Transcript No Slide Title

Welcome
Accredited Buyer Representative Manager
Welcome
Class Introductions:
–
–
–
–
Name
City and state where you are from
Your company
Do you practice exclusive buyer
representation?
Introduction
“By developing a positive awareness of
agency relationships, the professional agent
will be able to adapt to consumer demands for
greater representation in today’s real estate
market.”
John W. Reilly
Agency Relationships in Real Estate
Ice Breaker
1. What percentage of the nation's housing
market did first-time home buyer account
for in 1999?
a.
b.
c.
d.
19 %
25 %
33 %
42 %
Ice Breaker
1. What percentage of the nation's housing
market did first-time home buyer account
for in 1999?
a.
b.
c.
d.
19 %
25 %
33 %
42 %
Ice Breaker
2. What percentage of all homebuyers used a
real estate licensee?
a.
b.
c.
d.
48 %
62 %
80 %
87 %
Ice Breaker
2. What percentage of all homebuyers used a
real estate licensee?
a.
b.
c.
d.
48 %
62 %
80 %
87 %
Ice Breaker
3. What percentage of homebuyers reported
that they would use a real estate licensee in
their next home search?
a.
b.
c.
d.
41 %
73 %
59 %
84 %
Ice Breaker
3. What percentage of homebuyers reported
that they would use a real estate licensee in
their next home search?
a.
b.
c.
d.
41 %
73 %
59 %
84 %
Ice Breaker
4. How much time do your salespeople
typically spend on a listing presentation
versus a buyer presentation?
(Include time spent on research)
Course Objectives
Section 1 - A Paradigm Shift
• Identify if buyer representation is a part of your
company's ideology/vision.
• Clarify the vision of your business in the next
three-to-five years to incorporate buyer's
representation.
Course Objectives
Section 2 - Company Policies
• Explain various company policies.
• Create a company policy appropriate for your
business needs.
• Develop an appropriate training program for buyer
representation that supports your company's policy.
• Identify the changes you need to make to
implement buyer representation.
Course Objectives
Section 3 - Information Systems
• Identify information-keeping systems appropriate
to your policy on buyer representation.
• Make decision on the use of various contracts,
based on company policy.
• Develop a system for tracking income and
profitability for buyer representation.
Course Objectives
Section 4 - Marketing - Evaluating
• Identify marketing materials that promote and
support your buyer representation policy.
• Measure, monitor and recognize effective buyer
client service.
• Implement a buyer client service program to
increase the profitability of your buyer
representation program.
Course Objectives
Section 4 - Marketing - Evaluating (con’t)
• Develop a recruiting dialogue to sell the benefits of
buyer representation. Identify changes you need to
make to implement buyer representation.
Paradigm Shift
“Vision without action is merely a dream.
Action without vision just passes the time.
Vision with action can change the world.”
-
Joel Barker
Vision
Vision provides guidance about what core to
preserve and what future to progress toward.
Vision
Core Ideology
Core Values
Core Purpose
Envisioned Future
Daring Goals
Vivid Description
Vision
IBM
After initially and famously pooh-poohing the need
for a vision, "…the last thing IBM needs right now is
a vision," IBM's new chief Lou Gerstner came up
with one:
"To lead big companies into the brave new
networked world. We'll be what we were: the
information technology company to corporate
America."
Core Ideology
Core ideology defines what we stand for and
why.
•
•
•
•
The glue that holds the company together
Enduring
Not exclusive to your company
Used to inspire and guide associate
Core Ideology
Hewlett Packard
Bill Hewlett: "As far as the company is concerned,
the greatest thing he (David Packard) left behind him
was a code of ethics known as the 'HP way.'" It
includes the greatest respect for the individual, a
dedication to affordable quality and reliability, a
commitment to community responsibility, and a view
that the company exists to make technical
contributions for the advancement and welfare of
humanity.
Core Values
Core values are the company’s integrity,
ethical behaviors, etc.
Core Ideology
•
•
•
•
Core Values
3 - 5 core values
They are not operating practices
Stand the test of time
Evident in everyday actions
Core Purpose
Visio
Core Values
Walt Disney
Walt Disney Company's core values of imagination
and wholesomeness stem not from the market
requirements but from the founder's inner belief that
imagination and wholesomeness should be nurtured
for their own sake.
Core Purpose
Visio
Core purpose explains the purpose of the
Core Ideology
vision.
Core Values
Core Purpose
• It is the organization’s reason for being
• Answers “Why we are here?”
• Reflective of associate’s idealistic
motivations for doing the company’s work
Core Purpose
Walt Disney
They make people happy.
Envisioned Future
Envisioned future describes how you see your
company in 3-5 years.
• Involves dreams, hopes, and aspirations
• Is compelling, engaging, and energizing
• Can be quantitative or qualitative
Daring Goals
Vision
Core Ideology
Core Vales
•
•
•
•
Core Purpose
Envisioned Future
Daring Goals
Risky
Channel visionary effects
Challenging
Stimulates progress
Vivid Description
Daring Goals
Wal-Mart
To become a $125 billion company by the year 2000.
Sony
Become the company most known for changing the
worldwide poor-quality image of Japanese products.
Vivid Description
Vision
Core Ideology
Core Vales
Core Purpose
• Colorful
• Action Based
• Inspiring
Envisioned Future
Daring Goals
Vivid Description
Vivid Description
Henry Ford
