Real Estate Offices – Retail or Commercial?

I believe we need to change our thinking – retail space with high foot traffic, lots of company logos, phone numbers and large window displays is no longer important, so why spend a fortune on it?

We know that the majority of our core business (sellers) come from people we know, past clients, personal referral or recommendation. We know that very few, if any, sellers walk into our office because they happened to be passing and thought they’d drop in, it simply doesn’t happen. Prospective sellers will pay far more attention to activity in their area – signboards, open homes, just listed and just sold flyers, internet presense and of course the opinions of their friends and family. Most of the business or contact we have with them will be in their own home, and if there is that rare need for them to come into our office, the most appreciated factor will be that it’s easy to get to, there’s plenty of free parking and it’s modern, spacious and has private areas with quality amenities – so how does a heavy retail area achieve that?

We know that over 70% of our buyers now start their search for property on line. They too, very rarely visit a real estate office. They drive around areas looking for signs, or past properties they have seen on line, they attend open homes and either bid at auctions, signing sales documents in the home itself, or we go to their home to write up offers. Most of our tenants now also never visit our offices.

Our own people attend our offices far more than our clients. The very best thing we can do as business owners to grow our business is ensure we create an incredible place for our people to work, so what will be important to them. The office must be easy to get to, plenty of free parking and modern and spacious – none of which you generally find in high profile retail space.

So, do we need to spend a fortune on retail space, or are we better to spend less on better quality commercial space, with easier access and parking, better and more modern amenities and spend more on websites and data base management? It seems to me the answer is obvious and we need to change our thinking!

Tom Peters

I was very fortunate during the week to attend a presentation by Tom Peters on the Gold Coast. Tom spoke for 5 hours with one short break, and at 64 years of age, he was great. He has spent the past 30+ years studying companies and leaders and so gives a tremendous overview of the necessary strengths both require to be outstanding – and he has heaps of examples of each.

Some of the key messages -

• Leaders of great groups love talent and they know where to find it. They revel in the talent of others.
• If you’ve got crappy people - brand, strategy, etc don’t matter – you’re dead, you just don’t know it yet!
• The problem is rarely/never the problem. The response to the problem invariably ends up being the real problem.
• People want to be part of something larger than themselves. They want to be part of something they are really proud of, that they’ll fight for, sacrafice for, trust.
• The very best method of recruitment is to make your organisation an INCREDIBLE place to work.

And finally, and a real cracker -

• The bottleneck is at the top of the bottle. Where are you likely to find people with the least diversity of experience, the largest investment in the past, and the greatest reverence for industry dogma – AT THE TOP!

It was an outstanding session with a huge amount of great information and ideas. If you ever get the chance to see Tom speak, grab it. Failing that, he has written a number of great books – In Search of Excellence is his all time best, also Built to Last is great.

On Tour!

The posts may be a bit slower over the next four weeks as Irene and I are heading off on Monday to the rugby World Cup in Wales and France with Paul and Jill Wright and Brian and Patsy King. Our first stop is Cardif to watch the All Blacks take apart Argentina (probably – or possibly Ireland or France). After a week in Crete, it’s off to Paris for the semi final. After watching the All Blacks dispatch the Wallabies, we head south of Paris for a week in the country before coming back to Paris for the final. We are meeting up with friends of ours, Tim Manning and family – who are already there – see below. 

            

After a crushing victory over South Africa in the final (I’ve now off sided 50% of my friends – the Australians, South Africans and one Argentinian!), a celebratory red wine and cigar with Gilbert, it’s off to Thesaloniki in Greece to spend some time with our very first Harcourts office in Europe! Stavros from MPRE Harcourts in Melbourne is returning to Greece to live and is opening our first office. It will then become the model office for promoting and growing Harcourts throughout Greece.

Following Greece, it’s a stop off in the Maldives on the way home.

It will be a fantastic trip and hopefully a successful one! I will post updates as we travel, however, if they suddenly stop it’ll be because there has been a major disaster at the World Cup and I have decided never to return to Australia!

Politicians – Leaders?

