Re-Imagine Real EstateRe-Imagine Real EstateHAR StrategiesHAR Strategies

Presented byPresented by

Toni NelsonToni Nelson2005 Chair of the Houston Association of 2005 Chair of the Houston Association of

RealtorsRealtors

Congratulations Greenwood King!Congratulations Greenwood King!

It’s an honor and pleasure to be here – It’s an honor and pleasure to be here – GK has 342 listings with an average sales GK has 342 listings with an average sales

price of $532,647 [SF,Condo,TH]price of $532,647 [SF,Condo,TH] YTD – sold 410 listings with an average YTD – sold 410 listings with an average

sales price of $501,000sales price of $501,000 These are more listings sold than…These are more listings sold than… You are the GOLD Standard!You are the GOLD Standard! I will talk fast! We’re on steroids.I will talk fast! We’re on steroids.

Latest Trends in Real EstateLatest Trends in Real Estate

Intensification of competitionIntensification of competition1.1.Traditional competitorsTraditional competitors

2.2.New business model competitorsNew business model competitors

3.3.Online competitorsOnline competitors

4.4.Third Party Lead GeneratorsThird Party Lead Generators Huge influx of members Huge influx of members Confusion of service levelsConfusion of service levels Commission compressionCommission compression

Real Estate Research on Real Estate Research on Consumers by Zip Realty.comConsumers by Zip Realty.com

SellersSellers1.1. Pre-research for 5.5 monthsPre-research for 5.5 months2.2. Active research for 1.4 monthsActive research for 1.4 months3.3. 6.9 months before selecting an agent6.9 months before selecting an agent

BuyersBuyers1.1. Pre-research for 7.1 monthsPre-research for 7.1 months2.2. Active research for 5.5 monthsActive research for 5.5 months3.3. 12.6 months before selecting an agent12.6 months before selecting an agent

Both Buyers and Sellers enter into a lengthy Both Buyers and Sellers enter into a lengthy research process before entering into a research process before entering into a transaction.transaction.

Both Buyers and Sellers choose an agent Both Buyers and Sellers choose an agent quickly – take less than 3 days.quickly – take less than 3 days.

Consumer-Centric Era DawningConsumer-Centric Era Dawning iPod – personal jukebox that saves me from iPod – personal jukebox that saves me from

having to buy an entire artist’s compilation.having to buy an entire artist’s compilation. NetFlix - home delivery of movies and a NetFlix - home delivery of movies and a

consumer rating site to base my selections.consumer rating site to base my selections. Scion.com – design your own personal Scion.com – design your own personal

automobile and have it delivered to your door.automobile and have it delivered to your door. E-Bay started the consumer ratings to give their E-Bay started the consumer ratings to give their

“garage sale” site validity.“garage sale” site validity. Consumer ratings have proliferated throughout Consumer ratings have proliferated throughout

the web and are now in online real estate – the web and are now in online real estate – LendingTree.com, homegain.com, LendingTree.com, homegain.com, housevalues.com, ziprealty.com, etc.housevalues.com, ziprealty.com, etc.

The Consumer Dictates the RulesThe Consumer Dictates the Rules

Service – unbiased rankingsService – unbiased rankings Savings – lower transaction costsSavings – lower transaction costs Selection – Choose the broker that Selection – Choose the broker that

meets their needs.meets their needs. We can’t TELL them WHAT they We can’t TELL them WHAT they

want – they want to TELL us.want – they want to TELL us. Competitors compete on price ONLY Competitors compete on price ONLY

because they have no value because they have no value proposition.proposition.

Dawn of the Consumer-centric eraDawn of the Consumer-centric era

Real estate has shifted into the power of the Real estate has shifted into the power of the consumer.consumer.

Industry is still stuck in an agent-centric paradigmIndustry is still stuck in an agent-centric paradigm• Army buildingArmy building• Lack of licensure standardsLack of licensure standards• Disenfranchising customer base.Disenfranchising customer base.• New entrants see huge opportunity.New entrants see huge opportunity.