"I will build a motor car for the great multitude… It will be
so low in price that no man making a good salary will be
unable to own one and enjoy with his family the blessing of
hours of pleasure in God's great open spaces… When I'm
through, everybody will be able to afford one, and everyone
will have one. The horse will have disappeared from our
highways; the automobile will be taken for granted… (and
we will) give a large number of men employment at good
wages."
Company Vision Exercise
Complete the exercise on creating and/or
revising your company’s vision.
You have 5 minutes to complete this exercise.
Paradigm Shift
We are moving away from being the first step
in the transaction, that of listing the property,
to the “center of the transaction” or
“managing the transaction.”
Common Myths Exercise
Complete the exercise on dispelling common
industry myths.
You have 10 minutes to complete this exercise.
Common Myths Exercise
1. List to last.
2. Market share is everything.
3. The buyer won’t sign an exclusive
agreement.
4. If exclusive buyer representation is
implemented in my office, my associates
will leave.
Case Study Exercise
Complete your assigned case study exercise on
agency policy. Refer to the sample policies
immediately following the case studies.
Appoint a speaker for your group to summarize
your case and review your group’s answers.
You have 30 minutes to complete this exercise.
Company Policies
“The policy of being too cautious is the
greatest risk of all.”
-
Jawahariah Nehru
Prime Minister of India
Company Policy
1.
2.
3.
4.
5.
6.
Buyer Representation Only
Seller Representation Only
Single Representation Only
Dual Representation
Appointed/Designated Representation
Non-Agency Representation/Transactional
and Facilitator (based on state law)
Policy Guidelines
Representation:
 Develop a company policy on representation.
 Disclose the broker relationship with buyer/
seller at first contact in writing. Be sure to comply
with state law regulations.
 Require that all other associates disclose their
relationship with buyer/seller in writing.
 Repeat these disclosures when seller is present for
showing.
Policy Guidelines
Working with other brokerage firms:
 Determine acceptable cooperative efforts from
other brokerage firms.
 Determine compensation payable to cooperative
brokerage firms.
 Notify cooperative brokerage firms of your
company policy, acceptable cooperative efforts, and
compensation payable for cooperation.
Policy Guidelines
Confidentiality:
 Maintain confidentiality of any confidential
information about either buyers or sellers.
 Limit information exchanged at office sales
meetings to factual information about the properties
(for listings) and about the property characteristics
desired by buyer-clients.
 Educate seller-clients and buyer-clients about
confidentially and the need to refrain from sharing
information.
Policy Guidelines
Confidentiality: (con’t)
 Limit access to all active files to management only.
 Develop a system to record and retain telephone
messages.
 Develop a system for use of fax machine to
maintain confidentially.
 Develop a system of sharing information that the
legal system would view as imputed knowledge.
Policy Guidelines
Training and assessment:
 Require all associates to complete training programs
on company policy and presentation of company
policy to buyers and sellers.
 Provide each associate a copy of the company
representation policy and have then sign an
acknowledgement that they understand the policy.
 Conduct periodic review of associates' knowledge
and skill concerning the company policy.
Disseminating Policies
Complete the exercise on disseminating policy
changes in your office.
You have 5 minutes to complete this exercise.
Using the Intranet
An Intranet is a private network of computers,
which enables users to share information.
• Posting policy changes on your office’s intranet is
an effective way of disseminating the information.
• Reduces potential errors from out-to-date printed
information.
• Easily assessable.
Technology
Common uses of technology in the workplace
are:
•
•
•
•
e-mail
company websites
individual associate's websites
"surfing" the Internet
Technology Policies
As technology is being integrated in the
workplace, a whole new realm of potential
issues/problems need to be addressed.
•
•
•
•
computer viruses
visitation of inappropriate websites
individual associate's websites
excessive "surfing" of the Internet
Establishing Guidelines
• Limitations of personal use (of the Internet and
company computers).
• Provide parameters for on-line discussion groups
for business and personal use (what can and can
not be said for defamation purposes).
• Restrictions for the downloading of information
from the Internet and guidelines of how that
information is used (to avoid any copyright
infringement).
Establishing Guidelines
• Establish security procedures to protect sensitive
company information (do not allow associates to
share passwords, etc.)
• Any monitoring of associate and employee
computer usage must comply with state and
federal privacy laws.
• Should address how associates and employees
are trained and acknowledge policy
requirement(s).
Establishing Guidelines
• Establish a set of consequences in the event of
misuse.
• Seek legal counsel when finalizing and/or
modifying such policy.
Systems
"The process and flows that show how things
get done from day to day.”
– McKinsey's 7-S of Organizational Analysis©
System Types
• Training System
• Information Keeping and Risk
Management System
• Delivery System
• Marketing System
• Buyer Service Management System
• Recruiting System
Training System
Training

