The new rules of real estate team building: Part 1 - Throw the old schools of thought out the window5/18/2018 BY JAMES HUSSAINI May 18, 2015 In today’s climate, the real estate industry is moving toward more sales teams and fewer individual salespeople. Generally speaking, sales teams show more profitability and better reliability than the solo real estate broker provides. In the traditional brokerage business model, any registrant is recruited, but in a team model the recruitment is very selective based on the role the team member will fulfill. In the traditional brokerage model, a high head count of salespeople is the name of the game despite the fact that only a few top-producing sales professionals account for the majority of the transactions. The larger number of nonperforming salespeople consume most of the resources of the brokerage, but their overall sales contribution to the brokerage is much lower when compared to the top producers. So why not just focus on top-performing real estate professionals instead of recruiting “hasslers”? Why not build your team “one high performing member” at a time? Why not create your team slowly and soundly, instead of through random recruitment that has no clear long-term vision? There are many real estate team-building models available to use as your framework. The model I propose is one that focuses on a “core membership” centered on collaboration. Ideally the core member relationship should be structured upon a sense of ownership. You have to make your core members feel as though they are one of the owners — like they share the same destiny. A sense of ownership can become the primary motivator for your team members to take their performance to the next level. Initially, you will attract your core members and add new team members as your sales grow. Consider your core members as “department heads” for your team. In the beginning, each core member will be both in charge of their department and also responsible for handling the details and tasks of their department. Once the business grows, each department (core member) will recruit personnel accordingly. This structure will give core members the opportunity to advance their skills and talents by focusing on a particular aspect of your business. The online marketer is at the heart of your team In today’s age of hyper content consumption, online marketing is the bloodline for real estate sales. One of the main challenges in the real estate industry is that most real estate salespeople do not have formal sales and marketing training. Generally speaking, most real estate salespeople lack up-to-date marketing know-how. Some do not understand the real value of online and social marketing; they still live back in the MLS and newspaper age when marketing was about advertising in magazines and having a “business card”-style website. Others do not have the resources to stay up-to-date with current marketing trends or to implement sustainable marketing strategies and are at the mercy of internet search results. The real estate professionals who understand the value of true marketing and have the resources to work with a marketer face another challenge: their lack of confidence in online marketers. The crux of the problem is that some real estate salespeople see online marketers in the same way that some property owners see renovators. Similar to the renovation profession, anyone at any level of skill can claim to be an online marketer. In the same manner that most renovators overpromise and underdeliver, some online marketers do the same. Therefore, some real estate salespeople do not feel comfortable and confident working with online marketers. This opportunity can be a big loss for real estate salespeople, as online marketing plays a crucial role in their sales success. Stay tuned for Part 2 on Tuesday, which includes the five phases of growing your team. James Hussaini is the founder and president of Realty Point. Email James Hussaini. Read the article in INMAN
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Success can be measured in numerous of ways, depending on what you call “success”.
Money, a house, a car, a strong family life, great friends, or a stable job, just to name a few, are all measuring sticks that people may use to explain what they see as success. Success, however, is the realization of your goals, whatever they may be. Success does not define you, you define success. What others may see as your success may actually matter very little to yourself personally. You may have money but are worried about your health. Money matters little if you cannot enjoy it. Success requires that you enjoy what you do and have the ability to enjoy the prestige it brings. Every step that brings you closer to your goals is a brick in the foundation of the success you build. Real steps to finding your success:
Success may start as a dream but when you can build with a foundation of purpose you will achieve what others thought you could not. From time management to resource procurement, from employee’s well-being to customer satisfaction, and everything in-between, you should be asking yourself “how will this affect sales?” before making a decision.
