Archive for July, 2007

Value Added Services Bring Revenue to Your Real Estate Office

By Intero Real Estate | July 26th, 2007 0 Comments

Consumers want the convenience of one-stop shopping, so give it to themBob Moles Consumers today are looking for the convenience of a one-stop shop in real estate. Offices that are able to offer ancillary services like mortgage, insurance, title and other real estate related services will benefit from the alternative revenue streams they provide as well as from having more touch-points with clients, which builds a stronger relationship with the buyer or seller, and that can mean more business down the road.

Many companies are actively seeking partnerships with brokers. Most relationships are set up as a joint venture, with the broker and its partner splitting a percentage of the proceeds. The problem is, these joint ventures can be time-consuming, complicated and sometimes difficult to secure. In addition, real estate offices need to carefully consider RESPA laws, which prohibit referral fees (or kickbacks) between brokerages and their service providers. We’ve seen several big brands in the news lately with stories on the front page of the business section about their alleged RESPA violations.

The sharing of fees is permitted under RESPA, provided that actual work of value was rendered by each party in connection with the home purchase, but under no circumstance, can fees paid to a broker or by a broker to a service provider increase the established purchase price of a home. In addition to RESPA restrictions, many states have their own laws that govern payments to brokers.

For many office managers and owners, the complications of these partnerships paired with the delicacy of maneuvering through the regulations can be off-putting. Others are wary of getting involved in a long-term commitment without knowing their service provider and potential partner very well. That’s where a brokerage like Intero comes in.

PartnersFor years, we’ve been developing our relationships with many of the service providers in the real estate market. We also have a team responsible for sorting through the regulations to ensure that we’re doing the right thing. We bring these relationships to the table for our franchise owners, giving them the opportunity to piggyback on the work we’ve already done so they can have easy access to ancillary services that will increase their bottom line, without the headache of having to go through all the setup.

For example, we’ve established Intero Insurance to offer the most comprehensive insurance products in the industry provided by “A” rated companies, such as Hartford, Zurich, AIG, Allied, Safeco, Fireman’s Fund, Chubb, Encompass and Travelers. We have mortgage affiliations through Intero Mortgage Services with the industry’s most respected lenders, including Bank of America and Diversified Capital.

Though we’ve established these partnerships, we also want to empower our people to make their own decisions. If a particular real estate office has a strong relationship with an existing company, and they would like to use their products and services, we encourage them to do so, as long as their standards are equivalent to what we can provide. Our focus is on helping our franchise owners to be more profitable and the customer experience the best possible, and if that means going outside the Intero sphere for a particular service, so be it.

Bottom line, whether you take advantage of the affiliations your brokerage currently has or you decide to go it on your own, value-added services are something your office should have in its offerings. If not, you’re missing an opportunity to give your clients the kind of full-service many would like to receive and to create new revenue streams for your company.

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10 Things REALTORS® Should Look For In a Brokerage (6-10)

By Intero Real Estate | July 26th, 2007 0 Comments

Real estate agents should do their homework before affiliating with a new brokerageRon ArioDeciding what brokerage to affiliate with is a key decision for any REALTOR®. It can mean the difference between success and failure in your real estate business.

Of course, like anything, there is no one brokerage that can meet the needs of everyone. Your personality, working style, goals and support requirements are just a few of the things that will influence how well you fit into a particular company. So, shop around. Find out what it is you like and don’t like about different companies before deciding to join their team.

For what it’s worth, I’ve put together a list of 10 things I think every REALTOR® should consider before joining a new brokerage. These come from my experience working with many different brokerages during my tenure in real estate (more than two decades). I’ve included numbers 6-10 here; 1-5 will be posted next week.

(6) COMMISSION SPLIT
There are many valid reasons for considering your commission split when thinking about a new brokerage, but be careful how much importance you place on it. A company may give you a higher percentage in the split, but could be lacking in the support it offers in other areas like marketing and training. A fair amount of thought should be given the overall picture, including how the brokerage will support you and help you to succeed in the long term.

(7) TECHNOLOGY & VALUE ADDED SERVICES
Technology can help you work smarter and more efficiently as a realtor, whether you’re trying to capture and convert more leads or gain a competitive advantage to become the realtor or broker of choice. It should be user friendly, easy to work with and empower you to be mobile. Also, is the technolgy out of date, current or leading edge? How will it help to make you more efficient?

Another thing to consider is the affiliations a brokerage has developed with companies that offer real estate related services, things like mortgage, insurance and title services. Today’s buyers are beginning to demand a one-stop shop where they can get these value added services all bundled together. Being able to provide that for your clients will make their life easier and give you more touch points with them.

