SMART & NOT-SO-SMART PLUStecgraphicarts.com/assets/rebsept-oct2015web.pdf4 Sep/Oct 2015 10 Volume...

SEP/

OCT

2015

• V

OL 7

3PUBLISHED BY THE COUNCIL OF REAL ESTATE BROKERAGE MANAGERS

For Real Estate Professionals

PLUS TEAMS: When and How to Break Up

8 SMART & NOT-SO-SMART BRANDING MOVES

2 Sep/Oct 2015 www.crb.com

For Real Estate Professionals 2015 Sep/Oct 3

PUBLISHER

Council of Real Estate Brokerage Managers

EXECUTIVES

2015 President Bette McTamney, CRB, CRS, GRI, SRES, SRS

Chief Executive Officer/ Ginny Shipe, CAE

Editor-in-Chief [email protected]

TEL 800.621.8738

FAX 312.329.8882

WEB www.CRB.com

EDITORIAL ADVISORY COMMITTEE

Members Michael Bindman, CRB, GRI

Sandra Fernandez, CIPS, CRB, CRS, GRI, PMN, SFR

Charlie Foster, CRB, GRI, PMN

John Mayfield, CRB, e-PRO®, GRI

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 Ginny Shipe

[email protected]

Creative Director 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 2015 by the Council of Real Estate Brokerage Managers.

All rights reserved.


President’s Message

Bette McTamney, CRB, CRS, GRI, SRES, SRS

We’re GrowingEven as Fall returns with cooler temperatures, changing leaves and winter at its heels, it doesn’t mean we have to throw in the towel for 2015 and just ride out the last couple of months. There are always opportunities for growing, improving or changing our businesses.Most business thinkers agree that building sustainable competitive advantage is a critical component – perhaps THE critical component – of creating successful businesses. Consider this quote from Warren Buffet: “The key to investing is … determining the competitive advantage of any given company and, above all, the durability of that advantage. The products and services that have wide, sustainable moats around them are the ones that deliver rewards to investors.”For many organizations, Buffet’s moats are getting smaller. Many of the traditional competitive advantages are quickly eroding as the information age continues to expand. To remain viable, we must continue to focus on the advantages we can develop today to serve our members, clients and associates of the future.Our organization has continued to focus on competitive advantage nd committed to an attitude that’s open to new experiences and new ideas; a deep-seated belief that anything is possible if we work together, and put our hearts, minds and energy into what we do.Our latest addition is the REALTOR® family’s first and only negotiation

credential – RENE (Real Estate Negotiation Expert) certification!I invite you learn more about this new certification and the outstanding curriculum developed by our incoming 2016 President, Adorna O. Carroll (click the logo).

Take some time to re-focus your time and energy this last quarter into assessing the durability of your business and investing in your own professional development.The legendary baseball manager Casey Stengel said, “There are three kinds of people: those who make things happen; those who watch things happen; and those who ask, what happened?” Which one will you be?

Sincerely,


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8 Smart & Not-So-Smart Branding Moves

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24 Listing Strategies

28 Sales Strategies

PLUS ...

3 President’s Message

6 Member Advantage

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IN HONORING TWO INDUSTRY LEADERS!

This special evening will be held duringthe REALTORS® Conference & Expo

this November in San Diego, CA.

Cocktail ReceptionFriday, November 13, 2015

6:00 – 7:30 p.m.The San Diego Omni Hotel

2015 Hall of Leaders AwardJames L. Helsel Jr.CCIM, CPM, CRB, CRE, GRI, SIOR

2016 REBI Inaugural PresidentAdorna O. CarrollDSA, ABR/M, CRB, CRETS, e-PRO, GRI, SFR, SRES, SRS


Take advantage of the opportunities we provide for professional growth and knowledge. Only through participation can you experience all of the benefits available through your CRB and/or SRS membership.

• Classroom & Online Courses• Virtual Classroom• FREE webinars + recordings• On-Demand Video Library• Knowledge Center• Accelerate Training for Agents & Managers• REB Magazine + archives• Chapters• Online Member Directory• Renew Your Membership• Update Your Online Profile• Designee Logos & GuidelinesVisit CRB.com today & ‘Sign In” to access members-only content!

• FREE webinars + recordings• On-Demand Video Library• Knowledge Center• Designee Logo & Guidelines• Download Your SRS Certificate• Accelerate Training for Agents & Managers• REB Magazine + archives• Online Member Directory• Renew Your Membership• Update Your Online Profile• Classroom & Online Course Info• Home Selling ResourcesVisit SRSCouncil.com today & ‘Sign In” to access members-only content!

Join Us In San Diego For Our Business Meetings!

If you plan on attending the REALTORS® Conference & Expo this November, we invite you to stop by our business meetings. Our headquarter hotel is the Omni and our Meeting Schedule can be accessed by clicking this link: Schedule

Don’t forget to indicate CRB/SRS as your primary affiliation when you register for the Conference & Expo!



As of press time, the following members have completed all requirements and earned the CRB Designation.

Congratulations!

