The Estate Agent - November 2015

The journal of the real estate institute of victoria

reiv.com.au

health check Keeping fit helps you go the distance MEMBER news Harry Nicholls still going strong

The Estate Agent

NOVEMBER 2015 Volume 79 No.4

Li takes top gong

Tech drives future market

Auctioneer of the Year Harry Li

Branding, media, reputation and more

Melbourne sees price boom

Six more suburbs join million-dollar club

Veteran honoured Long-standing REIV member Ian Armstrong awarded an honorary life membership

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Contents

12 ‘The REIV Awards acknowledge the exceptional work of our members, especially those who are professionalising the industry and exceeding best-practice standards’ REIV chief executive officer Enzo Raimondo

Cover story Star performers get top honours A mix of past winners and fresh faces were among those recognised at last month’s REIV Awards for Excellence

Features

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Tech drives future market Branding, media, reputation – just some of the elements explored by presenters at the REIV Connect Conference

Harry Li takes the top gong Auctioneer of the Year says success is about playing the part and relating to buyers

Keeping fit will help you go the distance Taking time out to look after your body and mind will pay dividends in the long run

Commitment to the industry Almost 80 REIV members have achieved membership milestones in the past four months

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Contents

5 President’s Report 7

CEO Report

9 Bulletin 18 Market Update 26 Profile 29 Best Practice 30 Training 33 Member News

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Publisher REIV 335 Camberwell Rd, Camberwell, Victoria 3124 Editor Paul Bird pbird@reiv.com.au

Advertising Rick Fiedler rfiedler@reiv.com.au 9205 6654

The Estate Agent

Estate Agent is published by the Real Estate Institute of Victoria.

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The Estate Agent â?˜ November 2015

The views and opinions expressed in articles and columns of Estate Agent are those of the writers and do not necessarily represent those of the Real Estate Institute of Victoria

President’s Report Geoff White President REIV

A welcome chance to reflect on our achievements and look to the future

T

he REIV Awards for Excellence are the highlight of the real estate industry’s event calendar and this year’s awards were no exception.

More than 1,100 agents from across the state celebrated the achievements of REIV members in October, with more than 30 awards presented.

The standard of finalists at this year’s awards was exceptionally high with record entrant numbers in multiple award categories.

It was a privilege to present Ian Armstrong with an REIV Honorary Life Membership, one of only 13 individuals to receive this distinction in the history of the institute.

A past president, Ian has been an REIV member since 1974 and has served the board in a variety of roles including as a director from 19841992 and 1994-2003. Ian remains active in the industry and continues to make a significant contribution to the REIV. Similarly, Bellarine Peninsula-based agent Neil Laws was a worthy recipient of this year’s President’s Award. An REIV member since 1987, Neil has served the institute at the highest levels, acting as a board director from 2001-2011 and as president from 2007-2008. Actively involved in both state and national auction competitions for several years, Neil chaired this year’s hugely successful Australasian Auctioneering Championships.

I’m pleased to announce two new metropolitan directors – Richard Simpson from W.B. Simpson & Son and Cameron Way from Woodards Blackburn – have joined the REIV Board, taking office from October 1.

The recent 2015 board elections also saw Michael Blake re-elected in the regional zone. I’d like to take this opportunity to thank outgoing board directors Neville Sanders and John Grabyn for their ongoing service to the institute.

New directors: Cameron Way (left) and Richard Simpson have joined the REIV Board.

‘I’m particularly pleased by the experience and calibre of the board, representing the various real estate sectors including property management, residential and commercial’ At an REIV Board meeting in October, I was honoured to once again be elected as REIV President for 20152016 with Joseph Walton serving as Senior Vice-President and Frank Hellier, Vice-President.

As a fifth-generation estate agent, I have owned and operated my own agency and worked in the industry for more than 30 years.

The newly elected board will be united and focused on improving the professionalism of the industry and setting new best practice standards. I’m particularly pleased by the experience

and calibre of the board, representing the various real estate sectors including property management, residential and commercial.

At a national level, we are also well represented with Neville Sanders, President of the REIA, and REIV Director Joseph Walton recently appointed as the REIV representative on the REIA Board.

It is certainly an exciting time to be a real estate agent with multiple Melbourne property records broken throughout the year.

We’ve seen one of the strongest starts to the traditional spring selling season on record and high auction numbers look set to continue for the remainder of the year.

While the big four banks are raising interest rates, the RBA held the record low 2 per cent interest rate at its meeting earlier this month, given inflation is below its target rate.

Continued on page 6

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President’s Report

Continued from page 5

Interest rate increases, combined with more stock on market, has seen some balancing in the level of buyer demand, but still solid results given the level of stock on the market at present.

The REIV’s annual conference, held in early September, provided members with access to leading international and local agents, in addition to motivational speakers and business leaders. The conference had one of the highest attendance rates of recent years and feedback from members has been overwhelmingly positive.

High-profile US agent Dolly Lenz was a personal favourite, reinforcing the importance of relationship building, perseverance and followingup with clients.

Thought-provoking presentations by John McGrath and Tom Panos showed agents the benefit of being an attraction agent and how to best utilise client testimonials to secure new business. It was pleasing to see a strong turnout

Helping hand: The REIV Charitable Foundation presented more than $100,000 to Prostate Cancer Foundation of Australia – the proceeds of the Late Lunch for Prostate Cancer.

of members this year, with those attending gaining valuable CPD points.

We will soon be planning for next year’s conference and look forward

to providing another impressive array of speakers to ensure members gain enormous value from this major annual event.

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Visit reisuper.com.au or call 1300 13 44 33 join@reisuper.com.au facebook.com/reisuper The information provided does not constitute financial product advice. However, to the extent that the information may be considered to be general financial product advice, REI Super advises that REI Super has not considered any individual person’s objectives, financial situation or particular needs. Individuals need to consider whether the advice is appropriate in light of their goals, objectives and current situation. Member should obtain and read the Product Disclosure Statement for REI Super before making any decisions. REI Superannuation Fund Pty Ltd ABN 68 056 044, 770 AFSL 240569, RSE L 0000314, REI Super ABN 76 641 658 449, RSE R1000412 MySuper unique identifier 76641658449129. October 2015 REIS 37887

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CEO Report Enzo Raimondo CEO REIV

Agents spring into action as auction numbers heat up

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he traditional spring selling season was off to a booming start with record high auction numbers in August and multiple super Saturday weekends throughout September and October, helping cement our reputation as Australia’s auction capital. Clearance rates remained solid across the city, signalling continued demand for homes across the state, despite more stock on market.

Price growth in the September quarter was widespread with the metropolitan Melbourne median house price topping $729,500 for the first time – a 4.5 per cent increase on June figures. The city’s middle and outer suburbs experienced the highest price growth, up 4.4 and 5.1 per cent respectively, as buyers increasingly look for larger homes in the more affordable parts of Melbourne.

More “bridesmaid” suburbs have benefitted from the ripple effect in the three months to September 30, with six new suburbs – Balaclava, Bentleigh East, Burwood East, Oakleigh, Blackburn South and Oakleigh East – all joining the million-dollar club for the first time. An additional six suburbs re-entered the list in the September quarter, bringing the total number of million-dollar suburbs in Melbourne to 87.

While it’s been a busy few months for agents, it has also been an eventful time for the REIV. This year’s annual conference was well attended by members and the calibre of keynote speakers was exceptional. One of the key insights was from futurist Chris Riddell, who stated that “data is the new oil”. For this reason it remains critically important for agents to report auction and sales results first and foremost to the REIV. These results are used not only to calculate clearance rates, but also the quarterly medians.

The quality of our data is one of the

Auction records: High auction numbers continued throughout the cooler months with a record number of auctions held in August.

most valuable member benefits the REIV provides and is a key point of difference to other data providers.

Accurate data and information allow agents to speak with authority in the market; however, it is reliant on input from all Victorian agents.

Safety of real estate agents also remains a priority for the REIV with

‘It remains critically important for agents to report auction and sales results first and foremost to the REIV’ a seminar on how to protect yourself in the workplace being developed for delivery to members in the coming months. Agents, especially property managers and sales agents, always need to be vigilant while carrying out open for inspections. The REIV recommends agents utilise the propertyVIEWlive app, which features a panic button.

Once pressed, an SMS of your location

is sent to your colleagues, effectively alerting your agency to a potential emergency.

Meanwhile, the REIV continues to work alongside the Andrews Labor Government and Consumer Affairs Victoria (CAV) on issues affecting the real estate industry.

In August, the Government announced a comprehensive review of four key pieces of property legislation: The Sale of Land Act 1962, Estate Agents Act 1980, Conveyancers Act 2006 and Owners Corporation Act 2006.

The review, while extensive, is good news for agents and signals a willingness by the Government to address outdated legislation, such as Section 55 of the Estate Agents Act 1980. These changes have been sought by the REIV and needed by member agents for some time.

The REIV has sought member feedback on the review and an initial submission has been made to CAV. Continued on page 8

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CEO Report

Continued from page 7

The REIV Board has also met with Consumer Affairs Minister Jane Garrett to discuss the submission with further options and consultation papers expected out later in the year. While our partnership with the Government remains strong, the REIV is also making strides at rebuilding our relationship with the Victorian Liberal Party.

Opposition Leader Matthew Guy addressed the southern division at

‘Advancing the professionalism of the industry, through training and continuous professional development, is a key function of the institute’ a lunch event, discussing the Opposition’s vision and policy platforms for Victoria. The event was well attended by the southern division

Best practice: A review of four consumer property Acts is currently underway.

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The Estate Agent ❘ November 2015

and broader membership and signalled a renewed focus on working together with the major political parties in the best interests of members.

Advancing the professionalism of the industry, through training and continuous professional development, is a key function of the institute and it was excellent to see two REIV members awarded the Diploma of Associate of the Real Estate Institute. Margaret Lorkin and Tony Roccisano are worthy recipients of the Diploma, which recognises their long-standing commitment to professional development and their ongoing involvement with the REIV. Congratulations also to Harry Li who triumphed at the Australasian Auctioneering Championships – the first Victorian to do so in 10 years.

Harry has been active, and successful, in both state and national auction competitions for many years. An advocate for CPD, Harry’s auctioneering abilities have improved significantly through his participation in REIV auction competitions.

Bulletin

RENTRIGHT SUCCESS

CONSUMER PROPERTY ACTS REVIEW The State Government has sought initial feedback from the REIV on its comprehensive review of four key pieces of property legislation. Announced in August, the wide-ranging review is being conducted by Consumer Affairs Victoria (CAV) and encompasses the Estate Agents Act 1980, Sale of Land Act 1962, Owners Corporations Act 2006 and Conveyancers Act 2006.

Jane Garrett, Minister for Consumer Affairs, says the review aims to modernise property legislation and reduce duplication and inconsistencies.

“This review is long overdue. Each of these Acts affects the way people buy and sell property, and that has changed significantly over the past 50 years,” she said. “Bringing these Acts together, under the banner of a single review, means the Government can comprehensively consider areas of tension between the Acts.”