No Sales, No Jobs Without sales there are no jobs. Eventually no decisions will ever need to be made (you’ll be out of business). Establishing “how will this affect sales?” as a condition of any decision, big and small, will impact your business just as much as making a decision without considering how that decision will impact sales. Do you remember the Kevin Bacon’s “6 Degrees of Separation”? http://en.wikipedia.org/wiki/Six_degrees_of_separation The objective of the game is to link Kevin Bacon to another actor by counting the number of personal connections it takes to get from one to another. Decisions Are Not Disconnected From Sales Decisions that impact sales can be seen in many way but often overlooked. The decisions we make are not disconnected from all others, instead, every decision you make interconnects. Saving money on heating bills can create a cold work environment which then chills employees and affects the disposition of customers, potentially shortening client meeting times and not allowing for full presentations thus forfeiting sales opportunities. You can make similar comparisons with every process that your business and employees goes through. “How does my current task impact sales?” is a question that many employees and business owners do not ask simply because they don’t see sales being involved with their tasks at hand. After all, if they are not in the “selling pipeline” they may have no direct interaction with the purchaser of their company’s goods and services and fails to recognize their impact. “How do our business methods impact sales?” This question allows you to focus on regular tasks that administration staff need to accomplish in a smooth manner that supports other departments in their workday duties. From the cleanliness of the back warehouse to the store fronts, keeping employees safe and customers comfortable impacts sales. Measure Your Decisions As ROI of Sales Impact “How do our leads and follow-up sales methods impact sales?” allows you to focus on how potential and current client information is handled and managed. In turn, this allows you to measure your return on investment of the resources and information you have, directly impact sales. Summary I believe that there are no businesses that have unlimited resources with expectations of no return on investments. Asking “how will this impact sales?” can provide a measurable direction for you to take whenever a decision is to be made.
BY JAMES HUSSAINI September 11, 2015Takeaways:
Recruiting Hiring new agents and brokers is the mainstay of any brokerage. But there are distinct differences between the traditional brokerage and the evolving brokerage models. Traditional brokerage model Strength is in numbers. The bigger the agent and broker headcount, the more efficient the brokerage is in building market share. New agents and brokers are brought on board as they seek a more recognized brand name to build consumer recognition of their real estate practice. New brokerage model Strength is in the specialization of the team members allowing for a more personalized client experience that drives referral customers and is the lifeblood of a profitable brokerage. Recruiting is not a priority in the growth of business in the new brokerage model. It is apparent that taking a greater interest in the development of the agent’s or broker’s professionalism and business practices leads to a better brokerage culture and increased business. Retention is of primary importance. Growth of teams is often from within as each member defines their specialty and improves the operation of the team through collaboration and cooperation. New recruits are often attracted through referrals as the success of teams draws the attention of agents or brokers. Recruits are often seeking a better foundation for their real estate practice and the benefits of building a specialty to grow their businesses become apparent. Challengers and competition As accepted technological systems become more prevalent, every real estate brokerage and businessperson is facing increased competition. New rivals enter the market with the intention of disrupting the established and new models alike. Traditional brokerage models Traditional brokerages are often slow to respond to change due to the costs of integrating new systems and practices into everyday use. The brokerage actions are more likely to be reactionary instead of innovative in the business practices. New brokerage models New brokerage models are more flexible and able to adapt to change due to the specialization of team members. They are also more likely to accept innovation and integrate useful tools into everyday business processes. Brokerage setup and operations Every business has defined structures and in real estate, as heavily regulated as it is. There are legal, compliance and regulatory mandates to be observed and followed. The basics define the structure of a real estate brokerage. But once we look beyond the regulations, there is some latitude on how a brokerage operates, and, of course, the culture of the business is available to be molded by the owners. Traditional brokerage model Rigid from the top down, most agents and brokers employed by the brokerage are self-employed and self-reliant to perform their portion of the business as they bring business to the brokerage. The owner, usually the broker of record, often will limit their interactions with their agents and brokers simply due to