Top Three Most Visited Real Estate Web Sites?Top Three Most Visited Real Estate Web Sites?• www.Realtor.comwww.Realtor.com• www.homeadvisor.comwww.homeadvisor.com• www.forsalebyowner.comwww.forsalebyowner.com

Fast Company – November 2004Fast Company – November 2004101 Trends in 2005101 Trends in 2005

# 55 – Real estate agents will be a thing of the past if Home # 55 – Real estate agents will be a thing of the past if Home Depot is successful.Depot is successful.

For $12.95 – H.D. offers a yard sign and allows you to load For $12.95 – H.D. offers a yard sign and allows you to load multiple pictures and data onto FSBO.com.multiple pictures and data onto FSBO.com.

FSBO.com requires buyers’ to get pre-approval online FSBO.com requires buyers’ to get pre-approval online before they can make an appointment with the seller to before they can make an appointment with the seller to take a physical tour of a property.take a physical tour of a property.

Home Depot’s web site features rich detail on everything Home Depot’s web site features rich detail on everything you need to know to sell your home yourself. “You can do you need to know to sell your home yourself. “You can do it. We can help!”it. We can help!”

Now the only place we will see loud blazers is at the Now the only place we will see loud blazers is at the country club.country club.

Anti-Realtor ads - BuyOwner.com and Anti-Realtor ads - BuyOwner.com and OnePercentRealty.comOnePercentRealty.com

Consumers Question Our Value!Consumers Question Our Value!

The Latest Agent ComparisonThe Latest Agent Comparison

Rise to the Online Marketing Rise to the Online Marketing Challenge!Challenge!

Fact 1Fact 1: 74% of all home buyers in the first 6 months of 2004, used : 74% of all home buyers in the first 6 months of 2004, used the internet to search for a home.the internet to search for a home.

Fact 2Fact 2: 81% of Internet home buyers use a Realtor while only 66% : 81% of Internet home buyers use a Realtor while only 66% of the traditional home buyers use Realtors.of the traditional home buyers use Realtors.

Fact 3:Fact 3: Internet home buyers tend to purchase more expensive Internet home buyers tend to purchase more expensive homes and pay more for homes than traditional buyers.homes and pay more for homes than traditional buyers.• Average internet home buyer looks at 6 houses, takes 2 weeks Average internet home buyer looks at 6 houses, takes 2 weeks

to buy and purchases an average home of $470,000, according to buy and purchases an average home of $470,000, according to CAR.to CAR.

• Average traditional buyer looks at 15 houses, takes 7 weeks to Average traditional buyer looks at 15 houses, takes 7 weeks to buy and purchases an average home of $350,000.buy and purchases an average home of $350,000.

Fact 4:Fact 4: 99% of Internet homebuyers [84% very useful – 15% 99% of Internet homebuyers [84% very useful – 15% somewhat useful] consider somewhat useful] consider multiple property photos to an multiple property photos to an online listing to be useful!online listing to be useful!

HAR Listings with Pictures – First HAR Listings with Pictures – First Quarter 2004Quarter 2004

1484

5501

1020 820 922 1009 13571345

20031641

7498

0

1000

2000

3000

4000

5000

6000

7000

8000

0 1 2 3 4 5 6 7 8 9 10

Listings

HAR-MLS Picture ResearchHAR-MLS Picture Research HAR ran 2004 year-end statistics on "time on the HAR ran 2004 year-end statistics on "time on the

market" for listings featuring multiple pictures and market" for listings featuring multiple pictures and those featuring no pictures.those featuring no pictures.• 80.5 days for listings with nine or 10 pictures .80.5 days for listings with nine or 10 pictures .• 91.5 days for listings with one or two pictures.91.5 days for listings with one or two pictures.• 109 days for listings with no pictures109 days for listings with no pictures

Research shows that listings that feature 6 or Research shows that listings that feature 6 or more pictures of the home, get viewed 228% more pictures of the home, get viewed 228% more than homes with few or scanty photos.more than homes with few or scanty photos.

The Top Two features that 99% of consumers The Top Two features that 99% of consumers want when searching for a home on the web want when searching for a home on the web areare1.1. Multiple photosMultiple photos2.2. Rich property detailRich property detail

This is Scary!This is Scary!

