ELITE AGENT Issue 02 Nov Dec 2014 [FULL] by Elite Agent

BECOMING A BETTER AUCTION AGENT PAGE 34

WHY HAPPINESS MATTERS PAGE 27

CONTRACTOR OR EMPLOYEE? PAGE 40

LEARN FROM THE BEST #02 NOV/DEC 2014 AU$7.50 + POSTAGE

TRANSPARENCY OR TRICKERY What’s really driving agent review sites?

DEFENDING YOUR FEE Josh Phegan on getting what you’re worth

PROPERTY LAUNCH How a new method of sale is getting vendors top dollar

RP Data is now CoreLogic, the largest property data and analytics provider in the world.

5 STEPS TO PROFESSIONAL MARKETING VIDEOS Tips and tricks from the experts

Kate Smith

REAL ESTATE GEM

Better data + Better analytics = Better decisions RP Data is now CoreLogic, the largest property data and analytics provider in the world. Our data-driven insights help more than a million mortgage and property professionals grow their businesses and we empower policymakers at the highest level to make more confident decisions on the largest asset class in our economy. Unleash the power of data for your business. Visit corelogic.com.au or call 1300 734 318.

A NOTE FROM OUR GUEST EDITOR eliteagent.com.au eliteagent.tv Guest Editor Graham Mirabito, CEO - Corelogic Asia Pacific Managing Editor/Director Samantha McLean samantha@eliteagent.com.au Sub-Editor Jill Boniface editor@eliteagent.com.au Online and Customer Service Manager Hermansyah Asrori newsroom@eliteagent.com.au Art Direction/Design Chorus Design thegoodpeople@chorusdesign.com Commercial and Subscriptions Manager Mark Edwards mark@eliteagent.com.au eliteagent.com.au/shopnow National Marketing Manager Terry Wright terry@eliteagent.com.au Advertising + Media Kit Enquiries advertising@eliteagent.com.au eliteagent.com.au/advertise BASS Publications Pty Ltd ACN 169 805 921 Postal Address: Suite 35, 4 Young Street Neutral Bay NSW 2089 Telephone (02) 8231 6669 Registered by Australia Post/Print Post 100020180

AN INVITATION TO BE a contributing guest editor in the first Christmas edition of Elite Agent comes at a time of great opportunity for RP Data. As I look at the development of our business over the years since our inception in the early 1990s as a local Brisbane-based start-up, and what we have achieved since this time, it leaves me even more excited about our outlook for an equally promising future. At the time of reading, RP Data will have successfully transitioned from its former brand name to the globally recognised CoreLogic brand, with RP Data to continue only as a product brand name. United under the one CoreLogic banner, we will continue to provide industry-leading property solutions and analytics to help our customers make better decisions and grow their businesses. As we look to the future, among our most important assets is the extensive knowledge and professionalism that exists within our employees across Australia and New Zealand. This is pivotal to our business and it is extremely satisfying to know that we are able to help our clients build the strategic blueprints that enable them to connect and operate crucial aspects of their businesses in an economic and efficient manner. Greater association with the growing CoreLogic extended businesses allows us to raise the bar on client engagement and our overall services offering. In closing, I believe 2015 will be a year of growth through innovation for all of us. Our move to the CoreLogic brand will position our business at the forefront of global business needs and allow us to deepen our service offering as we deliver greater value to our worldwide customer base. Of the many things I’ve learned in a growing business is that I never stop learning – I am grateful that I am leading one of the most focused global businesses operating in the Australia-Asia Pacific zone. I take this opportunity to wish our industry friends and loyal customers a fun-filled festive season and thank you for your ongoing support.

Graham Mirabito is CEO – CoreLogic Asia Pacific

Editorial Submissions The publisher welcomes editorial submissions from individuals and organisations within the real estate profession. The publisher reserves the right to edit, modify, reject or contribute to the content of the material provided. Some opinions expressed in Elite Agent Magazine are not necessarily those of its staff or contributing editors. Those opinions are reproduced with no guarantee of accuracy although Elite Agent Magazine endeavours to ensure those opinions and comments are factual. © Elite Agent Magazine 2014. All rights reserved.

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Contents On the Cover

DEFENDING YOUR FEE Josh Phegan explains how to determine your worth – and how to make sure you get it.

TRANSPARENCY OR TRICKERY? Lisa Tremolada explores what is really driving agent review sites.

5 STEPS TO PROFESSIONAL MARKETING VIDEOS Top tips from the professionals to help you create your next property marketing video.

MIND MATTERS Jim O’Connor examines the true definition of success and why happiness really matters.

2 ELITE AGENT • NOV-DEC 2014

KATE SMITH – REAL ESTATE GEM Our exclusive with Australian Gems basketball star and award-winning agent Kate Smith from Raine & Horne Semaphore, South Australia.

BECOMING A BETTER AUCTION AGENT Brett Macadam from Strong Property shares a step-by-step guide to becoming a better auction agent.

AGENT PROFILE: CHRIS SALEH We find out more about Starr Partners’ innovative new sales method called Property Launch.

CONTRACTOR OR EMPLOYEE? Ursula Hogben from LegalVision considers the topical issue of employees vs contractors.

First Person

Features

VIEW FROM THE TOP Antonia Mercorella discusses her priorities as new CEO of the REIQ.

COMPLIMENTS OF THE SEASON Angus Raine shares his 2014 Christmas list.

NEWSPAPER ADVERTISING Kylie Davis from RP Data asks, “Is it the end of the road for print?”

HOW TO AVOID MISSING OUT ON THE CHINA OPPORTUNITY Andrew Taylor from Juwai.com discusses what is currently driving Chinese real estate investment in Australia.

WHAT VALUE DO YOU REALLY PROVIDE? Brad Caldwell-Eyles examines the role of the agent and how you can demonstrate greater value in your relationships.

ARE YOU A TRUE BELIEVER? Christina Guidotti outlines the importance of mastering the three superpowers of belief, conviction and commitment.