CONNECTIONS

Bonnie Hampton, CRB Berkshire Hathaway HomeServices American Homes

Western Springs, IL

Fred Kendrick, CRB TTR Sotheby’s International Realty

Washington, DC

Tara E. Molloy, CRB Riverside Realty Group, LLC

Fort Myers, FL

Kim M. Ouellette, CRB Berkshire Hathaway Home Services Florida Realty

Naples, FL

Terry Thomas, CRB RE/MAX Home Expert Realty

San Tan Valley, AZ

David E. Wyant, CRB Wyant Realty International

Ormond Beach, FL

Caprice A. Atwell, CRB Prudential Sterling Properties

Indian Harbour Beach, FL

Adam C. Conrad, Jr., CRB Perry Wellington Realty LLC

Duncansville, PA

Julie Nikolaou, CRB RPM Homes LLC

Appleton, WI

JULY 2015

AUGUST 2015


This new 1-day course is an interactive experience to help negotiators elevate their game! It examines all types of negotiation formats and methods so that today’s negotiators can play the game to win. A full spectrum of tips, tools, techniques and advantages will be provided so that you can provide effective results for your client.

A negotiation is a game of chance that involves risk. This course will help you develop an effective plan and strategy for any negotiation.

ABR and SRS elective course - Also counts for 2 CRB credits

TAKE THE COURSE!

November 12, 2015 | 8:30am - 4:30pm San Diego, CA - Omni Hotel

Instructor Barbara Fairfield ABR, CRB, GREEN, SFR, SRES, SRS Don’t miss the early bird rate of only $99!

When and how to negotiate Craft a plan/strategy for any negotiation Recognize patterns and tactics being utilized Adjust your communication style to achieve

optimum results with any party in the transaction Successfully apply the principles of persuasion to

any negotiation situation Effectively negotiate face-to-face, on the phone or

through email and other media



By G.M. Filisko

8 SMART

& NOT-SO-SMART

Branding Moves

If you read only one branding article this month, make it this

one. You’ll be glad you did.

Look, we wouldn’t blame you if you’d rather not hear the word “brand” ever again. It’s probably among the most overused buzzwords of the decade.

But bear with us for the few minutes it’ll take to read this article because branding is actually critical to your company’s success, and here we provide you with eight practical, concrete tips you can follow to build a name for your company.

♜1 Don’t confuse lead generation with branding. When Heather Logrippo, who owns Boston’s Expose Yourself Public Relations, which has a large cadre of real estate clients across Massachusetts, started working with brokers, she immediately realized that many brokers didn’t distinguish between lead generation and branding. They’re very different, and if you don’t know how, you’ll forever be disappointed because your expectations will be skewed and dashed.

“Branding is creating an impression so that

when people are ready to use your services, they’ll use you over your competition,” says Logrippo. “A lead would be somebody coming to your website and putting in their information and asking you to contact them.”

There’s no question that branding generates leads, but it does that over the long term. “With branding, you won’t know exactly which layer of the cake provided you with a particular lead because you’re constantly layering over laying when it comes to marketing,” says Logrippo. “It includes how you interact with your community—such as sponsoring a little league team—to the postcards and flyers you distribute. You don’t expect when you put your name on a baseball team’s jerseys that you’ll immediately get three people calling you to sell their house. But you do hope that someday down the road when they need to buy or sell, people will remember your company because of the jerseys, postcards, and flyers.”

♞ 2 Take the time to really think about your brand. You can’t wing your brand. Creating it requires a step-by-step process, says Dub Dellis, COO at Walt Danley Realty in Paradise Valley, Ariz.

Start with your vision—where you want to be—but don’t distract yourself early on by focusing on how to get there. Next create a mission statement to answer one question: What’s the purpose of our company? Then determine what you want people to feel when they experience your brand. “Driving a Volvo feels safe,” says Dellis. “Going to Disneyland feels magical.”

Also examine your brand’s personality. Are you carefree and happy? Are you reserved and dignified? “When we were redeveloping our brand, we asked all our agents and employees: If our brand were a famous person, real or

Branding isn’t something

your marketing

department does. It’s

something everyone in

your organization does.

—Dub Dellis, Paradise Valley, Ariz.


fictitious, who would it be?” explains Dellis. “After a lively debate, we settled on Cary Grant—sophisticated and elegant, but warm and approachable.”

The final step is determining your value proposition, which means answering why a consumer should hire you instead of the company down the street. Throughout this process, remember this: “Branding isn’t something your marketing department does,” says Dellis. “It’s something everyone in your organization does.”

♚3 Be clear and consistent in all aspects of your marketing. Think you can whip up a flyer today and a video tomorrow and not give a toss about whether the two send the same message? Think again.

“All aspects of marketing make up your brand,” notes Peter Boscas, owner and principal broker of the four-agent Red Cedar Real Estate in Columbia, Md. “There’s an agent who leads a team in our area whose listings have no consistency. Some don’t have professional photography, and others have typos. There’s no care or consideration going into the marketing.”

Boscas, however, knows the image he wants to convey with every marketing tool and the ways he will and won’t do that. When Boscas launched his company, he didn’t want to be perceived as a big-box-type real estate company. “I wanted to create something that has more of a personal touch—more like a concierge,” he says.

That’s the message Boscas sends on his website as he tells the story of renovating his first home, including its red cedar shingles. “My clients see how I bought that house and renovated it, and you’d be shocked at how many people say, ‘We

read your story and like that you know about construction’ or ‘We like that you know the problems that come up when you buy a home.’”

Boscas also makes it clear he’s not selling himself but real estate. “Everything is geared toward the product, not my company,” he says. “Unless you go to my website, you won’t see a picture of me on things like a yard sign. Instead, you’ll see a custom picture of the property or neighborhood. Also, all our listings are 100 percent consistent. We hire a professional photographer and do aerial drone footage, and we do custom websites and yard signs for every property. You could look at 20 of my listings, and they’ll all come across the same way.”

