Risky (Real Estate) Business
Last week I attended the National Association of Realtors (NAR) Mid Year Legislative Assembly in Washington as a representative of the Toronto Real Estate Board. Unlike the NAR Fall event, this one is a little more policy heavy with more emphasis on politics, lobbying and government relations. Still, it was a worthwhile event and I attended some very good break out sessions. One in particular was about risk. I believe real estate agents of all levels and skill and experience encounter daily challenges about their fiduciary roles to their clients.This session used real world examples to illustrate some of the reasons why we get sued or taken to RECO.
Here is an interesting question that was posed at the meeting; Who’s making more mistakes, the guy doing 1 or 2 deals a year or the guy doing 1 or 2 a week? That’s a tough one. On one hand you could argue that the guy who does one deal a year takes lots of time to make it right while the guy doing lots of deals is more susceptible to sloppiness. Then again, the once-a-year guy may have a lesser understanding of the process and make fundamental (read..bigger) mistakes while the prolific deal maker is so good at his job that nothing gets forgotten. What do you think?
Well, the idea of risk got me thinking, so my first morning meeting back in Toronto I made my topic all about risk. I asked the group to list areas where risk is more likely. In less than 30 minutes we came up with 48 possible ways you can open yourself to liability and avoid risk. I’m sure we could find another hundred if time permitted. Have a look at the list. Is there anything you would add?
At the core of this discussion is the philosophy that the real estate industry must centre on the needs of the client rather than the broker or the agent. When the needs of the client are put first, the risk diminishes. When agents function at the top-level of service and offer a standard level of service EVERYTIME, fewer mistakes happen.
With new agents getting into the business daily we should be concerned about competency levels. While education is good it does not prepare new agents for real life experiences. As I like to say, OREA teaches you the moves but it doesn’t teach you to dance. Only a handful of brokerages offer additional training. Are you at all worried? Recently I spoke to an experienced agent who prepares standard offers on her own properties, complete with all the right clauses, to give to agents who are preparing offers. At first it seemed a little crazy, after all, why is she preparing offers for other agents? Simply put, she believes that there are lots of qualified buyers out there who may lose a great house because their agent isn’t as experienced. By preparing an offer herself she is reducing the risk which ultimately is better business.
Interesting fact; regardless of a deal happening, if you provide exceptional service, and put the needs of the client first, both you and your client will feel great. I believe competent agents do more deals. Their listings sell, their buyers buy, their deals hold together, therefore creating less risk and less liability. Food for thought…
The Friday Five for May 24th
The warmer weekends are upon us and while it may not be time to sit on the end of the dock just yet, it is always time to check out the Friday Five. I do my best most weeks to find relevant stories to make your real estate business better. it could be about brand, or marketing, or farming, or social media tips or new technology, or maybe a funny video. There is a lot of noise out there so hopefully the Friday Five is part of the solution and not the problem. Have a great weekend!
How can you create an effective real estate website if you don’t fundamentally understand the value of technology and the important role it plays in your success as a real estate agent? Here are 10 truths of technology and why it is essential for the modern-day real estate agent: http://www.realtyninja.com/blog/technology-or-die-10-truths-of-technology-and-why-its-essential-for-the-modern-day-real-estate-agent/
Prospects are more likely going to turn into customers when they feel that they will be buying from a company that is credible. The more credible you are — the more trust and authority that prospects ascribe to you — the more likely you are going to win their hard-earned dollars when they are ready to buy.Sounds simple enough. This is a great post by my friend @aaronhoos http://aaronhoos.com/2013/05/17/11-ways-to-build-credibility-for-your-business/
Ready to start marketing your new company, product or brand? Before you create a blog, draft content for your brand-spanking-new website or start tweeting, first define your “brand voice.” In a nutshell, this is the heart and soul of your communications. More than specific words and phrases, your brand voice is the tone in which you speak to and connect with your audience. http://mashable.com/2013/05/23/find-your-brands-voice/
If you’re on LinkedIn, you’re a member of the world’s largest business networking site for professionals. Here are some strategies to help you be more engaged and professional. Via @jeffbullas http://www.jeffbullas.com/2013/03/13/four-smart-strategies-to-help-you-engage-with-more-of-the-right-people-on-linkedin/
Social Media and local search are influencing consumer behavior like never before. In real estate, being the expert in local, from the local deli to the best place to get a cup of coffee to where the school district lines are help position you as the local authority. Everything you do in social is helping to build your brand. Check out this post from @placester https://placester.com/real-estate-marketing-academy/3-tips-to-position-yourself-as-the-local-expert-in-social-media-for-real-estate/
Friday 5 for May 10th
Happy Friday everyone. On this wet day, the best thing you could do is find a nice place to hide and do a little quality reading. Hope you enjoy this week’s Friday Five!
This year, it’s all about video. As the mini-video-taking Vine app recently hit the top of the charts for free apps in the U.S., everyone seems to record their own videos and post them online.Why? Because people are watching it!Andy Warhol once said: “I don’t read, I just look at pictures”. That’s what we all do today. This is a great one from @coskills http://communicateskills.com/2013/05/08/video-social-media-strategies/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+CoSkills+%28Communicate+%5Byour%5D+Skills%29
There is nothing like the feeling of standing out from all of your competitors and generating more business than ever before. Due to how most buyers base their buying decision on pricing, it can be easy to get into a pricing war with your competitors. But that is no fun and you end up compromising your profit margin. It’s time to develop a unique selling proposition via @steamfeedcom http://www.steamfeed.com/how-to-create-a-killer-unique-selling-proposition/?utm_source=feedburner&utm_medium=twitter&utm_campaign=Feed%3A+steamfeedcom+%28SteamFeed%29
Twitter is often seen as one of Cinderella’s ugly sisters when it is compared to the multimedia beauty and the wealth of numbers that the 800 million plus engaged users that the Facebook social network offers. But if you take the time to get to understand Twitter with its quaint 140 character limit and its charming simplicity, it can be a very powerful tool to distribute information and ideas in real-time to enhance your marketing and promotion efforts.Thanks @jeffbullas http://www.jeffbullas.com/2012/02/03/the-explosive-power-of-the-retweet-revealed-by-twitter/
Brand storytelling isn’t a new concept, but with the explosive growth of social media and content marketing, the opportunities to tell stories as part of direct and indirect brand marketing initiatives have become a strategic priority. The following are five secrets that brand storytellers understand and use to intrigue, engage, and connect emotionally with consumers. http://www.forbes.com/sites/work-in-progress/2013/02/05/5-secrets-to-using-storytelling-for-brand-marketing-success/
The way we communicate on a daily basis has changed radically over the last ten years. In our ever-changing world of communication, social media is what’s in vogue. Everywhere you turn you can’t escape it whether it is Facebook, Twitter, Google Plus, Linkedin or one of the many others that are cropping up daily. Social media is a way of keeping in touch with the world around us. With new forms of communication, come new rules of the game, especially for real estate agents. http://sem-group.net/search-engine-optimization-blog/social-media/5-ways-real-estate-agents-fail-at-social-media/