(8) GIVING BACK
Does the company give back to the community? This is an important, but often under emphasized, consideration for joining a new brokerage. Remember, giving back is as much about good business as it is about philanthropy. People appreciate (especially in real estate) realtors who give back to the communities that support their business. Social and environmental responsibility is becoming increasingly important to today’s consumer and more are making choices about whom they work with depending on this. It’s also an excellent way to get publicity, network and generate new leads.

(9) POTENTIAL FOR GROWTH
Where do you plan to go with your career? This will inevitably affect how well your fit in at a particular company. Does the brokerage offer potential for your professional growth? Will you be bored within a year, or constantly challenged? Are there growth areas for your leadership and business acumen?  We are all in a state of becoming. Are you becoming all that you have the potential to be?

(10) POSITION IN THE MARKET
Again, this is a careful one to consider. Just because a brokerage is a market leader does not necessarily mean it’s the right fit for you. Then again, a company with an excellent reputation and strong brand can help to bring you more business, especially if you’re starting out and haven’t established a strong name for yourself. Ultimately, your success will depend mostly on your own drive and work ethic as a realtor, paired with the support and guidance you receive from your brokerage.

Please, comment on these and let me know if you have anything to add. I’d also like to hear your story about a good or bad transition you’ve made between brokerages.

—Ron

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Creating the Real Estate Leaders of Tomorrow

By Intero Real Estate | July 11th, 2007 0 Comments

Mentoring helps realtors to grow and succeed

Gino Blefari
“We emulate those with whom we associate most closely.” Napolean Hill, Think and Grow Rich.

Realtors are entrepreneurs, self-guided business people who need the help of those who’ve come before and can show the way to success. This is why mentors serve such an important role in our industry.

If you’re a veteran realtor, make it a point to become a mentor to someone new, and if you’re a new agent, be smart and find a good mentor. We all benefit from shared knowledge, because successful agents mean a robust industry that is strong enough to support everyone.

I’ve been lucky enough to have found several mentors who’ve helped guide my career, people I’ve met along the way and others I’ve found through reading. In fact, one of the secrets behind my success is really no secret at all: I watch what others are doing and try to do it better.

I give a lot of credit for my business sense to the teachings of people like Bob Moles (our own Chairman with whom I’ve worked closely throughout my career) and Alan Dayton (the president and CEO of Realtor.com, the number one real estate web site in the world) as well as thinkers like Tom Hopkins, Mike Ferry, Brian Tracy and Zig Ziglar. You can find their books and CDs online. Here are three I recommend:

Early in my career, even before I got into real estate, I would listen to tapes of Zig Ziglar, Tom Hopkins and others for hours everyday around the house or while working out. People must have thought I was crazy. At one point during my first year, I didn’t watch television. I simply listened and learned.

I was also fortunate enough to have some great inner-office mentors early on who’ve helped to shape my leadership skills. In fact, I got into real estate because of a realtor named Chuck Cwieka who went on to become one of my first big influences.

Today, I try to give back by sharing my knowledge and experience in classes I teach at De Anza College: “Principles of Real Estate” and “Real Estate Practices.” It’s rewarding and a little bit self-serving in that I might find a future Intero leader somewhere among those students.

Internally, we have developed one of the best agent training and education programs in the industry. It’s called Provizio. Our goal with this program has always been to give agents a structured environment where they can learn the business of real estate from veterans who’ve been around for a while and have proven methods for success. In essence, it’s mentorship in a classroom.

This is a tough business. By giving our people all the tools, knowledge and training we possibly can and encouraging mentorship within the company, we’re increasing their potential for continuing in a long career in real estate, and that benefits us.

In the long run, helping our people to achieve their dreams makes us a stronger company, because realtors who are happy with their work and satisfied with where they are going in their professional and personal life tend to be more successful all around.

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Intero Leadership Says: You’ve Got to get Up Earlier

By Intero Real Estate | July 11th, 2007 1 Comment

Success comes with good old fashion hard work in real estateDerek OverbeyGuest written by
Derek Overbey,
VP Marketing, Intero Real Estate Services

Do you ever wonder how some people do it? How do they manage a successful career, volunteer for the local food bank, make it to their kid’s soccer game, get in a workout with a personal trainer and still have time to sit down with their family at the end of the day? We wondered about this as well, and so asked Tom Tognoli, Gino Blefari and Bob Moles of Intero what time they got up in the morning to start their day. After all, these guys have been pretty successful in the business. Their answers were eerily simple (and similar): very early.

Tom Tognoli, our COO who’s known for his high-energy personality, says that he follows the philosophy of “Monday Morning MOJO.” Which means what? If you want to walk into the office on Monday with the kind of energy and passion you need to be successful, you have to start creating it before you even step into the building.

