John Hummer's Real Estate Report

 NOTE:  I'M BREAKING HERE.  IT IS 5:30 and TIME FOR COCKTAIL RECEPTION..... I'll FINISH THE POST on Don Peppers LATER TONIGHT "OR" IN THE MORNING......

OK I'm Back......

Speaker Three:  Don Peppers - Thriving Amidst Change, "Paradigm Power" and "The Hangover"

Don Peppers had a unique approach to creating value for our business.  His theme was tied to these main themes:

1) Only Customers Create Value for Us

2) It is all about creating Trust with our customers.

If we do not have customers, we have no business.  How we treat customers today affects their long term value to us in the future.

Why do customers choose us (you)"

* Trust

* Confidence in us (you)

* Strength of our (your) relationship with them

His overriding theme was "creating" trust with the customers.  Focus on building and maintaining a reputation for trustworthiness!

No matter how good we are, we will never be perfect (after all we are human), we should constantly strive to improve......note: he commended our company efforts to survey and seek feedback via our Premier Service survey process........there are very few Realtors and Company's doing this on a disciplined and consistent basis.

End of Day One.  Stay Tuned for Tuesday Blog.

John

Day One (Monday) Continued......

Just returned from our three speakers.  I will provide a brief overview of their presentations and touch on a few of their points that were of note. 

Speaker One:  John Bearden , CEO of GMAC Real Estate

John Bearden opened up the leadership forum with a personal talk about the importance of leadership during this unprecedented time of change.  He challenged us to not wish away the current climate in our national industry but rather confront the brutal realities that are facing our industry and make smart strategic decisions.

His theme was "Change creates uncertainty and knowledge crafts the opportunities."

His message to the principals focused on our attitudes, courage and overall ability to communicate to our teams.

All in all it was a very good kick-off message and set us in a good frame of mind.  He then introduced Stefan Swanepoel.

Speaker Two:  Stefan Swanepoel - Top 10 Trends for 2008

Stefan, with his British accent and excellent sense of humor, kept our attention for 75 straight minutes of his Top 10 trends for 2008.  We were the first real estate group to receive his 2008 Trends presentation as it was just printed several weeks prior to the meeting (p.s. I purchased a copy for the office and will bring back with me).   I will list his top 10 trends and provide a few take away stats.  A lot of this information you may already know.  But with any motivational speaker, it is always good to be reminded.  Here is his top 10 trends for 2008:

10.  Shattered Glass - Women, the Youth and Minorities Step Up to Leadership Roles 

* Women have always constituted a large number of REALTORS but now, more than ever, women are taking leadership positions in real estate companies.

* Women are the largest single economy (52% of population, purchase 85% of products, purchase 67% of healthcare, open 89% of bank accounts).  Focus marketing efforts on women.

*  By 2050, minorities will be 1/2 of the population.  Of particular focus - Hispanics.  As of July 06, there were 44.3 million Hispanics, will increase 70% by 2020. Estimated to be 100 million by 2050.   Focus on recruiting more diverse Realtor base.  Focus on creative outreach.

* Youth.  One click away.  Do not ignore the virtual world (myspace, facebook, etc....). It is a reality and growing. 

9.  Thought Reform - The DNA of a New Breed of Real Estate "Professional"

* He reminded us that in a recent Harris Poll, REALTORS were the lowest trusted Professional.  Why?  Well, one example is that it takes 1,200 credit hours to become a barber in California versus 120 hours to become a REALTOR.  What is more complex and creates more liability?  We created this image and we must be part of changing it.

* Do not focus on designations but rather the "knowledge" that comes with the designation.  If a course does not qualify for CE but is a "quality" course, take it! 

* Acquire business skills if you do not possess, become Internet confident, understand that this business is and adult education industry and must be self help oriented.   These were some tips he gave.

* He challenged us to implement more learning at our offices.  Note:  I felt good about our Advantage Training, Success Series, CRS onsite, and REI.  Not to say we can always do more.  The offices who do this will become part of changing the quality and trustworthiness of REALTORS.

8. Clash of The Titans

Basically, the message is that the large Real Estate Companies (12 he mentioned, of which GMAC is one of the top 6) are all poised to do well in light of online companies such as Zillow, Trulia, RedFin, etc.....

7. The Tug of War Has Started Again - The Evolving and Changing Real Estate Business Model

Stefan commented that there are 10 to 20 new Real Estate business models (online , offline) created every 30 days.   His message is "do not worry about these new models".  Watch them, learn from them, but there is no evidence that the Trulia's, Zillow's, RedFins, are going to replace the traditional agent who is in the community interacting face to face with customers.  What is most important is that your model fit your local community. 

