service - Council of Real Estate Brokerage Managers

JAN/FEB 2014 • Vol 63
Published by the council of real estate brokerage managers
Profiles in
For Managers, Brokers and Owners
Customer
Service
Plus
Yun Forecasts
the Economy
in 2014
welcome
to the family
CRB President & SRS Council Partners raise a glass to toast the SRS & CRB partnership
Steve Casper, Darren Kittleson, Adorna Carroll, Bruce Aydt
CRB Council acquires the SRS Designation —
effective January 2, 2014!
Stay tuned for more information!
Thank You!
SRS Council Partners and CRB Leadership Team: Steve Casper, Bette McTamney,
Adorna Carroll, Ginny Shipe, Jean Crosby, Darren Kittleson, Bruce Aydt
2Jan/Feb 2014www.crb.com
President’s
Message
For Managers, Brokers and Owners
PUBLISHER
Council of Real Estate Brokerage Managers
Executives
2014 President Jean Crosby, CRB, CRS, GRI
Chief Executive Officer/ Ginny Shipe, CAE
Editor-in-Chief
Start Writing Your Book!
The CRB New Year message really resonated with me, and I began to
think about the goals I needed to set and the opportunities I needed to
seize in 2014.
“We Will open the book. Its pages are blank.
We are going to put words on them ourselves.
The book is called OPPORTUNITY
and its first chapter is New Year’s Day.”
— Edith Lovejoy Pierce
[email protected]
TEL 800.621.8738
FAX 312.329.8882
WEB www.CRB.com
EDITORIAL ADVISORY COMMITTEE
Chair John Mayfield, CRB, e-PRO®, GRI
Members Michael Bindman, CRB, GRI
Sandra Fernandez, CIPS, CRB, CRS, GRI,
PMN, SFR
Jim Kinney, CRB, CRS, GR
Jeff Nelson, ABR, ABRM, CRB, CRS
Robert Wagner, CRB, CRS, e-PRO®, GRI, RSPS
Nancy Van Valkenburgh, CRB, CRS, GRI
Publication Management
Council of Real Estate Brokerage Managers
430 N. Michigan Avenue, Chicago, IL 60611
TEL 800.621.8738
FAX 312.329.8882
WEB www.CRB.com
Managing Editor Jean Crosby, CRB, CRS, GRI
Gabriella Filisko
For most of us, a new year brings new ideas, optimism and a fresh
start to take a new course of action. For the real estate industry,
change continues to play a major role in the way we do business.
Perhaps the most exciting change for CRB in 2014 is the acquisition
of the Seller Representative Specialists (SRS) Designation. This opens
for the Council an important membership pipeline to a previously
untapped population of real estate specialists who’ve completed
specialized education in seller representation. The SRS will now be
recognized by the National Association of REALTORS® as an official
designation. This recognition only enhances the credibility and
professional competence of REATLORS® earning this designation.
Give some serious thought to bringing this two-day Course to your
company or sending your agents to an offering. The curriculum is
transaction based and blends key concepts in the legal, ethical, and
field applications of the business.
In other areas of the Council, we just completed 2013 by offering
twelve complimentary webcasts to our members through our “CRB
Coffee Break” series and delivered nine new “how-to” videos as part
of our “DIY Series”. As a CRB member, you have on-demand access
to all of the recordings. So be sure to visit the website and schedule
some time to watch a few. You will learn something to help you and
your business! http://www.crb.com/membership/Videos.aspx
[email protected]
My challenge to you as your 2014 president is threefold:
Creative Director 1. Set a goal to take a CRB course or the new SRS course in 2014.
They are valuable assets that can help you refine and/or grow
your business.
TEC Graphic Arts Management
[email protected]
Advertising Sales Ginny Shipe
[email protected]
Real Estate Business (ISSN: 0744-642X) is published bimonthly by
CRB, 430 N. Michigan Avenue, Chicago, IL 60611-4092
All Real Estate Business articles and paid advertising represent the
opinions of the authors and advertisers and are not necessarily the
opinions of the Council.
Copyright 2014 by the Council of Real Estate Brokerage Managers.
2. Reach out to a colleague in the industry and encourage them to earn
their CRB designation. Take a look at our “Each One Reach One”
program — http://www.crb.com/membership/directory/recruit.aspx
3. Wear your CRB pin with pride and feature the CRB Designee
logo prominently in your e-mail signatures and on other
marketing materials.
I hope your year is off to a positive start and that you will be filling the
pages of your book with many success stories. My very best wishes for
health, peace and prosperity this year.
Sincerely,
All rights reserved.
For Managers, Brokers and Owners
2014 Jan/Feb
3
Volume 63
Jan/Feb 14
10
16
Profiles in
Customer Service
16
Yun Forecasts the
Economy in 2014
departments
features
10
22 Recruiting
24 Technology
27 Coaching Corner
28 Sales Strategies
PLUS ...
3 President’s Message
5 CRB Briefcase
4Jan/Feb 2014www.crb.com
CRB Briefcase
2014 Leadership Team
2014 President
Jean Crosby,
CRB, CRS, GRI
Rockford, IL
President-Elect
Bette McTamney,
CRB, CRS, GRI, SRES
Worcester, PA
Finance Vice President
Adorna Carroll,
ABR/M, CRB, e-PRO, GRI,
SFR, SRES, SRS
Berlin, CT
Past President
Darren Kittleson,
CRB
Madison, WI
Chief Executive Officer
Ginny Shipe,
CAE
Chicago, IL
2014 Board of Directors
Michael Bindman, CRB, GRI
St. Petersburg, FL
John Mayfield, CRB, e-PRO, GRI
Farmington, MO
Michael Bowler, CRB, e-PRO, GRI, SRES
Lansing, MI
Barbara Miller, ABR, CRB, GRI, PMN
Dallas, TX
Jan Ellingson, ABR, CIPS, CRB, CRS,
e-PRO, GRI, SFR, SRES
Burlington, WA
Jeremy Purcell, CRB, CRS
Brevard, NC
Coreen Cardiner, ABR, CRB, SRES
East Greenwich, RI
Aarambh Shah, CRB
Miami, FL
Grady Kohler, CCIM, CRB, CRS
Park City, UT
For Managers, Brokers and Owners
2014 Jan/Feb
5
CRB Briefcase
What have you been missing?