I’ve had quite a bit of feedback about my comment on our political leaders. Let me clarify – I was not pointing the finger at anyone in particular, in fact it was squarely pointed at them all, and I was certainly not giving any support to Kevin Rudd and the Labour Party! I was trying not to reveal my preference, as we all know, talking about politics or sex will invariably end in tears!

Ongoing Education

As I’ve said in the past, I believe our role will change over the next ten years and that we must grow our skills and knowledge around the entire real estate transaction to meet our changing customers needs.

To do that we must commit to ongoing education and training. I strongly support the REI’s and government’s push for a CPD system throughout our profession. Ongoing, regular training and education will be vital to our success in the future.

I remember about 8 or 9 years ago we had a US realtor, Bob Bohlen, who was at the time and still is reputedly the most successful realtor in the US speak to us at our Harcourts Conference. One of the things he said was that he and everyone in his team had to complete at least 300 hours training every year. There’s a lesson there!

I believe we must take responsibility for the future growth and success of our profession by committing to regular, ongoing training and education.

What will you do in the next 30 days? Bob will do at least 25 hours.

Politicians – Leaders?

I watched the recent TV news items on the heated exchanges in the Australian parliament between both party leaders and deputies and just shook my head.

At one point all four were yelling at each other and the speaker was shouting for order! Peter Costello accused Kevin Rudd of demonstrating the ‘low base nature’ of his political style with the accusations he was making. Well, if that wasn’t the pot calling the kettle black! If my two teenage sons behaved like that I’d be horrified, and yet our ‘leaders’ do it constantly. The only thing missing was a good old fashioned fist fight – oh, that’s right, that would be the Taiwan parliament!

The behaviour in the Australian parliament isn’t unique – it’s common place around the World. These are our leaders, the supposed role models for society, well it’s simply not good enough, and shouldn’t be acceptable to us.

As a business manager and leader I was taught that you must walk the talk. You can’t tell people to do as you say, not as you do. If our political leaders seriously want us to act responsibly, to behave responsibly, if they are serious about reducing crime, maybe they should start demonstrating behaviour that reflects that, and not continue behaving like a bunch of naughty, rude school children

As Gandhi said, “You must be the change you wish to see in the World”.

We vote, we put them in there, maybe we need to take some responsibility for who is leading us and how they are behaving. Email your local MP – let them know how we expect them to behave!

The Real Estate Agents Role Will Change

I believe the role of the real estate agent and consultant will change over the next decade.

Clearly our customers are changing. The internet has dramatically changed how people obtain information (and how much information they can get) and the amount and speed of communication. We now have four distinct generations – Silver Bullets, Baby Boomers, Gen X and Gen Y – with very different needs and expectations. And the ’speed of life’ generally has increased.

So what do these changes do to what our customers now want and expect?

1. They no longer need us to give them information on the market, methods of sale or individual property, they get that themselves online, so from us they need advice on and interpretation of that information.
2. The speed of and access to information is far faster now, so they want a far higher level of feedback and far more often.
3. 4 different generations, have four different sets of needs and expectations – they need us to adapt how and what we communicate to suit their style.
4. Far more of our customers are time poor – they want us to take responsibility for guiding them through the process and arranging a far greater range of services than just doing open homes or presenting offers. They want us to help and advise them on the mortgage, the conveyancing, the insurance, the utilities (power, phone, cable TV and so on), the removal company, in fact they want us to take a far greater and wider role in the transaction.

I believe the role of the real estate agent and consultant will significantly change over the next 10 years. We must lift our skill level, increase our knowledge and take a far more professional approach and role in the transaction.

Are we an industry or a profession? We may be an industry now, we won’t be in the future if we want to survive. I believe we must become a profession if we are going to deliver what our customer wants. Those that recognise this and make that committment to change and grow will prosper – those that don’t will not! 

Every real estate person should sell their home every year!

Irene and I bought an apartment off the plans about 18 months ago, which we hope to move into in December. So, we have just sold our family home here in Brisbane and our previous family home in New Zealand. Let me tell you, it was one of the most horrific experiences of our lives.