The review focuses on three broad areas: the sale of land and real estate transactions in Victoria; the management, powers and functions of owners corporations; licensed professionals who

MEMBER SURVEY PRIZE GIVING Ray White Mitcham’s Mark Walsh has been announced as the winner of the REIV’s 2015 Membership Survey prize draw. Walsh was presented with the newly released Apple watch, valued at $579, by REIV President Geoff White

(pictured). Feedback from the annual Membership Survey is being used to assist the REIV in improving areas identified by members and planning for the delivery of future products and services.

Consumer Affairs Victoria’s RentRight app has been named the most accessible mainstream app by the Australian Communications Consumer Action Network. The free app offers information, tools and templates to help tenants, landlords and property managers understand their rights and responsibilities in the rental market. The app has been downloaded about 27,000 times and has significantly reduced the number of calls CAV receives from tenants and landlords. assist with the sale of land and real estate transactions; and professional owners corporation managers.

Following consultation with chapter committees, the REIV has provided an initial submission to CAV, highlighting the foremost areas for the review panel to consider. The submission particularly relates to the Estate Agents Act 1980, Sale of Land Act 1962 and the Owners Corporations Act 2006.

The REIV would like to see the Estate Agents Act 1980 amended to include electronic office management; Section 55 aligned with similar laws in other states; red tape removed from commission sharing and a tightening of the mutual recognition of qualifications.

Key considerations relating to the Sale of Land Act 1962 include deposits and the release of deposits; cooling-off periods; disruption of public auctions; and facilitating the conduct of online auctions of real estate.

The REIV has asked CAV to consider a range of amendments to the Owners’ Corporations Act 2006 including increasing the minimum amount of professional indemnity insurance for OC managers to $5 million; debt recovery to a user-pays system; restrictions on voting rights of unelected committee members who hold proxies; OC certificates to be official documents of the OC and prepared by the manager; limit to the length of contracts awarded; and more appropriate penalties for breaches of OC rules.

The REIV will continue to work on behalf of members throughout the review process and will deliver further submissions in the coming months as consultation papers are released.

The Estate Agent ❘ November 2015

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Bulletin

15 victorian auctioneers receive NEW ACCOLADE The REIV has launched a new accolade for auctioneers who have excelled in their field, particularly in state or national competitions. The Master Auctioneers title was developed by the REIV and its Auction Chapter to recognise some of the state’s best auctioneers and set a benchmark for best practice auctioneering.

The program was introduced at the Australasian Auctioneering Championship Award presentation in September with 15 Victorians awarded the title.

Master Auctioneer recipients are:

Steven Abbott (Jellis Craig), Peter Batrouney (Jellis Craig), Adrian Butera (Compton Green), Harry Li (McDonald Real Estate), John Matthews (Nelson Alexander), Scott Patterson (Kay & Burton), Barry Plant, Milo Rasinac (Nelson Alexander), Tom Roberts (Nelson Alexander), Matthew Young (Buxton), Peter Kakos (Marshall White), Jeremy Tyrell (Ray White), Emily McCarthy (on behalf of Mike McCarthy), Justin Long (Marshall White) and Peter Hawkins (Pat Rice & Hawkins).

New planning controls

Interim planning controls have been introduced to the Hoddle Grid and Southbank with discretionary height limits now mandatory for a 12-month period. The interim planning controls will enable a review of the existing built form controls in the Melbourne Planning Scheme and also provide transitional provisions for applications lodged before the amendment proposal. The interim controls make the City of Melbourne a recommending referral authority, formalising its role in providing comments on applications for developments exceeding 25,000 square metres gross floor area.

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The Estate Agent ❘ November 2015

REI SUPER celebrates 40 years

The real estate industry’s super fund, REI Super, has celebrated its 40th anniversary with three consecutive years of double-digit investment returns.

REI Super CEO Mal Smith attributed the fund’s success to its close association with the industry and collaboration with the REIs. “REI Super was one of the first industry funds, and we have grown in parallel with the real estate industry.

“We’ve responded to our members’ evolving needs and a challenging economic climate to deliver strong returns and a more secure retirement for our members,” he says.

The fund’s Trustee Super Balanced Option had a net investment return of 10.66 per cent in 2014-2015, outperforming the median super fund balanced option of 9.60 per cent.

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Awards

Star performers get top honours A mix of past winners and fresh faces were among those recognised at last month’s REIV Awards for Excellence at Crown Palladium

Highlight: Media personality Tommy Little was this year’s MC while agents from Gary Peer & Associates (right) were winners in multiple award categories.

T

he REIV Awards, held last month, again provided a dazzling night with the Victorian real estate industry celebrating the achievements of members over the past year.

Hosted by popular media personality Tommy Little, the annual REIV Awards for Excellence honoured the industry’s best performers, recognising agencies and professionals who are setting new standards in customer service and sales.

The gala function at Crown Palladium was attended by more than 1100 agents from Victoria, with 30 award categories across the various real estate disciplines.

“The REIV Awards acknowledge the exceptional work of our members, especially those who are growing the levels of professionalism in the industry and exceeding current best-practice standards,” REIV chief executive officer Enzo Raimondo says.

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The Estate Agent ❘ November 2015

Long-standing REIV member Ian Armstrong was awarded an honorary life membership, while Neil Laws from Kerleys Coastal Real Estate in Queenscliff was the recipient of this year’s president’s award.

‘The REIV Awards acknowledge the exceptional work of our members, especially those who are growing the levels of professionalism in the industry and exceeding current bestpractice standards’ Mr Raimondo emphasised the continued excellence of Jeremy Rosens from Gary Peer Real Estate St Kilda and Nelson Alexander, who took out their respective categories for the

second consecutive year. Rosens was named residential salesperson of the year (principals) for the second year running, while Nelson Alexander was awarded the large residential agency.

Mr Raimondo says the independently judged awards are the highlight of the industry’s event calendar and were this year attended by multiple dignitaries including Labor MP for Niddrie and Parliamentary Secretary for Justice Ben Carroll, Shadow Minister for Planning David Davis and REIA president Neville Sanders.

This year’s awards were made possible by the generous contributions of platinum sponsors Direct Connect, marketing sponsor New Litho, gold sponsor Smarthouse Fire Solutions; and bronze sponsors Macquarie Bank, Real Estate Career Developers, REI Super and realestateVIEW.com.au

Awards

Award Winners 2015 MARKETING AWARDS Rural Marketing Award Inglis Property: 451 Mt Eliza Rd, Kerrie Residential Marketing Award (budget under $10k) First National Real Estate Lindellas Property: 24 Watts St, Box Hill Residential Marketing Award (budget over $10k) Jellis Craig Doncaster Property: 145 Edward Rd, Chirnside Park Project Marketing Award CBRE Property: Maple, 121 Power St, Hawthorn C&I Gold Award for Overall Excellence CBRE Property: The Maltstore, 551 Swanston St, Carlton Best Website Award Hodges Real Estate Corporate Promotion Award (Single Office) Woodards Corporate Promotion Award (Multiple Offices) Hocking Stuart

realestateVIEW.com.au Sales Agency Award – Small Agency Woodards Carnegie realestateVIEW.com.au Sales Agency Award – Large Agency Methven Professionals Mooroolbark

INDIVIDUAL AWARDS Residential Property Manager of the Year (Principals) Zac Karvoun, Alex Karbon Real Estate Pty Ltd Residential Property Manager of the Year (Non-Principals) Natisha McLean, Woodards Residential Salesperson of the Year (Principals) Jeremy Rosens, Gary Peer & Associates (St Kilda) Pty Ltd Residential Salesperson of the Year (Non-Principals) Adam Joske, Gary Peer & Associates Pty Ltd and Leon Gouzenfiter, Gary Peer & Associates Pty Ltd Commercial Property Manager of the Year Charles Hunt, CHP Management Pty Ltd

Commercial Salesperson of the Year Brett Diston, Ray White Commercial Victoria – Nunawading and Steven Messina, Melbourne Acquisitions Buyer’s Agent of the Year Frank Valentic, Advantage Property Solutions Pty Ltd Business Broker of the Year Patrick Connolly, Colliers International Owners Corporation Manager of the Year Ronald Perera, Advantage Property Consulting Pty Ltd Achievement Award Judy Zhu, Gary Peer & Associates Pty Ltd Corporate Support Person of the Year Eliza Carr, Gary Peer & Associates Pty Ltd Outstanding Young Agent of the Year Award Todd Lucas, Fletchers Novice Auctioneer of the Year Kristian Lunardi, Nelson Alexander Pty Ltd

Senior Auctioneer of the Year Tom Roberts, Nelson Alexander Pty Ltd

AGENCY AWARDS Innovation Award Keyhole Property Investments Communications Award Gary Peer & Associates Pty Ltd Community Service Award Nelson Alexander Pty Ltd and Hocking Stuart Commercial Agency of the Year CBRE Small Residential Agency of the Year Bon Accorde Property Services and Methven Mt Evelyn Medium Residential Agency of the Year Advantage Property Consulting Pty Ltd and Nicholas Lynch Large Residential Agency of the Year Nelson Alexander Pty Ltd

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The Estate Agent ❘ November 2015

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Awards

REIV Honorary Life Membership Ian Armstrong Real estate is in Ian Armstrong’s blood.

His grandfather was a former president of the REIV and his father took over the business. After more than 40 years in the industry, Armstrong has been recognised for his significant contribution, awarded an REIV honorary life membership at this year’s Awards for Excellence.

However, real estate wasn’t always his first choice. “I was studying accountancy and spending spare time working around my father’s Mitcham agency,” Armstrong says.

But after qualifying as an accountant, he knew he belonged in real estate, joining the business on March 20, 1968 – from which point, he says, he has “never looked back”.

Armstrong was part of the group who established the Professionals brand in the early ’80s. “It was a very demanding time but it broke new ground,” he says.

Throughout his career, Armstrong has been an active REIV member, joining in 1974. He has served on many REIV

Top prize: REIV President Geoff White (left) presents Ian Armstrong with his honorary life membership.

boards, branches and divisions, as well as interest groups and chapter committees, including education, ethics,

‘He has demonstrated both professionalism and great dignity in his practice as an estate agent’ information technology and political.

An REIV board director from 198492 and 1994-2003, he served as REIV president from 1988-99.

A recipient of the REIV president’s award in 2005, Armstrong was a vital member of the REIV team that dealt

with the consequences of the proposed GST legislation and development of a training manual. This was ultimately recognised by then-treasurer Peter Costello, who provided a $1 million grant for the training package, rolled out nationally through the REIA. A Fellow of the Real Estate Institute of Australia, Armstrong has also served as a director of REI Superannuation for several years. He remains a trustee director of the super fund, citing this role and his work with the Eastern Emergency Relief Network as two of his “keen interests”.

A licensed REIV member, Armstrong remains active in the industry as sole working director of Whitehorse Real Estate, which he started after selling Drake & Co, which had three offices, in 2002.

Presenting the honour, REIV president Geoff White praised Armstrong’s achievements.

“Ian is a fitting recipient of the REIV’s highest honour,” White said. “He has demonstrated both professionalism and great dignity in his practice as an estate agent and is a most worthy candidate for life membership of the REIV. His longstanding involvement with the REIV over more than four decades has helped shape current best-practice standards.”

