While there are numerous beneficial qualities built into the Publisher platform, Bergeron notes the ease of use as being the most valuable. “Working with Publisher gives us the ability to upload articles into the newsletter template and distribute them quickly to members, which is crucial as the MLS world continues to become more competitive,” says Bergeron. “As we are constantly adding products and services to the list of features we provide our members, Publisher offers an easy and inexpensive way to keep our members up-to-date.”

Using Publisher has proven to be a time saver for Bergeron and his team. By allowing them to communicate with their members in a timely manner, they can virtually ensure that information is distributed effectively. “Publisher has streamlined the entire process so that we are able to create and upload articles and images and send a newsletter in no time at all,” adds Bergeron. Newsletters run on a monthly basis and focus on a particular topic or product that is geared toward the real estate industry as a whole.

“Publisher has made it quick, easy and inexpensive to get an issue of a newsletter out in literally half a day,” says Bergeron. “This includes creating and uploading the articles and photos, and sending the finished product.”

Not only has Bergeron used Publisher to establish a successful system for his company’s present-day needs, he has set SoCalMLS on an environmentally friendly track toward the future. SoCalMLS has become a pioneer of “Going Green to Make Green,” FrogPond Publisher’s latest ad initiative.

“Being one of the largest MLSs, our goal is to provide our members with useful information as well as products and services, and to do so at a relatively low cost,” he says. “The newsletters that we produce with Publisher give us the opportunity to reach out to our large customer base, while keeping our spending to a minimum. Anything that we can do to keep our costs down and save the environment by not having to mail out communications is a good thing.”

For more information, please visit www.FrogPond.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Read more real estate tips and topics on RISMedia.com:

With No Room to Cut Rates, Fed Looks to Other Remedies
Goodbye, McMansions – Americans Buying ‘Right-sized’ Homes

Broker Strategies for Succeeding in Difficult Times

RISMEDIA, January 7, 2009-For those of us in the real estate industry, the Feds’ recent announcement that the country has been in recession since December 2007 hardly came as a revelation. We have been focused on plugging the leaks in our operations for some months longer than that. More than ever, we should rely on NAR resources, such as business toolkits, online and continuing education, and the latest, up-to-date industry research to find new ways to help us stay afloat. These resources, of course, are available to all brokers and members at www.Realtor.org.

For any one who is tired of hearing that “challenge is opportunity,” there are those who truly do find opportunity even in difficult times. This month’s panel of seasoned professionals is among that innovative group.

Moderator: Virginia Cook, Special Liaison for Large Firm Relations, NAR
Participants: Gino Blefari, Founder, Pres., CEO, Intero Real Estate, San Francisco
Doug Ayers, President, Koenig & Strey GMAC, Chicago
Candace Adams, President, Prudential Connecticut Realty, Rocky Hill, Connecticut

Virginia Cook: What kind of cost-saving changes have you been making in your marketplace?

Doug Ayers: I think as an industry, we have been slow to realize how society is changing. So essentially, we’re focusing on three main strategies to take advantage of the changes. First, we’re making sure our agents are among the most knowledgeable in the region. There is a lot of misinformation out there, so I make sure my agents are specialists, not generalists. They are able to boil down local market conditions and apply them for the benefit of each and every client. Second, we’ve changed the way we approach consumers. We’ve re-evaluated our company structure so that we fit better into the lives of our clients. Meeting them at Starbucks or communicating with them through the Internet, is a great alternative-and it gave us the opportunity to shift away from the big office concept and open smaller, less costly locations. In turn, and thirdly, we’ve made changes in our management concept, as our managers may now be managing and coordinating several of our smaller locations.

Gino Blefari: I totally agree with that concept-and I can tell you that “right-sizing” our company saved us more than $9 million in operating costs between December 2007 and December 2008-and gained us 58 % in market share during the same period. We started by taking smaller locations instead of larger ones. We streamlined support staff and reduced some salaries. One day in the future, managers may be managing several of these smaller locations. We also restructured our training program, working at our headquarters instead of offsite. And then there are the little expenses-a lot of them. Eliminating the outside plant service saved us $16,000 last year. Going from a high-end coffee vendor to a generic Starbucks saved over $22,000. Dumping the on-hold music trimmed off $7,200-and cutting janitorial service from five days to three saved us $32,000. These are not insignificant numbers when you are looking for ways to bump up your bottom line.

Candace Adams: Without question, drastic measures are needed in this unprecedented market. We can’t opt out of the recession, but it takes knowledge, clarity and sheer guts to make the hard decisions. Yet making them is absolutely necessary for anyone who is going to survive. I look monthly at the production of each and every office, and I don’t hesitate to make the cuts that are needed. We’ve consolidated offices, reduced staff and instituted smaller, satellite offices. I look at it as the first step toward true regionalization. We’ve also focused more on Internet-based services, which reduces the need for expensive brick and mortar-and we make it clear that increasing productivity by every agent is absolutely expected.

Virginia Cook: How are some of these cutbacks and production pressures affecting recruitment and retention?

Candace Adams: Experienced agents are resilient and cooperative. They handle the pressures really well. And recruitment has not been a problem for us. There are a lot of offices closing out there, and while some agents are opting out of the business, those who persevere are looking for strong, financially secure companies. They gravitate to us for that reason. In the end, I think, the large brokers will prevail.

Gino Blefari: In many ways, the cuts we make are not affecting the agents anyway. They should not be focused on whether the trash can is fuller or on the brand of coffee in the break room. As Candace said, they should be focused squarely on production. In our company, agents know they may not offer to reduce their commission to a client unless they clear it with their manager first. Even now, as our high-end market continues to erode, that rule alone improved our overall commission rate by five basis points last year.

Doug Ayers: I agree that most agents are responding well to the transitions-and that recruiting, when you have a solid direction, is not adversely affected. We picked up 300 experienced agents last year despite the reduction in office space. We know we will continue to thrive as long as we keep our eye on the ball and continue to make the necessary changes.

The Power Broker Roundtable is brought to you by the National Association of REALTORS® and Virginia Cook, NAR’s Special Liaison for Large Firm Relations. Watch for this column each month, where we address broker issues, concerns and milestones.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Read more NAR Power Broker Roundtables on RISMedia.com, see:

• A Forward Look at Real Estate in 2009  
  Recruiting in Today’s Market  
  Profitability in a Tough Market

However, affordability also includes operating the home after the purchase.

For a first-time buyer stretching to qualify, monthly cash flow is absolutely critical. They need it to pay the mortgage and they need it to live. These buyers frequently fit best with an older existing home with a few miles on it. Suppose you find them a 1970s home with the space the buyers need and a price they can reach. You are already getting a home inspection, so order a home energy audit as well. In some areas, the local utility company will offer a special deal on energy audits. The energy audit and the inspection may point out some cost-effective improvements that will make the home more reliable and less expensive to operate.

Great, now you’re going to ask the seller to fix all this stuff before they can even close, right? No, not right. If the seller has priced the home appropriately, compared with comparables in the neighborhood, the price recognizes these inefficient characteristics common to the other homes as well. There is a great underused loan product that can solve the problem. The FHA 203k, “with energy efficiency,” allows buyers to upgrade the house they are buying, finance the improvements into the loan and save cash-flow dollars each month. The savings even count as additional income for the qualifying ratios.

Step 1: Find a lender familiar with the loan product. The energy audit is the key. It must be an audit by a trained professional acceptable to FHA and the lender. They actually list the improvements they recommend as an energy professional, the likely cost in the local market and the energy cost savings based on local utility rates. The expert lists the facts and the buyer makes the choices.

Step 2: Get bids for the work and establish a firm price with the contractors. The lender will add the cost of the work to the loan amount. The buyer’s qualifying ratios are not changed to do this. The buyer will borrow the additional money, but usually the monthly cost of the added loan principal is less than the utility cash savings. The professional rating shows how this works.