Go to Go to www.ebay.comwww.ebay.com It is the worlds’ largest “For-Sale-By-It is the worlds’ largest “For-Sale-By-

Owner” site of products, and some real Owner” site of products, and some real estate.estate.

Type in the search area, “Kitty Condo”Type in the search area, “Kitty Condo” 4 foot Kitty Condo selling for $79.954 foot Kitty Condo selling for $79.95 Can you guess how many pictures are Can you guess how many pictures are

featured?featured? Answer: 18 Answer: 18

IDX and the Realtors’ ImageIDX and the Realtors’ Image IDX – Internet Data Exchange, is the method by IDX – Internet Data Exchange, is the method by

which most real estate web sites receive listing which most real estate web sites receive listing information.information.

The data on your web site is the same as all MLS The data on your web site is the same as all MLS listings that can be viewed from www.har.com.listings that can be viewed from www.har.com.

The consumer thinks YOU are providing the The consumer thinks YOU are providing the image and data on your web site and holds YOU image and data on your web site and holds YOU responsible for all of the listing content.responsible for all of the listing content.

Consumers have e-mailed web masters of our Consumers have e-mailed web masters of our member sites asking for more pictures – can’t member sites asking for more pictures – can’t provide, it is some other brokers listing!provide, it is some other brokers listing!

You have a right to project your image the way You have a right to project your image the way you see fit, but when everyone’s image is you see fit, but when everyone’s image is affected – the standards must go up!affected – the standards must go up!

Raising the Bar in MLSRaising the Bar in MLS

On February 14, we passed a 6 On February 14, we passed a 6 picture minimum and a 16 picture picture minimum and a 16 picture maximum which went into effect on maximum which went into effect on March 3.March 3.

Rules to provide complete property Rules to provide complete property detail before uploading into MLS are detail before uploading into MLS are being upgraded with fines.being upgraded with fines.

Raising the Bar in E-Mail Response Raising the Bar in E-Mail Response RatesRates

Fast Response time is critical – 80% of Fast Response time is critical – 80% of consumers do business with the first person to consumers do business with the first person to respond, but 50% of inquiries never get a respond, but 50% of inquiries never get a response.response.

Research findings are that an agent must be:Research findings are that an agent must be:1.1. First to contact the prospectFirst to contact the prospect2.2. Fast to respond to the request andFast to respond to the request and3.3. Frequent in staying in touchFrequent in staying in touch

While it is difficult to be tied to a computer While it is difficult to be tied to a computer 24-7, help is on the way!24-7, help is on the way!

HAR in a joint venture with NAR will HAR in a joint venture with NAR will provide VOIP – e-mail leads to the cell provide VOIP – e-mail leads to the cell phone in the very near future! phone in the very near future!

Advertising the Value of a RealtorAdvertising the Value of a Realtor

HAR has a cracker jack marketing HAR has a cracker jack marketing and P.R. department.and P.R. department.

A $250,000 television advertising A $250,000 television advertising campaign is currently running to campaign is currently running to advertise the value of a Realtor.advertise the value of a Realtor.

HAR.COMHAR.COM

In June, har.com had 78 million page viewsIn June, har.com had 78 million page views Providing 47,745 leads to agentsProviding 47,745 leads to agents We are indeed fortunate to have this We are indeed fortunate to have this

powerful site working for all of us.powerful site working for all of us. VOIP critical to keeping the consumer VOIP critical to keeping the consumer

coming back!coming back! Leverage the value to benefit you.Leverage the value to benefit you. ““A Brand Called You”A Brand Called You” ““Follow the Money”Follow the Money”

Best PracticesBest Practices An Independent Contractor made my Dell Computer. An Independent Contractor made my Dell Computer. Dell has standards, a set of best practices and holds their I.C’s Dell has standards, a set of best practices and holds their I.C’s

accountable for precision work. We should too!accountable for precision work. We should too! HAR recently helped seed the newly formed “Real Estate HAR recently helped seed the newly formed “Real Estate

Standards Institute” in an effort to enable members that aspire to Standards Institute” in an effort to enable members that aspire to a higher standard a higher standard 1.1. to meet “best practice” guidelines that have been set forth and to meet “best practice” guidelines that have been set forth and 2.2. To be certified.To be certified.3.3. Go to Go to www.touchstoneforexcellence.comwww.touchstoneforexcellence.com for a copy of these practices. for a copy of these practices.