Outstanding Young Agent of the Year Todd Lucas

Young gun: Fletchers sales agent Todd Lucas was named Outstanding Young Agent of the Year.

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The Estate Agent ❘ November 2015

A keen interest in property and investment inspired Todd Lucas to enter the real estate industry.

Now, after only six years in the business, Lucas has been named outstanding young agent of the year at this year’s REIV Awards for Excellence.

“I was working with a civil engineering company and talked with lots of developers and property specialists,” he says. “It really sparked an interest and I knew it was what I wanted to do.”

A sales agent with Fletchers Real Estate, Lucas joined the company three years ago with his mentor and now-Fletchers director Traci Stellar.

Age is no barrier for Lucas, who is nearly 27. “Young agents often say to me

real estate is hard when you are young.

But I encourage them to use this to their advantage,” he says. “If you ask clients the right questions – and not tell them – you can help them in what they are trying to achieve.”

Lucas believes forming relationships is essential. He makes a concerted effort to be friendly and approachable.

He also has a “strong focus” on client feedback, recognising the importance for them to feel comfortable and receive up-to-date information.

He can’t imagine doing anything else.

“Real estate has allowed me to follow my passion, even if it has meant giving up football on a Saturday,” he says.

“I absolutely love my job and enjoy coming to work every day.”

Awards

The major fundraiser is the Annual Foundation Day, where each of the 14 offices donates the proceeds of an auction to their chosen local charity.

“There are also lots of individual activities but staff decide where the

‘Every one of our people is culturally aligned to our goals and values’

For the second successive year, Nelson Alexander collected both awards at the REIV’s annual Awards for Excellence. While justifiably proud, and also winning the corresponding categories in the national REIA awards, it is the agency’s charitable foundation Lunardi is keen to highlight.

Developed and run by staff, the initiative sees them get two days paid leave a year to take part in volunteer programs of their choice.

funds are distributed – they are all very needy and very worthy local causes,” Lunardi says, attributing the company’s achievements to his employees.

“It’s people … our staff,” he says.

“That’s where it starts and stops.

Every one of our people is culturally aligned to our goals and values. It is a community-based agency with family values.”

The past year has seen significant growth for Nelson Alexander, with 312 staff across 14 offices.

There are 12,000 properties under management, which will soon increase to 13,000 with a planned acquisition.

Sales volume over the past year is in excess of $2.6 billion. Lunardi believes Nelson Alexander is unlike many real estate businesses in Australia, giving it a “competitive edge” and ensuring it continues to deliver “exceptional levels of service and results”.

It is this edge that has seen the company win the large residential agency of the year award seven times.

A founding director of Alexkarbon Real Estate, Karvoun is the firm’s director of property management.

After starting with no properties on the agency’s rent roll three years ago, Karvoun has significantly grown the property management side of the business to a list of 700.

Although he officially started in the industry 23 years ago, he actually worked as a “cadet” for a local agent

for three years prior, helping out after school and on school holidays.

“I was six months into a commerce degree and hated it,” he says.

“I thought, ‘What on Earth am I doing?’. So I asked the agency if they would have me full-time. And they did.”

Despite technology changing work practices, Karvoun believes the one constant in real estate is customer focus.

“You have to look after your clients,” he says. “It’s only by staying in touch with landlords and tenants alike that a property manager can truly understand their wants and needs to continually re-establish the highest of standards.”

He says agency directors now realise the rent roll is important. “It’s not a poor cousin to sales anymore,” he says.

“Rental is about now and the future.”

Back-to-back: Nelson Alexander was awarded the Large Residential Agency of the Year title for the second year.

Large Residential Agency of the Year and Community Service Award Nelson Alexander While Nelson Alexander managing director Paul Lunardi and his staff are proud to be named the Large Residential Agency of the Year, it’s the community service award they value most.

“Staff and management cherish this one,” Lunardi says. “The Nelson Alexander Charitable Foundation has raised more than $1.6 million since its inception eight years ago, helping causes that often miss out on help from government and large organisations.”

Residential Property Manager of the Year (Principals) Zac Karvoun For Zac Karvoun, it’s a case of seventh time lucky. After being a finalist for the past six years, Karvoun has finally been named Residential Property Manager of the Year (Principal).

“I’m absolutely chuffed,” he says.

“But this award is thanks to a great team for their support.”

The Estate Agent ❘ November 2015

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Awards

President’s Award Neil Laws High-profile REIV member Neil Laws has been recognised for his longstanding service to the REIV. Recipient of the President’s Award at last month’s REIV Awards for Excellence, he has served the institute at the highest level and made a significant contribution to the professionalism of the industry.

An REIV member since 1987, Laws was an REIV board director from 200111 and was president from 2007-08.

He is a former board director for the REIA and member of the Estate Agents Council, he has served on various REIV committees and he was actively involved in both state and national auction competitions for many years.

Laws is also a former president and secretary of the Geelong Division of the REIV. An accredited auctioneer, he is a member and past chair of the REIV

Recognised: Neil Laws (left) was awarded the 2015 President’s Award for his contribution to the REIV.

Auction Chapter and was the steering committee chairman and chief judge for this year’s Australasian Auctioneering Championships in Melbourne.

He is a Fellow of the Real Estate Institute of Australia and also served as a director of realestateVIEW.com.au from 2002-15, most of which time he was chair of the board.

The Bellarine Peninsula-based agent

remains involved in the industry and is currently the branch manager of Kerleys Real Estate in Queenscliff.

REIV president Geoff White praised Laws for his efforts over almost three decades. “Neil has dedicated much of his professional life to the REIV and the real estate industry. He has been at the forefront of training for budding auctioneers,” White says.

Residential Salesperson of the Year (Non-Principals) Adam Joske and Leon Gouzenfiter, Gary Peer & Associates Gary Peer & Associates has every reason to celebrate, with two of its staff named Residential Salesperson of the Year (Non-Principals).

Adam Joske and Leon Gouzenfiter were presented with their trophies at last month’s REIV Awards for Excellence. And the fact they shared it made the honour “even sweeter”.

Winners: Leon Gouzenfiter (left) with Adam Joske.

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The Estate Agent ❘ November 2015

Joske has been a finalist five times in the past six years and Gouzenfiter was a finalist last year, but the win is a first for both. Joske joined Gary Peer & Associates 20 years ago, two years after entering the industry. He has watched the profession evolve and regularly shares his experience, recently returning from speaking in Texas.

“It is important to share the things I’ve learnt,” he says. “It is also important to bring on the younger agents in our company.”

Last year, Joske was one of 20 worldclass agents and presenters who spoke at the AREC Conference – the largest real estate conference in the southern hemisphere. For the past four years, Real Estate Business Magazine has chosen Joske as one of Australia’s top 100 agents, regularly ranking him in the top 10 in Victoria.

“I believe real estate is not just

based on sales volume, but what you contribute to society as a whole, “he says. “Technology has changed our industry and it is important to use social media to its advantage.”

Gouzenfiter joined Gary Peer six years ago. “I completed a banking and finance degree,” he says. “After I finished my tertiary education, I actually worked as a building site manager on a boutique development for 12 months. I loved it and it gave me a thirst for property.”

He says the industry is constantly becoming more transparent. “You must be able to keep pace with those changes to be successful,” he says.

Gouzenfiter is disciplined and continually strives to develop his skills through education. “In the fast-paced world that is real estate, I like to think I am adaptable and continue to improve at what I do,” he says.

Market Update

Growth area: Melbourne’s outer suburbs have contributed to a busy September quarter, recording a median house price of $550,500.

Melbourne sees price boom Property market breaks record as median rises, with six more suburbs joining million-dollar club

M

elbourne’s solid property market has broken more records, with the city’s median house price increasing to almost $730,000 in the September quarter. The $729,500 median is the highest-ever and rose from a revised $698,000 in June – a 4.5 per cent quarterly increase.

Price growth was boosted by high auction numbers and continuing low interest rates. The traditional spring selling season started early with multiple Super Saturday auction weekends recorded throughout August and September – the highest on record.

The city’s middle and outer suburbs were the main growth drivers in the September quarter; with the largest price increase recorded in Melbourne’s outer suburbs, up 5.1 per cent to $550,500. Suburbs in Melbourne’s middle ring continue to benefit from the ripple effect with the $861,000 median up 4.4 per cent on the June quarter.

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The Estate Agent ❘ November 2015

House prices in Melbourne’s desirable inner suburbs moderated in the three months to September 30, down 0.2 per cent on June figures to a median of $1,236,000. Despite the small decline, the median house price

The traditional spring selling season started early with multiple Super Saturday auction weekends in August and September in Melbourne’s inner suburbs has experienced significant annual growth over the year, up 17.5 per cent.

The highest quarterly price increases were dominated by bayside suburbs with Brighton, Dromana and Seaford topping the list. House prices in Brighton rose to a median of $2,222,500, up from $1,880,000 in the June quarter. Dromana and Seaford were close behind, also seeing

strong double-digit growth, with median house prices of $665,000 and $530,000 respectively.

Other suburbs that performed well in the September quarter were Ivanhoe, with a median house price of $1,330,000, Endeavour Hills, increasing to $535,000 and Northcote, up to $1,138,900 – all experiencing growth of at least 10 per cent.

Six Melbourne suburbs entered the million-dollar club for the first time in the September quarter, bringing the total number of million-dollar suburbs to 87. New entrants included Balaclava, Bentleigh East, Burwood East, Oakleigh, Blackburn South and Oakleigh East.

With the exception of Balaclava, all new entrants are located in Melbourne’s middle ring, suggesting buyers are increasingly seeking value further from the CBD. An additional six suburbs – Alphington, Clayton (revised), North Melbourne, Northcote, Plenty and

Market Update

Windsor – also returned to the milliondollar list in the three months to September 30.

With quarterly growth of more than 15 per cent and a median house price of just under $4 million, Toorak has remained Melbourne’s

With a median house price of just under $4 million, Toorak remains Melbourne’s most expensive suburb most expensive suburb. This was followed by the eastern suburbs of Canterbury and Balwyn with median house prices of $2,430,500 and $2,281,000 respectively. Melbourne’s inner suburbs dominated the most expensive suburbs list with Brighton ($2,222,500), Kew ($2,080,000), Hawthorn ($2,053,000), Camberwell ($1,883,000), Surrey Hills ($1,865,000), Balwyn North ($1,855,000) and Caulfield North ($1,841,000) rounding out the top 10.

Meanwhile, Melbourne’s outer-west and south-east were home to the city’s most affordable suburbs with house prices in Melton West falling 6.5 per cent to $310,000 – the city’s lowest median house price. Also on the list were Werribee ($320,000), Wyndham Vale ($330,000), Cranbourne West (361,500), Hoppers Crossing ($370,000), Pakenham ($370,000), Hampton Park ($370,000), Cranbourne ($372,500), Carrum

Downs ($372,500) and Roxburgh Park ($390,000).

Despite being the city’s most affordable; several of these suburbs recorded solid price growth in the September quarter, including Cranbourne, up 7.7 per cent, and Hoppers Crossing, up 6.4 per cent.