Step 3: Go to closing as usual. The buyer pays the original price, the seller gets paid at closing, and the lender places the extra improvement money into an escrow account to be disbursed directly to the contractors when the work is done and the permits are signed. At this point, the transaction is closed and the real estate professional gets paid. The work will be done within a short period-usually no more than 90 days. Oh, and did we mention they may be able to get federal income tax credits and local government or utility assistance with the cost of the work?

Step 4: Enjoy. The buyers now have the house they selected, but major systems are upgraded. They do not face the prospect of the air conditioning going out next month or the bottom dropping out of the water heater in the middle of next winter. The utility bills are lower because the house and its equipment are more efficient. All this and they have a few extra dollars in their pocket each month. Their monthly house payment is a little higher each month, but the utility bills are enough lower to actually leave some cash in their pockets. RE

© 2008 EcoBroker International
John Stovall, M.S., and John Beldock, Ph.D. are with EcoBroker International and members of the Association of Energy and Environmental Real Estate Professionals.

While sincere, January’s “Happy New Year” salutations are usually exchanged with a lighthearted air…certainly, no deep-seated thoughts here.

For those of us in the real estate business, however, well wishes for the New Year carry a little more weight; for real estate professionals, the word “new” needs to be taken very seriously.

Why? Because everything about today’s real estate market is new-new challenges, new problems, new demographic groups…even new opportunities. This means, however, that we, too, have to get out there and do something new to survive.

No one is above this mandate-even 44-year-old real estate companies like Realty Executives. In this month’s cover story (page 94), learn how even a successful, proven company like Realty Executives realized that it needed a new look and a new strategy in order to continue on as one of the leading firms in this business.

“While we experienced significant growth during the last 15 years, I was keenly aware of the dangers of losing our differentiation in the industry as a result of the easy growth we all experienced,” explains Realty Executives President & CEO Rich Rector. “Therefore, in 2004 I challenged our leadership team to refocus and renew our brand.”

Refocus and renew. Whether you’re a broker, an agent team or a top-producing agent, we can all take a cue from Realty Executives. Finding new ways to operate in a new landscape is a must. In our special interview with LeadingRE President & CEO Pam O’Connor (page 35), she shares some spot-on insights into the changes real estate has gone through and what real estate practitioners can do to survive.

“Just as restructuring and changing the culture of the auto industry is essential to its long-term health, I believe that a different mindset in real estate will only be good for consumers and real estate professionals in the long run,” she advises.

As Pam points out, this “new” real estate landscape is not a bad thing for our industry but, ultimately, a good thing. So don’t let the newness intimidate you. Approach this year with confidence, a new mindset, and a new resolution for success.

Wishing you continued success,

John E. Featherston
CEO & Publisher

This letter is to share with you my thoughts on ways to help solve some of the foreclosure problems. How about this: the lender allows the owner to pay on current value amount at say, a 5%, 30-year amortized loan (giving some cash flow to the lender). The owner signs a modified deed of trust, giving the lender control over when and if the home will be sold (say, a five-year minimum) and when the home is sold, the lender will benefit from any increase in value over the reduced loan payment basis. This would give the lender the opportunity to regain losses it is taking now without any ability to regain anything. The homeowner would be able to stay in their home and could benefit in any equity earned under the reduction amount. I know there are more details needed, but let’s start the ball moving forward with some common sense before it gets much worse!

Barton Hyde
Broker/Owner
Boulder City, Nevada

“Is Goal Setting Holding You Back?”
www.rismedia.com,
November 25, 2008

The Ultimate Motivator

Well written, wonderful piece. As a habitual goal setter in pretty much all that I do, I find that it is almost a must for me to know the “why” of it. Shocking to see that the percentage of those who stick to their goals is only 30%. Nonetheless, setting goals not only drives me, but I am always so passionate about my “why” that I feel like a steamroller forging forward continually to cross the finish line and when I do, the next goal is already in motion. Driven, passionate, challenging and already having the second goal in place is the incentive for me-I usually cannot wait until one is completed, just so I can go onto the next. Goals are motivators, especially in real estate.

Diane Wyman
Realtor
Clarks Summit, Pennsylvania

“House Prices Must Return to Trend Levels to Stabilize Market”
www.rismedia.com,
December 4, 2008

Realtor Responsibility

This article accurately sums up what needs to be done to correct the over-exuberance that was displayed in the housing market. The only thing I disagree with is the structuring of the loans of those homeowners whose homes would be affected by this plan and would probably end up in foreclosure. I believe the lenders or holders of the paper on these loans should take the hit before the homeowners. Most homeowners relied on their respective real estate professionals to guide them through the process. If the real estate professional did not do their due diligence or make an effort to ensure that the client wasn’t over-paying for the property, who should ultimately be held responsible?

I personally saw too many people enter into the real estate profession during the housing boom that had only one goal in mind…make as much money as fast as possible without regard for the consumer.

I have two suggestions: first, require that “toxic” loans be restructured so that the homeowner has a chance to make payments, even if the terms are longer; second, increase the requirements to hold a real estate license and appraiser’s license. In addition, mandate that those in the title/closing business and loan originators be licensed as well.

Nick Chuckles
Real Estate Agent/Manager
Westerville, Ohio

Realty Executives and the Art of Supporting Professionals

By Maria Patterson

Forty-four years ago, the idea of forming a real estate company based on a 100% commission model was a radical concept-certainly nothing the industry had ever seen before. Today, decades after company Founder Dale Rector revolutionized the industry and put Realty Executives on the map, company President & CEO Rich Rector is keeping that spirit alive by reinventing the company with a fresh approach and a compelling value proposition.

When you’re fundamentally different right out of the gate, it’s hard to settle for anything else. As many companies adopted the 100% commission concept over the years, Rich Rector knew that the founding principles on which Realty Executives was created were something much deeper and more profound than a commission plan. “Our mission is to provide the best possible leadership, environment, support and tools for the Realtor who strives to be a productive professional in their career,” says Rector.

“It should not be news to anyone,” he explains, “that there has been an ongoing revolution in our industry in the areas of information technology, communication and delivery of services. However, one core theme endures, which is that easy access to helpful and relevant information, and guidance from knowledgeable professionals has compelling value to the consumer of real estate services. In 2005, we set about a process of reinventing our core support and communication services to do just that.”

Luckily, being a longtime part of the established company prepared Rector for the task with the gift of perspective. “We revolutionized the industry once before and we needed to make sure we continued to differentiate ourselves in a relevant and compelling way to do it again,” says Rector. “While we experienced significant growth during the last 15 years, I was keenly aware of the dangers of losing our differentiation in the industry as a result of the easy growth we all experienced.” In 2004, Rector challenged his leadership team to refocus and renew the brand.

According to Realty Executives Chief Operating Officer Glenn Melton, who joined the firm in 2005, “When Dale started the company, he built a company that catered to entrepreneurs who were capable of building a business and didn’t need a large bureaucratic burden. At the same time, those people sought low fees and an environment that offered real freedom to operate as they saw fit-and to do so in the company of other professionals.”

As various real estate business models emerged over the years, along with a growing skepticism regarding the role of the Realtor in general, home buyers and sellers, real estate professionals, and the industry as a whole were clearly looking for better solutions.

“We held a meeting with key thought leaders in the franchise community, our regional developers and our broker/owners to ask their perspective on the industry and determine if they were getting what they needed from our franchise,” says Melton. “This is a brand that always made sense from day one and instead of completely rebirthing the brand, we wanted to understand how we could use our founding principles and concepts in a more effective way for today’s business environment.”

Uniting the Masses

As independent contractors, franchisees are often “wildly independent,” says Rector. Succeeding in challenging times, however, called for gathering the troops, sharing the information, and proceeding under one banner. Now was the time to provide direction, hands-on support and proven success strategies.

This was a natural for Realty Executives, says Rector, a firm whose culture embodied idea sharing. “It’s inherent in our system,” he explains. “Because of the collaborative entrepreneurial spirit of our franchisees and the manner in which our system is structured, we are able to excel at the aggregation and sharing of best practices. Many of our competitors’ franchising philosophies are geared toward small territories, resulting in franchises within the same brand that are competing with one another, so they’re more reluctant to share and help each other grow.”