Transparency will rule and your standards of service, Transparency will rule and your standards of service, recorded by the receiver of the service, will be visible for recorded by the receiver of the service, will be visible for the world to see. Maybe a consumer Blog site for real the world to see. Maybe a consumer Blog site for real estate.estate.

They already are visible on Homegain, Lending Tree and e-They already are visible on Homegain, Lending Tree and e-Bay is entering the arena.Bay is entering the arena.

My vision is that one day, we will post consumer responses My vision is that one day, we will post consumer responses on har.com and our own web sites. on har.com and our own web sites.

Quality Service Certification already has it available. Quality Service Certification already has it available. Let’s learn from those that have re-imagined our business Let’s learn from those that have re-imagined our business

and designed a ranking system on the web.and designed a ranking system on the web.

Re-Imagine Real Estate!Re-Imagine Real Estate! Look for a day where a natural part of our Look for a day where a natural part of our

MLS is a Transaction Management MLS is a Transaction Management Platform, and becomes one integral Platform, and becomes one integral system. It must happen so we remain in system. It must happen so we remain in control and central to the transaction. control and central to the transaction.

Look for a day when those that aspire to Look for a day when those that aspire to leadership positions at HAR, leadership positions at HAR, • go through a highly intensive Leadership go through a highly intensive Leadership

Program to prove their commitment Program to prove their commitment to our profession,to our profession, our community and come to our community and come to lead our association with a broader perspective.lead our association with a broader perspective.

Other IssuesOther Issues

We have enlightened you on We have enlightened you on mortgage fraud and sent out mortgage fraud and sent out numerous messages enumerating numerous messages enumerating “red flags” in mortgage fraud.“red flags” in mortgage fraud.

We want our Realtors to be safe in We want our Realtors to be safe in their practice. their practice. • SOS – Sold On Safety program with the SOS – Sold On Safety program with the

Police Department as partners for 45 or Police Department as partners for 45 or more attendees.more attendees.

Working on the FutureWorking on the Future We are conducting a survey of Houston We are conducting a survey of Houston

Home buyers and sellers by UH Center for Home buyers and sellers by UH Center for Public Policy:Public Policy:• Source of finding their Realtor.Source of finding their Realtor.• Source of finding information on homes.Source of finding information on homes.• Overall opinion of the RealtorOverall opinion of the Realtor• Do they view rankings of Realtors as Do they view rankings of Realtors as

important?important?• Would they want a secure web site that gave Would they want a secure web site that gave

the status of their home sale available online the status of their home sale available online 24/7?24/7?

• Share results with members for better strategic Share results with members for better strategic planning.planning.

Working on the FutureWorking on the Future

The Realtor organization was founded on The Realtor organization was founded on 3 core values:3 core values:

1.1. The Code of Ethics – process is Industrial Age, The Code of Ethics – process is Industrial Age, needs streamlining for faster results.needs streamlining for faster results.

2.2. Education – continuous improvement of our Education – continuous improvement of our profession.profession.

3.3. The only and largest Political Action The only and largest Political Action Committee dedicated to the protection of Committee dedicated to the protection of private property rights and the free and easy private property rights and the free and easy conveyance of property without undue conveyance of property without undue governmental burden or taxation.governmental burden or taxation.

Looking to the FutureLooking to the Future

We are at a crossroads.We are at a crossroads.• The more we advertise The more we advertise www.har.comwww.har.com• The more we advertise the value of a The more we advertise the value of a

RealtorRealtor• The more the public views our The more the public views our

association as an “avenue of restitution” association as an “avenue of restitution” when some Realtors does them wrong.when some Realtors does them wrong.

We need a vehicle for a speedy and We need a vehicle for a speedy and economical resolution.economical resolution.