Visit www.CRB.com today and take a tour!
Take advantage of the Council’s opportunities for professional growth and
knowledge. Only through participation can you experience all of the benefits
available through your membership. Click the titles below to learn more.
· Webinars (complimentary)
· DIY Series (how-to-videos — complimentary)
· CRB Coffee Break Series (complimentary)
· Complimentary Profile & Photo
· e-Learning Center
· Accelerate Training for Agents & Managers
· REB Magazine
· Knowledge Center
· e-Marketplace
· CRB Chapters — your local connection!
· Volunteer Opportunities
6Jan/Feb 2014www.crb.com
CRB Briefcase
Click an image below to learn more!
(Make sure you “Sign In” first for access to these members-only features.)
The CRB Membership Advantage: “What’s In It For Me?”
For Managers, Brokers and Owners
2014 Jan/Feb
7
CRB Briefcase
Connections
As of press time, the following members have completed all
requirements and earned the CRB Designation.
Congratulations!
NOVEMBER 2013
Lorraine Abney, CRB
Cascade Sothebys International
Bend, OR
Sylvia G. Dunn, CRB
The Dream Connectors
Garland, TX
Georg F. Von Greiff, CRB
Von Greiff Real Estate Group
Tampa, FL
Judy Barrett, CRB
Judy Barrett, Realtors
Kailua, HI
Lynsey Engels, CRB
Mel Foster CO.
Davenport, IA
Amy Wooff Flach, CRB
Wooff Realtors
Alton, IL
Eric Fite, CRB
Century 21 Judge Fite Company
Cedar Hill, TX
DECEMBER 2013
Rami Al Markabi, CRB
Markabi Trading & Investment
Dubai, UAE
Victoria Luchianov, CRB
Coast Sea Real Estate Broker
Dubai, UAE
Eunice Ofori, CRB
Westfields Real Estate LTD.
Accra, Ghana, West Africa
Anas Al-Yahya, CRB
Abdoun Real Estate
Amman, Jordan
Michael R. Morgan
Keller Williams South Valley Realty
Riverton, UT
Cindy D. Souza
Long & Foster Real Estate
Bethesda, MD
Saif Abdulla Bin Yokha, CRB
SAS Real Estate
Dubai, UAE
Sharon Morton, CRB
RE/MAX Professional Group
Houston, TX
Susan Stuth, CRB
Golden Realty Inc
Saint Louis, MO
Frank De Baat, CRB
My Island Real Estate Broker
Dubai, UAE
Mahomed Suleman Noor Mahomed,
CRB
Red Apple/Int’l Centre of Excellence
Dubai, UAE
Sadiq Sulaiman, CRB
Best Choice Real Estate Broker
Dubai, UAE
Shahzad Faisal Mangi, CRB
RDA Properties
Dubai, UAE
Lata Godwani, CRB
Luxury Real Estate
Dubai, UAE
Mohammad Odeh, CRB
Al Zajel Real Estate
Dubai, UAE
Jeffrey Zorn, CRB
Securaton Middle East
Dubai, UAE
8Jan/Feb 2014www.crb.com
A SELLER SHOULDN’T WORK WITHOUT ONE.
NEITHER SHOULD YOU.
The SRS Designation Course
(Seller Representative Specialist)
is a two-day intensive program that
reinvents the way you represent sellers
in today’s challenging market.
Whether or not you are new to the
industry or a seasoned veteran, the
SRS Course will redef ine your ‘normal’!
Come learn tips and tools that will equip
you to list in today’s marketplace.
New agents and seasoned
top producers from all over
the US and Canada say this
course exceeded
expectations and provided
them with cutting edge
tools that leave their
competition in the dust!
Now recognized as an approved NAR Designation!
For more information:
For Course schedule:
For Managers, Brokers and Owners
www.SRSCouncil.com
www.Training4RE.com
2014 Jan/Feb
9
Profiles
in
Customer
Service
Four brokers lay out their
systems for ensuring customers
get service that makes them sing
the company’s praises and keeps
them coming back for more.
10Jan/Feb 2014www.crb.com
By G.M. Filisko
For Managers, Brokers and Owners
2014 Jan/Feb
11
T
here’s no rule that says people trying
to reach the same destination must
take the same route. As long as they
get there at the right time, who’s to
criticize the path they forged?
That’s also true of customer service. Brokers
have different models and systems for
ensuring that consumers walk away from their
transaction with a smile on their face and
referrals on the tip of their tongue. Here four
brokers describe the course they’ve charted for
stellar customer service.
Whatever makes
clients happy
When sellers who cancelled their listing refer
your company to friends and family, you must
be doing something right.
“When we opened in 2012, one of our first
clients had to cancel on us within a few weeks of
listing their home because the husband didn’t
get the job they were moving for,” explains
Brian Knight, president of ListTrue, an 11-agent
company in Grand Rapids, Mich., that offers
flat-fee and full-service brokerage. “The wife
still refers people to us even though we didn’t
even sell her house. We do whatever it takes to
make our clients happy.”