HOW TO BUILD AN EMAIL MARKETING LIST Ray Wood from Bestagents explains ‘give to get’ marketing and how it will grow your list.

28 32 42 EPM

FROM GROUND ZERO Sarah Latham shares personal examples of how she built her successful PM business from scratch.

DYNAMIC DUO Harcourts North Lakes co-owner Paul Considine chats to EPM about his PM department’s growth and success.

PM PROFILE Meet REIWA Property Manager of the Year, Kylie Harbo.

15 WAYS TO BUILD YOUR PROFILE Loretta Morgan from Jam Property provides her 15 top tips to build your personal profile.

50 62

WHAT EVERY LANDLORD SHOULD KNOW ABOUT BATHROOM RENOVATIONS Thomas Smith explains why renovations in the ‘smallest room’ should be different for investors compared to owneroccupiers.

Regulars

EVENTS CALENDAR Dates for your diary – industry conferences and events.

PM MENTOR Natalie Hastings has advice for property managers on getting time to relax over the Christmas period.

UPFRONT News, announcements and new products direct from the industry.

BD MASTERY Tips on how to attract new tenants and landlords online from BD Coach Tara Bradbury.

WHY YOU NEED A SERVICE CHARTER Rockend GM Justin Melton explains how the right service charter equals better customer retention.

SEEN & HEARD Photo gallery: Christina Guidotti Leading Women in Real Estate.

13 STRATEGIES TO HELP RETAIN YOUR TEAM Jo Oliveri demonstrates how to find and keep the property management staff you need to grow your business.

02 November/December 2014

THE LAST WORD Fiona Blayney asks: How do we make sure our business sacrifices are worthwhile?

LEADERSHIP Our leadership coaches, John and Stephanie McCloskey, take a look at how a softer approach to management can help you build your business.

CHAMPIONS Celebrating industry award winners.

eliteagent.com.au 3

Events Conferences AREC 2015 Gold Coast, 31 May-1 June 2015 Ideas Exchange 2015 Sydney, 12 May 2015 Melbourne, 15 May 2015 The Business of Real Estate 2015 Hamilton Island, 30-31 Aug 2015 Josh Phegan (joshphegan.com.au) Real Estate MasterClass South Yarra, Melbourne, 21 Nov Real Estate MasterClass 2015 Double Bay Auction Centre, Sydney 13 Feb 2015, 13 Mar 2015, 17 Apr 2015 The Olsen, 637-641 Chapel St, South Yarra, Melbourne, 20 Feb 2015, 20 Mar 2015, 24 Apr 2015 BDM Academy (bdmacademy. com.au) Innovate 2015 Think – Create – Act Rydges Perth, 17 Feb 2015 Rydges Adelaide, 19 Feb 2015 Rydges Melbourne, 3 Mar 2015 Rydges World Square Sydney, 5 Mar 2015 Rydges Southbank, 17 Mar 2015 Rydges Darwin Airport, 19 Mar 2015 Rydges Auckland, 31 Mar 2015 LPMA (lpma.com.au) LPMA 2015 Conference Surfers Paradise Marriott Resort 23-24 Apr 2015 LPMA West Coast 2015 Conference Duxton Hotel, Perth, 29-30 Oct LPMNZ 2015 Conference Novotel Lakeside, Rotorua 21-22 May 2015

International Events NAR Events (realtor.org/events) Association Executives Institute Vancouver, BC, Canada, 13-16 Mar 2015

4 ELITE AGENT • NOV-DEC 2014

eliteagent.com.au/industryevents

Disher Events (disherevents.com) Utah Ski Resort Real Estate Conference: Learn from Experienced International Real Estate Professionals Creekside Meeting Room, Utah, USA, 2-4 Feb 2015

Australian Events REIQ (reiq.com) REIQ Property Occupations Act Roadshow Cairns, 1 Dec Townsville, 2 Dec Mackay, 3 Dec Fraser Coast, 4 Dec Bundaberg, 5 Dec Rockhampton, 10 Dec Gladstone, 11 Dec From Signing to Sale: The Complete Auction REIQ Head Office, QLD, 3 Dec Property Management Breakfast REIQ, QLD, 3 Dec Conflict Resolution for Property Managers REIQ Brisbane, QLD, 4 Dec QCAT Know-How REIQ, QLD, 4 Dec 2015 REIQ Auction Competition Heats REIQ Head Office, QLD, 8 Dec 2014 REIQ Auction Special & 2015 Awards Competition Finals 9 Dec Property Management Breakfast REIQ Sunshine Coast, QLD, 9 Dec 2014 REIQ Novice Auction Competition REIQ Head Office, QLD, 10 Dec Property Management Breakfast MRAEL GROUP, QLD, 10 Dec REIV (reiv.com.au) Intermediate Owners’ Corporation Management REIV: 335 Camberwell Road, Camberwell, 1 Dec

Digital Organisation – Evernote® REIV: 335 Camberwell Rd, Camberwell, 2 Dec Mobile Devices in the Property Sector REIV: 335 Camberwell Rd, Camberwell, 2 Dec Agent’s Representative Course Best Western Frankston International, Vic, 8-12 Dec Career Kickstart – Residential Property Management REIV: 335 Camberwell Road, Camberwell, 8-11 Dec Gender Smart Selling REIV: 335 Camberwell Rd, Camberwell, 10 Dec Managing Performance at Work: Why Traditional Methods Fail REIV: 335 Camberwell Road, Camberwell, 10 Dec Commercial Property Management Fundamentals Part 2 - Lease Administration REIV: 335 Camberwell Road, Camberwell, 12 Dec Residential Sales Refresher REIV: 335 Camberwell Road, Camberwell, 15 Dec Digital Organisation – Evernote® REIV: 335 Camberwell Rd, Camberwell, 16 Dec Mobile Devices in the Property Sector REIV: 335 Camberwell Rd, Camberwell, 16 Dec Advanced Owners’ Corporation Management REIV: 335 Camberwell Road, Camberwell, 17 Dec Being Tech Savvy in the Property Sector REIV: 335 Camberwell Rd, Camberwell, 19 Dec REINT (reint.com.au) REINT Southern Members’ Christmas Party Lasseters Hotel 3 Dec Let’s Get Straight on Insurance Mirambeena Travelodge, Cavanagh St, Darwin, 5 Dec REINT Northern Members’ Christmas Party Il Lide Darwin Waterfront, 17 Dec