available time and resources. This model is commission-oriented and profit-motivated, necessitating the “captain at the helm” style of management that often leaves the agents and brokers on their own. New brokerage model Greater flexibility is seen in this emerging model of brokerage. A stronger reliance on the individual agents and brokers to work as a team, specialize and promote their contributions to the brokerage team fosters a stronger culture. Actively recruiting from the outside is not as necessary because the culture created and maintained in the team style of sales builds comradery and reliance on each person being effective in their role. The new brokerage model I am proposing is a working model that powers all Realty Point Inc. brokerage franchises. Real estate brokerages, depending on whom you speak with, are either slow to adapt or adventurous enough to engage with emerging technologies to power their business. However, the middle ground is where most brokerages exist: They are slow to adapt and throw money at technology that is underutilized. The truth of the matter is that brokerages are powered by people, the technology used as merely a tool that allows for greater flexibility of the sales representatives, brokers and owners to serve their clientsbetter — past and future. Teams have emerged as the answer to a prosperous real estate career. Brokerage, as a way to better serve clients and build future business, allows individual agents to specialize in positions and benefit from the team. Otherwise, one agent would have to handle all — often to the point of overwhelming the agent. The final question is: How does your brokerage position itself in this changing landscape? Please continue the conversation in the comments section below. Read “Is the traditional brokerage model obsolete? Part 1.” James Hussaini is the founder and president of Realty Point. Email James Hussaini. Please read the article in INMAN:BY JAMES HUSSAINI September 10, 2015 Takeaways:
I want to introduce you to my new model of brokerage, which includes co-working spaces with shared resources, administrative staff, and office equipment and furnishings. It’s a Realty Point brokerage. Realty Point provides the resources that allow a one-person brokerage or small team to operate as efficiently as a fully staffed brokerage. Beginners start with an operation that handles the brokerage registration paperwork required to open a brokerage and provides office space for the brokerage in five Greater Toronto, Canada, locations. It has the administrative staff to handle the phone calls, transaction paperwork and general office duties. I have made sure that Realty Point franchisees benefit with a low-cost entry point that virtually eliminates the added burden of administering a brokerage. And the benefits go far beyond even these expense and time-saving services. Real estate sales professionals in Toronto are showing a lot of interest in this new model of brokerage. With four franchisees and five office locations, Realty Point is growing fast since its founding last year. Discussing traditional vs. new brokerage models With my experience on the table, I spoke at Inman Connect San Francisco in August. I appeared on a discussion panel that questioned “Is the traditional brokerage model obsolete?” This discussion was moderated by Bernice Ross, and with me on the panel was Fafie Moore, broker and owner of Realty Executives of Nevada, and Penny Nathan, broker at Ascent Real Estate. See full biographies of the panel here. The panel’s discussion looked at the traditional brokerage model and the new brokerage model that is emerging. What follows is a summary of my thoughts on brokerage models. Maintaining profitability The question of whether the traditional brokerage model is obsolete hinges on how profitable the brokerage is and if there’s a better way to ensure profitability by staying with the existing model or applying a new one. The panel’s discussion looked at the traditional brokerage model and the new brokerage model that is emerging. What follows is a summary of my thoughts on brokerage models. Maintaining profitability The question of whether the traditional brokerage model is obsolete hinges on how profitable the brokerage is and if there’s a better way to ensure profitability by staying with the existing model or applying a new one. Traditional brokerage model The traditional brokerage, for the most part, relies on a large contingent of agents and brokers to bring in business. Each agent and broker works alone (for the most part) with little interaction with their brokerage. Communication comes in the forms of basic marketing materials, training (if offered), deal transaction help and transaction related activities that are required to be completed by the brokerage and broker of record. Within this model, each agent and broker handles his or her own marketing, networking, lead generation and sales. New brokerage model The new evolving model of brokerage relies on the team-based model of agents and brokers working within their team unit to achieve the desired results — sales. Within the team-based model, specialists are created to handle specific duties within the team to achieve optimum results. Each team member takes charge of their specialty to the benefit of the entire group. This model allows for a greater reach for marketing, networking, lead generation and sales. The argument that traditional brokerages are obsolete:
The argument against traditional brokerages being obsolete:
There are similarities in both traditional and new brokerage models, on the face of things. But the differences, which at first glance may seem slight, bring about a wholesale change that will affect the basics of real estate sales for years to come. Tomorrow, we will continue the discussion comparing the traditional versus new brokerage models with regards to recruiting, challengers and competition, and setup and operations, in “Is the traditional brokerage model obsolete? Part 2.” James Hussaini is the founder and president of Realty Point. Email James Hussaini. Read the article in INMANIs your real estate career giving you financial freedom? 3 tips for planning your long-term success7/7/2015 BY JAMES HUSSAINI July 07, 2015 The first few years after receiving a real estate license are tough. If you’re successful enough to build your listings and close some deals, you see your self-employed income attacked from all sides with marketing expenses, brokerage fees, income taxes and more. At this point, your retirement strategy is an after-thought, but with some foresight and planning, you are on your way to financial freedom. Here are three steps to ensuring longevity in your real estate career and your financial future. 1. Build a team to protect your sales One truth you’ve learned is that holidays and time off are a luxury. Any time you stop working, your income dries up quickly. Relying on others to help you continue your solo business while you’re away eats into your earnings and can cause unavoidable conflicts. Should you avoid “salesperson burn-out,” you will realize that to protect your business and income, you need to build a team. By being the “team leader,” you can bring on other salespeople that support your activities with their expertise. You’ll ensure that the business culture and work ethic you exemplify are the guiding principles of your team’s performance. As you grow, you will work toward expanding your team. You’ll start to specialize your team’s roles. Eventually, you will likely hire a digital marketer, sales specialists, listing specialists and a stable of professionals to handle photography, video and other tasks on an as-needed basis. Strengthening your team is the first step toward securing your income as you proceed with your goals in the real estate industry and your eventual retirement. 2. Build a clientele base to protect your sales As your sales team grows their listings and sales numbers, you’ll realize that referral business is either driving your sales or holding you back. If your team has focused primarily on attracting new clients while ignoring past clients, your referral business will not perform at its potential. You built your team with the best specialists, and to protect your business future, you must create a culture of customer service excellence that lasts long after the transaction close. Plan the after-sale customer contact so that your clients don’t forget about your service as you offer your experience and help throughout their home ownership life. Remembering that homeowners will purchase five or more homes throughout their lifetime. Because they will bring new clients to you only if they remember you, formulate a plan that involves maintaining a gracious and fruitful two-way relationship with your customers. The three pillars of building your clientele base and referral business are:
3. The final piece of the puzzle to cement your success Throughout your real estate career so far, you’ve transformed from a solo real estate agent to a team leader who has built a successful business and clientele base that brings your team a steady flow of returning and new clients. However, you’ve been working for someone else’s brokerage, and they have been reaping the larger rewards that you’ve passed on to them, such as your marketing experience, your leadership by example and the financial obligations of the brokerage dues you pay every month and every close. Opening your own brokerage is something you might have wanted to do — and you now realize that you need to take this step to protect your future. Eventually, you will retire from the real estate business, and the equity you’ve built so far doesn’t belong to you; it belongs to the brokerage on your business card. Your decision to open your brokerage becomes a foregone conclusion to protect your interests, to provide for your family and to achieve a comfortable retirement through your hard work and success. The equity you have built with your sales team, with your clientele base and your years of hard work will provide for you long after you hang the last “for sale” sign. You also have options to protect your team by offering them shares in your brokerage that will keep them with you and encourage them to continue the culture of excellence you began in the early years of your career. Your comfortable retirement can translate into protecting your team for the long-term and will allow your business to continue long after you have handed the reins to the next generation. James Hussaini is the founder and president of Realty Point. Email James Hussaini. Read the article in INMANBY JAMES HUSSAINI June 30, 2015You should know any property you show to a potential buyer as well as if you were buying it for yourself. Forget about your commission and keep your buyer’s interests front and center. Step 1: Preview prior to the showing You need to preview the properties