Other IssuesOther Issues

My proudest moment in the Texas My proudest moment in the Texas Legislature –Legislature –

After working for 3 years to get TREC After working for 3 years to get TREC to clarify the Minimum Services Rule to clarify the Minimum Services Rule to no availto no avail

The Texas Legislature and Governor The Texas Legislature and Governor Rick Perry unanimously wrote Rick Perry unanimously wrote “Minimum Services” into law.“Minimum Services” into law.

TAR Legislative ObjectivesTAR Legislative Objectives

1.1. Reduce property taxes while adequately Reduce property taxes while adequately and fairly funding our public schools.and fairly funding our public schools.

2.2. Prevent measures that would further Prevent measures that would further increase the cost of homeownership in increase the cost of homeownership in Texas – we rank 45Texas – we rank 45thth out of 50 states in out of 50 states in homeownership levels.homeownership levels.

3.3. Protect the interest of Realtors, Protect the interest of Realtors, homeowners and other property owners homeowners and other property owners in the state.in the state.

Texas was founded on the Texas was founded on the principle of protecting principle of protecting

private property. Realtorsprivate property. Realtors® ® are dedicated to the are dedicated to the

principle of protecting and principle of protecting and preserving the rights of preserving the rights of

property owners in Texas.property owners in Texas.

TREPACTREPACThe legislature closed without an answer to The legislature closed without an answer to

property taxes or school finance issue. property taxes or school finance issue. – There is currently a special session trying to There is currently a special session trying to

resolve this.resolve this.– We are still funding lobbyists to talk to elected We are still funding lobbyists to talk to elected

officials so that a tax on your commission or real officials so that a tax on your commission or real estate transfer tax is not an option.estate transfer tax is not an option.

– Last Monday, at 4:00A.M., the legislature almost Last Monday, at 4:00A.M., the legislature almost passed a bill to double our licensure fees. Our passed a bill to double our licensure fees. Our lobbyists stopped it.lobbyists stopped it.

– We also filed an Amicus Brief negating the We also filed an Amicus Brief negating the Supreme Court decision on Eminent Domain. The Supreme Court decision on Eminent Domain. The House of Representatives did also.House of Representatives did also.

– From now until July 31, donate to TREPAC, Sunset From now until July 31, donate to TREPAC, Sunset Dinner Cruise for 8 - $35 gets one chance and Dinner Cruise for 8 - $35 gets one chance and $99 gets 3 chances for the cruise.$99 gets 3 chances for the cruise.

I invite you to be a Change Agent.I invite you to be a Change Agent.

Growing number of members that are Growing number of members that are innovators, leaders and change agents.innovators, leaders and change agents.

They will help to reshape our industry for They will help to reshape our industry for good, for better, forevergood, for better, forever

Never think that a small group of Never think that a small group of dedicated, committed individuals cannot dedicated, committed individuals cannot change the world.change the world.

That’s the only way that change has ever That’s the only way that change has ever happened.happened.

To the proud professionals of Greenwood To the proud professionals of Greenwood King – thank you for making a difference!King – thank you for making a difference!

Property Tax Appraisal CapsProperty Tax Appraisal Capsvs.vs.

Revenue Caps Revenue Caps [Truth in Taxation][Truth in Taxation]

CommonalitiesCommonalities

Both camps want the same thing.Both camps want the same thing.1.1. We want to lower property taxes in the We want to lower property taxes in the

state of Texas.state of Texas.

2.2. We do not want a short-term fix where We do not want a short-term fix where the appraisal creep over time wipes the appraisal creep over time wipes out the savings.out the savings.

Property Tax Appraisal CapsProperty Tax Appraisal Caps301 Sunny St301 Sunny St 302 Sunny St302 Sunny St

Current AppraisalCurrent Appraisal $75,000$75,000 $75,000$75,000

Appraisal value -15 yrsAppraisal value -15 yrs

5% cap5% cap $148,495$148,495 $148,495$148,495

Mkt. value assuming Mkt. value assuming 7% growth in value7% growth in value $193,390$193,390 $193,390$193,390

Sold in 15 yearsSold in 15 years NONO YESYES

Appraisal Value in 16Appraisal Value in 16thth yearyear $148,495$148,495 $193,390$193,390

Property Taxes due in Property Taxes due in 1616thth yr.[assuming $2 yr.[assuming $2 per $100]per $100]

$2969.90$2969.90 $3867.80$3867.80

DIFFERENCEDIFFERENCE +$897.90+$897.90

Property Tax Appraisal CapsProperty Tax Appraisal Caps Property Tax Appraisal Caps don’t lower taxes – Property Tax Appraisal Caps don’t lower taxes –

they just create inequities for taxpayers and they just create inequities for taxpayers and havoc in the tax system.havoc in the tax system.

