Consulting, NikNik and Reggie of My Tech Opinion, and others, we are changing the definition of today’s real estate profession to be:

A real estate advisor who not only serves to (emotionally and rationally) represent a buyer or seller during the real estate transaction, but also serves to advise on current market conditions, future real estate investments throughout the clients’ life-cycle, as well look out for their the well-being of their investment.

Technology, market data, and industry knowledge are necessities to achieve this next-level of client service we should strive to provide. Empathy, patience, and education are the founding principles on which we have delivered and will continue to build. This complete “Advisor” is not only what the client deserves, but what they need in this time of turbulent markets. This also could potentially serve as our Killer Differentiator that will serve to be your brand, your marketing plan 2.0, and your defining moment.

Read the complete article >

The good news in the current marketplace is that affordability is better than it has been in some time. Providing an environment for first-time buyer sales lays the foundation for the move-up market. We all know this in theory, but this latest research shared by Lennox Scott of John L. Scott in Seattle, reinforces the value for state government as well:

The study shows that in that state alone, over a two-year period, first time home purchases would have a tremendous impact:

• 8,533 jobs
• $340.3 million in wages
• $1.35 billion in economic activity
• $133 million in state and local tax revenue, including real estate excise taxes, sales taxes, business/occupation taxes and property taxes

As I troll around cyberworld, there is quite a bit written about the challenges facing sales associates in this market...and rightly so. But I don’t see much about principal brokers, many of whom are fighting for their economic lives right now. They are the ones burdened by massive fixed costs that can’t be easily adjusted...leases, equipment and other fixed costs. They are the ones forced to make painful staffing cuts of qualified, often long-time employees. Some of them have depleted all of their personal wealth to keep their companies going. Some who can’t pay franchise fees are being threatened with lawsuits that will only exacerbate their problems.

Read the complete article >

Michael Hickman, President & General Manager at Seven Gables Real Estate in Tustin, CA shares his knowledge on the future of real estate and how the realtor of the future must focus on data, negotiating, customer relationships and more.

What skills will the real estate agent of the future require? The real estate manager?

Our business, both internally and externally, has been redefined for us by the consumer and we as an industry are just now in the midst of adjusting. Some will adjust by listening and implementing and others will try to adjust but it will be too difficult to modify their current business model. That's when consolidation will occur. We operate and endorse the principal of "Shift Happens" and through this perspective, we believe we have and we will continue to shift our model through well planned and timed strategies to a place on the "value line" where the consumer will clearly differentiate us from the past generations of real estate professionals. The realtor of the future must be knowledge based with an emphasis on data, trained negotiating skills, financial analysis, E-Commerce and Customer Relationship Management. People skills are critical but no longer at the top of the list. Techniques such as swarm marketing through social networking and blogging must be implemented. The broker of the future is challenged to build a brand that the consumer will identify with as well as the agent. Consumers typically follow the agent and agents as whole, do not manage their past customer base well. Therefore, the challenge of building a brand that both agents and consumers will identify with is part of the "shift". Looking forward, brokers will certainly embrace (gladly) the reduction of brick and mortar models of the past. Yes, technology allows for smaller, high tech knowledge centers, but at the core of our beliefs should and will be the relationship with the consumer and the enhancement of the relationship through technology. We face the enormous task of reinventing an aged business while retaining the core belief of relationship first. It is our belief that at the consumer will embrace a knowledge based, full time agent with the skills commensurate with their level of income. The mood of the consumer is clearly accountability and we will have to be transparent and accountable at every turn. Additionally, most firms provide little or no management training. At the core and fundamental levels is the need to coach managers with a certain 'holistic' approach to their approach and implementation. This will involve changing for the long haul, the manner in which our managers manage and their effectiveness on the agents they touch.

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Nancy Rusinak, CRB,CRS,ABR,CRP, of Colorado Springs’ Rusinak Real Estate, shares her thoughts on a number of issues facing the real estate industry and discusses how her market is faring.

What skills will the real estate agent of the future require? The real estate manager?

The real estate agent of the future must be a good business manager first and foremost. That has never been a requirement of this profession and many agents (and brokers) survived solely on connections and people skills; those skills are still important and cannot be understated in earning the trust of the consumer, but the consumer’s standards for our industry have ALWAYS been higher than the standards we created for ourselves and our offices. We will be held much more accountable to the consumer, or they will not choose to work with us; we must bring current technological skills to the table or we will not seem credible. We will be expected to anticipate the consumer’s needs, not drag behind and sit back hoping they will find the house they want and then call us. We must play offense, not defense. If we do not, we will be on the endangered species list as someone else will overtake our business by meeting/exceeding the needs of the current consumer (not the past consumer, where we can be found as a group, reminiscing).

As for the real estate manager…This person needs to create a solid business environment and culture in the office. Non-producing agents need to be counseled, trained, held accountable and career-adjusted swiftly. The manager needs to cease being the enabler. Measurable standards need to be set and upheld by all. Is this any different from any other industry? Why are we so slow to embrace it?

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