“Success is about commitment,” Tom explains. “Don’t wake up in a crisis, or the rest of your day will be one big crisis. If you are getting up at 8 am, you’re getting up too late. Start yourself on a schedule of waking up 30 minutes earlier each week until you are waking up at 4:30 a.m. Quit hitting the snooze bar! Ten years ago, I was getting up at 7:00 a.m. It’s much easier today. Waking up that early allows me plan my day, get in a workout and do what I need to before most people even roll out of bed. It’s definitely an advantage. ”

The Early Bird Gets the WormCome on, Tom. The birds aren’t even chirping. Do we really need to wake up before the sun? We asked Gino what his secret was. Surprise— getting up early.

He wakes up at 4:45 to greet his dog (a Lab) and then goes through several meditative exercises and a physical workout to prepare for the day ahead. He says these morning rituals help to re-focus his mind so he can concentrate on what needs to get done. “Your average person will simply get through the day. I’m going to take the day. I’m not going to head to the office without knowing exactly what I want to accomplish in the hours I’m there.”

With a schedule that keeps him going nearly seven days a week, he says it’s can be difficult to balance his time between personal and professional life. Discipline is the key. That’s why he’s made it one of Intero’s core values.

“There’s no getting around it. If you want to be successful, you simply have to put in the time, sweat and hard work, to make it happen. You have to get up earlier in the morning, and if you’re doing it right, you’ll come home and crash into your bed at night.”

And Chairman Bob Moles, what does he do?

“These days, I get up at 6 a.m. on the ocean side of the mountain (Santa Cruz). I get my workout in, wait for the traffic to clear and then head into the office. Getting an early start has been my routine for years. When I was working on the East Coast, I would get up at 4:30 and work until 6:30 or 7:00 at night, but the truth is, if you go at that pace forever, it will kill you. In my role today, I have a little more flexibility.”

There you have it. It seems to be true that the early bird does, indeed get the worm. We’re wondering about others? Do you think it’s necessary to get up this early in order to be successful in real estate? Or, is there another way to do it? We’d love to hear your stories. Leave us some comments.

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Pay More Attention to Your Agents

By Intero Real Estate | July 9th, 2007 0 Comments

Developing strong realtors takes time, but it pays off in the endRon ArioI was recently asked some questions about the state of agent education in Southern California. The writer wanted to know what I thought about the way in which agents are prepared today for their work as realtors—what is working and what is not. This is a tough one to answer, because it really depends on the brokerage they’re with. Every company (and even indivdiual offices) has developed their own program for training, and some are more successful than others.

For the most part, I think that collectively we’re not doing as good a job as we can in LA. In the last six years, we’ve seen an influx of new agents flooding the market, literally thousands of individuals who quickly got licensed in hopes of cashing in on the real estate boom, and now that things are slowing, these same agents are in trouble. I am not sure of the exact numbers, but I am confident in saying that LA county has seen more individuals getting into real estate that I can ever remember (and I’ve been in this business for nearly three decades).

Our local board has approximately 16,000 agents as members. From what I have been told, approximately 3,000 come and go each year.  That being the case, over a four–year period, approximately 75 percent of the agent population has four years or less experience. These are the teachers of the general real estate population. This is a problem. The knowledge that has been traditionally passed from experienced agent to new recruit in a slow process over the years has been accelerated. As a result, it’s become watered down, and the fundamentals that create lasting success for realtors (success that allows you to withstand market conditions like we’re facing today) have been lost.

Brokerages need to think about slowing down the process of turnover by taking on fewer agents and focusing more on strengthening the skills of the ones they currently have.

When an office is mandating as many as eight new agents a month, how do these individuals possibly receive the attention and guidance they need? It’s setting people up for failure, and when the agents realize this, they become disillusioned and leave. In the end, this hurts the managers, the owners and the brokerage because it directly affects their bottom line (higher turnover means higher training, administrative and recruitment costs) and their reputation (people will figure out that the company can’t deliver on it’s promises).

Everyone (agents, managers, clients, and companies) are better off when the company’s first priority is making existing agents better rather than simply looking to add more. One of my colleagues, Roger Hance, is a pioneer in this way of thinking.

In the spring of 1978, Roger launched R.R. Gable Inc., a full service real estate company in Los Angeles that was one of the first to develop agent support programs for farming leads and real estate teams. From the outset, he focused on helping his people to become better and more efficient in their work, which enabled his office to reach the highest average income per agent in the residential brokerage business in 1981. He expanded R.R. Gable to eventually include 10 offices in LA and Ventura counties with more than 500 agents.  

Strong agents mean strong offices. It’s as simple as that. And developing strong agents means taking a more time-consuming, hands-on approach. Management that focuses on the basics, implements strong (not just surface level) training programs and encourages real mentorship among their agents will minimize turnover, increase their average income per agent and develop their people into competent, successful realtors who’ll be in the business for years to come.

—Ron

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