REISA (reisa.com.au) How to Comply with the new Sales Legislation REI House – Colonel William Light Room, 3 Dec 2014 How to Comply with the new Property Management Legislation REI House – Colonel William Light Room, 5 Dec REI Forms Live Training – Sales REI House – Sir George Kingston Room, 5 Dec REI Forms Live Training – Property Management REI House - Sir George Kingston Room, 5 Dec REISA Charity Golf Day – North Adelaide Golf Club North Adelaide Golf Course, Strangways Terrace, North Adelaide, SA, 5 Dec Precedent Clauses – Special Conditions REI House - Sir George Kingston Room, 9 Dec Property Manager vs Property Manager REI House - Sir George Kingston Room, 12 Dec 2014 Sales Agency Agreement REI House - Sir George Kingston Room, 15 Dec Form 1 Refresher REI House - Colonel William Light Room, 15 Dec Prescribed Offences REI House - Sir George Kingston Room, 17 Dec Section 24G – Conflict of Interest REI House - Sir George Kingston Room, 17 Dec REIA (reia.asn.au) Board Meeting Canberra, 11 Dec National Awards for Excellence 2015 Perth, 12 Mar 2015 REIT (reit.com) 2015 Leader in the Light Working Forum Hyatt Regency Reston, Reston, VA, 20-21 Jan 2015 Washington Leadership Forum Hay-Adams Hotel, Washington, DC, 24-25 Feb 2015

To view these and more events online visit eliteagent.com.au/industryevents To add an event to the calendar free of charge visit eliteagent.com.au/industryevents/community/add

SEASON’S GREETINGS I’M SITTING IN ONE OF Fiona Blayney’s planes as I write this. If you’re

confused at all about that statement go straight to page 64 for “The Last Word”. But once you’ve sorted that out please do come back, I have a few last thoughts for the year before I put my pen down. I woke up this morning with that old Wham song “Club Tropicana” in my head. You know the one, “Club Tropicana drinks are free, fun and sunshine there’s enough for everyone...” You may know the rest. Maybe I’m just showing my age. But I’m wondering to myself, how can I possibly be thinking of holidays at a time like this, with a magazine going into the printers, going live on the App Store, plus a heap of stuff going on with my consulting clients, not to mention managing travel, family, and just life in general. Brain, please get back to the job!! Well it doesn’t take Einstein to figure out it’s probably my subconscious telling me what I really want is a holiday. And I’m sure after going hard all year, you are probably no different. It’s a good time of the year to take some well-deserved time out. And I’m sure our new mindset coach Jim O’Connor (page 27) would agree. It’s been a big year and we’ve achieved lots. I am especially honoured to have worked with Graham Mirabito as guest editor for this issue, as well as the team at CoreLogic who continually give so much to the industry. I’m sure you will notice in this issue some of the great things they have in store to grow your businesses in 2015, I can tell you there is some exciting stuff coming. Likewise, I hope you can look back on this year with some personal satisfaction, with many of your boxes ticked. Don’t forget, now is also a good time to get yourself prepared for the New Year so you can hit the ground running when you get back from your break. Remember, your results today are a direct result of what you did 30/60/90 days ago. So, before you go on holidays it’s a good time to write down a few goals for the New Year and some actions that you can take to achieve them. I can’t go without saying thank you to everyone who gave us feedback on the first issue; hearing such positive comments from agents all over Australia definitely make the challenges worthwhile. And for this issue, a big welcome to all our new subscribers! Lastly, if you are finding Christmas gift shopping a challenge, I’d like to quote Owen Arnold’s Christmas gift suggestions, which I think will ring true for a great many of us: “To your enemy, forgiveness. To an opponent, tolerance. To a friend, your heart. To a customer, service. To all, charity. To every child, a good example. To yourself, respect.” I think that about covers everything. All the best greetings of the season from us and we wish you every success in the New Year.

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UPFRONT

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HOW ONE AGENT IS ‘MAXING’ OUT HIS PRESENCE

Sales agent Iain Hinds from Margate, a residential suburb in Queensland’s Moreton Bay region, has a sidekick who is winning hearts and Facebook followers, and raising money for the RSPCA. Not tall in stature but definitely big in the looks and charm department, Maxy, a ten-week-old British Bulldog, has become more than simply Iain’s best mate as the pup opens doors to customers and makes Iain a household name in his market and well beyond. The agent with RE/MAX Property Shop said his love of animals, his experiences with rescue dogs and his admiration for the work done by the RSPCA prompted him to raise funds, which sparked the idea of making Maxy the focus of an ongoing campaign which aims to rehome all dogs that come into its centres. He has pledged up to $10,000 for RSPCA Queensland’s Second Chance Program, with a $1 donation for every page ‘like’ at facebook.com/pages/The-Adventuresof-Maxy/1534501546771567. 8 ELITE AGENT • NOV-DEC 2014

Industrie Media expands into Brisbane, Gold Coast and Melbourne The Sydney-based real estate marketing studio continues to push forward with its national expansion campaign, which kicked off on 1 June at AREC 14 on the Gold Coast. Drawing on its network of industry partners, corporate alliances and a succession of targeted marketing campaigns, it appears that it’s full steam ahead for the digital media gurus. Industrie Media’s Director Attila Kovacs says, “There is still a lot of hard work ahead, but the initial response from the Queensland and Melbourne markets since our

launch has been phenomenal. The general feedback we are receiving from agents is that they are hungry for a new direction to marketing in particular, with video for auctions, agent profiles and property profiles. We have also had a large number of interstate enquiries related to our very popular Video MMS services.” With studios now located in Sydney, Canberra, Brisbane, Gold Coast and Melbourne, Industrie Media’s reach continues to grow as it prepares to open new studios in Adelaide and Perth early next year.