before taking your client to see them. You will learn more about what you are showing and hopefully not be surprised by anything that pops up or questions the buyers ask. This preview will reaffirm your buyer’s faith in your knowledge because you will be able to find the property quickly, and you’ll know where to park, find the lockbox, enter and walk them through without getting lost inside. Step 2: Buyer showing and reactions As you walk your buyer through the property, they will look, open and measure with their eyes. You need to gauge their reactions to develop a better sense of their ideal property, what gets them excited and what turns them off about any features of the particular property. This feedback will help you through all future showings and negotiations — if the situation calls for it. Step 3: The buyer negotiations Once your buyer has selected a property to their liking and is ready to have you present an offer, you should conduct meetings with the seller and their representative face to face. You will find that the negotiation process will come to a quicker conclusion in a meeting with them rather than if you negotiated through email throughout this part of the process. You should always know what stage the deal is in, and be prepared to update your client regularly on things that aren’t necessarily your responsibility. These update topics might include mortgage brokers, home inspections, lawyers, moving companies and other professional services that happen with transaction completion. Exceeding your buyer’s expectations It’s easy to do the bare minimum and still bring a deal to the closing table. A lot of real estate agents do just that. But you want your buyer to remember the great customer service you provided; you want them to be able to share their experience with their circle of influence; and you want them to refer future business your way — the bare minimum will not suffice. You have to show them your professionalism, knowledge and dedication to their interests as a central part of the process every step of the way. Only when a buyer has a positive experience that is above and beyond their expectations can you expect them to refer business to you happily. James Hussaini is the founder and president of Realty Point. Email James Hussaini. Read the article in INMAN
BY JAMES HUSSAINI June 23, 2015 Hello, agent: Your mission, should you choose to accept it, is to create a superior buying experience for your client that will inspire that client to refer business to you forever. Are you willing to accept this mission? Which of the following scenarios is most likely to generate referrals from your clients?
Of course, the answer is “all of the above” — but it’s N0. 5 that should stand out for you. Providing the best possible customer service will give your clients something to brag about with their circle of influence. When someone asks them about an agent to recommend, their experience with you will keep your name on the tip of their tongue. And what is the foundation of their generosity for spreading the good news about you? You established a relationship with them that brought your skills and their requirements together. A buyer needs to like you as a person, feel that you have interests in common and that you are a person who can be relied upon to be knowledgeable and experienced. At the same time, buyers need you to be patient enough to make sure that they understand the sales process and to keep them informed every step of the way. You need to provide a high level of customer service with each interaction, or you will lose their confidence and even a successful close will not repair the damage that you have done to your relationship with them. Here are the three steps to creating that level of confidence: Step 1: Prequalify the buyer This step is the most important step to complete, even if the buyer is a close friend or family member. Not having this information will lead to endless phone calls, emails and running around with no real goal in mind. Be sure to get the answers for:
Step 2: Meet in person Yes, we live in an online world full of instant messages, texts and email. This does not mitigate the fact that the buyer needs to work with you in person. With your goal of providing the highest level of customer service, meeting your buyer client in person isn’t that much of a leap to make. You will understand your client better and minimize the number of miscommunicated or entirely missed messages that could destroy your efforts in a heartbeat. Step 3: Research for their needs, not yours When the buyer has expressed their property requirements, it’s your job to ask the important questions and complete the due diligence. Then you can show them, as well as explain, the properties that meet or exceed what they want. A buyer’s confidence in their broker can be destroyed in a moment of inattention to detail if you show them properties that do not meet their criteria without stating a good reason why you are showing them the property. The research can be time-consuming, but by ignoring your preparation prior to the showing you will surely lose them. James Hussaini is the founder and president of Realty Point. Email James Hussaini. Read article in INMAN |
AuthorBelieving education is power and has the ability to generate wealth – Jamshid has made a commitment to sharing his knowledge and expertise in the real estate. Categories
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