Knight’s company starts with a back-end
system built into his company’s website that
automatically generates a customized response
to every online lead. It also forwards the lead—
by text, email, or phone—to an agent based on
the days and times the agent has committed to
be available and the neighborhoods in which
the agent is interested in working. If within a
set period of time, an agent doesn’t accept a
forwarded lead, it’s routed to another agent.
“Agents also have to do daily activity on the
website to get leads,” says Knight. “They can
blog about something in their area—which
will bring in traffic—or enter the system to
email clients or set up a drip campaign. If they
don’t do anything today, they’re opting out of
receiving new leads from midnight on. That
helps agents focus on getting clients actively
engaged with them.”
The company also handles all marketing for
listings to free up agents to focus on client
service and networking within the community.
“Clients are also put into a system that ensures
they receive timely updates,” says Knight.
“They’ll be emailed two to three times per week
with market statistics and information on how
many times their home is being viewed online.
They also receive a minimum of eight ‘thank
yous’ from our corporate office from start
to finish. That’s all on top of what the agent
does. We’re definitely going high tech, but the
person-to-person contact is so much better.”
After closing, the company adds clients to
another contact system. “They’ll get a follow-up
call, a thank-you email, and a handwritten card,
of course not all on the same day,” says Knight.
“We’ll also do a follow up 30 days after the
move to ask if they have questions or need help.
At six months, we’ll be thanking them again.”
Each transaction wraps up with a survey sent
to clients and cooperating agents. If the client’s
response is positive, ListTrue piggybacks it
with an email asking them to post a review
of the agent and company on sites like Google
and Yahoo.
ListTrue has climbed to the top 28 percent of
listing volume in its MLS, says Knight, and it’s
opening a second office in Lansing in the spring
and looking for space in Grand Haven, also for
a spring opening. “A ton is attributable to our
customer service,” he says. “Our first client has
sent us seven different referrals.”
12Jan/Feb 2014www.crb.com
ListTrue has climbed to the top 28 percent of listing volume in
its MLS, says Knight, and it’s opening a second office in Lansing
in the spring and looking for space in Grand Haven, also for a
spring opening. “A ton is attributable to our customer service,”
he says. “Our first client has sent us seven different referrals.”
—Brian Knight, President ListTrue
Grand Rapids, Mich.
Tech plus the
personal touch
Memorable customer service at the 80-agent
Ewing & Associates Sotheby’s International
Realty in Calabasas, Calif., is the result of a
number of components built into a system
crafted by the company’s broker-owner,
Roger Ewing.
Ewing’s program starts with experienced agents,
with the average industry experience for an
agent at his company of more than 10 years.
Ewing couples that with a proprietary lead
follow-up system, Lead Router, provided at a
cost of about $10,000 annually by the Sotheby’s
parent company, Realogy.
“The system converts web email leads into
a computerized telephone call to the listing
agent,” says Ewing. “It results in a response
to Internet inquiries in minutes, not hours.
The lead goes to listing agents first, and agents
get the call within about two minutes. If they
decline the call—maybe they’re with a client or
unavailable—the lead goes into the phone tree
until another agent accepts it, usually within
about five minutes. We also have a follow-up
software program that allows management to
see whether the agent who accepted the lead is
responding in a timely manner.”
Another tech tool that improves customer
service is the company’s paperless transaction
For Managers, Brokers and Owners
management system. “It ensures contract
compliance and management oversight of each
transaction,” says Ewing. “I can go in any time
and make sure that by the time that transaction
closes, we have every document necessary. Then
at the close of every transaction, we give clients
a flash drive filled with all the documents in
their transaction all categorized by class, like
disclosures and sales documents.”
The company isn’t just focused on technology.
“I meet many of the clients,” says Ewing. “I
always tell them, ‘I’m available all the time if
you can’t reach your agent.’ In addition, if a
complaint call comes into the office, it comes
to me. I get the agent involved and resolve the
issue as soon as possible. People want to feel
heard, and at some companies it’s difficult
for clients to get to someone who can make a
decision. We don’t have that issue, and that
helps reduce litigation.”
The company also works to ensure
disappointments don’t simmer into disasters.
“I encourage my agents—and I do it, too—
to follow up after clients move in to ask if
everything’s cool and if clients have any issues
they need help resolving,” says Ewing. “We
tell clients, ‘Don’t sit there and be unhappy.
We don’t have a problem with people telling
us they’re unhappy.’ Personal handwritten
notes are also a critical part of what we do.
Some agents send emails. But if you send
something handwritten, people will read
it and remember it.”
2014 Jan/Feb
13
We don’t get many complaints, our income has grown
exponentially, and the number of team members we’ve
had to bring on has continued to grow. Referrals from past
clients, other agents, and our sphere of influence have
also continued to grow.
—Chris Speicher
RE/MAX Realty Centre, Olney, Md.
Ewing’s system has resulted in only two lawsuits
in his eight years in business for himself. “I
used to manage large companies, and we’d
average a lawsuit a week,” he recalls. “I think
it’s specifically because of the follow up and
management of the process at my company.”
People power
At The Speicher Group, an eight-person team
at RE/MAX Realty Centre in Olney, Md.,
customer service is the province of a full-time
client care manager. She’s on call from 9 a.m.7 p.m. every day and responds to all inbound
leads—whether through the Internet or
phone—within three to five minutes.
“When Internet leads come in, if they’re not
responded to almost immediately, the chances
of converting them into clients decreases
dramatically,” says Chris Speicher, who heads
the team with his wife, Peggy Lyn. “We brought
our client care manager on to make that initial
connection, determine the next step, and
properly set expectations. She’ll talk about
the process for responding to the consumer
and provide a little information on the team
member who’ll be contacting the consumer,
along with a time frame. It’s much easier for
us to hold our agents to a two-hour follow-up
than a two-minute follow-up.”