RP Data wins 2014 Best Industry Service Provider award Australia’s prestigious annual Australian Mortgage Broker Awards held in October saw RP Data take out the award for Best Industry Service Provider. The Australian Mortgage Awards are recognised as one of the key events bringing together the industry’s leading players. The awards acknowledge the outstanding achievements of all participants in the mortgage industry. CEO Graham Mirabito said that winning the Best Industry Service Provider award is a tremendous achievement for RP Data. “Our award win was an extremely proud moment and it was especially gratifying to see our teams acknowledged as industry leaders and awarded among their peers,” he said. Sponsored by Westpac and attended by a 650-strong audience, the event was hosted by cricketing legend Michael Slater. It honoured brokers, lenders and industry service providers in a variety of categories. The 2014 Best Industry Service Provider award recognises a service provider that adds the

most value to their customers’ businesses, with consideration given to the service provider’s value proposition, commitment to its customers and the industry’s need for the service. “We respect and enjoy our reputation as a prominent and trusted voice in the Australian business and media environments, where daily we provide significant reporting on property trends and market conditions,” Mr Mirabito said.

At homesales, we’re focused on helping you reach a targeted and lucrative investor audience, to ensure that we consistently deliver results that impact your bottom line. We’re proud to be part of the carsales network of websites, which is accessed by millions of Australians each month*. We’re invested in you, so it makes sense to invest with us. Learn more by visiting agents.homesales.com.au or phone 1300 291 914 *Nielsen Online Ratings, July – September, 2014

With growth back on the agenda a newly formed company has its sights on improved traction for the real estate industry to ensure agents and principals maximise opportunities in this period with the right accounting and business strategies. businessDEPOT launched officially to the market earlier this year; the brainchild of managing director and real estate industry specialist John Knight, it is a full service accounting and business advisory firm. “We are about much more than just the numbers,” Mr Knight said. “We aim to connect our clients with the professionals who can solve their business problems, whatever they may be, by utilising a network of microprofessionals we call ‘The Collective’.” Based on a platform of innovation, businessDEPOT has met the market head on, launching ‘Raise the Bar’ breakfasts – a specialised event aimed at helping real estate agents better their businesses. Knight and his team of directors all have experience in mid-tier accounting firms and saw a need to offer strategic advice to maximise client potential over and above the traditional tax and accounting practices. As experts in real estate, businessDEPOT utilise technology to service the entire eastern seaboard from their permanent Brisbane offices, but don’t mind getting on a plane when necessary too.

Century 21 North Western goes pink for a cause The most famous real estate jackets in the world turned pink in October for an Australian-led initiative aimed at raising awareness and funds for the Cancer Council’s ‘Pink Ribbon’ campaign. For Ruma Mundi, Principal and Director of CENTURY 21 North Western, the most eye-opening part of the process has been the amazing response from staff and clients. “Staff have completely embraced the campaign and clients are supporting it in a big way,” she said. “The cause is pretty close to many of our hearts, including my team and me personally, as many of us have family and friends who have been touched in some way by women’s cancer in one form or another. “I’m yet to come across anyone who doesn’t know someone who has suffered from these devastating illnesses, which is what makes it a truly great cause and explains why it has hit home with friends, 10 ELITE AGENT • NOV-DEC 2014

family and clients,” said Mundi. As well as donning the fluoro-pink jackets, CENTURY 21 North Western has turned its marketing collateral pink and dressed the office with pink streamers, bonbons, ribbons and butterflies. Pink Ribbon merchandise can also be purchased in the office and at open homes, while lucky draws are being held at auctions with prizes including bottles of pink Moët and Gold Class vouchers for those who can guess the sale price. Ruma Mundi will personally be donating $2 to the Cancer Council for every guess submitted.

UPFRONT

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Insight into real estate businesses beyond the numbers

REGIONAL YOUTH GAIN ‘HEADSPACE’ FROM WAGGA AGENTS

Wagga Property Management have been doing their bit to assist Australia’s National Youth Mental Health Foundation, donating $25 from every property leased to headspace, Australia’s National Youth Mental Health Foundation. With suicide being one of the leading causes of death among young people, headspace do a fantastic job in supporting under 25s going through a tough time. “Living in regional NSW, we hear all too often of youth suicide devastating families in our community,” says Wagga Property Management Director, Dave Skow. “We are proud to be able to support such a worthwhile cause. The Wagga headspace centre is able to put our contributions to good use by implementing support programs and initiatives which are otherwise unfunded by the Government.” To find out more about the vital work that headspace centres do around the country, visit www. headspace.org.au.

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On 7 October 2014, at the Australian Service Excellence Awards, Rockend won the National Customer Charter award. Held at the Crown Palladium in Melbourne by the Customer Service

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Rockend wins national Customer Charter Award from CSIA

ALPPPS TAKES PMs TO THE TOP

Prominent industry trainer, Jo-Anne Oliveri, Founder and Managing Director of property management business solutions company ireviloution, has launched a new property management event – the Annual Leadership of Principals and Property Professionals Summit (ALPPPS™). Taking place 19-20 March 2015 on the Gold Coast, ALPPPS™ is a new property management business, technology and leadership summit designed exclusively for principals and property management team leaders. The intensive two-day business-tobusiness summit teaches delegates how to be an industry game changer and lead their business to success using cutting-edge strategies from international and national property management thought-leaders and technology, marketing, legal and selfimprovement experts. With a line-up including one of America’s top personal development coaches Richard Flint, NBL basketball champion Leroy Loggins, elite performance trainer Jet Xavier and real estate advertising leading authority Ian Grace, as well as being the most affordable Australian property management event offered to date, ALPPPS™ is set to attract over 300 delegates and 25 industry partners. For more information and to book tickets, visit alppps.com. 12 ELITE AGENT • NOV-DEC 2014