Apartment prices also increased in the September quarter with the metro Melbourne median rising 2.6 per cent to $532,000. Growth was widespread across the city with Melbourne’s outer suburbs recording the largest price increase, up 3.9 per cent to $415,500.

Apartment prices in inner Melbourne were up 2.4 per cent to $560,000

while apartments in the city’s middle ring suburbs grew 1.7 per cent to $586,500.

Apartments in Parkdale in Melbourne’s outer south-east recorded the highest quarterly growth with the $705,000 median up 19.7 per cent over June figures. This was followed

by Maribyrnong, up 19.2 per cent to $490,000, Camberwell, up 18.2 per cent to $811,750, and Newport, up 18.1 per cent to $700,000.

Albert Park and Toorak both had median apartment prices above $1 million in the September quarter, topping the list at $1,392,500 and $1,001,000 respectively.

Cheaper options: Melbourne’s outer-west and south-east had the most affordable houses.

Commuters push Regional Victoria Price growth House prices in regional Victoria increased 5.5 per cent in the 12 months to the end of September, with buyers seeking more affordable properties within commuting distance of the city.

State-wide price growth was also recorded for units and apartments, with the median rising 4 per cent over the year. In the three months to September 30, the regional market remained relatively stable, up 0.9 per cent over June figures to a median house price of $347,000. Units and apartments

saw similar price growth over the September quarter with the median price increasing 0.8 per cent to $260,000.

While growth levels varied across the state, the highest quarterly price increase was recorded in Kyneton, where the median house price rose 8.4 per cent to $466,000, up from $430,000 in June. Close behind were Swan Hill, up 8.1 per cent to $275,000; Moe, up 8 per cent to $155,500; and Hamilton, up 7.9 per cent to $279,000.

Horsham in the state’s north-

west recorded the highest annual growth, up 25.6 per cent over the year to a median of $226,000. This was followed by Daylesford, up 24.1 per cent to $440,000; Warrnambool, up 19.2 per cent to $357,500; and Wangaratta, up 18.3 per cent to $319,500.

Other regional centres performing well in the 12 months to September 30 include the Ballarat suburb of Canadian with 15.4 per cent growth; New Gisborne, up 14.4 per cent; Anglesea, increasing

13.6 per cent; Gisborne, up 13.2 per cent; and Ballarat North, up 13.1 per cent.

Barwon Heads on the Bellarine Peninsula was regional Victoria’s most expensive town with annual growth of 12.6 per cent and a median house price of $777,000 – higher than metro Melbourne’s median of $729,500. With a median house price of $628,750, the Geelong suburb of Newtown also outperformed many of its city counterparts as did Lake Wendouree in Ballarat with a median of $627,500.

The Estate Agent ❘ November 2015

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Conference

Tech drives future market Branding, media, reputation – just some of the elements explored by presenters at the 2015 REIV Connect Conference

Industry experts: John Shaw, Dolly Lenz and REIV chief executive Enzo Raimondo.

T

he 2015 REIV Connect Conference, held over two days in September, attracted a significant turnout of member agents. About 390 attendees took part and a further 200 people viewed the Australasian Auctioneering Championships, which were held concurrently. Conference attendees gained insights from seven exceptional keynote speakers including one of America’s most successful agents, Dolly Lenz.

The conference also featured presentations by Chris Riddell, John McGrath, Tom Potter, Tom Panos, Robin Daubeny and Rob Hartnett as well as a range of breakout session speakers.

Data is the new oil The Australian real estate industry has some exciting times ahead and a lot of it is underpinned by digital, futurist 20

The Estate Agent ❘ November 2015

Chris Riddell says. Presenting at the 2015 REIV Connect Conference, Riddell says agents and businesses need to embrace new technology platforms to engage with customers on a personal level.

“The customer needs to be front and centre of everything you do and at the heart of the experience. Personalisation and making it all about the individual, that’s the era we’re now in,” he says.

Advances in technology have created a “super fluid” marketplace, allowing information to flow faster than ever before. This exchange of information has given way to network acceleration, which in turn is driving innovation and changing the way we do business.

Riddell says the crowd is now being used as a source of intelligence and businesses need to be making decisions driven by data available to them from

external influences. “Data is the new oil and currency and the future is going to be around harnessing that data,” Riddell says.

Technology is behind a phenomenal amount of business change and it is now important to have a social business.

“Customers will go and get the technology they want and real-time information will transform the real estate industry for all of us. We’re doing the same things we’ve always done but we just need to be doing them in a different way.”

Simplicity – removing the number of steps to complete a task – is considered the new perfection and being social is key in attracting quality employees.

“It’s a war on talent out there and if you really want to win this war on talent you have to think differently.

Conference

“You have to look at how you’re making your business attractive.”

Riddell says businesses need to change the way they think about digital, as it is about more than technology.

“Digital is a culture and a thread that must run through every single part of your business to create incredible experiences for your customers.

“Times have never ever been as exciting as they are today and we’re only halfway in this journey of digital and what it can do for our business.”

Success is a decision With 68 real estate offices, John McGrath is undoubtedly one of Australia’s most successful agents.

While he believes the threat of disintermediation is real, McGrath told the REIV Connect Conference there are still opportunities for agents to significantly grow their business.

“I think if we harness and work with our technology partners and we add value, then real estate has a very healthy future – at least for the foreseeable future,” McGrath says.

More than technology: John McGrath, left, and Chris Riddell.

To be competitive and stay ahead of the pack, McGrath says agents need to be knowledgeable about new technology, industry trends and be informed of what consumers really want.

“They want transparency and information in real time and straighttalk. In real estate we’ve had this embedded, old-fashioned dinosaur-type of mentality of not telling people stuff or by telling them in riddles.”

Agents also need to openly and honestly address pricing, with McGrath believing the most effective way to do so is by using three comparable sales.

While agents are often anxious they’ll lose the listing by telling the truth, McGrath says as long as the valuation is in context and explained using the three best comparable sales, both vendors and buyers will appreciate being given the information up-front.

Continued on page 22

Available on the

App Store

The Estate Agent ❘ November 2015

21

Conference

Results-focused: Real estate trainer Tom Panos.

Continued from page 21

“It’s in the vendor’s best interest that people know the facts so they can make an intelligent decision and create a competitive tension.”

McGrath runs his business on a simple formula and believes the key to success is a great attitude, great energy and great knowledge.

McGrath says principals can increase their productivity by setting in place processes to consistently get things right including coaching, training and development. He also advocates adopting the 25:50:25 model.

“We have a view that 25 per cent of the success of the listing comes before the listing. The listing started 12 months ago because they’ve been watching you for 12 months. People are checking you out and they normally start thinking at least six to 12 months out – so whoever is going to sell in 12 months is looking at you today,” he says.

According to McGrath, the listing presentation accounts for 50 per cent of an agent’s success and agents should be looking to constantly reinvent and challenge themselves. He recommends asking questions, especially regarding the vendor’s previous experience selling and buying, as well as making a concerted effort to include everyone 22

The Estate Agent ❘ November 2015

present in the discussion.

McGrath says agents are in a position to create their own brand and their name and the service attached to that

‘You have to have a great network and it’s all about the people you know and the conversations you have with past clients and past buyers’ – John McGrath name is their most important logo.

“You have to be an attraction agent otherwise you will not get the volume or the momentum. You have to have a great network and it’s all about the people you know and the conversations you have with past clients and past buyers.”

To be successful, McGrath says it just a matter of doing what it takes and it starts with being organised.

“Anything’s possible as success is a decision. It’s far easier to sell 10 properties a month than two as it results in more boards, more sold signs and generates more interest.”

Add value and stand out Considered one of New York’s most successful agents, Dolly Lenz has come

a long way from her days in a small, family-owned agency more than 30 years ago. A former accountant, Lenz’s extensive list of accomplishments includes handling the sales and marketing for some of the biggest US developments including the Ritz Carlton residences, Manhattan House and Apthorp condominiums.

Lenz, who heads her own sales and marketing firm, says many of these projects failed during the property downturn due to poor sales teams and poor supervision.

“We took over these businesses and sold them out in a relatively short period of time, and we did so by maximising each person walking through the door and thinking outside of the box,” Lenz told REIV Connect Conference attendees.

An agent for ultra-high net worth individuals and celebrities such as Robert De Niro, Mariah Carey and Rupert Murdoch, Lenz says credibility and honesty is everything.

“Your reputation is very hard-won and very easily lost on one deal worth one word that you shouldn’t have said.

We are in the personal service business and we’re entrusted with information.

We have to be very careful with the trust that has been placed on us.”

Unlike other professions, consumers do not differentiate between real estate agents and particularly in the US where commission is 5.83 per cent, Lenz says it is up to agents to sell themselves.

“Real estate brokers are on the same commission rate regardless of their experience level so it is our job to constantly differentiate, to add value and stand out from our competitors.”

Agents in America often co-broke with other agents in the marketplace and then share the commission. Lenz says about 95 per cent of her firm’s sales are made by co-brokers with all advertising paid for by the agency, rather than the vendors.

Despite real estate portals being a relatively new trend in America, Lenz says technology is changing the real estate industry and consumers are more informed than ever.

Lenz has embraced social media and is having success with both Instagram

Conference

and Twitter but says it’s also important to be informed of price per square metre, to work in real time and be responsive to clients.

“Technology is changing the way we do things; however, it’s mostly on the lower end where technology is replacing humans. In the ultra-high net worth space, I see it as difficult to replace brokers because we have such a close relationship with the owners.”

For Lenz, the ability to build and maintain relationships has been central to her success and she has developed relationships with divorce lawyers, bankers and celebrity managers.

Lenz advises agents to adopt a long-term view and focus on the client rather than the transaction.

“We look at ourselves and think I may lose this deal, I may lose this transaction but if I keep the client that is the cheapest thing that can happen. Keep the clients you have and keep them happy, that’s the cheapest way to do business; they will give you their friends … and everyone else.”

SOTH8597_REIV_AD_180x130.indd 1

Be an attraction agent “In a world of disruption, in a world of chaos, consumers are dying for an amazing experience,” leading real estate trainer Tom Panos says.

Panos told REIV Connect Conference attendees agents can build an attraction business by differentiating themselves, creating happy customers and being good storytellers.

‘Keep the clients you have and keep them happy, that’s the cheapest way to do business’

– Dolly Lenz

“It’s not who you know, it’s who knows you,” he says.

Agents also needed to be able to effectively sell marketing in a world that wants things cheaply.

Panos recommends agents use stories and case studies to sell marketing concepts and processes to vendors.

Marketing, he says, should be seen as an investment in the profits, rather than

a cost, and vendors need to understand that their home is on the market in competition, not isolation.

“People don’t buy advertising; they buy a dream buyer for their home. Sell the benefit, not the feature.”

Panos says the best listing presentations are structured, not scripted, and are question-based rather than statement-based. He suggests sending references from previous clients to potential vendors.

“If you send references then most of the decisions are being made before the listing presentation. What that says to people is, ‘Don’t take our word for it, listen to the marketplace’, and that shows power and vulnerability.”

He also advocates using the flexi-fee system whereby agents only get paid the higher commission if the vendor is happy with the agent’s performance.

“No two agents are the same and in fact, the cheapest agent and the best agent are generally not the same person.