Every contact with potential and actual clients
is logged. Speicher also requires partners—like
lenders and title officers—to check in with
clients at least once a week on a specific day.
“We’ve been through a very long vetting process
before they’ve become our business partners,”
says Speicher. “These partners attend our staff
meetings and things like our holiday parties.
Every Thursday, our title company checks in. I
don’t care if there’s nothing to say or they just
talked to the client yesterday. They call and say,
‘Hey, are there any questions you have?’”
The point is to remind consumers that even
though there seems to be a lull in the process,
the team is actively moving the ball forward.
“We found there’s that black hole between
contract ratification and closing,” says Speicher.
“If everything is smooth, there’s no reason for
the agent to follow up. That could be two weeks
or two months, and people get nervous. If we’re
actively calling them, we’re reinforcing that
reality that we’re all here doing what we
should be doing.”
When it comes to post-transaction followup, don’t even mention a drip campaign to
Speicher. “We require the agent associated
with that transaction to keep in touch at least
once a quarter,” he says. “I expect them to do
a short check-in that essentially tells the client,
‘Thank you; we’re still thinking of you, and
we’ll always be your resource.’ If you know
14Jan/Feb 2014www.crb.com
from the transaction this client prefers to
receive texts instead of calls, the agent should
do that in a text message. I don’t believe in—
or let anyone on our team use—an
automated drip campaign.”
Since 2010, when the Speichers formed their
team, their gross commission income has
grown from $97,000 to $1.5 million in 2013.
“We don’t get many complaints, our income
has grown exponentially, and the number
of team members we’ve had to bring on has
continued to grow,” says Speicher. “Referrals
from past clients, other agents, and our sphere
of influence have also continued to grow.”
Surveys and
secret shoppers
In addition to his company’s 60-hour training
program that gives new agents the tools to
provide stellar customer service and a backend website system that allows him to track his
agents’ responses to the 6,000 online inquiries
the company receives each month, Craig
McClelland has two other crucial customer
service weapons.
The chief operating officer at the 1,700-agent
Better Homes and Gardens Real Estate Metro
Brokers in Atlanta contracts with a third party
to survey all clients for their feedback when a
transaction is done. He also hires a consulting
company to have people “shop” at his brokerage
on the sly and report back with the results.
The company was formerly affiliated with
another franchise organization, which footed
the bill for the $10,000 annual cost of surveying
clients. That’s not part of McClelland’s
franchise package today. Yet he feels so strongly
about the value of those surveys that he’s tacked
the cost onto his company budget. “That’s the
heartbeat of our industry,” says McClelland.
“If you don’t give good customer service, people
don’t come back or refer your agents. The
quickest end to an agent’s career is not giving
For Managers, Brokers and Owners
good customer service. And to a company, it’s
not servicing customers correctly.”
The company’s satisfaction rate has held steady
at 98 percent, says McClelland. But he’s now
tweaking the survey to ensure it continues to
provide fruitful data. “Originally, we sent out
surveys through the mail, and people would
mail them back in,” he says. “From 2009 on, as
the number of mailers started going down and
we had fewer and fewer responses coming in,
we’ve been shifting to electronic surveys
on SurveyMonkey. Now I think we’re going
to do both. Some we’ll do by mail, and some
will be though email. We want to get the
highest response.”
Adding another $40,000 to the company’s
customer service tab is an independent
consultant McClelland hired to send mystery
shoppers out to spot-check the company’s
services. “They did things like tested our office
managers as clients, tested my staff with phone
calls and emails, and tested our response to
filled-out contact information forms,” says
McClelland. “They tested us as agents we’d be
looking to hire and students who’d be going
into our real estate academy. And they asked
agents for anonymous feedback on how the
company treats and supports them and asked
clients for anonymous feedback on whether
they really enjoyed working with the company
and if they’d work with us again.”
Some of the results were eye openers. “We
thought agents would be blown away with the
technology and tools we had,” says McClelland.
“But it was more about training for them. And
our customers really liked more of the personal
touch and less of the technology. We learned
that people get a lot of emails, but that phone
call is now special to them. And we learned not
to get so sidetracked on new technology. This is
still a relationship business.”
G.M. Filisko is a lawyer and freelance writer who
specializes in real estate, legal, business,
and personal finance topics.
2014 Jan/Feb
15
16Jan/Feb 2014www.crb.com
Yun
Forecasts
the
Economy
in
2014
Expect more of the same this year, says NAR’s chief economist.
And keep your eye on several data points as the year unfolds.
By G.M. Filisko
For Managers, Brokers and Owners
2014 Jan/Feb
17
Y
ou can’t plan precisely for the unfolding
year without a sense of the economic
climate in which your company will operate.
Here Lawrence Yun, chief economist and
senior vice president of research at the
NATIONAL ASSOCIATION OF REALTORS®, unpacks
his expectations for the housing market in 2014. He also
offers tips on the trends you should watch so you’ll know
when to make midcourse corrections in your company’s
business plan.
Q
First, do brokers need to watch different
economic data than agents watch?
Would you discuss the forecast differently
speaking to those two different groups?
There’s a likely possibility of price increases,
probably in the mid-single digits. Brokers
can anticipate that any revenue increase will
be coming from price increases and not an
increase in sales volume.
The forecast is the same for both
audiences. I think the brokers’ role
is communicating with their agents about
anticipated trends. Brokers would be more
information gatherers in relaying that
information to agents.
Q
A
Q
A
Overall, what’s the 2014 outlook for
housing nationally?
For the next year, I think we’ll see very
similar conditions as in 2013. Last year
can be considered a decent, good year, and the
second year of recovery. This year will be very
similar to that. I don’t foresee any increase in
any sales. Sales activity will be roughly the same.
