Traditional brokerage is 'terminal'
Letter to the Editor
By Inman News, Monday, July 6, 2009.Re: 'New brokerage model: from bust to boom' (June 30)
Dear Editor:
Today there is only a very limited number of individual Realtors who have moved away from the "traditional" marketing to a more consumer-centric approach.
Buyers have taken control of the home-buying process; do not want to talk to a Realtor (salesperson); and want to be serviced. While we have consistently produced a volume of homebuyer leads for our clients, we have seen the difference between the Realtor who successfully addresses the consumer's needs and those who continue to employ the "traditional" approach.
Yes, you are right. The traditional brokerage is terminal. I doubt that many of the existing companies will survive because the required changes are massive, not only from a marketing standpoint but also from a personnel standpoint.
Glenn Weilbacher
GAW Associates
St. Augustine, Fla.
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Submitted by John King on July 7, 2009 - 4:11am.
How would you define traditional versus non traditional.
I separate brokers that still use push marketing versus pull marketing. Push is dead.
Submitted by Glenn Weilbacher on July 7, 2009 - 4:56am.
John,
PUSH is definately TRADITIONAL but the next generation marketing is not just pull. It is BRANDING BY WHAT YOU DO not what you say. In recent years we have seen Realtors and brokerages respond to buyers needs by providing access to the MLS listings. But, listing agents continue to upload listings with limited photos and poor descriptions. Some MLS's now require more than a minimum of two photos. In my area half the short sale listings only have one photo. The ability to view listings is the number one issue of home buyers. Number two is an ability to VIEW the neighborhood and learn about the neighborhood charactoristics.
The new marketing paradigm is BRANDING BY ACTION, by what you offer the buyer. In so doing you are also satisfying the needs of the seller by exposing his home listing to a broader audience of buyers.
Glenn
Submitted by Jim Lee, Knoxville TN Realtor on July 7, 2009 - 5:13am.
Innovators and practitioners using pioneering and non traditional means of attracting buyers and sellers have almost always had the advantage over the "old way" guys.
I don't see that changing much in the foreseeable future.
Jim Lee, CRS, ABR, GRI, NAR Certified e-PRO Trainer
Realty Executives Associates, Knoxville, Tennessee
www.KnoxvilleHomeCenter.com mailto:Jim@JimLee.com
(865) 693-3232, My Personal Toll Free # 1-800-662-2488 ext. 163
**********************************
Submitted by Glenn Weilbacher on July 7, 2009 - 5:24am.
Jim,
Right on!! My next generation web site is achieving a conversion rate of over 12% and it is experiencing a daily re-visit rate of 25 to 35 buyers. Page veiws per visitor are averaging 4 to 5.
Submitted by Wenceslao Fernandez Jr, BS, Realtor, CDPE on July 7, 2009 - 11:02am.
I feel it is a lot more suttle than just pull.
The buying process in the human psyche takes a complex array of factors, shapes and forms over time.
There is the DISC (http://en.wikipedia.org/wiki/DISC_assessment), understanding of who the buyer is and there are different ways to approach each of those buyers at each of the stages of the buying process.
I believe most will agree that almost nobody likes being sold and that they all listen to the same radio station: WIFM (What's In-it For Me), as I learned at a (Craig Proctor) event.
Nobody typically cares about my accolades or weather I'm #1 (as most agents claim to be). They only care about what I can do for them and how am I different to everyone else.
From the moment the idea to abandon tenancy to become a homeowner germinates in a potential buyer's mind to the moment they actually decide they're now officially shopping for a home to buy, to closing on their first (or move-up) home, each step along the way triggers different reactions and their reticular activator (that thing in everyone's mind that begins to see what their concious and subconcious mind is looking for - just like when you drive out that special car or buy that special dress or shoes and suddenly notice several others just like it), and the messages to "pull" them need to be sent in ways that addresses each of the antennas you're trying to reach according to DISC and their stage in the buying process.
In the end...the days of simply using for sale signs or open houses to attract people are basically gone. Though still valid, Gen X/Y buyers will use other technical approaches to finding property and information about the process.
All together make up the new requirements for doing business in the 21st century.
Certified Distressed Property Expert
http://MiamiRealEstateKing.YourKWAgent.com
BLOG: http://MiamiRealEstateKing.WordPress.com
Twitter: http://Twitter.com/RealMiamiEstate
Miami / Miami Beach, Florida
Submitted by Joellen Chappell on July 7, 2009 - 11:49am.
Joellen D. Chappell
Broker
I love reading that we are "terminal". The new vocabulary, the new way to attract clients, all the technology available from both sides has definitely changed the real estate business. And for the better. But what hasn't changed over the course of my very long career, is what the clients want. They want us to communicate well and often; whether by text, FB or email, they want us to be extremely knowledgeable; they want us to be there for them throughout the entire ordeal; they want to feel valued.
What is "terminal" are the people in this industry that look at clients as a "commodity". They're not. They are real people with real needs that we are in a position to help. Judging success by the number of transactions a person does has always been the norm. But what success really is, is having the same client buy and sell homes with you over a 20 year time span. AND their kids coming to you to help with that first home purchase. THAT is success!
Submitted by Glenn Weilbacher on July 7, 2009 - 1:23pm.