♛4Make your message matter—generics don’t cut it. “One big mistake I see is brokers using generic slogans like, ‘Service with a smile’ or ‘We can sell your home faster,’” says Logrippo. “Another big mistake is making their message about themselves by sayings like, ‘I sell the most.’ You have to tell people what’s in it for them. Branding is about them, not you.”

One of Logrippo’s most successful clients has a name that lends itself to clever branding: Hans Brings. His brand, which Logrippo says

You have to tell people

what’s in it for them.

Branding is about them,

not you.

—Heather Logrippo, Boston


he came up with on his own, is: Hans Brings Results. “Everybody knows that’s his slogan,” says Logrippo, “and the word ‘results’ tells consumers what’s in it for them.”

Bill Corbett Jr., president of Corbett Public Relations Inc. in Long Island, N.Y., also advises downplaying yourself and playing up your value to consumers. “The number-one mistake is being a hard seller,” he says. “I call it being marketing kryptonite. You literally repel people away when you say things like, ‘You’ve got to hire me!’ or ‘I’m the best in this area!’ If you’re going to lead with a line like, ‘I’m the best,’ you have to back it up with candor and sincerity—something that’s not only sell, sell, sell.”

♝5Video is king, so use it to tell your story. “You should have—at a minimum—one professionally produced video that’s about you, your team, and your results,” says Chris Bryant, creative director and principal at Empire Studios in New York City. “It should

showcase your personality, level of quality, and knowledge. Your goal is to professionalize and humanize yourself. It should be 90 seconds to 2 minutes—it it’s too long, people don’t stick around to the end.”

Yes, Bryant does this for a living. But video is one of the fastest-growing segments on the web. Mobile data usage rose 69 percent in 2014, and 55 percent of mobile data traffic was from video, according to Mary Meeker’s Internet Trends report. Facebook alone gets 4 billion video views a day.

Expect to pay $1,000-$3,000 for your video, says Bryant, depending on where you’re located and the level of skill you expect and how extensive you want the video to be.

Then post your videos on YouTube to start. “It’s so shareable, Google owns it, and having video there will help your Internet search results,” says Bryant. “But you also have to make sure it’s tagged properly so it’s searchable and people can find it easily. Also put it on your website, where it should be above the fold, front and center. Brokers do a lot of email blasts, so embed it in those, too. All your agents have Facebook pages; post it on those and anywhere else your company has a social media presence.”

Bryant also suggests creating several shorter videos (30-60 seconds each) that have real value to consumers. “By providing engaging, educational video clips, you’re establishing yourself as the expert while increasing your exposure,” he says. “The videos should rotate among different agents in the office. Cover things consumers will put in a search engine, like ‘things you need to know as a buyer’ and ‘tips for staging a home.’”

Also be geo-specific. “If you sell on Candlewood Lake in Connecticut, have a video on ‘tips for selling your home on Candlewood Lake,’” advises Bryant. “People search for that, and that video will pop up in search results. I can’t tell

You should have—

at a minimum—

one professionally

produced video that’s

about you, your team,

and your results.

—Chris Bryant, New York City


you how many people I’ve found because I’ve been searching for something on YouTube and found a video. Then I check out the rest of that person’s videos, and I subscribe to their channel. I’ve become a big fan just from one search.”

♟ 6Don’t set and forget your website. You should be pleased with yourself if your website was professionally created. You should also be a little sheepish if you haven’t updated it in years. “In the same way a professional video reflects the quality of your company, so does your website,” asserts Bryant. “If it’s been a decade, you should probably look at your website from the ground up. It’s also a good idea to take a critical look at your website and compare it to those of other companies to refresh it every five years.”

That matters when it comes to how consumers perceive your company but also in Internet searches. “Google notices,” says Bryant. “If your website is stagnant and hasn’t been touched since President George Bush was in office, it’ll have different rankings than one that’s been updated. Pay attention to things like bios and photos. If your bio says, ‘I’ve got two boys, ages 5 and 10,’ and now they’re 15 and 20, it’s time to update. The same goes for head shots. Your team’s head shots shouldn’t look like glamour shots from 10 years ago. Everybody should have a relevant head shot.”

♜ 7Your brand is affected by what consumers say about you. Act accordingly. “Part of your branding is your online reviews,” notes Boscas. “I get a ton of business through

Yelp, and I’m on Trulia and Zillow. Consumers are more likely to write a review if they’re frustrated. I’ve never had to address a consumer complaint, but I’ve seen other agents do it and make mistakes. They say, ‘We’re sorry you had a bad experience. We’ll look into it.’ That’s corporate nonsense. It doesn’t address the problem. You have to respond sincerely, but also do the research and explain how you’re ensuring this problem won’t happen again.”

♞8Spend what’s necessary to make your brand effective. “I’ve had to reeducate many clients not only about the difference between branding and lead generation, but also the fact that a certain percentage of your gross net income needs to always go back into marketing,” says Logrippo. “People get frustrated and say, ‘We spent $20,000 last year on marketing and got nothing!’ Then they cut their marketing budget. But how do you know you got nothing? And even if that were true, you have to ask if you were talking o the right people. You have to be consistent in your marketing.”