Nobel laureate Robert Shiller has warned
of potential bubbles in the U.S. equity
markets and a possible real estate bubble in
Brazil. Do you have any concerns about potential
bubbles in any U.S. real estate markets?
A
For most markets in America, I don’t
have any bubble concerns. Dr. Shiller
said in his assessment that consumers are
buying homes for the right reasons and not for
extravagant price-gain reasons, which is a good
sign that bubbles aren’t developing.
Any local market that has experienced a
dramatic run up in prices—like Phoenix has
18Jan/Feb 2014www.crb.com
with 30 percent increases or some of the coastal
markets, like San Francisco or Los Angeles,
have with 20 percent increases—tends to be
more volatile. Even though the recent increases
were driven by fundamentals like increased
demand and tight supply, those markets aren’t
anywhere back to bubble price levels. With
Phoenix and the coastal markets, it’s possible
we’ll see some price declines, but only for
a short time. Recent price gains seem to be
a bounce from an overcorrected situation.
The nature of the data having risen so much
means we may see some slight retreat. But we
shouldn’t view that as a bubble.
For Managers, Brokers and Owners
Q
A
In which specific markets do you expect
to see steady, solid growth in 2014?
Steady, solid growth will take place
in areas where homes are still very
affordable combined with steady job growth.
I’d say most of the southern states, like Texas,
Georgia, and the Carolinas, where home
values are very affordable and they have steady
job growth, can expect that home values will
continue to increase. Also, right along the
middle of the country, in places like Colorado
and Utah, the future also looks bright. Prices
are still very reasonable compared to income
levels, and job growth is steady.
2014 Jan/Feb
19
Q
A
Are there any markets that have the
potential to stumble in 2014?
That depends on local job market
conditions. Fortunately nearly every
local area is creating jobs. But some could
still struggle, like in heavy manufacturing
areas where a factory shuts down. It will be
job-market dependent. There are sometimes
variations in the strength of the job recovery.
I don’t foresee any troubles, but without a
doubt, there will be a handful of markets where
major companies will close down, and that will
be a huge negative for those communities.
Q
Are there any markets that will just
hang in there, not growing but not
stumbling, either?
A
The south and the Rocky Mountain
states will probably outperform the
rest of the country. But areas—even with
decent local economic activity—that will still
be hindered will be those in which there’s an
inventory shortage. If the supply is lacking,
that will limit the number of transactions.
Not having a buyer is the worst problem in
a housing market. But not having enough
sellers is a different problem. The Seattle
market is very healthy in terms of its economy,
but it’s lacking inventory. We may see some
suppression in home sales until the supply
situation improves in that market. Also, some
of these very heated markets, like Phoenix
and Las Vegas, where they’ve attracted a lot
of investor activity, may see investors step
out. So we may also see declines in sales in
those markets.
Q
What specific national and local
economic data points should company
owners keep an eye on throughout the year,
and why? How can they use those data points
in their strategic planning?
A
Jobs have a huge impact everywhere.
Keep track of your local job market
conditions. You can do it regularly because
it’s often publicized.
Another thing brokers should begin to monitor
is new-home construction. Broadly speaking,
new-home builders have been dragging their
feet and slow to respond to low inventory
20Jan/Feb 2014www.crb.com
levels. Housing starts data is something brokers
should be monitoring to give them a sense of
their market’s inventory situation, whether
there’s a tightening or a loosening supply
situation. That gives brokers an idea of things
like whether prices will be rising because of a
lack of inventory.
The other factor that’s very important for
brokers and consumers is mortgage rates.
They’ll be dependent upon monetary policies
set by the Federal Reserve, and without a doubt,
there will be a less accommodating policy in
2014. Something to watch in 2014 is called
quantitative easing, which is the printing of
money to buy mortgage-backed securities. It’s
almost certain the Fed will pull back on that in
2014. The question will be: How fast will the
Fed be taking its foot off the brake?
Brokers can also monitor, with help from their
agents, the percentage of all-cash transactions
they’re encountering. It’s been very high in the
past couple of years, representing one-third
of all transactions. That’s been a good thing
because getting mortgages has been really
difficult. What happens if that begins to fall
and the mortgage market doesn’t pick up the
slack? It’s a good idea to get data from agents
on noticeable changes in all-cash transactions.
Q
Are there any economic trends you’re
concerned could change the outlook for
2014 in a negative way for brokers?
A
It’s really about the Washington policy
changes regarding new mortgage
rules—what qualified mortgages are and how
that’s defined. It’s a matter of how the new
mortgage rules, which will come out in the
second week of January, will be implemented
in the marketplace. When the switch for the
Affordable Care Act was turned on, it didn’t
work well. Turning on the switch in the new
mortgage rules shouldn’t impact mortgage
accessibility, but who knows? Also, will the
threat of lawsuits by Washington toward
lenders make them stop lending? There
could be a few hiccups along the way.
Q
A
Any final thoughts
for brokers?
All in all, 2013 was a decent year
for brokers. In 2014, they can
anticipate something very similar.
G.M. Filisko is a lawyer and freelance writer who
specializes in real estate, legal, business,
and personal finance topics.
For Managers, Brokers and Owners
2014 Jan/Feb
21
Recruiting
G.M. Filisko
Freelance Writer
Recruiting Resolutions
for 2014
What could you do better in 2014 to attract
the best and the brightest agents? We asked
brokers to reveal the best recruiting strategy
they implemented in 2013 or their recruiting
resolution for 2014. Here are their insights.