Because Realty Executives territory sizes are bigger and more exclusive, one would indeed argue that the brand lends itself to a more collaborative and sharing environment for agents and brokers alike.

Despite an ongoing atmosphere of communication and idea sharing, Rector observed many inconsistencies from one franchise to the next.

“The idea was to leverage appropriate consistency within the brand,” he explains. “There were tools and systems that needed to be standardized so we set about creating a plan for helping franchisees do just that.”
While the original thought was to offer a selection of tools for brokers to choose from, Melton discovered that was not what the membership really wanted after all. “Our brokers said they didn’t want to pick-they wanted to rely on us, the franchisor, to do the due diligence and make specific recommendations on best-in-class systems, whether it’s a drip marketing system, a website or whatever.

“The key in doing this is that you don’t want to have 30 different regions and 30 different solutions,” Melton continues. “It’s much better to have a central think-tank that’s coming up with the best in cutting-edge solutions that have a high reliability. We decided that tools and programs we rolled out must have economies of scale and must be proven effective.” According to Melton, a key part of Realty Executives’ value proposition is what they call the “big government vs. small government” model. “We wanted to provide integrated solutions for our Executives (agents) and broker/owners in a financially efficient model that leaves the most money possible in their check book to spend in their local market for the benefit of their customer.”

Critical to the success of the tools and systems Realty Executives put together for its constituents was their ability to translate seamlessly to the company’s three different layers: regional developers, broker/owners (or franchisees) and sales associates (known as “Executives”).

To validate what the brand’s standards should be, the senior management team put forth an all-out effort to gather information from its members-a group well worth tapping. As Scott Hurlock, executive director of franchise development, says, “Realty Executives is a model built by productive people, so it made perfect sense to go to our Executive population and ask them what they were using.”

“We were looking for a high-touch relationship through the aggregation and sharing of best practices,” says Melton. “We were uniquely situated for being that conduit for best practices through our quarterly regional developer symposiums, which gather our regional developer population for the purpose of idea sharing and rolling out new programs.”

“Our regional developers are an extension of us,” Rector explains. “They are the ones delivering the support and helping our franchisees and Executives learn how to do their jobs better.”

As a result of its field research, Realty Executives spent two years building an end-to-end suite of tools and support services for its members. “Now,” says Melton, “anyone who is serious about practicing real estate as a professional can get anything and everything they need to grow their business and achieve success.”

In an effort to connect directly with its membership, Realty Executives implemented a new strategy in 2008, and presented regional events across its territories. While typical attendance at an annual event has historically been in the 15-20% range, through its high-touch, regional effort, Realty Executives was able to connect with 85% of its broker constituency in 2008 and will do the same amongst both brokers and Executives to reach the masses in 2009.

“This gives us a chance to get in front of our associates in their home markets,” says Melton. “There is a lot of nuance in terms of what people need from market to market. At the end of the day, it gives us the opportunity to provide real leadership to our membership-real substance and support that will help them provide leadership to their clients.”

An Outsider’s Perspective

In addition to looking closely within, Realty Executives also looked outside of itself to further refresh and hone the company’s approach. By commissioning a nationally recognized branding firm to conduct an exhaustive branding study, Realty Executives was able to uncover the ever-important outsider’s perception of the brand.

“Your brand is how you’re perceived by others, not who you think you are,” says Rector. “A lot of research was done within the consumer realm and we got a read as to who people thought we were as a brand. We leveraged that and made sure we were doing and communicating the right things through our marketing efforts.”

The results of the branding study allowed Realty Executives to hone in on its “four brand pillars” to communicate what underlies the company’s brand. Those four brand pillars represent an innovative entrepreneurial spirit, trusted and effective advocates, a uniquely personalized experience and a connected, caring family. It also led to updating the 44-year-old company’s looks with a fresh design and new approach to its marketing and advertising. Over the last three years, the company’s in-house marketing agency has worked tirelessly to implement new branding initiatives into every corner of the company.

“Frankly, a lot of real estate companies look alike,” says Rector. “We wanted to make sure that we were different graphically, in our communication and in our offering-that’s when you are really positioned to make a move in market share.”

According to Hurlock, a key part of the company’s differentiation lies in its family-owned culture.

“The corporate world drives you in a very different way,” says Hurlock. “It’s about the numbers, not about the people on the ground. Our family culture, on the other hand, starts with the company owners and filters down to the regional developers and broker/owners, then right on down to the boots on the ground-the Executives.”

Prepared for Tomorrow

Looking to the year ahead, Realty Executives believes its renewed focus will serve the company and its members well. With a goal of growth that makes sense and profitability for all, Rector is confident his company is strongly positioned for decades to come.

“I see significant growth for the company, yet, by choice, we are not trying to be the biggest,” says Rector. “We are finding the right people in the right markets to help people understand that they have an opportunity to build something of real value in our company. That is our future.” RE

Realty Executives: From the Broker’s POV

By Stephanie Andre

- Steve Summers, broker/owner, Realty Executives of Kansas City, and regional director, Realty Executives Mid-America Region; with the company for 20 years
- Fafie Moore, co-broker/owner, Realty Executives of Nevada; with the company for 26 years

How does the Realty Executives model fit your needs?

Steve Summers: The model is designed for the real estate agent who wants to be in a truly entrepreneurial environment. At the same time, they want technology and training and support and systems in order to maintain and grow their business. But, they want all of that in an environment that allows them to be in control and have the freedom and flexibility to manage their business as they see fit.

What sets Realty Executives apart from other brands?

Fafie Moore: The core difference is the philosophy and ability as a franchise to allow the broker and agent to have freedom and control, but with tremendous support and materials. It’s unlike other franchises that give you support materials and tools while exacting high franchise royalties and dictating the size of your region.

Our philosophy is that you run your business the way that it will best suit your needs, but with the support and technology from the corporate level. In the past two years, we have exponentially increased the tools available to agents to enhance their businesses. It’s critical at a time when productive agents are looking for differentiation and opportunities to really move their businesses in the right direction with the least amount of additional expense.

How does the company’s family-owned culture affect you and your efforts for the brand?

SS: We all need the opportunity to get a third-party perspective. Sometimes you can’t see the trees through the forest. When people like Rich (Rector) and Glenn (Melton) are accessible to us, you get a broader perspective. Plus, with our model, we’re really able to tap into the ideas of other broker/owners and people like that-those are my resources. The real value proposition of Realty Executives is what you learn from others. Especially today, having to look for new ideas and opportunities, and doing something different-that’s where the information pool really comes in and is more important than ever.

How has the Realty Executives system helped support you and your agents in your local market?

FM: I see three things that are really available to me that no one else has:

• -  Rex 2.0. The marketing materials in this platform are so well designed. They’re not just created by some advertising agency. They were created by experts in advertising and the real estate field-and by people who understand our company and what our sales associates need.
  -  Executive Edge is another fantastic tool. It allows our agents to manage their contacts in a branded environment that offers lead follow-up-all in one arena. As the company’s branding changes, it will automatically change for you. Plus, it’s very cost effective for our agents.
  -  We also have Executive Access, a one-stop portal for all Realty Executives tools, services and information. Many people don’t have time to come into a class and, through KnowledgePoint (which is accessible through Executive Access), they can view and download educational content to help them in their businesses.

Those are the things that are the real differentiators. It makes it so our Executives can be out working with clients, rather than surfing the Internet for technology solutions.

How have the changes at Realty Executives over the past few years impacted your business?

SS: What I’ve noticed in the past few years is that it’s much more of a focus into the regions. They want to give you the tools and systems to grow the individual regions, because each is different and has its own needs. The real focus has been on the broker/owners’ development in the areas of recruiting and enhancing our quality to grow the company. They’ve done that in several ways: in how they have rolled out recruiting-what we call Executive Development-at the regional and broker/owner level.