Logrippo again uses her client Hans Brings as an example. “He starts with a great slogan that talks about what’s in it for clients, and he’s identified his market,” she explains. “Then he has many different layers of marketing using many different tools. He has a billboard in town every year for four months. He does direct-mail pieces. He does online advertising. He’s very savvy in social media and buys ads on it. He writes articles that get published in the local newspaper. And he dominates the market.”

G.M. Filisko is a lawyer and freelance writer who specializes in real estate, legal, business, and personal finance topics.


TEAMS:


By G.M. Filisko

TEAMS:&&

TEAMS:WHEN

HOW TO

BREAK UPWhen teams combust,

companies and team members can suffer. Act now to prevent that from happening to you.


Maria Carrillo is a strong supporter of teams. It’s just that her own two-person

team didn’t work out.

“I think having a team is beneficial,” says the agent at The Keyes Co. in Coral Gables, Fla., who two years ago parted ways with her teammate of more than 20 years. “Each team member is going to bring something different to the table. And more than anything, it gives you somebody to bounce things off of, and you grow accustomed to that. I’d tell anybody if you find someone you complement, a team is a great thing to have.”

But breaking up was difficult, and Carrillo has learned from the experience. She’s open to teaming up with another agent, but this time she’d be sure to address the breaking up part in the beginning, not at the end when the team isn’t working for all parties anymore. “I’d want to specify how things are going to be handled in the future,” she says. “Life has taught me that when you start is the best time to put together a plan. That’s not being negative. It’s just making sure all things are addressed.”

The responsibility for addressing the potential for discord lands not just with agents uniting to create teams but also with their brokers because both can suffer when teams unwind. A loss of business is almost inevitable, as is a loss of an agent to a competitor. “It’s quite common for at least one team member to leave the brokerage,” says Ken Goodfellow, CEO and chairman of Goodfellow Coaching & Consulting Inc. in Kanata, Ontario. “Usually one person, like the team leader, doesn’t want the other person there anymore.”

That’s why both team leaders and brokers need to expect the best, but plan for the worst. Then when teams hit a rough patch, both also need to work to resolve the problems or guide the team to a successful dissolution. Here we offer tips for doing those things.

Anatomy of a breakupThe dissolution of Carrillo’s team was difficult, though she respects her former teammate and wishes her well. The team began in the early 1990s, “pretty much on a handshake, which I wouldn’t recommend to anyone, by the way,” says Carrillo.

The road became bumpy several years before the team split, says Carrillo. “The fairest thing to say is that it was a long time, more than 20 years, and over the years, our personalities changed, and it was better for us to go our separate ways,” she says. “We were talking it out off and on. Then about six months before we stopped being partners, we started discussing what we’d do with our clients. Over a 20-year period, you have a pretty nice, extensive book of business. But when you’re working as partners, you’re not concentrating on whose client is whose. When it comes to dismantling, you have to look at that.”

Carrillo and her teammate discussed scanning their client list and identifying which were family or friends of each member. The idea was that if those people came back and did business with Carrillo or her former teammate, a 25 percent referral would be paid to the other team member for the first year, a 20 percent fee would be paid the second year, and then referral fees would end.

“We had what we thought was a good agreement, but we just ended abruptly,” recalls Carrillo. “Then pretty much whatever business we were working on at the time was divided in the same manner we always had, splitting it 50–50. When that business was done, that was it. It was open season. We each worked with whoever called us, and we paid no referrals. I wish that hadn’t happened, but not for financial reasons. I wish we had resolved things more amicably. In hindsight, when we were talking about ending it, we should have just ended it—done our agreement, and that would have been the end. Both of us are still successful, and the partnership was successful. I’m very proud of what we did together as a team.”


Carrillo left her former brokerage to restart her business. She also had to rebrand. “Our team logo had both our initials, so we both really had to rebrand,” she says. “I had the support of my company in doing that, and I have a very good friend who’s a design artist. Without them, it would have cost me about $5,000 for the rebranding.”

When past clients call, Carrillo discloses her new status. “When they contact me, I just tell them my partner and I are no longer working together, and if they expect the two of us, they’ve got me,” says Carrillo. “Some have said, ‘Is everything OK?’ and I say, ‘Yes, everything’s OK.’ I don’t go into too much explanation. So far, everyone who’s contacted me has decided to do business with me. I’m assuming it’s the same with people who contact my former business partner. I think eventually that’s what would happen, anyway.”

It starts with brokersYou can take steps today to head off the challenges Carrillo faced. “It really starts way back when,” contends Adorna O. Carroll, ABR®/M, SRS, CRB, CIPS, CRETS, RENE, SRES®, SFR®, GRI, PMN, e-PRO®, vice president of Realty3 CT in Berlin, Conn. “If there’s a problem, I’m blaming the brokerage for not having a policy before someone starts a team. We have to establish certain parameters. Since brokers are responsible for everything that happens at their company, no brokerage should allow a team to form in their firm without having clear systems and policies in place.”

Carroll has seen teams implode, and she believes it’s often because expectations weren’t clear. “Sometimes people start teams too late,” she explains. “They’re hamsters on a wheel, just waking up in the morning, working, and then

going back to bed. That’s when I step in and say, ‘You really need someone on your team.’ The answer is often, ‘But I don’t have time to train them!’ So agents often wait six months longer than they should to bring on team members.

“Then when they hire,” Carroll adds, “they do it intuitively, in haste, and not according to their core values. That’s a recipe for disaster. They also don’t have what I call a prenuptial, or an agreement written between team members that identifies who does what, what the job responsibilities are, what the compensation is, and how to handle fringe issues. They also don’t have an agreement on how to part if, in fact, it doesn’t all work out.”