Start with a clean slate
“We’re returning to advertising, more looking
to grow new agents and train than to recruit
experienced agents. It’s been very difficult
recruiting. Among the experienced agents,
many have a declining book of business and
are looking for a cheap seat to retire in but
still want highly favorable splits. And when
they say, ‘I don’t do email’ and ‘I won’t use
electronic forms,’ it’s a red flag they’re not for
us. I think this is true for many brokers, but
it’s not something we as an industry are willing
to acknowledge.”—Bruce Ailion, ABR®, CRS®,
CRBSM, e-PRO®, lawyer/associate broker,
RE/MAX Greater Atlanta, Marietta, Ga.
Remember who you work for
“The secret to recruiting talented agents is
simple: Create a workplace that fosters passion,
motivates performance, and inspires innovation
by raising the bar of excellence every day. If
you have to sell too hard, the fit is probably not
right. It’s like any strong business partnership—
it must be mutually beneficial. I work hard to
foster a collaborative environment that allows
agents’ individual personalities to shine.
More importantly, it’s all about offering
personal 24/7 support so agents can prosper.
I truly believe I’m working for them. The most
rewarding part of my job is mentoring new
agents to be the next top producer.
Our recruiting efforts have really paid off.
Our firm has expanded by nearly 200 percent
and grown to roughly 61 agents in just three
years.”—Amy Mizner, principal, Benoit Mizner
Simon & Co., Wellesley and Weston, Mass.
Forget production; are agents
like minded?
“The best thing I did in 2013 was to stop
recruiting agents based on production.
Instead, I looked for ‘like minded’ people
who’d understand our brand and what we’re
committed to doing in the community.
The components of my business include
technology, social media, and the pursuit of
community. We started by searching all local
agents on all major social media platforms and
networking sites. We reviewed ‘who’ they were
and looked for those doing some of the same
things we were. It was extremely successful
and has turned our recruiting into
‘discovering’ agents.
Here’s what I mean by searching agents on
social media and reviewing ‘who’ they are. The
typical recruiting model goes like this: You
research production, find the highest producers,
and then start an email, postcard, or welcome-
22Jan/Feb 2014www.crb.com
Recruiting
letter campaign. I realized this model didn’t
work very well, and the response was low. I
started searching for agents who are active on
Facebook and Twitter and in the community.
We compiled a list based on the hope of
discovering the agents who fit the ‘other’
components of our business model.
One factor was agents who were very active
in social media and doing it the right way. I
believe social media isn’t a lead-generating
tool but a communication tool. It is a place
where all of our friends, family, clients and
prospects hang out, share, and engage with
each other. If we’re in a relationship-type
business, what better place to create, foster,
and develop those relationships?
Once we completed our list, we started
interacting and engaging with agents on
the list. The conversation was never about
recruiting; it was learning about them and
what was important to them in their business.
I found most were technology advanced,
understood the power of social media, and
cared about the community where they lived
and wanted to give back in some way.
Since I had done so much vetting prior to
meeting, I found the agents I met with really
appreciated my business model and what it was
all about. I met with far fewer agents than in the
past, but the ones I met with were much more
like a model match. Instead of hiring maybe
one of 20 agents I met with, it became more like
four out of five. It started as a long process but
has proved to be much more successful for me.
How successful? Our current agent count is
25. Our goal isn’t to have 1,000 agents but to
continue to grow and discover the right agents.
For Managers, Brokers and Owners
I don’t put a number on that. But I let 10 agents
go a year ago because they weren’t matches
to my model. I replaced them with five agents
who fit my new discovery process. That led to
a 30 percent increase in sales volume in 2013.
I anticipate it will be a 40 percent increase in
2014. And I’m currently creating relationships
that I anticipate will result in agents coming to
my company within the next 60 days. If these
are successful, I expect growth in 2014 to be 60
percent.”—Greg McClure, broker-CEO, Smart
Click Realty, Rocklin, Calif.
It’s all meeting agents’ needs
“One of the most important things we did for
recruiting in 2013 was to allow agents to choose
between two levels of desk costs, to meet their
need to keep desk costs as low as possible.
And it’s no secret that successful recruiting
involves first getting in front of the agent and
then showing your value. However, the easiest
and most successful way to recruit is to use
your own agents. If your agents are happy and
willing to help, they’ll not only give you names
of good agents to call but also talk to those
agents themselves. Our success rate when that
happens has been very good.
With agents new to the business, we stress that
because our agents are so busy, they often help
new agents get productive quickly out by giving
them leads on lower-priced homes, rentals,
and letting them sit for open houses and keep
the leads. We also offer to split the cost of a top
trainer’s class with our new agents so they can
pick up the skills they need quickly.”
—Jim Nelson, e-PRO®, broker-owner/attorney,
RE/MAX Suburban, Mount Prospect, Ill.
2014 Jan/Feb
23
Technology
What’s On Your Tech Upgrade
To-Do List for 2014?
If you’re upgrading your technology in 2014,
you’re not alone. We asked brokers to tell us
where they’re investing their tech budget in
the coming year, and we got responses not just
from brokers but also a tech expert who works
with brokers. Here they explain what’s on their
“grocery” list.
Tech services anytime and anywhere
“Our overall objective is to provide integrated
solutions for mobile professionals—any service
we can deliver to our agents in the office should
be able to be delivered out of the office, anytime
and anywhere the agents want and need access.
Here’s what we’re working on:
•R
ollout of a new Intranet that encompasses
all our existing tools and back-end support
for our company and agent websites. It also
adds robust CRM—customer relationship
management—that will help our agents have
one-stop access to all our resources. The
CRM will, among other things, automatically
add inquiries from an agent’s website directly
into the agent’s contacts and will allow our
agents—or our staff on behalf of agents—
to manage the contact lists and email and
print marketing campaigns from one
central, secure spot.
•A
redesign of our company and agent websites
with responsive design to be fully mobile
and to reflect the launch of our new logo and
marketing campaign. Almost 40 percent of
G.M. Filisko
Freelance Writer
our web traffic now is from mobile
devices. We anticipate it will go well past
50 percent in 2014.