Our regional meetings have also been vital in bringing greater participation at the agent level. Instead of trying to direct broker/owners and agents to a single point-because of the cost of transportation, etc.-it’s a lot easier if someone only has to drive a bit to participate.

How have the company’s new regional meetings made a difference in your business?

FM: Any time you can interface with your peers is helpful. The regional conferences are good because different regions have different issues. In our region, we usually meet with California. So, right now, both states are in more of a foreclosure market. We’re really able to address that and see how others are handling things.

What are your thoughts on the company’s new branding?

FM: Having the brand freshened gives us a new reason to contact people-so we can show them something new. It’s also very key when so many companies are barely able to stay in business. You think, that’s the kind of company you want to be with in times like this. This model has the flexibility to allow people to survive and prosper.

For more information, please visit www.realtyexecutives.com.

Op-ed by James Crumbaugh III

On a recent Sunday, I decided to forego watching football or going fishing. I even chose to ignore my “honey-do” list. Why? Because I wanted to get out and visit all the troops that were holding open houses in spite of all the negativity surrounding the $700 billion bailout.

When my wife asked me why I was going to spend my Sunday visiting open houses, I told her that when the day comes that a seasoned broker won’t go out and visit the troops in the trenches, that’s the day when that broker should no longer be a broker.

The purpose of my day of visiting open houses was to get a feel for how the Realtors who were holding these open houses felt about the real estate industry at this time in history and more importantly, how they felt about the massive $700 billion bailout.

For the most part, I think I can safely say that almost everyone agrees about the bailout. They hate it, but feel we have to do it. I also got the impression that almost everyone thinks that every man and woman in Congress should be thrown out of office, including both presidential candidates (at press time).

There are some really strong feelings out there right now. However, with all that I just shared with you, that’s not what hit home for me while I was out there visiting open houses.

I came away with such a feeling of respect and awe that it even surprised me. In hindsight, if I had stopped to think about what I discovered out there, I would not have been that surprised.

What was a slap across the head was who I discovered was holding the open houses. It was the pros-the top producers, the ladies and gentlemen who have been successful in real estate for years. Even though the traffic is light, they are out there scraping up all the buyers they can possibly find.

The average Realtor whom I spoke with has closed 30 transactions already this year (as of mid-October). Did you hear me? They have closed, on average, 30 sales this year.

Every day I hear from Realtors whining and crying and singing the blues about how they haven’t had any sales or maybe just a few this year, and you know what? I didn’t come across any of them holding open houses.
I’ve always said that 10% of the Realtors do 90% of the business, and if that Sunday didn’t drive that point home with a sledgehammer, I don’t know what will.

I know most of the Realtors in my area and I know who the pros are. I was just a bit surprised when open house after open house was being conducted by them.

Guess what else I saw that day? I saw three different buyers come into open houses while I was out there visiting them.

The real estate industry may be a little beat-up right now but it will come back-and when it does, the pros will be out there at the head of the line. RE

James A. Crumbaugh III is the CEO of Allison James Estates & Homes.

Owning Up
The author lost me with her first comments blaming the media for the problems we are in today with their negative reporting. That is like blaming the score keepers for losing the game. Until our industry-our entire industry-takes full credit for the role we played in this debacle, we will not become a positive force in making sure that we regulate ourselves to avoid these credit problems in the future.

The finger pointing at the media is misguided and I am sick of hearing it as a lame excuse for the downturn in real estate and the economy in general.

Don Oylear
Realtor
Mission Mountain Realty
Bigfork, Montana

“Struggling Homeowners Demand Bankruptcy Provisions as Congress Moves to Bailout Financial Industry”
www.rismedia.com,
September 24, 2008

Too Little, Too Late?
Thank you for highlighting what is possibly the most important issue facing our country. As I read your article, I could not help but sense the irony in the timing of the bailout. How many have already lost homes due to lenders not working with them rather than homeowners not working with the lenders? I personally know several people who have tried to get their lenders to work with them, but to no avail. I have a close family member in the industry who just came out of a Chapter 7 bankruptcy but may lose her home to auction next week. She has been looking for “real work” for a while, with no success, and her lender will not work with her unless she has regular paycheck stubs to prove income. If she loses her home, it will be just another one of many in the area. Stability is critical at this point! A $700 billion bailout could have staved off the mess we are in now had it focused on homeowners even a year ago.

Another point I have pondered: many REOs are being sold to investors, shifting the balance of homeownership in communities throughout the U.S. With increased rental activity often comes increased blight down the road. What will our communities look like in another few years? This also breeds a whole new generation of children who will be raised in a less-stable environment.

This article was amazingly important, and I felt compelled to respond in agreement with what was written. Please continue to push these issues to the forefront of conversation.

Heather Dennington
MBA, Broker/Owner, Realtor
Perissos Real Estate & Mortgage
Southern California

“Bailout: What Comes Next?”
www.rismedia.com,
October 1, 2008

We Do Not Need A Bailout
We need the “leaders” of business and the “leaders” of our government to stand accountable for the theft in office they have perpetrated against America. We need Americans to stand up and in one voice cry, “No more!” The gap between the stratospherically wealthy and the common citizen has never been larger. Record salaries have been paid to business leaders while they have been steering the country into this financial abyss. No more!

If I were to treat my own finances in the manner banking and businesses have mismanaged the public money, I would be bankrupt as well. The difference is, I would not be getting a bail-out of any kind. Rest assured, there will be no help for the average American in any bailout that takes place. It will be a bailout for the wealthy. It will change nothing. If these companies and the people who steered them on this course are not held accountable, we will be throwing taxpayer money out the door because nothing will change. More money will flow into the hands of a few who will once again simply demand more. No more!

Rian Dean
Consulting Realtor
Technology Coordinator
Keller Williams GCW
Westlake, Ohio

RISMEDIA, Oct. 14, 2008-Now is a time to face facts. In the past four months, research suggests that housing inventory has climbed to an 11-month-plus supply.

According to NAR, in fact, there was an 11.1-month supply of homes in June 2008.

As an industry, we need to come together to focus on the best strategies for getting this inventory sold. Putting new tools into the hands of home buyers-including the recently enacted housing stimulus package-is certainly expected to spark an uptick in the months ahead, but in the meantime, it is our responsibility to encourage sellers and agents to price properties correctly in order to start moving this abundance of inventory off the market. NAR has several consumer-focused tools available at www.REALTOR.org to help the cause, including publications like “It’s a Great Time to Buy, Getting it Sold,” and “Pricing Your Home to Sell,” and helpful toolkits, such as, “Tips for Pricing Your Home.”

In this month’s Power Broker Roundtable, panelists tell us why it’s so important to work with sellers to price properties correctly, and how this effort is critical to reducing housing inventory.

Moderator: Alex Perriello, Special Liaison for Large Firm Relations, NAR
Participants: C. Dan Joyner, Broker/Owner, Prudential C. Dan Joyner REALTORS®, Greenville, South Carolina
Robert Weber, President, First Weber Group, Greater Wisconsin
Pat Riley, President and COO, Allen Tate Companies, Charlotte, North Carolina

Alex Perriello: Bob, how important is the right listing price in your market?

Bob Weber: Well, according to the MLS in Central Wisconsin, unit sales were down 25% from July ‘07 to July ‘08, but the average selling price was down only 2%-so we haven’t had to face some of the huge price declines that other regions have faced.

Our agents put great stock in doing a detailed market analysis for each seller and showing them true comparisons. We take a four-stage approach when it comes to taking a listing: we show up, we listen, we tell them the truth-and if they can’t live with our suggested list price, we walk away.

Pat Riley: We understand that selling your home is an emotional decision. Some will say, “My neighbor got X amount a year ago, and my home is so much nicer than theirs.” They are not realistic about competing homes in their region. So we just put our sellers in the car and take them around personally to see the competition for themselves.

