John Hummer's Real Estate Report

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"