• Technology training, which is every bit
as important as the technology itself. We
completed a conversion to Google Apps in
the third quarter of 2013, so we’re focusing
considerable resources on training our agents
to take full advantage of those resources.
We’ve added a full-time technology trainer
and help-desk support, recognizing that the
best tools are pointless unless people know
how, and want, to use them to do more
business and to do it more efficiently.
What’s all this cost? We’ll never tell. But it’s safe
to say that for every dollar we’re spending on
technology, we’re spending another 50 cents on
the personnel for support and training.”
—David Howell, executive vice president/chief
information officer, McEnearney Associates Inc.,
McLean, Va.
Tools to create more hours in the day
“The money we’ll be spending in 2014 will be
on custom-built vs. out-of-the-box software.
We’ll be automating many of our daily, weekly,
and monthly repetitive tasks. I have a couple
of good programmers I found on Elance who
build automation scripts for Windows that
can do anything on a computer that I can do.
One example: automating lead retrieval from
an email, entering that lead into a contact
management system, launching an email
24Jan/Feb 2014www.crb.com
Technology
campaign, following up with emails until there’s
an email response from the prospect, and then
alerting the agent of the response.
I predict we’ll spend about $5,000 because I’m
coming up with the ideas, doing the testing,
and dealing with the programmers due to my
programming background. Otherwise, this
would typically cost at least $25,000.
The result I expect? Productivity will be
increased because I’ll no longer be paying
employees to do mundane, repetitive tasks a
computer can do. My employees will be doing
more high-level tasks that I’m now doing. This
will free up my time to tackle my ‘goals and
ideas’ list to grow my companies, which will
allow me to stash away more money away for
that long-dreamed early retirement. It’s sort of
a trickle-up approach. Computer scripts free
up employees’ time, which then allows me to
unload more things onto my employees, which
For Managers, Brokers and Owners
then creates more time for me. And time is
something I’ll pay anything to get more of.”
—Joe Adkins, broker-owner, The Realty Factor,
Longwood, Fla.
Brokers are buying…
“My company provides digital and print
marketing services in the United States and
Canada for brokerages and agents, construction
and sales companies, and the occasional
commercial real estate outlet. Here are the
software and web-presence tools our clients
are buying from us:
• Responsive mobile websites that hit all
devices regardless of operating system,
whether it’s Android, IOS, Blackberry,
Windows, and so on.
• More budget is allotted for social media
presence and search engine traffic draws.
2014 Jan/Feb
25
Technology
Why are agents focusing on social media?
Pinterest demographics, for example, are
‘rich.’ One-third of Pinterest users come from
$100,000-plus per year households, many of
them housewives. That’s a great number when
compared to the nationwide average income.
Craiglist and Kijiji cut out all HTML tags, so
the only viable ways to acquire backlinks easily
and quickly is through more social media linkbacks. Translation: When you share links on
social media and other people re-share them,
you generate more links back to your website.
• More and more cash is being allocated
to video tours or video intros. Pages with
embedded YouTube videos get better results
in both page views and duration-on-site
metrics, as well as better rankings on Google.
They also increase the odds your property can
be searched through YouTube search results.
• On the rise are web-based CRMs and email
marketing systems with API functionality to
link up with any website or device. An API—
application programming interface—allows
third-party applications to exchange data
with another application. For example, the
MailChimp API allows other CRM software
to feed email addresses into MailChimp.
This eliminates the need for an all-in-one
solution for email marketing, CRM, and
email, which has been the traditional model.
If you want to swap out your CRM without
having to make changes to your MailChimp
account and templates? No problem. There’s
no better and easier email campaigner than
MailChimp. There’s no better contact/
calendar/email cloud than Google Apps. They
all work together now. Websites can be built
to work with any third-party systems for
lead aggregation. Websites with built-in lead
managers are now dead or are dying.
Here’s the hardware our clients are
also purchasing:
• iPads and other mobile presentation-enabled
devices with cloud documents enabled. It’s
easy and cheaper than printing everything
each time, and it’s also quick to update with
changes to document content.
• Better digital printing technology. This
enables higher-quality brochures and property
sales sheets to be printed at lower cost and in
lower quantities. Traditionally, this has been
a more difficult thing since most printing
was offset (which takes long, costs a lot, and
requires a high minimum quantity unless you
want to pay $20 per brochure). With modern
digital technology, you can get high-quality
brochures printed and folded at quantities
under 50 if you like.”—Jeff Kee, founder/
director, Brixwork Real Estate Marketing,
Vancouver, British Columbia
Migrating to the cloud
“In 2014, we’re moving more and more into
cloud computing. We want to eliminate our
dependence on local or server-based software
and instead move into the cloud and software
as a service arena. Our agents need flexibility,
and they need to be mobile, working from
anywhere. Working in the cloud allows that.
Similarly, we started using Google Apps for
business, which the agents love because it
inherently allows for very collaborative work.
To ensure our computers are running as
efficiently as possible, we’re upgrading any old
computers that might still be running Windows
XP. We like the enhanced security the new
systems offer.
We’re also using dotloop, a transaction
management system, to bring the entire
transaction process online and allow all parties
to collaborate. It makes our communication
seamless between our agents, clients, and
even our competitors, no matter where
they’re located.”—Al Rowe, owner, RE/MAX
Advantage, Portage, Mich.
26Jan/Feb 2014www.crb.com
CoachingCorner
Darren R. Kittleson
CRB
Darren Kittleson is a 20-year
veteran of the residential and
new construction real estate
industry. Kittleson is a Keller
Williams University regional
trainer, BOLD Coach and a
coach with Frame of Mind
Coaching based out of
Toronto, Ontario, Canada.