Dan Joyner: We all know that thorough market analysis and neighborhood price comparisons are the only way to set the right listing price-especially as the market keeps shifting. In fact, the last two months have been very encouraging. If a home is reasonably priced and market-ready, we are beginning to witness multiple offers within the first few days of the listing-but the right listing price is essential.

BW: Absolutely. The fact is, there hasn’t been a better time in years to buy that first home-or a second or vacation home for that matter. More and more buyers are beginning to realize that, and I think sellers are realizing it as well. They understand they have to be realistic to take advantage of what’s happening today.

PR: There’s another issue we point out to our sellers-the nature of the swing. That is, any dollars they may give up on the sale of their home, they will likely make up on what they buy. It’s a moot point, so pricing the property right in the first place is a win-win situation.

AP: So as sellers in general become more realistic, sales will continue to improve?

DJ: Yes, and as that happens, and the good buys are being snapped up, the number of homes on the market will decrease. That is precisely the situation we need in order to get back on track.

BW: Which brings us back to point one. Our agents know we need to walk away from listings where the seller has no urgency to sell, because those are the homes that will simply clutter up the marketplace.

PR: We also need to focus our energy on buyers-because we know there are plenty of them out there, wanting to buy and buy now. The sooner we can help our sellers to realize that, the sooner the market will return to more normal levels.

The Power Broker Roundtable is brought to you by the National Association of REALTORS® and Alex Perriello, NAR’s Special Liaison for Large Firm Relations. Watch for this column each month, where we address broker issues, concerns and milestones.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Read Previous Power Broker Roundtables on RISMedia.com:

• Real Estate Services- Are They Essential to Success? 
  Adapting Training and Education Strategies in a Challenging Market  
  How Top Agents Can Stay Successful in Today’s Market

Mind you, this was about the time the residential real estate industry was in complete denial about even the thought of a possible downturn in the market, and if there were a downturn, it was the sole fault of “the media.” Not that I would imply some Realtors were negative babies…

Having now spent a memorable 36 years in our profession, working in different parts of North America (listing, marketing and selling some of the most expensive residential properties as a “practitioner;” having successfully managed local, regional and national brokerage operations; and, playing key roles in corporate departments), I am convinced I’ve worked in just about every imaginable market.

I have also witnessed some pretty monumental changes in our industry (i.e., MLS data to a public platform, the explosive growth of technology and Web-based marketing, worldwide real estate networks, etc.).
And for some unexplained reason, a number of real estate professionals simply don’t embrace change as the constant it really is (versus an occasional occurrence).

Because today’s market reflects one of change, not unlike others I’ve been through, it becomes more and more obvious that:

• -The housing market is highly polarized-local and national markets are different. Know your specific market as an expert, and realize it’s your responsibility to facilitate satisfactory transactions-not create the market.
  -Success is not an accident; nor is failure. The most successful people are the people that think most effectively.
  -Thinking about your future will change the present-so make a plan.
  -You can get vastly more done in your work life simply by having a plan with bona fide goals to achieve, allowing you to work more productively.
  -Now, more than ever, properties need to be priced, positioned and marketed properly. No surprise there. People deserve expertise, results and value for services rendered.
  -Cheerful, positive people attract success, have lots of good friends-they’re more fun to work with.
  -Just pick a direction and provide overwhelming performance. Don’t worry so much about the market, global warming or tainted tomatoes. Be passionate about what you do, so other people have confidence in what you bring to the table.
  -And, don’t jog to the “finish line” this (or any) year. Sprint. Your 2009 plan needs to be in writing, too.

Every one of us came into this business with energy, enthusiasm, a really positive attitude and every expectation to be successful. In many respects, the same way we started our lives. We may have more challenges now than we had for a while, but it’s important to embrace the opportunities these challenges bring us today. RE

James P. Retz is the senior vice president of marketing and technology for Daniel Gale Sotheby’s International Realty.

To help real estate brokers implement and maximize these core business services, the NATIONAL ASSOCIATION OF REALTORS® (NAR) began a new initiative, the Real Estate Services (RES) program. By providing tailored communication, consulting services, economies of scale, cooperative ventures, and specialized marketing tools, the RES program helps large diversified brokerage firms reach their full potential.

“What makes RES unique is that we don’t just look at issues from the perspective of a real estate agent or broker, but from the perspective of all settlement services providers,” says Ken Trepeta, director, RES. “We address issues that affect the entire industry and provide a single resource with the expertise to address these issues.”

Launched in 2007, the RES program was created with input from the RES Task Force, comprising representatives from some of the largest real estate firms in the country. The task force reviewed NAR resources and identified products, tools, services, and strategic alliances that could be customized or repurposed for large brokers and affiliated business in the following areas:

• -Research, Statistics & Industry Analysis
  -Lobbying & Political Involvement
  -Regulatory Services & Affiliated-Business Expertise
  -Strategic Alliances & Cooperative Ventures
  -Marketing & Communication

Today, the RES group meets regularly with its Advisory Board, which includes top leaders from the largest diversified brokerage firms in the country, to gain insight on important issues that affect their businesses. Recent issues RES has worked on include:

• •Housing Stimulus Bill. NAR has been a leading advocate for many of the changes in the massive housing bill signed into law by President George W. Bush on July 30. These changes include reform of Fannie Mae and Freddie Mac with improved oversight, FHA modernization, permanent increases in conforming and FHA loan limits, and a temporary tax credit for home buyers. RES firms have played an important role in advocating for modernizing FHA and increasing loan limits by meeting with senators and representatives.
  •RESPA. RES has also worked with HUD for greater RESPA transparency, simplicity and education. It has provided comments on all aspects of the proposed RESPA rule, not just those that pertain to agents.
  RES has also been very active working with 10 industry trade groups and Congress in writing a joint letter on July 31 urging withdrawal of HUD’s RESPA proposal in its current form. NAR and the trade groups want HUD to work with the Federal Reserve Board to harmonize RESPA and Truth in Lending Act mortgage disclosures.
  “In our comment letter, we focused not only on issues that affect REALTORS® directly,” says Trepeta. “We addressed issues that affect title companies, mortgage providers, warranty operations, and other settlement services.”
  •2008 REALTORS® Conference and Expo. On Friday, November 7, RES will host a forum entitled “RESPA Reform: What’s Next?” during the 2008 REALTORS® Conference and Expo in Orlando. A panel will be discussing the status of HUD’s current proposal, potential pitfalls, and other RESPA issues important to brokers.
  •RES Webpage. NAR recently launched a webpage to better serve diversified brokers and their affiliated businesses: www.REALTOR.org/RES. You’ll find a variety of resources to support your key business objectives, including newsletters, updates on hot topics, information on key industry issues, market reports and analysis, and background information on RES and the RES Advisory Board.

Re:sources
www.REALTOR.org/RES

Short Sales Fall Short -I listed a short sale in early May 2008, and enlisted the assistance of a short-sale consultant who came highly recommended and charged me an upfront fee of $300. The subject property is a condo with both a first and second mortgage totaling approximately $410,000. The market value in May was roughly $300,000. The fully completed package was submitted on May 8, 2008. The mortgage company ordered the BPO on June 10, 2008. It is now August 18 and we still do not have a response.

Since May 8, we have had four offers, however, as of today (August 18, 2008), all the buyers have withdrawn their offers and have moved on with their agents to other non-short sale properties.

The seller has vacated the property. She has kept the utilities on and has paid the HOA fees as we were told that the mortgage company will not pay HOA fees. However, she has advised me that if we didn’t hear a response by September 1, she would stop the utilities and no longer make the $300 HOA payments, which will further complicate the sale.

The last payment was made in March 2008.

In the meantime, the sale price has now dropped an additional $50,000.

When this is over, I will not list or show another short sale. They just aren’t worth my time and money, and many other agents feel the same way.

Rita Strickroth
Realtor
Glendora, California

“Using the Untapped Power of the MLS”
Real Estate magazine, August 2008

I Want My MLS – I have been a Realtor in Ocala, Florida, for over 23 years and know how important the Multiple Listing Service is to me.