Agents need to show value to people – they pay you a commission but it’s value that they get.”

The Estate Agent ❘ November 2015

15/10/15 12:49 PM

23

Agents

Talented Li takes top gong Auctioneer of the Year says success is about playing the part and relating to buyers

P

ersistence has paid off for Springvale auctioneer Harry Li, who was awarded the prestigious title of Australasia’s Auctioneer of the Year in September – the first Victorian to win the competition in 10 years.

An agent with McDonald Real Estate, Li says he is proud to end the recent dominance by New Zealand auctioneers, who have taken out the annual championship for four consecutive years. A finalist in 2013 and 2014, Li says he’s delighted to have been recognised for his commitment to continuous improvement.

“Given I’ve competed four times, the judges probably got sick of me,” he laughs. “I think the number one trait you need to have to be able to compete here – and as an auctioneer in general – is confidence.

“The first year I competed I was really nervous. The next time I made the final five and that really helped me develop some belief in myself that I could match it with the other great auctioneers.

“I was certainly able to learn from past mistakes and handle the various scenarios better because I was a bit more composed.”

Having worked in real estate for 11 years, Li believes an auctioneer needs to “perform”.

“You definitely have to work yourself up for it but you also need to relax and be part of the moment. I try to create an atmosphere where people don’t feel too tense or nervous.

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The Estate Agent ❘ November 2015

And the winner is: Harry Li impressed in Australasia’s Auctioneer of the Year competition and took home the prestigious award, the first Victorian to win in 10 years.

“I often try to be a bit light-hearted and that can go down well, but I never forget I’m there to do a job for the owners, so it’s important to be professional and in control. Essentially, you need confidence, composure and to be able to relate to the buyers.”

‘I try to create an atmosphere where people don’t feel too tense or nervous’ – Harry Li Li says his family encouraged him to enter the real estate industry and it has been his first, and only, job. Over the past decade, Li says the industry has experienced a lot of change.

“I think we’ve drawn away from that ‘salesman’ stigma to be more like advisers now. Technology has changed the way we deal with people and the approach now is quite different but I do believe the industry is much more professional.”

“Even though winning the Australasian title was a great achievement, I don’t want to rest on my laurels. I just want to continue developing my skills and learning, and real estate is really

the perfect industry for that, because it’s always changing and challenging.”

In the lead-up to the competition Li says he would train about four to five hours a week.

“I think this win reflects a gradual improvement over time and the ability to raise the standard,” he says.

“Probably one of my biggest influences and someone who’s taught me the most is New Zealand’s Mark Sumich, who has won the title three times. I trained with him for the first three years and he’s always calling me to keep me on my toes. Another great help has been my training partner Michael Choi from the iSell Group.”

Li was lauded by the judges for constantly creating new trends and setting benchmarks within his local market while raising the awareness and standards of auctions in his area. The championships, first held in 1993, put the auctioneers through their paces, dealing with a wide range of scenarios to test their aptitude, attention and ability to think on their feet.

Having broken the recent New Zealand stranglehold on the title, Li will be looking to defend his title next year.

Agents

Setting a clear infrastructure plan is key to state’s growth Opposition Leader focused on future and keeping government on path to prosperity

V

ictoria hasn’t had a clear visionary plan around investment, infrastructure and how we define ourselves since 1999, says State Opposition Leader, the Hon. Matthew Guy. Over the next three-and-a-half-years, Mr Guy says the Victorian Liberal Party will present a strong, decisive and positive Opposition that will support new infrastructure and economic development.

“My focus as Opposition Leader will not be to just oppose the Government.

People want alternative ideas from the Opposition and we’ll have our frontbenchers out talking and listening to people,” he says.

Speaking at an REIV Southern Division lunch in August, Mr Guy says the Opposition hopes to have a productive working relationship with the REIV, as he did during his stint as Planning Minister.

In his address, Mr Guy discussed the biggest challenges facing Victoria in the next four years including population growth, the rise of NSW, essential infrastructure and regional development.

“The Government will need to have a clear forward agenda on how we will combat these issues or our state will go backwards,” he says.

Victoria’s growing population is one of the biggest challenges, according to Mr Guy, especially as significant infrastructure is needed in terms of schools, medical facilities and transport networks.

“Population growth is central to everything that is happening in this

Future focused: Left to right, REIV chief executive Enzo Raimondo, Opposition Leader Matthew Guy and REIV President Geoff White.

state and haphazard approaches are not going to work,” he says.

He says a lack of available housing has made affordability an issue and the Government will need to review zoning in metropolitan Melbourne.

‘Population growth is central to everything that is happening in this state’ – Matthew Guy “You can’t constrict supply at a time of great growth and expect housing to remain affordable,” he says.

The strength of NSW also presents a challenge, as Victoria’s years of power have come at times of decline in NSW. Infrastructure will be central to overcoming this challenge, with new rail and road projects required across the state. He says the decision to remove the transport plan for Fishermans Bend is concerning, particularly as it will be home to 50,000 people.

Mr Guy believes a second container

port is also required to build economic competitiveness with Hastings the most feasible location.

“It’s not just about a port. The Port of Melbourne is our largest employer and to just hand it over to Sydney is simply irresponsible.

“The Government in this state can’t drift, now more than ever they will have to present a clear plan in relation to infrastructure.”

He points to the Government’s backtracking over the East West Link, which he says had a significant impact on economic confidence.

Mr Guy says the new Grand Final public holiday comes at yet another cost to the state.

Regional Victoria also has opportunities for economic growth and progress with regional development plans important for how we grow as a state.

“The Government in Victoria sees regional Victoria through the prism of Geelong, Ballarat and Bendigo but we need to be looking at regional areas in a coordinated way.”

The Estate Agent ❘ November 2015

25

Profile

Perfect partnership: Richard Jellis, left, and Alastair Craig went into business together in 1990, launching what would become Jellis Craig.

Richard Jellis leverages the written word to build a legacy Legendary agent’s love of words opened an enduring and rewarding chapter in his life with more of the story still to be told

W

hen legendary Melbourne agent Richard Jellis is asked about his passions, he has to stop and ponder. Obviously, with 40 years under his belt as a leading agent and auctioneer, selling real estate remains high on the list.

There’s also his beloved 1968 E-Type Jag and spending time with his six grandchildren who, he says, are now getting to the age where they can holiday and do things together. But looking a bit deeper, it seems Jellis’ enduring passion is the written word.

Starting his career in August 1975 with Woodards, Jellis was nervous about making a jump into a commission-only career. “I did have a 26

The Estate Agent ❘ November 2015

real estate licence but I was working for a small-time subdivider selling parcels of land. I was 22, married and already had a child; I was scared of working on commission.”

But it was the young Jellis’ skills with the pen that stood him in good stead. “I could write, so Woodards allowed me to work part-time in sales and the rest of the time writing their advertising copy.”

Jellis’ love affair with the written word has continued throughout his career, culminating earlier this year with the publication of his memoir, a glossy coffee table book, Through my Eyes. That ability to connect with people through a finely tuned phrase

gave the young salesman a boost and his success was assured, growing with Woodards at the same time it emerged as one of Melbourne’s leading agencies.

“When I started, we had the power of written expression, which I love.

We lived in a black and white world.

The internet hadn’t been invented and no imagery was used in marketing properties. We used print media advertising which was much more modest in those days, but the success of that relied on words. Using the right ones was so powerful.”

That needed to be coupled with the right personal relationships, but Jellis has seen a vast number of changes there as well. “The biggest shift I’ve seen has been the swing away from agents providing a service to buyers to the service to sellers,” Jellis recalls.

“The bosses brought in the listings.

As a sales agent it was fantastic; the boss would drop a file on your desk.

Profile

They knew we might be able to sell it to ‘Mrs Jones’ who we’d been looking after for a month. That was the way we operated.

“Now it’s the total reverse. Buyers get virtually no service at all, apart from buyer advocates. They’ve emerged because buyers were being underserviced by agents who now spend all their energies servicing prospective vendors. You meet someone at an open for inspection, find out they’ve got a house to sell, bang! That tended not to be part of the dialogue in years gone by – it was just a real bonus.”

A lover of classic cars, the young Jellis had a Triumph saloon in his early career that his boss persuaded him to sell. “A sales person would spend their days in the 70s and 80s servicing buyers – they’d come into the office and you’d take them out in your car to view properties. My Triumph had some problems – poor air-conditioning and also quite unreliable in starting.

But you’d spend a lot of time with the buyers. It was very gratifying; if you were good at it and energetic and thoughtful, people would appreciate you.”

Jellis says the deregulation of the industry in 1995 brought some significant changes. “Before then, it was a fixed commission scale. It was illegal to charge more and unethical to charge less. Agents also paid sometimes for advertising, while the vendor is now expected to “invest” in the marketing. It should be remembered that vendors in those days were paying around 2.5 per cent commission, whereas now it’s 1.5 per cent, maybe 2 per cent, with another 1 per cent (plus) in marketing.

“We’ve also seen the death of oneon-one type service. Now, when you appoint an agent you employ a team. I might lead the team but I bring a range of people from my office to work on selling the property with a blend of experience and enthusiasm.

“For the same level of investment, as a vendor I’ve got the resourcefulness and energy of a team of three to four people.”

Jellis left Woodards in his mid-30s when, by his own admission, he felt “restless”.

“When the recession came in 1990, I didn’t like working in real estate. I’m the sort of person who’s better working

with people that have a smile on their face rather than a frown. I found it very difficult representing owners who were unhappy because they weren’t getting the price they wanted and purchasers who were very reluctant. I had career

‘We’ve also seen the death of one-on-one type service’

– Richard Jellis

burnout; I went into the car industry but that only lasted a year. I did sales training and was taught certain scripts; I’ve hated scripts and dialogues ever since. Sincerity and one’s own personality are much more important.

“I went back to Woodards as listing manager and that wasn’t terribly fulfilling, to be honest. I didn’t know it at the time, but I was vulnerable to an approach. I don’t know if Alastair (Craig) knew that but he

approached me.” There was an opportunity to buy the Hawthorn office of Bongiorno’s, a company returning to its financial services roots. “They offered Alastair the office but he wasn’t licensed and not an auctioneer, and he knew I was.”

Jellis Craig started out life as Richard Jellis and Company. “In those days you couldn’t put your name on a business unless you were licensed. We started with a staff of four sales people and a small rent roll.”

The partnership thrived but for reasons of economy and togetherness, insisted on maintaining one “super office” for many years. “We attracted people from a lot of the old firms. We were ‘what’s happening’ – everyone else was yesterday’s news. No one else opened in the 90s, we were the only agency in Hawthorn and Camberwell to open in that period.

Continued on page 28

Down time: Top, Richard Jellis with his grandchildren; and above, he breeds and races thoroughbred horses.

The Estate Agent ❘ November 2015

27

Profile

Continued from page 27

“We were opposed to the idea of branch offices, the splitting up of human resources and extra admin and costs. We did that right through until 1999 and then hockingstuart rode into town with their franchise proposition and that took a few good people away from us. We probably failed to recognise that we had 35-year-olds on our team who weren’t fulfilled under the partnership model Alastair and I had. That taught me a lesson and so, to compete, we started to offer our better people the opportunity to run their own business and began opening new offices.”