6.  Gone in 60 Seconds - Identity Theft

He provided some sobering statistics about how real ID theft has become and the need for each of us (companies and individual realtors) to make sure our data is secure.  If TJ Max records were heisted, don't you think your (Steinborn GMAC) customer data could be taken?   Message:  Don't horde files.  Destroy files that are no longer legally needed.  Secure your data!  The more prominent you are in your market, the more attractive your data will be for an ID thief.

5. In Search of Productivity - Growing Market Share on a Slippery Slope

* At best, there are 700,000 too many realtors nationwide.

* In a recent MLS database of 10,000 transactions, approximately 50% of the realtors had "zero" transactions.

* Stefan stated, Are your non-performing REALTORS focused on building their business?   It is up to them to make it happen.  There are buyers out there.  Are these REALTORS actively working the buyer market, working their sphere of influence "daily".   Your agents must "maximize" the technology made available to them, have a business plan. 

4. Four Weddings and a Funeral - Changing Borders and Boundaries of MLS

Provided an update on the current consolidation and changes in MLS.  Dept. of Justice issues and consolidation examples.  Will bring more info back with me.

3. The New Digital Currency - Livestock, Land, Gold, Oil and Now Information

* Advertising for Real Estate Companies / Realtors Nationally is as follows:  35% Newspaper, 33% Internet (note: this will surpass print media next year), 12% Yellow Pages, 7.7% TV (tv is a waste), 7% Radio (radio is a waste).

* He has some great graphics that speak to the information explosion and trends.  He provided a Listing Promotion Pyramid.  I will bring all this back with me.

2.  Pop Goes the Weasel - The Housing Bubble Tightens It's Grip:

* "When the tide goes out, you find out who has been swimming naked" - Warren Buffet.   This sums up the subprime and foreclosure mess.

* Brush up on short sale and REO knowledge.  There is a market here.

1.  Two Worlds; One Industry - The Evolution of Online Communities and Networks

* Browsing, Searching and Sharing.  Sharing is the future.  Online communities are here and growing.

* Online communities are almost parallel universes existing next to reality

* 5% of "all web traffic" goes to 20 social network locations (re: myspace, facebook,).

* It took Top Producer 10 years to get 70,000 users.  It took ActiveRain 48 months to get 70K members.

* If you do not understand the virtual communities, you need to start today learning and understanding how to connect and operate in this world.

* Some of us will adapt, while others will just watch the events unfold on YouTube.

 NOTE:  I'M BREAKING HERE.  IT IS 5:30 and TIME FOR COCKTAIL RECEPTION..... I'll FINISH THE POST on Don Peppers LATER TONIGHT "OR" IN THE MORNING......

Speaker Three:  Don Peppers - Thriving Amidst Change, "Pardigm Power" and "The Hangover"

Greetings to everyone at Steinborn GMAC Real Estate.   Given that not everyone will be able to attend Experience 2008, I decided to create a daily blog to fill you in on all the speakers, events and other happenings.  I will also include some pictures throughout the week.   I hope you enjoy.  So, here we go:

 Day One (Monday):

My lucky day.  I arrived at the The Wynn Hotel at 7:30 AM this morning and was happy to find out that they had a room for me immediately versus waiting for the proverbial 3 PM check in time.  Monday and Tuesday is the Leadership Forum for company principles.   The rest of the gang is coming Tuesday afternoon.

Today, we have two keynote speakers.  The first is Stefan Swanepoel, a futurist, who will comment on 10 current trends in the industry.   Following Stefan, will be Don Peppers, who will comment on the trends presented by Stefan and then provide strategies amidst the change happening in our industry.   I will report back on each of the speakers and share some of the highlights later today.  Stay tuned!

When the national press continuously hammers the overall state of housing, it is no wonder that the public has high anxiety about the housing market.   The media would have you believe that all markets are suffering like Las Vegas, Detroit and Florida.   Las Cruces, New Mexico is an example that real estate is local.  For 2007, Las Cruces closed out its third best year in its history of MLIS record keeping.   Although our total unit sales dropped from 2,435 in 2006 to 2,001 in 2007 (-18% decline), our total dollar volume dropped from $1.02 billion in 2006 to $862 million in 2007 (-15.5% decline).  Our market continued to experience positive price appreciation.

Fortunately, for the Steinborn GMAC team, our dollar volume only dropped 10.8% in 2007 vs 2006 thus beating the Las Cruces market by 44%.   I am no Nostrodamus but I believe that Las Cruces' best days are ahead.  

From a national perspective, if for no other reason than pure politics, I do not see the Republican administration allowing the economy to be a negative issue heading into the November elections.  The War is already a drag on the party in power, therefore I believe they will do everything in their power to provide stimulus packages to infuse more capital into the economy and push for continuous drops in the interest rates.   And should the dollar continue to drop in value oversees, our national exports will serve as a positive prop for our economy.  But with all prognosticators, I could be wrong.