The mere thought of not having an MLS is ridiculous. If sellers, buyers, builders and Realtors think it is our most effective tool, then who is it that thinks differently? And are they really active in the real estate market on a day-to-day basis? I get annoyed when I read that the real estate market is being taken over by the Internet! Excuse me, how is the Internet going to give personal service, water the plants for sellers, shop for service people for last-minute repairs, take care of all the closing issues that can arise…and the list goes on?

These things are done by Realtors-professionals who belong to the MLS and can work together with other Realtors for the common good of buyers and sellers. Who thinks they know a way to give more exposure than through the MLS?

Carolyn L. Smith
Realtor
Ocala, Florida

“Housing Rescue Package Signed Into Law”
Real Estate magazine, September 2008

New Bill Not Much Help – I was told that the changes made through the housing bill also included that FHA was going to require 3.5% down instead of the normal 3%. Also, that they were eliminating DPA programs, which would cut off any help someone might need to get their down payment.

I don’t understand how this can help much. The tax credit is not needed a year later when you file your taxes but on the front end for the down payment or other things required to close the loan. I really don’t see how this act will help at all. According to a recent article I read, even the standard conventional loans with no DPA have defaulted just as much as any other loan program. I think they should leave everything alone and let the market correct itself.

Creating and keeping more jobs in the United States would help the economy more than anything. Not a tax credit that has to be paid back.

Lynne Woodard Ross
Realtor
Murfreesboro, Tennessee

RISMEDIA, Sept. 22, 2008-Those who follow the news of the housing market closely know that, over the past few years, Manhattan has bucked the downward trend of U.S. residential real estate as its property values climbed and luxury properties sold with alacrity. But as the skies darkened over the rest of the country, anxious eyes turned toward Gotham with a growing sense of unease; pundits received the news of Manhattan’s steady progress with a “when-will-the-other-shoe-drop?” dread.

In 2008, we’ve begun to see a slower pace of sales as the credit crunch rocked the financial industry and buyers have found it more challenging to obtain mortgages. How deep these events will strike at the market nobody knows, but they sharpened a demand for greater and more accurate data that was whetted by the events of September 11, 2001 and has grown steadily over the last seven years.

The Corcoran Group produced its first Corcoran Report in the early ’80s and ever since the company has been well-established as an authority on residential real estate activity in New York. But over the last seven years, reports have proliferated and there are now a number of competing voices that circulate such data. Without a single objective resource to turn to for verification, consumers may not know what to believe.

That’s why, in order to capture the fullest and most accurate data-set we could, Corcoran approached PropertyShark.com about becoming our collaborator in producing The Corcoran Report.

As the landscape of Manhattan’s residential market has shifted over the last eight years from one dominated by cooperative buildings-where residents own not real property but shares in the cooperative-to one increasingly influenced by a wave of new condominiums offering individual ownership, reckoning market data has become even more complex. We have sought to inform homeowners about the relative value of their property while also educating potential buyers about what they might spend for different property types, but it is impossible to contextualize the average home within a sales environment increasingly dominated by luxurious new condominiums.

To address that gap, we made two fundamental changes to the way we approach our data. The first involved regarding all of the transaction data with a healthy dose of skepticism and seeking confirmation from PropertyShark about the information we possessed. We carefully combed through both data sets, eliminating duplication, resolving contradictions, isolating only arms-length sales and combining them into a final list of closings.

Second, we chose to separate resales from new developments for the purpose of generating statistics. New development closings typically lag behind the market by one to two years and are, therefore, a poor barometer of what happens when a seller lists the home he/she has lived in for 10 years.

Moreover, brand-new, highly amenitized luxury properties are much more likely to sell at a higher price point than the average property competing on the open market. In the Q2 Corcoran Report, therefore, we examined resales in isolation while our colleagues at Corcoran Sunshine analyzed new development property sales.

All of this comes at an important moment. There has been much discussion of the slower level of sales activity this year and, with sales off 38% from the same time a year ago, the second quarter provides perhaps the starkest example yet of the caution that has overtaken the market.

By contrast, Manhattan prices continue to appreciate in both the resale and new development arenas, demonstrating once again the resiliency of residential real estate values in the borough. It may be difficult to say where things are headed, but fortunately for the public, market activity has become more transparent than ever.

Pam Liebman is president and CEO of The Corcoran Group.

For more information, visit http://www.corcoran.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

For more real estate tips and topics, see:

• The Short Sales Series – A Recap From Top to Bottom  
  Targeting Multicultural Customers – How to Get the Right Infrastructure in Place

RISMEDIA, Sept. 15, 2008-There is a good reason why the term, “one-stop shopping” has become an icon in American business. Whatever it is they are shopping for, consumers have made it clear they want to save time and save money by completing each transaction in the most efficient way possible. Nowhere is that truer than when buying or selling a home. That’s why NAR launched its Real Estate Services (RES) program in 2007. The program, developed with guidance from a task force made up of powerhouse real estate professionals, is designed to help brokers implement and maximize such core services as mortgage operations, title, escrow and settlement services, insurance and home warranty and inspection services into their brokerage businesses. We asked this month’s Power Broker Roundtable panel how important these services are to a successful brokerage.

Moderator:
Alex Perriello, Special Liaison for Large Firm Relations, NAR

Participants:
Bob Moline, President and COO, HomeServices of America, Minneapolis

Helen Hanna Casey, President, Howard Hanna Real Estate Services, Pittsburgh, Pennsylvania

Gerard Griesser, President, The Trident Group/Prudential Fox & Roach Realtors, Philadelphia, Pennsylvania

Alex Perriello: How meaningful are real estate services to the growth and success of your brokerage?

Bob Moline: The entire business model of HomeServices of America is built on the need for integrated service. Time is precious to all of us and surveys tell us that more than 70% of today’s buyers and sellers want a one-stop shopping experience. When they go to a big box store, they want to buy groceries, get their eyeglasses made, buy grandma’s birthday present and have some lunch all in the same place. In buying a home, the same thing is true. They want to deal with a single entity who can successfully coordinate-and stay on top of-every aspect of the transaction.

Helen Hanna Casey: That is certainly true-especially when that anxious client calls you at home at 9 p.m. because he wants to know how every piece of the transaction is progressing. The concept of integrated services has been ingrained at Howard Hanna since the inception of our business because we know how important it is for that person to have all the answers at his or her fingertips.

Gerard Griesser: It stands to reason that obtaining all of their home-buying services from one source makes the process easier and less burdensome for the consumer. At Prudential Fox & Roach, we believe that having a fully integrated company is a point of differentiation for us in the marketplace.

AP: So the one-stop-shop approach is as important for the company as it is for the consumer?

BM: Absolutely-and not just as a profit center. Quality service and real estate professionalism simply aren’t enough anymore. With an integrated operation, there is far less likelihood of an issue arising at closing time.

HHC: Everything is dependent on sales, of course, because it is sales that drive the business to the rest of your operation. That said, the company looks at each transaction as a whole. In providing a smooth, one-stop, home-buying experience, we know we are building a relationship with that client, and the client will come back to us time and again-and send their friends.

GG: At the same time, the additional profit centers are a necessary part of our business growth. They provide the financial fuel that helps us to maintain our dominance in the marketplace-and give us the means for the enterprise to control its destiny even in challenging markets.

AP: But not every brokerage handles these profit centers in the same way?

HHC: No, not at all. They may be company-owned, they may be partnerships, they may be partial ownership or even rent-a-desk. But the benefits, both for the brokerage and the consumer, are an undeniable plus. That’s why NAR’s Real Estate Services Program is such a timely and helpful resource. Whatever works for you and your company will bring added value for your clients.