Institute of Australia (CSIA), the event recognised outstanding customer service from companies across Australia. Rockend is built on a foundation of customer service. Steven Brett, Client Services Manager, stated, “I am very proud of Rockend’s Client Services Team. We strive every day to provide the highest level of service to our customers. Rockend’s Customer Service Charter has been developed to identify and focus on attributes of our service that our customers value.” Through the implementation of a customer service charter, Rockend has continued to improve its high client service, rating in the top 7 per cent of Australian businesses certified by the CSIA. Rockend CEO, Alister Maple-Brown, commented on this achievement saying, “The team at Rockend has worked hard to successfully communicate and implement the charter. This charter doesn’t stop at the Client Services Team; rather it is a part of what we do across all clientfacing areas of the business.”

REIWA welcomes app for tenants Property Managers with the Real Estate Institute of Western Australia have welcomed a new smartphone app that helps tenants understand their rights and responsibilities. The app has been designed by the WA Department of Commerce and was launched by the Minister, Mr Michael Mischin. The app provides

handy information for tenants, including information about their legal rights. Spokesperson for REIWA’s Property Managers’ Network, Jenni Wood, said the app explained tenants’ obligations as well as providing important information for owners. “This app is a really great way of helping people to be better tenants by understanding the

rules of the Residential Tenancy Act, and by providing timely reminders when rent payments are due,” Ms Wood said. The app will also help tenants calculate the maximum amount they might have to pay to secure a lease through an agency, store photos for property condition reports or keep a record of rental receipts.

EVENTS

SEEN & HEARD

ON 22 OCTOBER 2014, more than 100 leading women in real estate gathered at the luxurious Palazzo Versace hotel for a day of learning, networking and gaining powerful insights on true success and fulfilment in business and in life. While celebrating her birthday on the same day, thought leader Christina Guidotti was truly inspiring on how you can be productive, successful in the industry, and truly â&#x20AC;&#x2DC;have it allâ&#x20AC;&#x2122;. For more from the event, including some of the speaker insights, please visit eliteagent.tv.

Christina Guidotti Leading Women in Real Estate

eliteagent.com.au 13

FIRST PERSON

Angus Raine

Compliments of the Season

ANGUS RAINE, EXECUTIVE CHAIRMAN AND CEO of Raine & Horne

has a couple of things on this year’s Christmas list. IT’S BEEN A FANTASTIC year for real

estate markets across Australia and for the Raine & Horne network. Plenty of homeowners and investors have enjoyed excellent growth, while Raine & Horne has increased its reach with 25 new offices joining us in the first nine months of 2014. More of the same would be a great result in 2015. What do I want for Christmas? Just a few things are on my list. A FAIR GO FOR REAL ESTATE INVESTORS IN 2015 Regulators, in my opinion, have overreacted to a healthy property market with these so-called macroprudential regulations. For starters, it irritates me no end that share investors rarely have to deal with increased regulatory scrutiny when the equities market goes on a bull run. The threats of more stringent lending constraints might also prove counterproductive by spooking some panicked selling and buying ahead of the potential crackdown, which won’t help anyone. Yet one of the key issues regularly overlooked is that real estate values in Sydney and Melbourne are being driven along by a lack of stock. I’ve suggested previously that the state governments should consider putting in place stamp duty breaks for empty-nesters to encourage them to move on. This should create a bigger property pool. Likewise, the prospect of paying capital gains tax is

14 ELITE AGENT • NOV-DEC 2014

stymieing the ability of older investors to sell up. Therefore I’d like the Federal Government to consider CGT breaks for real estate investors aged 60 and over. This seems only fair as it’s possible to access an entire superannuation nest egg at 60 tax-free. CONTINUED PROPERTY MARKET GROWTH In my opinion, 2015 will see continued growth in Australian real estate as we will continue to have low interest rates (even with an interest rate hike), a strong economy and population growth. I was heartened by QBE’s annual Australian Housing Outlook, released in early October, which is forecasting that housing price growth will continue over the next year. The 2014-2017 report, released in conjunction with forecaster BIS Shrapnel, expects that the housing stock deficiency will remain a key indicator of growth in 2014/15, especially in Brisbane (7.4 per cent) and Sydney (7.2 per cent). I’d be happy if the New Year can deliver results like this. INTEREST RATE STABILITY Hopefully the Reserve Bank’s jawboning of the Australian dollar will help keep interest rates on hold. I guess we also need to hope that in 2015 the troubles in Ukraine, Gaza, Syria and Iraq don’t throw up more challenges for the global economy.

The International Monetary Fund (IMF) has already downgraded growth predictions for 2015, which I’m hoping the RBA heeds before taking any decision to hike up rates. That said, I expect that the RBA will look at moving the lever on rates in Q3, 2015, so the window on record low rates is closing. This realisation will push the traditional Spring market through Christmas and into the New Year.

We’re also seeing a proliferation of property portals, although I’m very confident that Squiiz, with its industry-wide support, will make a mark.

A BOOMING YEAR FOR RAINE & HORNE The GFC cloud has well and truly lifted and 2015 will be all about growth and driving our offices to make the most of the opportunities on offer in the current market. One of the challenges will be keeping up with changes in technology. We’re also seeing a proliferation of property portals, although I’m very confident that Squiiz, with its industry-wide support, will make a mark. PROTECTING OUR VALUE CHAIN One challenge we need to address as an industry is the threat of non-residential companies continuing to take a stake in our industry’s value chain.