We are talking about the traditional brokerage. The brokerage that hires as many licensed bodies as possible and turns them over on a regular basis. The same brokerage that is utilizing a marketing approach that died years ago. Very few buyers care whether you are REMAX, Prudential or GMAC. What they care about is the service you give them starting at the beginning of their home search with MLS access and neighborhood information made available on your web site. Then when they finally are ready to talk to you they want to hear the details about the homes they are interested in and about how you are going to assist them with the home buying process. Every step of the way we (Realtors) are being evaluated. The success that Joleen speaks about is the result of a Realtor doing everything right on behalf of their customers. Most successful Realtors are those that manage to retain their customers "for life". That only happens when both the Realtor and the brokerage provide professional services and top notch customer service. The successful brokerage hires the best personnel and provdes training and oversite that creates top quality sales associates and support staff.
Our marketing, our branding, must not be about ourselves or our brokerage but about the home buyer or seller and what they need.
Submitted by Mary McDaniel on July 12, 2009 - 4:02am.
Cathy McDaniel
American Real Estate University
Today's buyer/consumer will spend more time educating themselves (internet) prior to hiring a real estate professional. They will want to ask questions, get truthful answers and have a feeling of trust prior to hiring you to help with their real estate needs. Gone are the days spending thousands of dollars on local advertising. If you have not joined the internet community in blogging, social networking and creating an outstanding website with consumer information you will not survive the new wave change in the future real estate landscape.
Consumers will now interview you for the job. Meaning, you will need to be the "trusted advisor" in the neighborhood providing a full selection of trusted services and products.
Homeownership will be a long term investment, holding on to your home 7-9 years before selling, after our current market crisis is corrected. When will that be? Experts predict 2012. You have plenty of time to change your business model to be local, full service and reach out within your community with public service campaigns i.e. Foreclosure Prevention", "Home Buying Seminars", Credit Repair Workshops". A great way to introduce yourself as the trusted advisor.
Making connection in the neighborhood will be relationships; relationships will build your business for a great future ahead. Think about it...if you lose your home this year to foreclosure, you must wait three years to qualify for an FHA loan to purchase again. Based on the fact that we have foreclosed on over 1 million so far this year and a forecast of 2 million by the end of this year... 2012 will be a great year in homeownership/real estate.
Submitted by Ninah Hunter on July 12, 2009 - 4:52am.
These are great comments to a great topic. I have the advantage and disadvantage of not having been in the business that long (5.5 years), so I'm not hampered by traditional brokerage habits. I'm also one of those pro-active consumers who hates to be sold. I think I've done a pretty good job turning my brokerage firm and agents into skilled, consumer-centric, service-oriented professionals, or working toward that end, anyway. My biggest challenge in this economy and in this industry, however, continues to be that we all live and die by the commission, that we are in competition not only with outside agents and brokerage firms but also within a company (and, hence, the customer is, in fact, too often perceived as a commodity), and that most agents are still primarily motivated by the commission split and how little they have to pay the brokerage company. It's a constant battle to be competitive with other brokerage companies while keeping my financial head above water. As a result, it is hard to avoid treating agents like commodities, as well, and feeling like one must recruit, recruit, recruit, as we are so often told is the life-blood of a brokerage company. For now, I'm still holding out hope that I can survive with my handful, well, two handfulls, of agents with whom I continue to work closely and that my brokerage company that will not be terminal.
~Ninah
Submitted by Robert A. Hulme on July 12, 2009 - 6:58am.
Some very good ideas have been discussed. I believe Joellen has addressed the main issue the best, that being servicing and maintaining clients for life. But, I believe she is only half way there. Her clients will recommend her service to their children, but will her children want to use her if she has kept her business model the same throughout the years.
The younger generation communicates in a completely different manner. Realtors need to learn how express themselves and their business in a whole new forum. Texting, emailing, useful websites, social networking (Facebook, Twitter) will all be important tools that TODAY'S REALTOR will need to add to their present model, to be able to thrive in the future.
www.UtahCountyHomes.ws
www.UtahCountyRealEstate.us
Submitted by Ronald Ogden on July 13, 2009 - 1:06pm.
The current real estate agent model is changing and will continue to change. The word "terminal" implies that it has a fixed end date, which it doesn't.
The key is to be flexible and move with your client base(s). When one client base is no longer providing you income, you better have had enough foresight to have cultivated the next client base with services tailored to their needs. Otherwise, you've voluntarily retired!
Ron Ogden, Associate Broker
RE/MAX Metro - Salt Lake City, Utah
Salt Lake City Utah Real Estate
Dwell Utah Real Estate Blog
Submitted by Richard Williams on July 20, 2009 - 11:37am.
I am the owner of a 30+ year old traditional real estate company in Atlanta and started one of the original flat rate companies ten years ago in direct response to the 100% “desk fee” companies who provided no broker supervision to their agents who, in turn, were discounting their commissions drastically. Some even provided 30-day, $0 commission plans. In actuality, this was simply a bait and switch product used to get their foot in the door.
We simply put the flat fee, limited service product on the top shelf (instead of hiding it on the lower shelf) to meet the growing demands of Sellers who felt agents weren’t providing them the services to justify a full commission. We entered the arena giving the public another option with full disclosure of our services and a refund if our business model did not work for them.