The Power Broker Roundtable is brought to you by the National Association of REALTORS® and Alex Perriello, NAR’s Special Liaison for Large Firm Relations. Watch for this column each month, where we address broker issues, concerns and milestones.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Read Previous Power Broker Roundtables on RISMedia.com:

• Adapting Training and Education Strategies in a Challenging Market
  How Top Agents Can Stay Successful in Today’s Market
  Marketing to Reach New Consumer Segments

RISMEDIA, August 19, 2008-It’s no secret that a number of inexperienced real estate agents who came aboard during the most recent market upsurge have since left the industry. For seasoned agents, today’s challenge to stay successful is often a matter of combining tried and true business strategies with gaining expertise in new areas. Many are taking advantage of NAR’s vast offering of educational and technological resources-including certification opportunities and continuing education courses in all phases of professional development, which you can peruse at www.REALTOR.org/education. This month’s Power Broker Roundtable participants share their views on how experienced agents are staying ahead of the curve.

Moderator:
Alex Perriello, Special Liaison for Large Firm Relations, NAR

Participants:
Alan J. Smith, RE/MAX Professionals, Denver, Colorado

Diane Turton, Broker/Owner, Diane Turton Realtors, Monmouth Co., New Jersey

Darren Kittleson, Supervising Broker, Keller Williams Realty, Madison Wisconsin

AP: What are you doing in your office to ensure your agents continue to stay successful?

Alan Smith: In our company, we’ve started a three-fold training program that meets weekly and focuses on three key issues: retraining in basic sales strategies; making the most of relationship selling; and working more effectively with sellers. We had a great May and June in the Denver area because the fact is that good houses priced right are selling-and there are great buying opportunities that really pay off when an agent stays in touch with past clients.

Diane Turton: On the Jersey shore, we are basically selling lifestyle. Homes that were listed at $1.2 million a year or two ago can now be purchased for $800,000. Those opportunities really pay off for experienced agents who have a big database of past clients to contact. At the same time, we place high value on nurturing sellers. It is not always easy to call your sellers, especially when times are slow. But by keeping them informed about what’s happening in the market, we help them to stay grounded in reality and that can be the key to successful selling.

Darren Kittleson: Experience does count. In the Madison area, we’ve lost 15% of our agents in the last 12 months or so, but we have not lost an experienced agent in four years or more. That is not just because they have a bigger database, but because we work with these agents to help make the most of that advantage. Our corporate office recently started a weekly Power Hour, featuring tips for calling past clients, ways to expand your database, and reporting results from increased activity in these basic strategy areas.

AP: So experienced agents do have an edge in today’s market?

AS: Absolutely. They’ve seen it all before. They have likely put a few bucks in the bank, and they’ve learned to adapt as the market changes. Most of all, they are always looking to sharpen their skills. They make the most of “downtime” by taking an online class, either ours or through NAR, that can give them an edge in a specialized area such as relocation or high-end sales.

DT: Our agents know that relationship selling will help them stay competitive and successful. Relationship selling means lots of phone calls and lots of hand-holding, and experienced agents know how to do that with grace. Frequent phone calls not only inspire trust and confidence, but they are the surest way to generate leads and continually expand your database.

DK: Our most experienced agents also know the value of keeping clients informed about marketing resources and services. One of the basics in this industry is simply to ask for referrals, and that is something our experienced agents are more inclined to do. One of our offices campaigned to do that recently, and took 18 listings in seven days. Success is often a matter of doing what you do best-and doing it even better in the clutch.

The Power Broker Roundtable is brought to you by the National Association of REALTORS® and Alex Perriello, NAR’s Special Liaison for Large Firm Relations. Watch for this column each month, where we will address broker issues, concerns and milestones.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

To read last month’s NAR Power Broker Roundtable, see:

Adapting Training and Education Strategies in a Challenging Market

You and your agents have a lot on your plate, whether it’s listing properties, generating leads, managing clients and transactions or keeping up with the latest trends. To help you become more productive and informed, the NATIONAL ASSOCIATION OF REALTORS® (NAR) offers practical solutions for the publications, products and services you use every day.

“Our REALTOR Benefits® Program is extremely well-rounded,” says Kristin Stafford, managing director, Strategic Alliances. “We’re always enhancing the offerings by adding new partners and products so there’s something for everyone-whether you’re just starting up, a seasoned agent or an established broker. You save time and money by taking advantage of these unique and valuable offers.”

Your Realtor Benefits Program

The Realtor Benefits Program is your member benefits program. NAR has partnered with more than 30 companies-recognized as leaders in their respective industries-to provide you with value-added offers and significant savings on products and services you use on a daily basis. These partners cover a wide variety of areas, including marketing, technology, insurance and warranties, financial services, office solutions, education and travel.

-Marketing. Marketing partners can help you increase exposure for your listings, find leads, keep in touch with current customers and enhance your promotional campaign.

For example, eNeighborhoods’ marketing tools allow you to create high-impact marketing materials, presentations and reports, including professionally designed, ready-to-print buyer tours, neighborhood reports, CMAs, flyers and maps/aerials for any U.S. neighborhood.

Some program partners offer discounts on products that make great closing gifts. For example, Lowe’s offers a 5% discount on gift cards and a free marketing system that allows you to send customizable direct mail and e-mail that deliver valuable coupons, tips and ideas to your buyers and sellers.

-Technology. Technology certainly plays an important part in the life of brokers and agents. NAR members receive discounts on computers, peripherals and electronics from companies, such as Dell and Lenovo. Members can also save on virtual voicemail systems and online transaction management tools, such as RELAY®. This transaction management system allows real estate professionals to easily connect with buyers and sellers through a custom-branded transaction website.

-Insurance & Warranties. Partners in this category can help you with all of your insurance and warranty needs, whether you are looking for health and wellness options, Errors and Omissions, auto and home insurance or home warranties.

-Financial solutions. Distinguish yourself as a Realtor with the official Realtor Platinum Visa® or the new Realtor Business Visa from Chase. They come with no annual fee, a low APR, a 5% discount on all purchases at the REALTOR.org Store, and free Chase reward programs.

-Office solutions. Our partners can also help NAR members streamline office operations inexpensively and efficiently while exceeding customer expectations. Companies such as FedEx, Xerox and Pitney Bowes ensure that daily printing, mailing and shipping efforts are in good hands.

-Other solutions. Encourage your agents to distinguish themselves with certifications and designations, such as the e-PRO® technology certification program, ABR and SRES, by taking advantage of special pricing on educational tools. And, if you or your agents need a rental car for a business trip or family vacation, Avis, Budget and Hertz provide special rates and discounts to NAR members.

Re:sources
REALTOR.org/RealtorBenefits
REALTOR.org/Store

Clearly, now is not the time to be average. Attracting consumers in today’s economic climate takes something different-something that warrants the investment of their hard-earned and shrinking dollars.

Sherry Chris has employed “different” in every aspect of the formation of the recently launched Better Homes and Gardens Real Estate franchise. From the overall look and feel to the actual deliverables themselves, every facet of the brand was built with the intention of offering consumers a new real estate experience. As Chris writes in this month’s cover story (page 108), which journals the creation of the brand from the executive team’s unique point of view, “…This would not be a brand built inside a design studio. It needed to deliver usable information to brokers, agents and consumers and, furthermore, it needed to be real.”

And that is exactly what consumers currently need most-real information. One area of need in particular resides among today’s rapidly growing multicultural markets.

To help in this effort, RISMedia has partnered with multicultural marketing experts The Gonzales Group, to introduce a groundbreaking White Paper, The New Economic Power Source: Increasing Profitability with Multicultural Homebuyers. This report expertly demonstrates how implementing a multicultural initiative will generate sales and increase market share. Learn more and find out how to order this White Paper on page 38.

But multicultural markets are just one avenue. To truly rise above the pack, agents must begin meeting the informational needs of consumers across the board.

As a veteran provider of real estate information, RISMedia is preparing to partner with agents in a comprehensive effort to deliver relevant information to consumers on their behalf. On page 37 of this issue, you will find the announcement of RISMedia’s Top 5 in Real Estate. Through the Top 5 in Real Estate network, agents will become invaluable conduits of information to their clients, prospects, local and national media. By meeting membership criteria and becoming providers of leading real estate information, Top 5 members will instantly be recognized as way above average. Stay tuned as we roll out more details.