The launch of two specialist rural offices – Rural Sydney and Rural Brisbane – has been a major highlight in 2014. As a bushie at heart, this is an exciting turn of events, and both offices will be led by some of the most dynamic, experienced and well-connected agricultural specialists in the business, all of whom have grown up on the land. I’m also thrilled by the substantial growth of our Queensland residential network. I’m really expecting plenty more organic growth from our network right across Australia, and wish everyone a happy and prosperous New Year. Angus Raine is the Executive Chairman and CEO of Raine & Horne.

OVER

900 SALES CONSULTANTS

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eliteagent.com.au 15

FIRST PERSON

Carl Quested

Direct mail: reassuringly expensive

IF YOU ARE BECOMING DISHEARTENED with low open rates in

your email campaigns, it could be time for you to consider another option with an almost guaranteed open rate of more than 90 per cent. Due to the perceived prestige of print, direct mail appears to be making a high return comeback on the marketing scene.

16 ELITE AGENT • NOV-DEC 2014

THEY ALWAYS start the same

– “I am the next heir to the throne of Nigeria, Prince Apara Kachinpopgorn. I write to you in confidence, for the mutual benefit of both our families…” You know the rest; the Prince needs to hide some funds to avoid a military coup. If you could just sent him $2,000 to link the bank accounts, you will be paid handsomely for your efforts. And whilst some unfortunate souls get caught by this, the majority see it, recognise it as a scam and hit delete. New scenario – You get a call from a trusted friend, who says that the Prince of Nigeria is coming into the country and wants to meet with you to discuss doing business in Australia. He arrives at your door in a stretch Rolls Royce, in a well-tailored suit with armed guards. On opening the door, you are handed a pair of Rolex watches as a thank-you for your time. Do you think in the new scenario you are more likely to listen to the Prince’s story? And there is nothing to say the email didn’t come from the very same Prince. (I know it is a widely-used scam, but humour me here.) The difference is that you know a Rolls Royce is expensive, that tailored suits and Rolex watches are elaborate and do not come easily to most people. Therefore the Prince has a level of credibility over the other online Princes sending emails. The point I am making here is that when you present a value proposition, credibility holds an enormous amount of weight. Most agents in the market are making use of online tools to communicate and market; e-newsletters, new listings and so on. But with most agents doing it, how do you create a difference? With fewer agents using it, direct mail might just be the answer. It is certainly a lot more expensive than email, but your

potential customers know this. They know that you could have emailed them an update about the market, or about a property you just sold. But they already have 10 other agents doing exactly that. Even really good emails, with great pictures and layout, still are often seen in most email programs purely by their subject line. When someone receives a letter, they know someone had to print that paper, put it into an envelope, take it to the post box and get it delivered. They open it, and get to see the full content right there. Today, Australia Post delivers an average of 1.7 letters

you communicate with them? And if you are creating great content, and providing real value in your communications, it makes sense to ensure it is actually getting read. If it costs you $1,000, but generates an additional three or four appraisals, isn’t this money well spent? So next time you think about your newsletter, consider whether you want the 22 per cent open rate, or the 98 per cent. Whether you prefer the see and delete, or the ‘keep for later reference’ option. And finally, don’t think that doing direct mail has to take up any more time than your email

When someone receives a letter, they know someone had to print that paper, put it into an envelope, take it to the post box and get it delivered. They open it, and get to see the full content right there. per street address per day.* Compare that to the average number of emails people receive at 121 per day, which is set to increase to 140 by 2018.** Where do you think you might get more visibility? “But mail is expensive!” I hear you cry. Yes, you can email 1,000 people for next to nothing, where the same 1,000 letters might cost you around $1,000. Consider this: an open rate of 20 per cent for an email newsletter is deemed excellent, whereas direct mail has a 98 per cent^ open rate for personalised letters. And around 60 per cent^ actually store this for later review. How many will keep the email, let alone go back and read it? Yes, direct mail is more expensive. But if you want someone to invest 2.5 per cent of their biggest asset in you as an agent, don’t you think it is important to show value in how

ACROSS

MORE THAN

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campaign. There are service providers that can take care of the whole process, for a lot less than you might think – often cheaper than you could do it yourself. Rolex never apologises for being expensive, nor does direct mail. Carl Quested is the director of AgentMail. (agentmail.com. au), a boutique mail house that specialises in real estate mail. He has recently written the book ‘Alpha Mail – How to List and Sell More Property Using Direct Mail’, due to be launched late November. Visit Alphamail.com. au for more details. *http://www.smh.com.au/comment/ entering-the-postaustralia-post-era20140114-30t12.html **http://www.news.com.au/ finance/work/emails-expected-torise-to-140-a-day-in-2018/storye6frfm9r-1226904239876 ^http://auspost.com.au/media/ documents/australia-post-consumersurvey-mail-findings-jan-2013.pdf

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eliteagent.com.au 17

FIRST PERSON

Antonia Mercorella

View from the top

ANTONIA MERCORELLA, THE NEW CHIEF EXECUTIVE of the REIQ,

discusses her priorities for real estate in Queensland and her vision for her new role.

REAL ESTATE IS a fast-moving

game and modern agents need to devote considerable time and energy to keeping pace with the changes taking place in our profession. Technology is constantly on the march, performance measures are becoming increasingly sophisticated and the legal and regulatory framework is always evolving. When I was appointed CEO of the REIQ in October, I knew that the Queensland profession was on the cusp of major change. In the coming months, it will be governed by the new Property Occupations Act which was passed by State Parliament in May. One of my top priorities as CEO will be to get out into every corner of Queensland to sell the benefits of these new laws to our members. Later this month I’ll be embarking on a statewide roadshow to provide training sessions that bring our members a unique insight into the application of those laws to agency practice. The REIQ successfully lobbied the State Government to get legislation specific to our profession. We also played an important role in developing the provisions and regulations soon to be law. If anyone understands exactly what the new laws mean for agents, we do. As CEO, I’ll be focusing the Institute’s efforts on engaging with and supporting our member agencies. To this end, the REIQ has developed a new strategic plan containing five pillars that we believe are our

18 ELITE AGENT • NOV-DEC 2014

core responsibilities to our members: • Providing high quality advice and support • Developing appropriate training and education to help maintain and grow agents’ skills and qualifications • Lifting professional standards

• Providing the tools and resources agents need to perform their work and run their businesses • Advocacy and representation to ensure the voice of the real estate profession is heard and its profile is high in the Queensland community.