By “fringe issues,” Carroll means the details of compensation. “Everyone gets the big parts of compensation questions,” she says. “But does the team split everything that comes in? Or do team members have the ability to do business on the side, and they only split the stuff the team leader brings in? Whatever the scenario, those questions are never outlined clearly enough. The second problem is that when teams are splitting up, inevitably someone

feels like they did more and should be compensated more. Then you have to handle the fringe issue of equality.”

Brokers also have the responsibility to engage with teams after they’re formed. “Once teams start, some brokers just let them go,” says Goodfellow. “Then when brokers try to

come in and fix things when teams run into problems, they don’t have a real depth of rapport with team members. It’s a catch 22 because some team leaders don’t want you to be involved with the agents on their team. But if you’re going to run a brokerage properly and have teams that are successful, I think you need to participate in the teams and help them evolve.”

Since brokers are responsible for everything that happens at their company, no brokerage should allow a team to form in their firm without having clear systems and policies in place.

—Adorna O. Carroll, Berlin, Conn.


Goodfellow suggests providing training to team members beyond the training the team leader offers. He also recommends actively encouraging team members to be involved in the company beyond their team. “If you’ve created good training programs for the team members, they’re going to be involved in your company,” he says. “And create a culture within your brokerage that encourages people to come to events and become involved in the culture.”

But it all comes back to having agreements signed by all parties from the beginning.

“Team leaders, when they create a team, must have very clear agreements with the people who come on the team, clear job descriptions, and a means of accountability,” says Goodfellow. “Brokers also need to make sure their agreement as these teams’ leaders come in is very clear—

they should be written and signed by all parties. But brokers should also have an agreement that team leaders will get their agents involved in the company and its training and maybe even that the broker can drop into team meetings on occasion.”

The Real Estate Business Institute (REBI) – an affiliate of the National Association of REALTORS® offers the most comprehensive and team training in the industry. The new CRETS (Certified Real Estate Team

Specialist) certification is the first and only team credential recognized by NAR. The CRETS curriculum integrates ready-to-implement strategies and solutions and provides a comprehensive foundation of skill development, training, and resources to build, lead and manage a high performance team.

Course Curriculum:• HR Solutions for Teams: Find. Hire. Compensate. Train. Evaluate. Fire.

• Team Collaboration Tech Tools

• Position Your Team for Profit

• Team Leadership for Maximum Results

For more information on the CRETS certification and bringing a course to your company or organization, click here.

Team leaders, when they create a team, must have very clear agreements with the people who come on the team, clear job descriptions, and a means of accountability.

—Ken Goodfellow, Kanata, Ontario


How to spot troubleYou can, and should, look for signs of discord and try to mediate tensions before teams reach a breaking point.

“Brokers are going to get an indication of how teams are doing because they see the team’s figures,” says Goodfellow. “You have to be on top of that and then start communicating with team members so they know you’re there to support them.”

When something’s interfering with a team’s production, offer to help. “Brokers have to analyze the teams to figure out what’s going on and where the team is planning to go,” says Goodfellow. “If there are issues, what are the issues? It could be a lack of clear expectations for the people within the team. It could be a lack of direction when it comes to what they’re supposed to actually be doing. It could be the wrong team members are on the team. Or it could be a lack of trust among team members.”

You can help resolve most of those challenges. “As an owner of a company, I don’t want to mediate something when there isn’t an agreement between the parties,” says Carroll. “So if I see team members having disputes or arguments, I can attempt to mediate, but I should shoot myself for not doing what I should have in the beginning. The last thing you want is to have your business walk out the door because emotions are raw.”

Sometimes it helps to show team leaders how to hit the reset button. “I think the broker has to say, ‘Should the team be together? Is there a remedy to those potential issues?’” says Goodfellow. “One of the biggest things teams lack is great communication. You can help them recommunicate and get them moving on the same path. You can also often help clarify the team’s vision and job descriptions. On the other hand, if the issue is trust among team members, in a lot of cases, that’s insurmountable. With a lack of trust comes a lack of respect and a lack of direction. That could be a team’s breaking point.”

According to Carroll, “What ends up being in the pile of disagreement are, ‘I didn’t get my fair share,’ ‘I did more than that and should be compensated more than others.’ ‘I thought the agreement was this and I’d get that.’ ‘I thought I’d be doing this and now I’m doing that.’ Those are the mediation pieces. And then there’s trying to stop someone from leaving your brokerage. It’s certainly possible one of the team members will leave.”

Ultimately, Carroll says, everybody’s success often comes down to team leaders’ and brokers’ skills. “Team leaders need to elevate their skills to make sure everybody’s on the same page,” she says. “Without a shared vision, things start to flounder on teams. And brokers have to insist that everyone working on teams understands what their goals are and where they’re going.”

G.M. Filisko is a lawyer and freelance writer who specializes in real estate, legal, business, and personal finance topics.

Team leaders need to elevate their skills to make sure everybody’s on the same page. Without a shared vision, things start to flounder on teams. And brokers have to insist that everyone working on teams understands what their goals are and where they’re going.

—Adorna O. Carroll, Berlin, Conn.



Where to Spend Your Recruiting Dollars

Recruiting

If you’re not tracking every dollar you spend on recruiting, how will you know where to put future funds? Here brokers talk about the most productive places to spend their recruiting budget, along with the mistakes they’ve made in spending that money.