We’ve been in the real estate business over 20 years, and were very fortunate to have two of the most outstanding real estate professionals, Alex Baker in Auckland and John McLeod in Brisbane, marketing our properties – and it was still terrible (John and Alex were great – the process was terrible). Will they sell? Will there be any bidders on the day? Will we get the prices we need to buy our apartment? (we all know the market decides value, not what the seller needs!) What if they don’t sell? What if they do sell but the buyer doesn’t settle? You become irrational!

It doesn’t matter how much you know about the process, it is a hugely stressful time. Both properties sold on the day – one under the hammer and one later that day. We were thrilled with the outcome and the relief now is enormous, but what the whole experience did was underline just how significant the role of the real estate professional really is and just how important it is that we, as an industry, understand the huge responsibility we have.

From a sellers perspective, what is wanted, is pretty simple – constant contact, honest communication, and feedback. Firstly, tell me about the options I have and which is best and why. Tell me what’s going to happen, and then what is happening and how it’s looking. I want positive, but more importantly realistic. Do what you say you will. Take as much of the stress out of it as you can. As a seller I want you to lead me through this process, clearly doing everything you can to help me achieve my objectives.

We had two outstanding professionals – thank you Alex and John – there was a bit of pressure for you both as well!

If only every real estate person had to sell their home every year - what a different industry we would have!

I’ve Learned . . . .

Here’s another sent to me recently – worth sharing.

I’ve learned that, no matter what happens, how bad it seems today, life does go on, and it will be better tomorrow.

I’ve learned that you can tell a lot about a person by the way he/she handles four things: a rainy day, the elderly, lost luggage, and tangled Christmas tree lights.

I’ve learned that, regardless of your relationship with your parents, you’ll miss them when they’re gone from your life.

I’ve learned that making a “living” is not the same thing as making a “life..”

I’ve learned that life sometimes gives you a second chance.

I’ve learned that you shouldn’t go through life with a catcher’s mitt on both hands. You need to be able to throw something back.

I’ve learned that if you pursue happiness, it will elude you. But if you focus on your family, your friends, the needs of others, your work and doing the very best you can, happiness will find you.

I’ve learned that whenever I decide something with an open heart, I usually make the right decision.

I’ve learned that even when I have pains, I don’t have to be one.

I’ve learned that every day, you should reach out and touch someone.

People love that human touch — holding hands, a warm hug, or just a friendly pat on the back.

I’ve learned that I still have a lot to learn!

The Wooden Bowl

I was sent this by my sister, and I thought it was a great story with a powerful message – one to share.

A frail old man went to live with his son, daughter-in-law, and four-year old grandson. The old man’s hands trembled, his eyesight was blurred, and his step faltered. The family ate together at the table.

But the elderly grandfather’s shaky hands and failing sight made eating difficult. Peas rolled off his spoon onto the floor. When he grasped the glass, milk spilled on the tablecloth.

The son and daughter-in-law became irritated with the mess. “We must do something about father,” said the son. “I’ve had enough of his spilled milk, noisy eating, and food on the floor.”

So the husband and wife set a small table in the corner. There, Grandfather ate alone while the rest of the family enjoyed dinner. Since Grandfather had broken a dish or two, his food was served in a wooden bowl!

When the family glanced in Grandfather’s direction, sometime he had a tear in his eye as he sat alone. Still, the only words the couple had for him were sharp admonitions when he dropped a fork or spilled food.

The four-year-old watched it all in silence. One evening before supper, the father noticed his son playing with wood scraps on the floor. He asked the child sweetly, “What are you making?”
Just as sweetly, the boy responded, “Oh, I am making a little bowl for you and Mama to eat your food in when I grow up.” The four-year-old smiled and went back to work.

The words so struck the parents so that they were speechless. Then tears started to stream down their cheeks. Though no word was spoken, both knew what must be done.

That evening the husband took Grandfather’s hand and gently led him back to the family table. For the remainder of his days he ate every meal with the family. And for some reason, neither husband nor wife seemed to care any longer when a fork was dropped, milk spilled, or the tablecloth soiled.