Wishing you great success in the journey,
John E. Featherston
CEO & Publisher

“Power Teams Excerpt: Teaming Up with Your Broker for Mutual Benefit”
www.rismedia.com
July 4, 2008

Agent Teams? Brokers Beware

With all due respect, the five benefits you mention that a broker can expect from a team are great in theory and in theory only. In practice, large teams are often paid such large splits that the broker is only making money on other core services like title. Gross revenue is fine but retained company dollar is the critical measure. Teams contribute little to that and require a great deal of broker attention.

Sure, more yard signs are out there and there is personal promotion going on, but most large teams minimize the broker’s brand and presence so much you can barely tell they have a broker at all.

As far as improved customer service is concerned there is no guarantee that large teams do any better at this and most brokers don’t measure service anyway. The 500 Quality Service Certified companies do measure service but that leaves the majority of companies hoping blindly that consistently good service is being delivered. Not a good strategy for a service business.

Brokers that become dependent on large teams are opening themselves to risks that can jeopardize their existence and certainly, their profitability.

Lane Barnett
Barnett Consulting Group
East Lansing, Michigan

“Budgets-They Aren’t Working”
RISMedia’s Real Estate magazine,
June 2008

No Hope for Small Brokers?

I agree with your article, but it is extremely hard to put a budget together in a declining market. I own a small and shrinking company in Cleveland, Ohio. Sales are down, prices have dropped and commissions are not what they used to be. The larger companies are paying lower co-broke fees. Bank-owned properties don’t pay really well, most of the time. We have downsized the office as far as we can go. We have looked at every contract we have. Six more months to own the copier. My phone lines are at a minimum and I am using a better provider at a cheaper rate. No more leasing. Cut back on advertising including Realtor.com. The receptionist is gone to voicemail. I no longer take a salary. In fact, the last three years I didn’t pay myself until May.

I have talked with other small brokers about merging. The sad truth is the large companies may have finally beaten us all out. Quality people are leaving the industry. I am watching some small brokers give the house away trying to stay afloat only to sink their ships faster. Once you have trimmed all the fat, all you can do is hang on and try to weather the storm. After 24 years in this business I am at a loss for how to project future budgets and even existence.

Maybe it is time for my second career. Only problem is, I can’t sell all the real estate I invested in for my future.

Sandy Maline
The Advantage
in Real Estate, Inc.
Cleveland, Ohio

RISMEDIA, July 8, 2008-Whether you call it going back to basics or resorting to “old school” techniques and tactics, the training now offered to many agents is a stark reminder that success comes from knowledge and tried and proven strategies, coupled with the utilization of new technology and marketing tools. NAR has a variety of learning tools to help brokers and agents stay on top of their game in a changing market, including REALTOR® University, continuing education, designations and professional development opportunities, toolkits, field guides and more. Visit www.REALTOR.org/education for more information. This month’s expert panel shares their views on how the right education and training can benefit consumers and agents.

The Power Broker Roundtable is brought to you by the National Association of REALTORS® and Alex Perriello, NAR’s Special Liaison for Large Firm Relations. Watch for this column each month, where we will address broker issues, concerns and milestones. 

Moderator: Alex Perriello, Special Liaison for Large Firm Relations, NAR

Participants:

• Bill Riss, CEO, Coldwell Banker Bain and Associates-Mercer Island, Washington
• Rick Haase, General Manager, Prudential Gardner Realtors-Metairie, Louisiana

Alex Perriello: What type of training and education strategies are you offering agents given today’s market conditions, and why?

Bill Riss: We have held several agent “summits” throughout the company to address the changing dynamics of the marketplace. These summits are designed to help the agent refocus on strategies and tactics that had all but vanished in the sellers’ market of 2003-2006. A few examples: offering buy-downs as opposed to price reductions; correctly analyzing “demand” in a price point or neighborhood; benefiting from leveraged investments and proactive marketing (SOI, farming, social networking, etc.).

Rick Haase: Our market has certainly been through a great deal of change and, as a company, we have responded. Within the last year, we have hired a very experienced director of training and education, developed a curriculum and launched a new series of highly interactive workshop-style courses. We designed the courses to help our sales professionals cope with today’s issues. The courses are organized by tracks, such as Technology & Web-Based Business Development, Buyers, Sellers, Business Planning, etc.

AP: Have these strategies made a difference in boosting your productivity, profits and performance and, if so, how?

BR: Individual productivity of those who attended the summits is difficult to gauge in a contracting market, but agent reaction has been enthusiastic. They relayed feeling positive, better equipped, energized and motivated to return to “old school” real estate activities. Anecdotally, we believe we were very effective, in that we certainly heard success stories as a result of utilizing these tactics.

RH: While we have always offered educational courses, these new course offerings are raising our sales professionals’ appreciation of Prudential Gardner Realtors. Helping them see light at the end of the tunnel has raised morale and increased motivation, too. We are teaching them how to manage their business expenses and cope with tough market conditions. We are also teaching our people how to use more of the tools and services we have had in the company awhile.

AP: What is the biggest challenge you’re encountering in offering these strategies and urging agents to utilize them?

BR: We haven’t had to urge agents to utilize the strategies because they have been eagerly embraced. We have estimated that nearly half of our agents had never experienced a contracting market-and that agent segment was more than anxious to learn and apply these strategies because they were at a loss as to what to do. At the same time, experienced agents recognized the importance of reacquainting themselves with these market-critical concepts. Every summit (there were three) was promoted as an “event,” and each was SRO.

RH: We have a large organization with more than 1,300 sales professionals. It takes a huge effort to get the courses built and everyone deployed to the point that behaviors actually change in the field. We use the Plan-Do-Check-Act process created by William Deming, the father of Total Quality Management in America, to assure continuous improvement. RE

Health and fitness has always been a way of life for Realtor Deanna Slep-from the martial arts to speed skating and teaching aerobics. If taught at an early age, she believes a healthy lifestyle can become second nature to everyone, just as it has for her. For the past several years, Slep has been participating non-competitively in inline skating events such as the World Cup, St. Paul and Disney World marathons. Recently, however, Slep has begun to spread the word to her local community.

“I’ve always been very conscious about health and how important it is,” says Slep, team leader of RE/MAX Executive Realty’s Team Go-Getter. “Our society has become so on-demand from the ‘convenience’ of drive-throughs that we really need to focus more on home-cooked meals and exercise.”

After working as a CPA directly out of college, Slep followed in the footsteps of her mother, finding that a career in real estate was a better fit. Ten years later, Slep can be described as someone who not only worked her way up through the ranks, but has also successfully found a career/life balance. The same holds true for her recreational activities once her work at the office is complete. As a mother of two young children, the trick, she says, is a matter of organization and delegation.

“I’ve worked for years on breaking everything I do into a system and creating a checklist for each task at hand,” says Slep. “So when it comes to getting involved in the community, you have to stick to what you’re passionate about. That way, when you begin to help others, you’ll feel good about it.”

That’s why when the opportunity to sponsor the 17th Annual YMCA Healthy Kids Day arose, it seemed to be a perfect fit for Slep and Team Go-Getter. Held at the local Harris YMCA in South Charlotte-one of the 1,800 participating YMCAs across the country-the event was designed to encourage kids and families to play more, make healthy food choices and build stronger relationships at home and in the community.

“What’s great about this event is that it caters to families and as a real estate agent, that’s really what our main purpose is-to help families,” says Slep. “I had been looking for an outlet to host a client appreciation event for some time and felt it was a perfect match.”

The day was filled with activities that included inflatable bouncy houses, the RE/MAX Balloon, martial arts demonstrations, face painting, live music, free give-aways, numerous health-related vendors and much more.

“We had a lot of people come out for the event; it was a lot of fun for everyone,” says Slep. “It’s really important to put yourself out there because it all comes back to you.”