Better informed and prepared buyers

Greater buyer loyalty

Representative receives better information from
buyer-client

Quicker, more satisfying close

Reduce loss of commission

Win-win
Training Plan Form
Training Modular Planner
Training Modular Planner
Training Topic Exercise
List additional buyer representation topics
that would be needed for training purposes.
Imputed Knowledge
The knowledge of one licensee in a real
estate brokerage company is imputed to be
the knowledge of all licensees in the
company.
Check with your state law regarding the
details of Imputed Knowledge.
Imputed Notice
Notice provided to an agent is attributed to
and binding on the client of the company,
even if the agent never conveys the
information to the client.
Information Keeping
• Disclosure
• Confidential information
• Accessibility
• Policy
Information Keeping
Income Forecasting
Complete the exercise on income forecasting
for listings and for buyers.
You have 10 minutes to complete this
exercise.
Income Forecasting
Income Forecasting
Delivery Systems
Delivery Systems
Marketing Systems
“Marketing is the art of making someone want
something you have.”
-
The Internet Nonprofit Center
Marketing Systems
How many of you are using your website to
market to buyers?
Marketing Systems
Marketing Materials
Generated by:

Representative

Company
Forms


Checklists


Brochures


Ads


Buyer agreement presentation


W eb pages


Relocation services


Referrals


Others:










Marketing Systems
Is your company generating all marketing
materials?
It is very important that management
approves all marketing material that is not
generated by your company.
Client Satisfaction
Survey
client
Reap
additional
profits
Raise
benchmarks
Set
benchmark
goals
Client Satisfaction
Cycle
Promote high
level of
service
Train
reps.
Continue
surveying
Recognize
top client
service
Provide
feedback to
reps.
Expectation Exercise
Complete the following exercise on buyer
expectations of representatives.
How skilled are your salespeople in these
services you have listed?
Recruiting Systems
Complete the following scenarios on the
exclusive buyer representation.
How can you use these benefits are a
recruitment tool?
Adapting
"The ability of any organization to adapt to
changes is in the hands of management.".
- Phillip V. Lewis
Organizational Communication
The Essence of Effective Management
Reasons for Resistance
• Threat to status power
• Fear of responsibility
• Don't want disruption of interpersonal
relationships
• Misunderstanding and lack of trust
• Complacency
• Economic security
Minimizing Resistance
1.
2.
3.
4.
Education and communication
Participation and involvement
Facilitation and support
Negotiation and agreement
Opportunity
"Definiteness of purpose is the starting point
of all worthwhile achievements. Remember
- your world will change whether or not you
choose to change it. But you have the power
to choose its direction."