It’s a privilege to lead an organisation with such a long, rich history and important standing within the Queensland business community. I’m looking forward to tightening the REIQ’s focus on its core operations: supporting our members and providing advice, training and education tailored to their needs. My professional background equips me with a strong set of skills and capabilities for the role of CEO. I began my career in real estate 12 years ago when I became the General Counsel for the Real Estate Institute of South Australia (REISA). This role introduced me to the intricacies and challenges of our great profession, as well as

some of its true characters. I also spent five years as a partner and director of a private practice law firm with a specific focus on real estate. During this period I was retained as the principal legal advisor to REISA, maintaining my involvement in government lobbying and policy development. In 2010 I was lucky enough to be recruited by the REIQ to the newly created position of General Counsel, and later I shifted into the role of Deputy CEO. Over the past four years we have met a variety of challenges, but I am confident that we have turned a corner. With improving market conditions and industry confidence, and a renewed energy to meet our challenges

head on and take advantage of new opportunities, the REIQ is now well placed to provide the best possible service to its membership. So what does the future hold for REIQ? First and foremost, we will continue to focus on our members. While the Board and I work toward full implementation of our strategic plan, it is my intention throughout my time at the helm to be a ‘hands-on’ CEO. I will be getting out to as many REIQ events as possible and engaging face to face with our membership at every opportunity. Spread across every corner of a vast State, each region

Over the past four years we have met a variety of challenges, but I am confident that we have turned a corner.

PARTNER

WITH US TO BUILD

THEM

A STRONG

ONLINE

BRAND

experiences its own unique challenges and opportunities. Queensland’s sheer size often demands a more regional approach to the day-to-day matters and concerns of our valued members. That’s why the Institute is committed to expanding and delivering more specialised regional support to our membership. We currently have three Membership Relationship Managers spread across Queensland and have plans for more. As we head into 2015, our members can be confident the REIQ is working overtime to represent them and their businesses. Antonia Mercorella is the CEO of the REIQ.

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eliteagent.com.au 19

FIRST PERSON

Josh Phegan

Defending your fee CHEAPER DOESN’T ALWAYS MEAN better when it comes to

selecting a real estate agent, but convincing sellers of that can be difficult. High-profile real estate coach and trainer Josh Phegan explains how to determine your worth and then how to get it. YOU KNOW the market.

Your number of sales is on the rise. So are the prices you’re selling them for. You’ve delivered a solid listing presentation to your next potential vendor. And then – silence. Silence. You start to feel a bit uneasy; your stomach does flip-flops and you know the question is coming. That dreaded question. ‘How much is your fee?’ You take a deep breath, quickly say ‘2 per cent’ and mentally prepare to defend your rate. It’s a situation most, if not all, real estate agents can relate to. Defending your fee is something every real estate agent will have to do at least once, if not many times, in their career. When you consider selling their home is likely to be the biggest financial transaction in a vendor’s life, it makes sense that they query a real estate agent’s fee. Vendors want their home sold as quickly as possible for the highest price and the lowest cost to themselves. What they often fail to realise is that obtaining their first two desires often depends on how much they spend on an agent. So how do you know what you’re worth and, more importantly, how do you convince vendors you’re worth every cent? In setting your fee you first need to analyse your market and work out the size of the pie from which you’ll be taking a bite. In a large market with oodles of properties being bought and sold

20 ELITE AGENT • NOV-DEC 2014

and a higher average sale price, you can elect to be a volume agent with a lower fee. What you lose in having a lower fee you can quickly make up by the sheer volume of properties you sell. In a smaller market with fewer transactions and a lower average sale price you need to set a higher fee. When you set your fee you need to focus on your strengths and what sets you apart from other agents. Ask yourself ‘what do I bring to the table to justify my fee?’ If you don’t stand out and stick in a vendor’s mind for the qualities you bring to the sale, they will line you up against other agents and pick the winner based on price. Some people see good value in a Kia, while others prefer a Ferrari. You’ve got to show why the Ferrari is going to cross the finish line first every time. Vendors will be happier to pay more if you solve an important issue for them. This is where using the SPACER acronym can make you the pick of the crop. Safety Vendors hate risk. If you can show you’re a safer option than your competition then you’re worth more. Performance Vendors hate not selling their property, or underselling it. If you show you have a strong track record for performing at the highest level then you’re worth more. Appearance Vendors may like to sell off-market or be seen to be selling with a prestige brand. Convenience Show vendors how you can ease the pressure on them. This might be a shorter selling period or selling without

listing presentation and gloss straight over it. Rather than starting at the fee you want and leaving no room for negotiation, use a pivot pricing method where you start at a higher fee and give a ‘discount’ to the fee you’re prepared to work for. If the worst comes to worst and you must defend your fee, there are four steps to help vendors understand your worth. Fee approximation. Explain that agents in the area charge between 3 per cent and 1.5 per cent and while you’re not the most expensive or the cheapest, you are the best value. Percentage difference. Put the figures into real terms your vendor understands. A .5 per cent discount on a 2 per cent fee is actually a 25 per cent cut in your fee. Ask your vendor if they would be happy to take 25 per cent of their asking price. If they wouldn’t accept that why should you have to? Dollar difference. If the

Some people see good value in a Kia, while others prefer a Ferrari. You’ve got to show why the Ferrari is going to cross the finish line first every time an open home inspection. Pitch to their desires. Economy Make sure your best attributes stand out. In the absence of difference, vendors will shop on price. Reliability Vendors need to know the agent they engage will deliver the service they deserve. Show them you’re dedicated. If you deliver your message well and pitch to a vendors’ deepest needs and desires, the fee shouldn’t be an issue. But if they can’t see what makes you different from and better than other agents, the issue of how much you charge will be raised frequently. I suggest you learn to present your fee at the end of your

difference between your fee and that of another agent is $5,000, drop your fee and add the $5,000 to the reserve or asking price. If you’re as good as you say you are you will obtain the higher price. Performance. Match the other agent’s fee and then have a performance clause that gives you 10 cents for every dollar you obtain over an agreed price. Josh Phegan is a renowned coach, trainer and speaker for high performance real estate agents. Josh coaches more than 180 real estate agents and more than 60 per cent of his clients write in excess of $600,000. For more information visit joshphegan.com.au.