Taxpayers resent their neighbors paying less in Taxpayers resent their neighbors paying less in taxes on the same size property. It leads to taxes on the same size property. It leads to unfair taxation.unfair taxation.

Lowering the tax appraisal cap from the current Lowering the tax appraisal cap from the current 10% will:10% will:• Discourage home salesDiscourage home sales• Freeze people into their homesFreeze people into their homes• Create an unstable revenue sourceCreate an unstable revenue source• California Prop 13 shows long-term effects.California Prop 13 shows long-term effects.

Interesting Facts about NAR Interesting Facts about NAR Homebuyers in the SurveyHomebuyers in the Survey

40% were purchasing for the first time.40% were purchasing for the first time. The median age was 39 years of age. The median age was 39 years of age.

Largest age sector was 25-34 or 32%Largest age sector was 25-34 or 32% 24% of first-time home buyers identified 24% of first-time home buyers identified

themselves as African, Asian or Hispanic.themselves as African, Asian or Hispanic. 21% purchased a new home21% purchased a new home The majority of buyers rated neighborhood The majority of buyers rated neighborhood

quality as the most important factor.quality as the most important factor.

Interesting Facts about Home Interesting Facts about Home SellersSellers

82% bought a single-family detached home.82% bought a single-family detached home. Had owned their home 6 years.Had owned their home 6 years. 55% purchased a home larger than the home 55% purchased a home larger than the home

they sold.they sold. 73% of sellers contacted only one agent before 73% of sellers contacted only one agent before

listing their home.listing their home. When choosing an agent, 54% thought an agent’s When choosing an agent, 54% thought an agent’s

reputation was the most important factor.reputation was the most important factor. 24% of FSBO’s thought that getting the price right 24% of FSBO’s thought that getting the price right

was the most difficult task when selling their was the most difficult task when selling their home.home.

24% of FSBO’s indicated fixing up the home for 24% of FSBO’s indicated fixing up the home for sale was the most difficult.sale was the most difficult.

FSBO’sFSBO’s According to NAR’s 2004 Survey of Home According to NAR’s 2004 Survey of Home

Buyers and Sellers, 69% of FSBO’s said Buyers and Sellers, 69% of FSBO’s said that they sold FSBO because they did not that they sold FSBO because they did not want to pay the commission.want to pay the commission.

However, in a home price selling However, in a home price selling comparison in the same survey, FSBO’s comparison in the same survey, FSBO’s sold their home for an average of sold their home for an average of $163,800, while those that were agent $163,800, while those that were agent assisted sold for an average of $189,000.assisted sold for an average of $189,000.

Therefore, while saving 6% on the Therefore, while saving 6% on the commission, FSBO’s lost 15% of their commission, FSBO’s lost 15% of their homes’ value by going on their own.homes’ value by going on their own.

MarketingMarketingInformation Sources Used in Home Information Sources Used in Home

SearchSearch

Information Information Sources Used in a Sources Used in a Home SearchHome Search

19951995 20012001 20032003 20042004

Real Estate AgentReal Estate Agent 86%86% 79%79% 86%86% 90%90%

Newspaper AdsNewspaper Ads 51%51% 41%41% 49%49% 53%53%

InternetInternet 2%2% 41%41% 71%71% 74%74%

For 2 years in a row, more buyers use Internet as an information source than they do the newspaper.

What Homebuyers Were Looking What Homebuyers Were Looking for Onlinefor Online

Properties for saleProperties for sale 93%93% Information about an areaInformation about an area 21%21% A real estate companyA real estate company 5% 5% A real estate agentA real estate agent 3% 3%

Top Ways Buyers Found AgentTop Ways Buyers Found Agent

44% referred by [or is] a friend, neighbor 44% referred by [or is] a friend, neighbor or relativeor relative

13% Used agent previously to buy or sell a 13% Used agent previously to buy or sell a home.home.