Today, Jellis Craig has a corporate headquarters in South Yarra and 15 offices, dominated by the leafy eastern suburbs, but also in Brunswick, Sorrento, Armadale and the Macedon Ranges, near where Jellis now spends much of his time, breeding and racing thoroughbred horses. He’s also back to being fit and well after treatment in 2007 for lymphoma.

When asked what piece of advice

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The Estate Agent ❘ November 2015

Legendary agent: Richard Jellis.

he would give to an agent starting out today, Jellis says it’s important to live in the present.

“I was never a planner. I never worried about what would happen in six months time or much about the past. I tried to be present; my personality is that I see opportunity and take opportunity. It can be nice to plan, to be strategic, but I don’t think I ever really was.

“And I would also tell any agent that it’s important to stay true to your word. That, combined with a degree of competence, good energy, good branding and good people around you, helps you develop a sound reputation.

All those things being equal, you should have some success and once you’ve started, it can be built on by way of referral.

“I remember the early days when our firm was competing against the powerhouse agencies like Woodards or Collins Simms. We didn’t get every kick on the football field but we were gratified by the fact we wouldn’t be out there playing if people didn’t recommend us. We had no website and no history, so we were very reliant on referral and recommendation.

“Jellis Craig celebrates its 25th year of business in 2016 and is now a partnership of 10 (soon to be 12) people. It’s a very different size business today to its origins back in December 1991, but still very much a service enterprise with our emphasis always on results, research, advice and vitality.”

Best Practice

Clear contracts a win for all Work agreements reduce risk and improve both your business and staff

By REIV Information Officer Jim Lourandos

Ask the experts: Realestatehr advisers have an unrivalled breadth of experience within the industry.

unning an agency amounts to long hours at the office and principals will often employ an Agent’s Representative to assist with clients, source new business and conduct open for inspections and auctions.

Risks can arise, particularly for employers, in relation to the Fair Work Ombudsman and the Australian Taxation Office regarding underpayments and other unpaid entitlements, resulting from poor employment arrangements.

Often issues arise in relation to: ❚ Confusion regarding ‘independent contractor’ arrangements; ❚ Non-compliance with the Real Estate

Industry Award 2010 and the Clerks Private Sector Award 2010, including payment of vehicle allowance, mobile allowance, annual leave loading etc; ❚ No written employment contract or commission structures in place; and ❚ Principals not properly supervising staff in accordance with their statutory obligations under the Estate Agents Act 1980 section 29B. Properly constructed employment agreements may mitigate disputes between employer and employees, as well as clearly identify the terms and conditions of employment. Agreements should address key issues such as: ❚ Term of the employment agreement;

R

R emuneration/commission/travel allowance and other entitlements; ❚ D uties and responsibilities to be performed and the employee’s classification under the Award; ❚ H ours of employment/holiday/ sick leave; ❚ I ntellectual property; ❚ R estraint of trade; ❚ T ermination (including commission entitlements on termination); ❚ C onfidentiality.

It is recommended employers seek advice regarding employment contracts through the REIV and SIAG’s joint venture, realestatehr. Realestatehr is a human resources, industrial relations and employment law subscription service exclusively for REIV members.

Realestatehr advisers have an unrivalled level of expertise and breadth of experience within the industry.

They are able to offer comprehensive advice on employment matters including contracts, pay rates, awards, terminations and redundancy. ❚

For more information on how to subscribe, please call 03 9644 1400

Learn the rules to help clients

Seminar clears the air on grants, stamp duty, taxes and exemptions

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he REIV, in conjunction with the State Revenue Office (SRO), has held a seminar for members on the various property taxes applicable in Victoria. Designed to help agents be a better resource for their clients, the seminar covered the First Home Owners Grant (FHOG), stamp duty, foreign purchaser additional duty, land tax, absentee owner duty as well as tax exemptions and concessions.

The $10,000 First Home Owners Grant is available to buyers who haven’t owned residential property before 1 July 2000 and only applies on the purchase of a new home.

The grant is capped for homes with a market value of $750,000 and applicants, as well as their spouses, must satisfy all eligibility requirements.

Among others, the FHOG eligibility criteria requires applicants to occupy the home as their principal place of residence for at least 12 months, starting within 12 months of the

Agents should remind FHOG applicants that the SRO carries out regular audits of applicants completed transaction. Scott Leggo, SRO’s Principal Customer Education Consultant, says agents should remind FHOG applicants that the SRO carries out regular audits of applicants and has prosecuted for non-compliance.

Stamp duty exemptions and concessions were also detailed in the seminar, including a 50 per cent

first reduction for first home buyers; principal place of residence concession; off-the-plan concession; pensioner exemption or concession; first home owner with family concession or exemption; and young farmer exemption or concession.

Leggo says the additional 3 per cent foreign purchaser duty relates to residential property only.

Of the 2.8 million properties in Victoria, only 622,000 are subject to land tax. The tax is assessed on a calendar basis and applies to rental and investment properties, holiday homes, vacant land and commercial properties.

An absentee owner surcharge – an additional 0.5 per cent – will come into effect on 1 January 2016 and will be detailed on the SRO’s website.

The Estate Agent ❘ November 2015

29

Training

Certificate IV qualifications

Your chance to become a licensed agent in the next 12 months *Intensive: previous real estate experience highly recommended.

Agent’s Representatives See page 31 for start dates

Property sales

Units

Start dates

❚ I dentify legal and ethical

❚ W ork in the real estate industry

requirements of property management to complete agency work

❚ I dentify legal and ethical

requirements of property sales to complete agency work

Intensive

Evening

Daytime

February 1

March 8 August 30

March 18 May 18

September 28 November 15

Units ❚ L ist property for sale ❚ Market property for sale ❚ Act as a buyer’s agent

Agency and Risk

June 28 August 12

❚ S ell and finalise the sale of property by private treaty

Start dates Intensive

Evening

Daytime

January 11

January 19 July 12

January 29 March 30

May 10 June 24

August 10 September 20

Units ❚ M anage conflict and disputes in the property industry ❚ Establish and build client-agency relationships

❚ M inimise agency and consumer risk ❚ Interpret legislation to complete agency work

Property Management Start dates

Start dates Intensive

Evening

Daytime

Feburary 8

April 19 September 27

December 15 April 22

June 15 July 26

September 9 October 26

Units ❚ A ppraise property ❚ Prepare and present property reports

❚ C onduct auction ❚ P repare for auction and complete sale

Agency Management

Intensive

Evening

Daytime

January 18

February 9 August 2

February 19 April 20

May 31 July 15

August 31 October 11

Units ❚ List property for lease ❚ Lease property

❚ Market property for lease ❚ Present at tribunals

❚ M onitor and manage lease or

❚ I mplement maintenance plan for

tenancy agreement

Appraisal and Auction

managed properties

Start dates Intensive

Evening

Daytime

February 15

May 17 October 25

February 23 May 20

July 13 August 23

October 7 November 23

Units ❚ M anage small business finances ❚ Maintain business records

❚ E stablish and manage agency trust accounts

Build your knowledge base and earn CPD points decemBer

january

Property Sales 1st–4th

9am–5pm

Owners Corporation Job ready residential property sales

Property Management 3rd

9am–12pm

16th

9am–5pm

Intermediate residential property management

7th

9am–5pm

How to list commercial property for lease

11th

9am–5pm

Commercial property sales documentation and formalities

14th

9am–5pm

Applying the commercial lease process

Commercial

Owners Corporation

30

19th

Property Management 20th

9am–5pm

9am–5pm

Advanced owners corporation

Commercial How to prepare a compensation and bond application

8th

15th

Intermediate owners corporation

The Estate Agent ❘ November 2015

9am–5pm

Commercial property management fundamentals

9am–12.30pm Residential property management refresher

For more training and events information, visit reiv.com.au

Training

Knowledge is power Covering the full spectrum of industry education and providing flexible learning options, the REIV is helping give students a leg-up

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n an upward trajectory for the past year, Victoria’s buoyant property market is encouraging more people to enter the real estate industry. As the leading trainer of real estate professionals in Victoria, the REIV provides the full spectrum of industry education from Agent’s Representative, Licence and specialised continuous professional development programs.

REIV qualifications are designed and presented by practising real estate professionals, providing a best practice foundation for students. REIV students also benefit from a complimentary annual membership with the REIV; which offers a range of advantages including access to median house price data, market research, industry news and events.

The REIV’s entry-level Agent’s Representative program is highly sought after by those looking to work within the industry and is recommended by previous students.

The course provides a solid basis for a real estate career and comprises three units of study – Work in the Real Estate Industry; Identify Legal & Ethical Requirements of Property Management to complete agency work; and Identify Legal & Ethical Requirements of Property Sales to complete agency work.

The REIV provides flexible learning options, with the Agent’s Representative course available full-time, part-time evenings or via distance education. The full-time, five-day course is held almost every week at the REIV’s Camberwell facilities and is offered throughout the year at regional centres. Regional dates for 2016 are provided on the right.

The Agent’s Representative program can also be undertaken as a part-time, evening course in Camberwell for five weeks or via distance education over two months.

Student testimonials for REIV’s Agent’s Representative course often praise the quality of the training and

2016 Regional start dates for Agent’s Representative units January

February

March

April

11th Geelong

15th Ballarat

7th Frankston

4th Bendigo

18th Frankston

29th Geelong

May

June

July

August

9th Frankston

6th Geelong

4th Bendigo

8th Frankston

30th Traralgon

20th Frankston

25th Geelong

15th Ballarat

18th Geelong

27th Shepparton

September

October

November

December

12th Geelong

3rd Frankston

7th Bendigo

5th Frankston

26th Wangaratta

17th Bairnsdale

14th Frankston

12th Geelong

24th Geelong

21st Geelong

the professionalism of the instructors.

“Your method of teaching by way of including personal anecdotes made listening, learning and understanding that much easier and enjoyable,” a former student says.

For working Agent’s Representatives, the REIV also offers the Certificate IV

‘Your method of teaching by way of including personal anecdotes made listening, learning and understanding that much easier and enjoyable’ – A former student in Property Services (Real Estate). This qualification contains the 21 units required by Consumer Affairs Victoria (CAV) to be a Licensed Agent and is frequently referred to as the licence course. This qualification is offered face-to-face, with a maximum of 12 months to complete, or via distance

education, which can be completed in up to 24 months.

Starting in January, the REIV is also running the Certificate IV in Property Services in a six-week summer intensive course. As a registered training organisation (RTO), students who undertake the Certificate IV in Property Services with the REIV may be eligible for Victorian Government Funding.

Continuing professional development is a requirement of your membership with the REIV and is essential to maintaining and advancing your career in real estate.

The REIV CPD program recognises both formal and informal learning opportunities and members can choose from activities such as conferences, structured training, seminars, committees and events. REIV members are required to accrue 48 CPD points over three calendar years. A new CPD calendar will launch next year.

The Estate Agent ❘ November 2015

31

Training

Tardiness tops list of tribunal mistakes If you’re on top of the details a visit to VCAT need not be complicated or stressful

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awyer and former VCAT member Bill Holloway says property managers make five common mistakes at VCAT and being late is at the top of the list.