Face time is worth the cost“With a multi-state brokerage, recruiting the right agents is critical to our business model, especially since we want only a few seasoned agents in each market. Here are some of our internal dos and don’ts for recruiting costs and ROI:

1. We spend the money to research agents in advance and then request face-to-face meetings. We believe the advantages we bring to our agents are significant and not something a flier or social media post can explain well alone.

2. In new markets, we send quality referrals to potential agents. We then monitor responsiveness and eagerness to receive more leads. If a client reports the agent is unresponsive, we investigate. Sometimes there’s a valid reason, and sometimes we find agents just don’t find customer service important.

3. We consider every interaction with potential agents part of our evaluation. Are they professional? Timely? Knowledgeable? We record any problems, as well as outstanding service, and then use this to further qualify potential agents.

4. We often travel to meet agents in new markets. It’s expensive, but our business is relationship driven, and a visit tells us, and

the agent, more than any call or email alone ever can.

5. Because we don’t recruit just every licensed agent and we’re focused on specific markets (lake real estate markets), we don’t find a good ROI on recruiting from general real estate industry events.”—Glenn S. Phillips, CEO, Lake Homes Realty, Birmingham, Alabama

Say yes to incentivizing employees“We’ve found that our best source of employees is the friends and family of our current employees. The next best is referrals from our clients, vendors, and network of partners. To that end, the one thing we’d never give up in the recruiting process is offering incentives to current employees, our clients, and our vendors to recommend people who’d be a great fit for our culture and passionate about our mission.

We offer a cash incentive to employees, and it could be $500 to $5,000 depending on the position. For example, if an employee refers a friend who’s hired on our sales team, that referring employee would be paid a bonus over the course of a year, and the bonus would be tied to the success of the new hire. Also, the employee would lose the remaining referral bonus if that new employee leaves within a year. This way, our current employees have great incentive to help get the people they’ve referred up to speed and doing well.

The money we’ve wasted on recruiting has been on general online job sites. They generate a huge volume of unqualified applicants since it’s so easy for a job seeker to apply for hundreds of


Recruiting

jobs in a short period of time.”—Jeremy Brandt, CEO, WeBuyHouses.com, Dallas

Weed out those unworthy of the effort“I’d never want to eliminate the budget for bringing talented agents to terrific training or events. And I’ve made mistakes in the past by inviting ‘unworthy’ guests who didn’t respect the gift. They either blew it off and didn’t show or accepted a trip to Austin only to party and didn’t attend the actual event.

I now work to weed out the bad risks without making a prospective hire feel there are strings attached to the offer. Here’s how I do that:

1. If the interest in our programs is strong, I’ll ask the recruit to cover all or part of the expense up front and bring a reimbursement check with me to hand over when the recruit shows up.

2. I ask many more questions to see if the event is in line with the goals the recruit has shared with me and match the event to their individual needs. It’s not one size fits all, to say the least.”—Lynn Cohen, CEO/team leader, Keller Williams Realty, Newton, Mass.

Know your budget and whom you’re pursuing; allocate accordingly“Recruiting isn’t the same for all agents. You have to look at each recruit individually and analyze where and why the spend makes sense. You can spend your recruiting budget in many different ways, and it’s up to you to know what’ll have the biggest impact on each recruit. Money can be spent on great meals, after-work cocktails, morning coffee, even a show or concert. Or perhaps it’s a new piece of work equipment, such as an iPad or phone. Some people might require an up-front payment to help smooth the transition.

Your job is to know how much money you have to spend and then to strategically map out whom you’re going for and what those agents might require. Never spend it all on one person unless that recruit is totally amazing and you have the recruit sign a loyalty clause agreeing to stay for X period of time and to return the money if they don’t.”—Kathy Braddock, managing director, William Raveis, New York City


ListingStrategies

Tips to Get Sellers to Relist with You

You’ve worked incredibly hard to sell that listing, but you’ve still got no takers as you approach the listing agreement’s expiration date. What’s your best plan for convincing sellers to re-up with you? Here agents across the country reveal their tactics.

It’s about commitment and trust“This happens seldom for me because I sign a six-month listing contract, and our market is fairly robust. But if you’re nearing the end of your listing contract timeline, you’ll want to start having the discussion sometime around 30 days before end of the contract, but certainly not the day before.

It’s important when you talk to sellers to explain the reasons the home isn’t selling or that they haven’t had any offers. There are only two real reasons for that. Either it’s the marketing or the price. From the very beginning, communicate from day one so clients will feel you’re on top of things. Where agents do a bad job or get in trouble is in signing the listing agreement and never talking to the client again—except when it’s time for a price reduction. That never goes over well.

When you have the discussion, sellers’ initial gut reaction is often to point the finger at you and say you’re not doing your job. At that point, I explain about the marketing we’ve done—the open houses, the marketing offline, the marketing online, and all the showings we’ve had. I say that if there are only two reasons a home won’t sell—the marketing

or the price—and I’ve been marketing it like crazy, often sellers will say the word, ‘price’ themselves. Then it’s about determining where to price the property.