8% saw contact information on For Sale 8% saw contact information on For Sale SignSign

7% saw agent on an Internet site7% saw agent on an Internet site 6% visited open house and met agent.6% visited open house and met agent. 5% walked into/called office and agent 5% walked into/called office and agent

was on duty.was on duty.

What Buyers Want Most from What Buyers Want Most from AgentAgent

54% want agent to help them find the 54% want agent to help them find the right house.right house.

10% want agent to tell them how much 10% want agent to tell them how much home they can afford.home they can afford.

10% want help with negotiations.10% want help with negotiations. 10% want help with paperwork.10% want help with paperwork. 8% want agent to tell them what 8% want agent to tell them what

comparable homes are selling for.comparable homes are selling for. 5% want help to find and arrange 5% want help to find and arrange

financing.financing.

Method Used to Find a Listing Method Used to Find a Listing AgentAgent

38% Referred by [or is] a friend, 38% Referred by [or is] a friend, neighbor or relativeneighbor or relative

31% Used agent previously31% Used agent previously 7% Agent personally contacted 7% Agent personally contacted

them.them. 4% Visited open house and met 4% Visited open house and met

agentagent 4% Referred by another real estate 4% Referred by another real estate

broker.broker.

Most Important Factors in Choosing Most Important Factors in Choosing a Listing Agenta Listing Agent

54% Reputation of real estate agent54% Reputation of real estate agent 19% Agent’s knowledge of the 19% Agent’s knowledge of the

neighborhood.neighborhood. 8% Agents association with a 8% Agents association with a

particular firmparticular firm 4% Agents professional designations 4% Agents professional designations

held by agent.held by agent.

What Sellers Want Most from a What Sellers Want Most from a Listing AgentListing Agent

25% Help to sell the home within specific 25% Help to sell the home within specific time frametime frame

25% Help find a buyer for home25% Help find a buyer for home 23% Help seller to price home 23% Help seller to price home

competitivelycompetitively 12% Tell seller how to fix up home to help 12% Tell seller how to fix up home to help

sell it for more.sell it for more. 6% Help with paper work6% Help with paper work 4% Help with negotiations4% Help with negotiations

Why Rank by Quality?Why Rank by Quality? Quality Service Certification addresses the fact that real estate service is Quality Service Certification addresses the fact that real estate service is

an unmanaged process.an unmanaged process. Service delivery remains the invisible domain of the sales agent.Service delivery remains the invisible domain of the sales agent. Brokers abdicate responsibility, and most base rewards on productivity, Brokers abdicate responsibility, and most base rewards on productivity,

with no reward for quality customer care.with no reward for quality customer care. Therefore, each service experience produces unique outcomes based on Therefore, each service experience produces unique outcomes based on

the preferences, practices and idiosyncrasies of each individual service the preferences, practices and idiosyncrasies of each individual service professional. professional.

It’s a “mom and pop” business mentality in what has become a big It’s a “mom and pop” business mentality in what has become a big business arena.business arena.

Where quality is uncertain, price increasingly becomes the more certain Where quality is uncertain, price increasingly becomes the more certain determinant.determinant.

Can any business survive in a consumer centric environment, where Can any business survive in a consumer centric environment, where independent agents choose independently how to serve their client? independent agents choose independently how to serve their client?

Your broker should consider adding a Quality Service Assurance Program Your broker should consider adding a Quality Service Assurance Program because online competitors already have.because online competitors already have.

Lending Tree’s research found that consumers want an agent rating Lending Tree’s research found that consumers want an agent rating system. They feel more confident with consumer rating systems than the system. They feel more confident with consumer rating systems than the self-proclaimed statements made by brokers and agents.self-proclaimed statements made by brokers and agents.

More and more third party agent rating web-sites, appear everyday. We More and more third party agent rating web-sites, appear everyday. We need to give the consumer what they want or they will get it somewhere need to give the consumer what they want or they will get it somewhere else.else.