He serves as operating
principal and broker of two
Keller Williams Realty offices
in Madison, Wis.
Industry-wide, Kittleson
has served as president
and treasurer of the
REALTOR® Association of
South Central Wisconsin
(RASCW). He was named
REALTOR® of Distinction
by RASCW in 2000 and
served as a director of the
South Central Wisconsin
Multiple Listing Service.
Within the Wisconsin
REALTOR® Association
(WRA), Kittleson has held
the position of state director,
executive committee vice
president, public policy
committee chairperson
and served on the strategic
planning committee. For
more information, visit
www.framecoaching.com
For Managers, Brokers and Owners
2014 Jan/Feb
27
SalesStrategies
John D. Mayfield
CRB, e-PRO®, GRI
Time for a Tune Up?
Category: Professional attitude
Materials Needed: Handouts included with
meeting materials; flip chart
Estimated Time: 15-20 minutes or longer
depending on the amount of time allowed for
group discussion
PowerPoint Available: No
Meeting Objective: To help agents plan and
implement new changes for the coming year
based on their previous outcomes and job
performance.
INTRODUCTION: Begin by explaining to your
group that, like automobiles, everyone needs a
tune up from time to time. According to www.
Dummies.com, your automobile might need a
tune up if:
1. It stalls a lot.
2. The engine is running roughly when idling
or when you accelerate.
3. It gets harder to start.
In today’s meeting, we’re going to see how
these three issues can equate to a salesperson
and whether you might need a tune up with
your sales career.
OPENING: Distribute Handout 1-A included
with this meeting to the group. Ask the group
to list three to five bullet points of what worked
for them and their sales career over the past
12 months. They should follow the same
process for the additional heading, “What
Needs a Tune Up?” Have participants list three
to five points they feel they need improvement
for their sales career to move to the next level.
Allow two to three minutes.
STEP 1
Using a flip chart, debrief the first question:
What worked for you the past 12 months with
your sales career? List the responses on your flip
chart, and discuss each point with the group on
why their response was advantageous for their
career this past year. Allow 5-10 minutes.
STEP 2
Have team members split up into pairs or small
groups of no more than three. Have each group
discuss among themselves the items that need
improvement—the tune up—to move their
sales career to the next level. Encourage each
group to come up with a list of one or two items
that would help improve the problem areas each
team member has listed. Allow 5-10 minutes.
STEP 3
Debrief with the team as a whole. Allow each
group to have a spokesperson who’ll report on
some of the issues their group discussed that
need improvement, along with their solutions.
Remind the spokesperson to focus on what the
group discussed as issues and solutions and
not to point to a specific person who needs
the particular solution. Be sure to encourage
28Jan/Feb 2014www.crb.com
SalesStrategies
anyone else on your team who might have a
suggestion for a needed improvement to offer
his or her advice. Note: You can always add
the answers to a flip chart while discussing
these bullet points.
Allow 5-10 minutes.
CLOSING:
Refer back to the www.Dummies.com website
and “How to Tell Whether Your Vehicle
Needs a Tune Up.” Explain to your group
you’re going to equate a tune up for a car
to a tune up for sales professionals:
1. If your car stalls a lot or is running roughly
when idling or when you accelerate it, it
probably needs a tune up. Spark plugs may
be fouled or worn, or the electronic sensing
device may need adjusting. Relationship to
the salesperson: If your sales are down or not
increasing, you probably need a tune up.
Maybe you need some new marketing ideas,
a change with your presentation, and an
adjustment in how you work your leads each
day. Stalling doesn’t always indicate a major
problem with your sales career. A small
adjustment might be all that’s needed to
keep your career form stalling.
2. The car gets harder to start, your battery
may be weak, and the fuel system might
need adjusting or replacing. Relationship to
the salesperson: Listening or reading
motivational books might be a great way
to start your sales career in a new direction
and to reach full performance.
For Managers, Brokers and Owners
Encourage the group: Look at their papers.
What worked, and what needs a tune up? Recap
some of the suggestions and solutions offered
by the group for overcoming sales performance
obstacles. Have them commit to implementing
a tune up with their sales career so the following
year will be one of their best years ever.
Allow 5-10 minutes.
When you’re through
changing, you’re through.
—Bruce Barton
author, ad exec, and politician
John Mayfield, CRBSM, e-PRO®, GRISM,
received his real estate license in 1978 and
has been a practicing broker since 1981. He
is a senior GRIsm instructor for the Missouri
Association of REALTORS® and the Arkansas
Association of REALTORS® and is a master
instructor for the CRB Council. John has been
a featured speaker at the National Association
of REALTORS® conventions, authored seven
books, and created the “5-Minutes Series for Real
Estate Agents.” For more information, contact
www.easysalesmeetings.com.
2014 Jan/Feb
29
SalesStrategies
Handout 1-A
What Worked?
1. ______________________________________________________________________
2. ______________________________________________________________________
3. ______________________________________________________________________
4. ______________________________________________________________________
What Needs a Tune Up?
1. ______________________________________________________________________
2. ______________________________________________________________________
3. ______________________________________________________________________
4. ______________________________________________________________________
30Jan/Feb 2014www.crb.com
NOV/DEC 2013 • VOL 62
PUBLISHED BY THE COUNCIL OF REAL ESTATE BROKERAGE MANAGERS
For Managers, Brokers and Owners
A DRIVE TO DISCOVER
“WHAT’S NEXT?”
Jim Kinney, CRB
2013 Hall of Leaders Award Recipient
Plus
POCKET LISTINGS:
5 TIPS TO MANAGE
THE RISKS
For Managers, Brokers and Owners
2014 Jan/Feb
31