I do a six-month listing agreement not to give me enough time to sell each property—I try to sell all my listings within a month—but to get sellers to commit to working me. There are agents who do 30-day listings, and I think that’s a gimmick to get listings. If sellers are willing to sign a six-month agreement, that’s a good gauge of their commitment to working with me, which is also helpful in avoiding that ‘relist with me’ conversation. The more committed they are and the more trust they have in you, the more they’ll value you as their agent.”—Alex Wang, real estate evangelist/broker-associate, Sereno Group, Palo Alto, Calif.

Don’t dither. Say what you think“This is a very simple subject. If the listing is about to expire and you’ve done your job to advertise it, the market is telling you it’s priced too high. Here’s what you say: “Mr. and Mrs. Seller, your home has been listed at $400,000 for 6 months with no offers—in a sellers’ market! The market is telling us to lower the price. Will you do that tonight, yes or no?” —Randy Placencia, broker, Century 21 Scheetz, Indianapolis

Be happy. And relist with us“I’d start discussing the listing agreement a


square feet with three bedrooms and three-plus baths—but on four floors in very vertical living. They’re priced under market, but because the area is so family oriented, most buyers can’t get their head around the up and down of the condos. We thought we’d be sold out last spring. That’s not the case. We’ve sold only half, and the units have been on the market for seven months.

Our listing came up for renewal at the six-month mark, and the sellers were frustrated more units hadn’t sold and wanted to list with another agent. Here was our argument:

1. If you’re unhappy, please terminate. We’d

ListingStrategies

couple of weeks before the expiration date. If you’re an engaged agent, you’ll begin to sense if your seller is unhappy or frustrated. If you’re getting very few showings, the seller will blame you. However, that’s mostly likely a function of price. The market will tell you within the first month if you’re priced correctly. You should re-evaluate pricing at that time. Also keep your client up to date on recent sold properties and recent active listings, as well as all your marketing efforts and the details of showings and comments.

We’ve listed an eight-unit condo project in very desirable part of town with a highly sought-after school district. The units are all about 3,000


ListingStrategies

never want you to feel we’re not doing our job.

2. We’ve marketed this project for months. We know all the hot-button issues for people.

3. You’d have to take the property off the market for 30 days to ‘reset the clock’ and would lose precious time.

They relisted with us.”—Lera Lasater Lee, Briggs Freeman Sotheby’s International Realty, Dallas

Tell it to me straight

“The biggest issue I have heard from new clients who decided to not re-list with their previous agent is that there was a lack of communication. Your job as a listing agent is to communicate to your clients as much as possible. When there’s a disconnect because of a lack of communication, clients begin to have doubts—and that’s never good for an agent. I like to service my clients the same way I’d want to be treated in their situation. That means give it to me straight, and keep me updated. As long as you’ve delivered what you initially promised, the seller usually has no issue re-listing with you.

If you’re properly communicating with your client, there shouldn’t be a “too late” or “too early” time to ask. That said, if you’re asking the day before the listing expires, that’s a poor business practice.

In my current market, a home should be selling within 30-60 days. I recently had a past client contact me to say he wanted to cash out his equity and downsize to own outright. After reviewing the comparables, he wanted to be aggressive with his asking price. I advised that most buyers are being cautious about paying over market value, but sometimes you just never know. We had consistent showings and even received two offers. Unfortunately, they weren’t where he wanted to accept.

We’re soon approaching the expiration date, and I’ve already informed him of this. I told him we could take his home off the market until the value comes up, but that a rising tide lifts all boats. So the property he’s trying to buy at the current price will also increase in value. I have a good, honest relationship with him so I’m not afraid to hurt his feelings. Either he’ll realize the price he wants isn’t realistic and stay where he is, or he’ll reduce his price and sell. Either way, I know he trusts me and will use me to sell his property in the future if now isn’t the right time.”—Rachael Kaiser, salesperson, Canter Brokerage, La Jolla, Calif.

Be bold but positive“This is your chance to turn a complicated moment into an opportunity. I like to make the discussion positive. It does require some bravery, but you need to have a conversation like this: ‘After six months, the market has spoken, and you need to change some things.’ Maybe the sellers have overpriced their home. Maybe the outside is unkempt and they need to do some simple landscaping and upkeep. I tell my sellers to take the property off the market for six to eight weeks and make the necessary changes. One seller did just that. He gave the place a fresh coat of paint and had an offer 10 days later.

There’s no magic, but you do need to look at why the place isn’t selling and have that conversation. Stress what you’re going to do to remarket the property, and give your seller time to think about and hear what you’re saying. You need to be bold and have fresh ideas on pricing and improvements, all while stressing your shared goal of selling the home, which allows you to connect with your client.” —Susan Reynolds, salesperson, Williams Raveis, New York City


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PROVEN EXPERTISE. MAXIMUM RESULTS.


SalesStrategies

Three Seconds—Part 1

John D. Mayfield CRB, e-PRO®, GRI

Category: Professional development

Materials Needed: Flip chart

Estimated Time: 15-20 minutes or longer depending on the amount of time allowed for group discussion

Meeting Objective: To show agents how important the first three seconds are for the choices we make on a daily basis. This meeting is adapted from the book 3 Seconds: The Power of Thinking Twice by Dr. Les Parrott, Collins, an imprint of HarperCollins Publishers. The meeting objective will focus on the first three seconds “to empower yourself.” This is the first part of a multi-meeting series.

PowerPoint available: Yes

INTRODUCTIONExplain to your group that today’s meeting is summarized from the book 3 Seconds: The Power of Thinking Twice by Dr. Les Parrott.