“Fifteen to 20 per cent of property managers are late or go to the wrong venue,” he says. “The VCAT system is worked on postcodes, however, the postcode edges can change depending on an influx of hearings so it’s crucial to check the location on the original hearing notice.”

Speaking at an REIV training seminar – Top 5 Mistakes By Property Managers – Holloway says property managers should allow plenty of time to arrive at the venue, find a park and get through security.

As hearings run very quickly through VCAT, Holloway says a lack of preparation is another frequent mistake made by property managers.

The tribunal is often over-listed so prepared property managers who have the necessary forms and know what outcome they’re seeking will be more readily accepted by members.

“It’s ridiculous to not know the file,” Holloway says.

“You’re appearing on behalf of the landlord and it’s your job to know everything about it. If you don’t know the file, it’s a great reason to negotiate.”

In addition to knowing the case, having the right summary of proofs is also crucial to being successful at VCAT. While the vast majority of cases before VCAT are for possession, the tribunal also has a summary of proofs for landlord’s bond or compensation claim.

‘You’re appearing on behalf of the landlord and it’s your job to know everything about it. If you don’t know the file, it’s a great reason – Bill Holloway to negotiate’ “Too many property managers don’t know how to fill out a summary of proofs correctly or complete the wrong summary of proofs,” he says.

“Property managers are far better off using the VCAT form rather than one they’ve created as all members know the form and understand what they are dealing with.”

Property managers who are unsure if they’ve completed the correct application form should check at the court before the hearing.

Holloway says the rules surrounding compensation have also changed and the tribunal now requires property managers to produce invoices for

This seminar was part of an exclusive training series with lawyer and former VCAT member Bill Holloway Other courses on offer are: ❚ How to prepare compensation and bond application ❚ Using a breach notice and obtaining possession ❚ Managing the difficult landlord and tenant ❚ How to defend a repairs application; injunctions and pets For further information, visit REIV.com.au 32

The Estate Agent ❘ November 2015

work carried out, rather than quotes for work to be completed. He says it’s important for property managers to have instructions from their landlords and negotiate with tenants and, where possible, resolve the matter before the hearing.

“Lists at VCAT are huge so if you can get a settlement you can get out of the place quickly,” Holloway says.

“There is very little law involved in negotiating – what is involved is talking about the facts.”

Negotiating also helps with credibility as members recognise that property managers are trying to do their best for their client by settling the issue.

Not taking photographs on ingoing tenancies is another error often made by property managers.

“Property managers have got to embrace all the advances of digital technology and I can see no reason why you can’t take photos at the start of a tenancy,” he says.

Holloway says many of the larger agencies are now employing professionals to shoot short videos of rental properties before the beginning of a tenancy. These agencies have an almost 100 per cent success rate at the end of tenancy with many of the disputes negotiated before the case gets to VCAT. Video footage can also be used to reinforce still photographs.

“The tribunal has always taken the view that if you can’t see the marks in the photographs, you can’t claim,” Holloway says.

Where possible, Holloway advises property managers to go into the hearing room beforehand to judge the mood.

“You may not know the member and by going into the room, it will relax you and give you an idea of the way judgements are being made,” he says.

This seminar formed part of a broader training series on VCAT hearings with additional dates being added for 2016.

Member News

Dedicated pair earn diploma Tony Roccisano and Margaret Lorkin have been recognised for their long-standing association with the industry

T

ony Roccisano is on a high; he’s recently closed a record deal for a horticultural facility in Mildura.

But he’s equally delighted to have been recognised for his commitment to upholding the ethical standards and integrity of the industry, recently awarded a Diploma of Associate of the Real Estate Institute.

Roccisano, along with Glenhuntly agent Margaret Lorkin, have been recognised for their long-standing association with the industry. The Real Estate Institute of Australia confirmed the pair would be awarded the diploma in September - an honour only 200 agents currently hold.

“I love the ethics and the high standards of integrity of the REIV,” he says. “I’m also a past president of the Mildura branch so I thought it was time I applied for the diploma.

“I’ve been in real estate since 1980; I actually met my wife Francesca when I was doing my agent’s course in Melbourne. We intended to stay down there and work but then my father became unwell, so we moved back to Mildura.”

Joe Roccisano established his real estate business in 1958 and the company became the Roccisano Property Group in 1970. It’s the oldest continuously operating familyrun business in the city. Francesca Roccisano heads up the agency’s property management operations, while Tony looks after sales.

Roccisano says increasing interest in the regional centre is resulting in falling days on market and low vacancy rates.

“Mildura is strategically very important; we’re a hub between Adelaide, Sydney and Melbourne,” he says. “We have the second busiest airport in the state and we have so many natural advantages – secure water supply, 600 more hours of sunlight a year than the Gold Coast and a great diversity of businesses.”

Honoured: Tony Roccisano, left, and Margaret Lorkin, right, have both been awarded a Diploma of Associate of the Real Estate Institute.

While Roccisano loves the Mildura lifestyle, with the quality local food, wine and golf courses, he says the best part of being in business for so long is the ability to forge lifelong friendships.

“We have been involved in some very big transactions and the variety here means life is never boring but the best part is meeting people,” he says.

‘It can be hard work, but you can earn a good living provided you put in the energy and have the right sort of ethics’ – Margaret Lorkin “A lot of our clients have become family friends over the years.”

Real estate is also a family affair for fellow diploma recipient, Margaret Lorkin. Operating out of her Glenhuntly agency, Lorkin has focused on property management and increasing the rent roll in recent years while her husband Des manages the sales team.

“Our business has grown; it always had a successful sales department but we’ve focused on building the property management side,” she says.

“It’s probably gone from around 200 properties to be close to 500 now.”

Lorkin has been a trainer for the REIV

for 12 years; steering countless Victorians through the agent’s representative and licensed estate agent courses.

“I recently was coming back from a trip to Wellington and the flight attendant was someone I knew through the REIV,” she says. “I’m always bumping into my students and many of them still contact me for information.

“It’s been very rewarding over the years. I’ve probably helped a lot of people get their full licence and I love it; I feel like I never go to work because real estate is a lifestyle for me rather than a job. I love dealing with people and my clients.

“I’m very pleased to be awarded the diploma because I think it is recognition of what I’ve put into the industry over the years.”

Lorkin says technology has had a major impact on the industry, resulting in less personal contact, especially with tenants.

“But this is a very rewarding industry to be in and I’ve been delighted to give something back. I’ve enjoyed being able to develop agents and let them know what working in the industry is really like.

“It can be hard work, but you can earn a good living provided you put in the energy and have the right sort of ethics.”

The Estate Agent ❘ November 2015

33

Member News

Streamlining the moving process Agents show competitive advantage with home connections industry

A

ustralia’s leading agents and national industry bodies are throwing their support behind the home connections industry, in recognition of the added value it provides to existing real estate services.

As Australia’s leading home connections expert, Direct Connect has agreements with more than 3200 agents, and offers its free end-to-end moving service to about 800,000 properties managed by REIV member agencies. In the past quarter alone, major real estate firms including LJ Hooker, Raine & Horne, Philip Webb, Metro Property Management and Methven Real Estate have re-signed long-term partnership agreements with the company, which will provide Direct Connect with access to 140,000 properties under management.

Having moved more than one million people, Direct Connect manages all aspects of moving, from connecting utility services to organising insurance, removalists and cleaners.

Industry institutes REIA, REIV, REINSW, REISA, REIQ, REIACT, REINT 34

The Estate Agent ❘ November 2015

and REIWA have also endorsed the service, recognising the competitive advantage it can provide agents.

‘Agents have recognised moving assistance is something their increasingly time-poor customers are craving’ – Paul Docherty Direct Connect has invested extensively in new technology to streamline its process and, in a market first, allow agents to track the status of their clients’ move and connections.

This new system directly feeds into the commonly used Rockend REST software and MyDesktop, increasing the integration between agents and Direct Connect. They have recently implemented new Visa card technology including payWave for real estate agents working with Direct Connect.

Real Estate Institute of Victoria CEO Enzo Raimondo says Direct Connect’s expansive and unique service offering, supported by strong agreements with agents across the property industry,

suggests that in five years arranging a move would be extinct.

“Moving can be an extremely complex, stressful and time-consuming process for many people. Being able to offer movers a reliable and proven specialist service improves agent relationships and can be a point of difference in a competitive market,” he says.

Direct Connect CEO Paul Docherty says innovation and investment is key to the industry’s growth.

“Real estate agents are increasingly seeing the value of partnering with a home connections expert such as Direct Connect. A specialist moving partner provides a value-add to existing relationships, a competitive difference and also drives efficiency.

“Direct Connect is working with its partners to create bespoke products and services that meet the actual, real-time needs of users and agents.”

This includes a new agreement with Real Insurance to develop tailored new insurance products for both movers and real estate agents. In addition to this industry innovation, Direct Connect will begin a new referral program with Real Insurance which will open up the market further by working with Real Insurance customers directly. A second new referral program with Eziconnect, part of the TSA Group, will also refer customers to Direct Connect as part of a new agreement, with Direct Connect able to offer Eziconnect services to find the right phone and internet solution for customers. Docherty says the average move took 103 minutes to arrange and eight phone calls to connect services.

“Direct Connect saves the average consumer 74 minutes when organising their own move by bringing all of the elements into one place and providing expert recommendations from a suite of providers,” he says. “Agents have recognised that moving assistance is something their increasingly time-poor customers are craving and it is fantastic to have their support.”

Raine & Horne Chairman Angus Raine says the DCA service undoubtedly added value to clients.

“A simple, hassle-free moving process is a good thing for customers and agents alike,” he says.

“That Direct Connect is innovating in new areas contributes to Raine & Horne staying ahead of our competitors.”

Member News

REIV golfing cups return home Competitors created lasting friendships in long-running match play competition

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EIV’s golfing history has been celebrated with the return of several cups, presented in institute competitions over more than 30 years, for safekeeping in the REIV president’s office.

The golf competitions, organised under the auspices of the REIV and its predecessor RESI (the Real Estate and Stock Institute), were more than just an opportunity to have an enjoyable day out and a breath of fresh air, those who took part say.

REIV past president Bill Stokes, who twice won the annual four-ball match play competition, says they were about both pleasure and work and had lasting benefits.

“It was a great competition,” he says of the match play. “For me and many others of my era, it was one of those sorts of competitions and involvements that you had outside the day-to-day business of being an estate agent.

“We formed some strong and lasting friendships,” Stokes says.

He is keen for younger golfers to revive the competition. “It was a lot of fun but it was more than fun, it was a very good bonding exercise. In a lot of ways it helped your business. You could pick up the phone and discuss business with them in a very open way,” he says of the contacts made.

Norman Meadows, who moved to Melbourne from rural Victoria in 1964 to become an estate agent, was one of the pioneers of the competitions.

Meadows, 84, says there was an annual golf day, held at the Commonwealth Golf Club in Oakleigh, where he still plays, which regularly attracted about 80 agents. The match play competition, the heats of which ran over four months, was also staged at the club and attracted about 30 participants.