Share information on your local economy.  Share your thoughts on the national economy. 

This is my first Blog posting and I it felt only fitting to write about what is most important in Real Estate - our customers!   At my company, Steinborn GMAC Real Estate, we have implemented a Premier Service Philosophy.  Everyone of our team members is required to complete and commit to the Premier Service Training.  Here is who we are and what we believe:

Premier Service® is the Steinborn GMAC Real Estate service delivery process designed to create a consistent, reliable, measurable and marketable service experience. The program provides  our Associate Brokers with tools to help explain their role and demonstrate their commitment to providing the best customer service available from any real estate company in the industry, let alone our local community.

To understand just how powerful Premier Service can be, one must look at the compelling statistics from industry research. Despite the fact that industry averages indicate 79% of buyers were very satisfied, only 4% used an agent they worked with previously. Even with first-time homebuyers factored into that percentage, that's a staggeringly low amount of repeat transactions. As for sellers, 69% claimed to be satisfied by the services they received, yet only 21% used an agent they had used before. Clearly, buyers and sellers fail to see any difference in real estate companies or agents.

Why is this? Customers do not understand what we do to earn our commissions, feel powerless during the transaction and do not trust us to be on their side. Research tells us that what customers really want from a real estate transaction--value and control. They want value when measured against the commission they pay; and they want the feeling of control that comes from being informed about and involved in all aspects of the home-buying and selling process.  Wearing a red hat, holding a pet or sitting on a harley in your ad is not the way to differientiate yourself!  Service is the only thing that matters and lasts.

Our Premier Service Program addresses all these issues. The process starts with listening to the customer and continues by establishing mutually agreed upon expectations. Our commitment to service is then put in writing. We perform our service as agreed upon and then allow our clients to grade us afterwards through an independent third party research company.

Premier Service is supported with our four-part Premier Service program:

1. The Premier Service Guarantee: A certificate which Steinborn GMAC Real Estate Assoicate Brokers sign and give to customers to explain our pledge of service and describes the agent's roles of Trusted Advisor, Skilled Negotiator, and Expert Facilitator. With this document, our Associate Brokers explain what they do, the value they create from their service, and clearly put the customers needs first! By signing their name to the guarantee, Steinborn GMAC Real Estate sales professionals make a powerful and personal statement to customers.

    

2. Collateral Materials: Our Buyer Presentation and Seller Listing Presentation materials are first-class and help differentiate and position our Associate Brokers and the Steinborn GMAC Real Estate brand as the service leader. These materials help further explain and support the roles a Premier Service Associate Broker plays as Trusted Advisor, Skilled Negotiator, and Expert Facilitator.

 

3. Value-Added Customer Programs: Through Steinborn GMAC Real Estate's expansive and still-growing roster of HomeRewards® partnerships with home-related service companies that offer our clients special offers and discounts, Sales-Partners can further demonstrate the value they offer their customers - and in the process, help relieve the stress that so many customers experience before, during and after a sale.

    

4. Customer Satisfaction Survey: Through the Premier Service program, every Steinborn GMAC Real Estate customer is asked to complete a survey, mailed to them by "an independent third party company",  evaluating the service they received. The simple act of asking them to do so sends an unmistakable message--that their opinion is important and their input is valued. In addition, the surveys allow our team of Associate Brokers and our compnay to document and track a record of superior service that no other company can match. The results are web based and readily available for our team of Associate Brokers to access and use in their professional development.

So how how are we doing as company at Steinborn:  Compared to the industry average of 65% of customers being very satisfied (selling process), our score to date (as of February 26th, 2007) is 90% Very Satisfied for both Buyers and Sellers. Premier Service and our industry leading 95.3% satisfaction level is incorporated in our adverting and extensive marketing materials and is woven into all our training beginning with the initial introduction and certification class and continuing through skills training. With Premier Service, our Associate Brokers and support staff can package-up the service they provide, prove the service they provide, and stand out from the crowd of undifferentiated companies and agents. Additionally, our Associate Brokers are better able to explain their role, define the value they bring and consequently defend their commissions. Premier Service is the way Steinborn GMAC Real Estate will come to stand for a level of customer service unparalleled in our market. 

Afterall, it is "all about" the customer and continuously striving to improve our overall level of customer service. We are not satisfied with our scores.  We know we can do better.  Of the 95.3% Overall Satisfaction, 85% are Very Satisfied (top box) and 10% are Satisfied.  Our focus is to convert the 10% Satisfied into Very Satisfied.  Our work is never done.  At Steinborn GMAC, we are doing our small part to improve the overall level of service and reputation of the real estate profession in our country. 

I am willing to share more details on our program.  Just email or call!