STEP 1

Tell the group that in Parrott’s book, 3 Seconds, he covers some basic areas where you can move forward or backward in the first three seconds. In three seconds, you can:

• Empower yourself

• Embrace a good challenge

• Fuel your passion

• Own your piece of the pie

• Walk an extra mile

• Quit stewing and start doing

Parrott goes on to explain that with each of these challenges, there’s a first and second impulse:

1. The first impression: “There’s nothing I can do about it.”

2. The second impression: “I can’t do everything, but I can do something.”

STEP 2

Ask your group: “Why do some people give up when problems or turmoil arise?” Write the responses on your flip chart.

STEP 3

Ask: “What does it mean to be ‘empowered?’ Is empowerment good or bad for an individual to possess?”

Explain that there are three ways to help you “empower yourself,” according to Parrott’s book. [You can write these on your flip chart if you choose or use the PowerPoint included with this sales meeting.] Spend some time discussing and visiting with your team on these issues and how they can relate to the real estate industry.

1. Say what you know—instead of what you don’t. Example: “I don’t know right now, but


CLOSING:Encourage your group to practice and implement the three suggested ways for empowering themselves from Parrott’s book:

1. Say what you know—instead of what you don’t.

2. Cultivate care and really mean it.

3. Brandish optimism like a weapon.

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.

SalesStrategies

I can get the answer for you” is better than answering with your first impulse, which may not always be right. What are some other examples of how you should implement this principle?

2. Cultivate care and really mean it. Example: If you want to give the best possible service, deliver it as you promise. What are some more examples of delivering customer service and showing that you mean it? How can this principal build “empowerment?”

3. Brandish optimism like a weapon. Example: People who have an optimistic view on life have a 55 percent lower risk from death from all causes and a 23 percent lower risk of heart-related death, according to Archives of General Psychiatry, November 2004. How can being optimistic help with “empowerment?”

STEP 4

From the book 3 Seconds, the final question from the chapter “Empower Yourself” asks this question: “Optimism is the top-rated weapon for combating helplessness, yet it’s often one of the most difficult to wield. In what situations do you find it hardest to be optimistic?” What are some other ways you can build “optimism” as a real estate professional?

People who consider themselves victims of their circumstances will always remain victims unless they develop a greater vision for their lives.

—Stedman Graham, managing and marketing consultant


JULY

/AUG

201

5 •

VOL

72

PUBLISHED BY THE COUNCIL OF REAL ESTATE BROKERAGE MANAGERS


PLUS HOW TO MINIMIZE THE RISKS OF PROPERTY MANAGEMENT

8 REASONS TO TURN DOWN A LISTING


Texas Powerhouse

Ebby Halliday Acers (born Vera Lucille Koch, March 9, 1911) was a REALTOR® and businesswoman who founded Ebby Halliday Realtors®. She was one of the first successful female entrepreneurs in Dallas.

Halliday was born in Leslie, Arkansas, and graduated from high school in Abilene, Kansas, in 1929. She got a $10-a-week job selling women’s hats at The Jones Store in Kansas City. In less than a year, she was the top salesperson. In 1938, she was asked to take over the millinery department at Dallas’ W.A. Green Store. Soon she had her own Dallas boutique, Ebby’s Hats. She founded her real estate company in 1945, and turned this one-woman residential real estate office into one of the country’s largest residential real estate companies.

Her impact on the residential real estate industry was unmatched. Over the years, Ebby opened the doors to successful careers for thousands of people; in particular for women at a time when opportunities were limited.

For Ebby, a successful life was about so much more than extraordinary sales figures. It’s true Ebby Halliday was a legend … but she was also a real person – someone who made a difference in people’s lives. Those of us around her over the years witnessed her service to community and business and are proud to have been associated with all that has been achieved by her and through her leadership. More importantly she has, through her personal example, served to inspire so many of us to reach and stretch and grow beyond where we would have gone without her.

In November 2000, Halliday became the first inductee into the Council of Real Estate Brokerage Manager’s (CRB) Hall of Leaders. When interviewed for Real Estate Business magazine after receiving this honor, Ebby summed up her philosophy simply: “You can’t receive unless you give. And that’s a policy that has permeated our whole company.”

Remembering Ebby …

We were also blessed with Ebby’s leadership as our fourth and first woman President of CRB in1971. She was also one of 117 individuals who are considered CRB Charter Designees approved by a special committee who convened in New York City in November 1968.

Ebby Halliday could have done anything … she chose to do everything and each thing very, very, well. For it is who she was that serves as a more lasting reminder of what each of us could become. Ebby’s legacy is long and honorable. We are richer for the gifts she gave us.

eadcbg

By Ginny Shipe, CAEChief Executive Officer

Halliday had a lot of fun with three chords she could strum on the ukulele. She penned new words to this familiar tune and sang and played at our luncheon in November 2000, where she received our Hall of Leaders Award.

Happy days are here againInterest rates are down againIt’s a seller’s market once againHappy Days are here again

That’s the way it used to beA simpler world for you and meBut now we have “Tech-nol-o-gee”It’s different now it’s plain to see

There’s Internet and e-mail tooThe World Wide Web’s no longer newYou fax me and I’ll fax youThese are wondrous times – it’s true

Our good old ways will never doA firm handshake between me and youNow it’s mediators and lawyers, tooWe may be sued before we’re through

But through it all we’ve stood real tallWe’ve learned new ways … we’re on the ballWe can be proud – one and allAnd Happy Days are here again

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