Meadows, who used to play on a

On par: From left, Norman Meadows, Bill Stokes and REIV President Geoff White.

handicap of two but says he is now on 23, says golf is “the best game in the world” because a handicap system

‘It was one of those sorts of competitions … that you had outside the day-to-day business of being an estate agent’ – Bill Stokes means that a hobby player can, in theory at least, beat an Australian open player.

He took the competition nationwide, organising an Australian golf day, first in New South Wales and then in other states, and an international golf day was also held against New Zealand.

Four REIV golf cups are now in the safekeeping of REIV President Geoff

White. The cup for the Melbourne vs country annual golf match was first inscribed in 1958 but the competition ran for only three years. The REIV scratch event, sponsored by Macquarie Bank, began in 1993 and ended in 2005.

But the RESI annual four-ball match play competition, also sponsored by the Macquarie Bank, ran for almost 30 years from 1977. That first year the winners, the first names inscribed on the cup, were Norman Meadows and FW Guihenneuc.

The final pair to win, in 2006, was David Collins and Peter Maxwell of Maxwell Collins Real Estate in Geelong.

They have kindly returned the cup to the REIV’s safekeeping.

The Estate Agent ❘ November 2015

35

Lifestyle

Keeping fit will help you go the distance Taking time out to look after your body and mind will pay dividends in the long run

T

hree mornings a week, Moonee Ponds agent Simone Bullen can be found at the gym, working up a sweat with her personal trainer. It’s part of her personal ethos: she believes being the best she can be means, in turn, she can give her very best to her clients.

“Fitness means a lot to me; I think we need to keep fit to be able to function well,” she says.

Bullen and her team take fitness in their workplace very seriously. Her office manager, Rachael Caldwell, is a former fitness instructor and the agency even has its own treadmill for staff where they try to log at least 10,000 steps a day.

“When you wear a pedometer it tells you a lot about how active you are,” she says. “An average person needs to do 10,000 steps a day to maintain fitness. I know there are many of us in the industry who do a lot less.”

Fitness is a key issue for agents, property managers and their support

teams. Long days, appointments and the ubiquitous ‘coffee meetings’ can all take a toll in an industry where presentation, energy and acuity are highly important traits. Bullen says her workouts are also an effective way to relieve stress.

“Committing to fitness helps me with so many things; it makes me more disciplined, my head feels clearer and I have more energy,” she says.

“I firmly believe you need to expend energy to have energy and use that to do the best job you can for your client.

“As agents, we’re so well time managed – or we should be. We’re all guilty of signing up for a gym membership and never going – you can squeeze in seeing another client or

‘Committing to fitness helps me with so many things; it makes me more disciplined, my head feels clearer and I have more energy’

– Simone Bullen

On the run: Maintaining fitness is a key issue for agents, property managers and their support teams.

36

The Estate Agent ❘ November 2015

Fighting fit: Moonee Ponds agent Simone Bullen.

you’re chasing a deal. The long hours, the quick takeaway meals can be an easy trap and we all know what it’s like to go to clients’ homes and sit down over a coffee and biscuits.”

Bullen says it’s a key part of her service to clients. “For me, it’s important to be healthy to be happy,” she says.

“I think if you’re fit, you’re the best you can be for your client and the most motivated you can be. To have energy comes through as enthusiasm and motivation in your professional life.

“I’m very appointment driven, so personal training sessions work for me.

It’s an appointment, locked in to my calendar. Irrespective of how I feel on any given morning, it’s in my head that I have to fulfil my part of the bargain – there’s someone waiting for me to turn up and I’ll be letting them down if I don’t get there.”

Bullen encourages her team to make time for exercise and to use the treadmill in the office – the agency puts its fitness to good use, signing up for several charity walks, including Steptember which raises awareness and support for people with cerebral palsy and Bullen has also signed up to do the 30km Coastrek in November which raises funds for the Fred Hollows Foundation.

“It’s important to have these challenges and to be able to support charities that are very dear to me,” she says.

Milestones

Commitment to the industry Almost 80 REIV members have achieved membership milestones in the past four months, representing their ongoing commitment to both their careers and the real estate industry.

While 61 members have celebrated reaching the 10-year membership mark, nine individuals have been members for 20 years and seven have achieved the significant feat of 30 years as an REIV member.

Gerard Collins has marked 40 years as a REIV member while Ian Robinson has commemorated a remarkable 60 years with the institute.

High mark: John Bongiorno has hit the 30-year milestone.

Major milestones Ian Robinson

60 year

Phillip Slocombe

30 year

Garry Spry

30 year

Gerard Collins

40 year

Thomas Lockwood

30 year

Phillip Lee

30 year

Timothy Dwyer

30 year

John Bongiorno

30 year

Apostolos Vazirianis 30 year

Trevor McCann

20 year

Melissa Opie

10 year

Gerard Gray

10 year

Justin Long

20 year

Arthur Apostoleros

10 year

Michael Capes

10 year

Matthew Haddon

20 year

Tracey Wishart

10 year

Monique Hoedemaker

10 year

Richard Winneke

20 year

Ranko Delibasic

10 year

Joseph Catanese

10 year

Frank Gerace

20 year

Malcolm McInnes

10 year

Choon Ng

10 year

Kathryn Anderson

20 year

Xiao-Meng Holmes

10 year

Peter Varellas

10 year

Leah Calnan

20 year

Andy Ng

10 year

Joanna Hargreaves

10 year

Helena Fantela

20 year

Susan Wolper

10 year

Vassili Spiroglu

10 year

Trevor Hunt

20 year

Elena Hill

10 year

Boyd Falconer

10 year

Jenny Price

10 year

Bruce Grant

10 year

Paul Hyman

10 year

Alexandra Ashton

10 year

Barry Erlenwein

10 year

Raoul Holderhead

10 year

David Evans

10 year

John Tossol

10 year

Denis Overall

10 year

Rachael Hiscock

10 year

Geoffrey Sullivan

10 year

Andrew Newton

10 year

Andrew Clark

10 year

Andrew Cassimaty

10 year

Luke Campbell

10 year

Stephen McCleery

10 year

Ashley Crow

10 year

Emil Foller

10 year

Trudy Biggin

10 year

Glen Antipas

10 year

Lynda Davis

10 year

Robert Sim

10 year

Warwick Bramich

10 year

Shaun Walker

10 year

Daniel Clarke

10 year

Stuart Grant

10 year

Nicholas Kamaretsos

10 year

Andrew Hayne

10 year

John King

10 year

Albert Carter

10 year

Gary Andrews

10 year

George Errichiello

10 year

Jayde Neate

10 year

Con Stefanidis

10 year

Bruce Elliott

10 year

Neil Rhodes

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10 year The Estate Agent â?˜ November 2015

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Milestones

Time to reflect: Nicholls Gledhill founder Harry Nicholls is celebrating more than 65 years in the real estate industry.

Success breeds longevity One half of Nicholls Gledhill, founder Harry Nicholls has been in the real estate industry for 65 years and is still going strong

H

arry Nicholls chuckles when people ask him which football team he supports. “I’ve worked Saturdays my whole life, so I have to say I’ve never really been able to follow anyone.”

Such is the reality of a lifetime in real estate. Eighty years young, Nicholls is celebrating more than 65 years in the industry. He remains active in his Endeavour Hills agency, Nicholls Gledhill, and still heads into the office most weekdays.

“I’ve thought about retiring, but I don’t think my wife wants me around home seven days a week,” he says.

Nicholls fondly reminisces about his start in the industry in 1950 and still refers to city-based agent David Feiglin, the man who gave him his first job, respectfully as “Mr Feiglin”.

“I was 14 and my mother spoke 38

The Estate Agent ❘ November 2015

to Mr Feiglin, telling him I didn’t like school all that much and asked whether he might have a job for me. I started out earning 30 shillings a week, running messages and collecting rents around the city. He was like a second father to me, he sent me to Stott’s college in the city to take classes parttime and I did English, bookkeeping and typing. I was the only boy in the typing class and very shy, until some air force guys came in to learn how to type to help them with their code messages.

I’d hang out with them.”

In 1955, Nicholls enrolled at RMIT to begin five years of night school.

“My goal was to be a valuer and real estate agent. I studied law subjects, accountancy, building construction, maths, valuation practices and surveying.”

Still working for Feiglin, the years

ticked around to 1962 and Nicholls was ready to launch as an agent. “But the business had been sold on; I’d learned so much from Mr Feiglin, particularly in marketing ‘own-yourown’ flats and villa units. These were the days long before things like strata title.”

The young Nicholls found his way to Stockdale and Leggo, and he settled into life on a 15 pounds a week retainer and a listing commission. He found he had a particular talent in gaining listings, particularly through the contacts he’d developed with Melbourne’s Jewish community.

“In those days, there weren’t many Jewish agents,” he recalls. “My work with Mr Feiglin had given me a great introduction to the community and a lot of the builders.

“I met John Gledhill when I was at

Milestones

Stockdale’s and he was a great sales person. I was bringing in a lot of business, so I suggested to him we start our own agency. I was still single at the time but he was married with a couple of kids and was a bit nervous about it.”

Still, the pair formed a solid bond and their first agency opened at 716 Glenhuntly Rd in Caulfield South.

Nicholls Gledhill came into being in 1965 and over the ensuing decades opened several branch offices in East Bentleigh, Glen Waverley and Mulgrave, as well as Endeavour Hills. “Each time we sold a flat or a villa unit subject to the sale of the purchaser’s house, we found ourselves with a business that just took off.”

Subsequently, John Gledhill trained to become a registered builder and the pair formed a spin-off company called Louis Dunstan Construction and built a lot of houses through Caulfield, Brighton, Bentleigh and Box Hill.

“Louis and Dunstan were our middle names,” Nicholls recalls. “The agency was also still going well and when we wanted to open an office in Endeavour

Hills we couldn’t find a shopfront, so we built our own shopping centre.”

The Terrace Shopping Centre is where the sole remaining Nicholls Gledhill agency remains today.

“I’ve seen a lot of change, particularly with things like the internet. I

of advice for anyone contemplating a career. “Start out in an established and reputable agency and value your relationships. I sold a house many years ago to a Dutch couple with 13 kids, and I’ve sold each and every one of those kids their houses when they’ve

‘I met John Gledhill when I was at Stockdale’s and he was a great sales person. I was bringing in a lot of business, so I suggested to him we start our own agency. I was still single … but he was married with kids’

remember what it was like to use photographs to market houses for the first time. In the early days of colour photography, you couldn’t really get colour prints, so we had all these slides and we bought a carousel projector for each office and special blinds, so that we could project the photographs on to the windows. People going by were amazed by it.”

While Nicholls, in turn, has helped a lot of young agents get their start in the industry, and he has one piece

– Harry Nicholls

decided to get into the market.”

Nicholls has scaled back his business interests, leaving him more time for regular visits to his holiday house at Yanakie at Wilson’s Promontory where he loves to fish. He and wife Rae live in Kew and look out for their four children (one of whom is the agency’s office manager) and three-year-old grandson.

And the football? Born and bred in North Melbourne both he and wife Rae have a soft spot for the Kangaroos.

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