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R GEARING FOTH GROW

Read Elite Agent on the move. Digital subscriptions and single issues now available on the App Store for iOS and Google Play for Android.

FIRST PERSON

Kylie Davis

Newspaper advertising – is it the end of the road? KYLIE DAVIS PONDERS whether print still has a place in property

marketing campaigns.

22 ELITE AGENT • NOV-DEC 2014

“THE REPORT OF MY death was an exaggeration,” Mark Twain famously wrote. Likewise, reports of the death of newspapers – and the value of advertising real estate within them – have persisted for years. Yet the presses continue to roll and agents continue to sell property through them. Until recently, the naysayers claimed that the real estate agent love affair with print was based on tradition, an unwillingness to change old habits and the desire of agents to see their faces in the paper (how cruel!).

But new research, and a set of new data tools for agents, is revealing the opposite. Print is being used not just because it works, but because it delivers a premium. As part of its spring market campaign, Fairfax-owned Domain has been running a series of advertisements within its publications that highlight the fact that three out of four vendors use print to sell their home. News Corp Australia is also running marketing campaigns that promote how print plus online advertising results in a

that advertised in print plus online had an average sale price of $605,301 – in comparison with online-only properties which sold for an average of $575,209. The data confirms that advertising in print on top of an online campaign can increase the chances of success, helping to sell a property faster and for more money. In Sydney, properties that were advertised in a combination of print and online had a 91 per cent success rate compared to 77 per cent for online only. The average price achieved for properties that were advertised in both

The naysayers claimed that the love affair with print was based on tradition, an unwillingness to change old habits and the desire of agents to see their faces in the paper. higher final price for vendors and a quicker sale than advertising online alone. The News Corp campaign is based on a metric recently developed by RP Data called Media Maximiser, which will soon be available to every real estate agent subscriber of RP Data. Over the past two years, RP Data has tracked the progress of more than 850,000 properties listed for sale on the Australian market. The research is the first time comprehensive data has been compiled to test whether print has any value in a property transaction, but the results are compelling. In Melbourne, for example, houses and units that advertised in both print and online had an 84 per cent chance of selling, compared to online-only properties that had a 60 per cent sales rate: a 16 per cent uplift. Adding print to an online campaign reduced the time on market by four days to 45 days, compared to online-only advertised properties that took 49 days on average to sell. But most importantly, properties

print and online was $793,116 compared to $737,207 for online only. The days on market were similar in Sydney, where homes are being snatched up in a heated market of between 33 and 32 days. When RP Data rolls out Media Maximiser in November, agents will be able to identify the best marketing opportunities for their vendors down to a postcode level. Properties will also be broken out by price bracket (affordable, mid-market and prestige) and by house or unit. This does identify that, in some markets, online advertising alone is enough to get a good sale. But for the first time, agents will be able to share the data with their vendors, taking all the guesswork out of vendor-paid advertising and increasing their assurance that by promoting the property for sale they genuinely have the best interests of the vendors at heart. Kylie Davis is the head of Real Estate Solutions at RP Data. Follow her on Twitter @RPData_ KDavis

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chorusdesign.com eliteagent.com.au 23

Tech in the City Lisa Tremolada

Transparency or trickery? Lisa Tremolada looks at the reliability of agent ratings and review websites.

HEN WE

think of any kind of review sites, the first one that springs to mind for me is Trip Advisor. It’s huge. It has the volume, it has the traffic and it has the credibility in numbers. A user generally has enough information to be able to assess the reliability of the reviews. They can weed out the company’s competitors, pick who the whingers are and then decipher who is writing the more accurate comment. However lately a number of agent review sites have popped up under the guise of ‘transparency’ and ‘authenticity’. But the full picture of ‘transparency’ is really a business model whereby you start a website, attempt to get everyone on it and then upsell on profiles and advertising space. Now a few agent review sites come to mind. There’s Product Review, Rate My Agent and REISA (the new site). Then there’s Google Business Pages. Firstly let’s look at myreiagent. com.au. The way this works is that REISA will email a vendor at the end of their sales agency agreement, and ask the vendor for feedback on the agent. Gasp! I can hear you taking a deep breath. Yes, this one is about contacting real vendors about real agents, about real business dealings. Granted, there are probably still some agents who will work their butts off for three or four months but score a bad result. That’s to be

24 ELITE AGENT • NOV-DEC 2014

expected. Perhaps over time it will balance out. Some agents won’t like it. Some will say that if you’ve done a great job, you shouldn’t be concerned, and others say it’s not necessary. The next site is ‘Rate My Agent’. This is where an agent gets the opportunity to invite people they choose (anyone they want) to give them a review. If

their details may not be correct. The site gives agents a ranking; it lets users know if they are the ‘top agent in town’. If the agent hasn’t disclosed all their sales, they won’t be the ‘top agent’ on that site. The next is Google Business Pages. Anyone can write a review on an agent’s Google Plus page; you just have to

They could prove it was another agent, but it didn’t matter. Google told them they would not remove the offending comment.

it were me, I would invite people who I thought would give me a great review, but perhaps that’s not the point either. This site asks the agents to ‘claim their page’ and then they are supposed to update their details and make sure their sales are complete. The site does not fully populate the page, in that if an agent does not disclose a sale on REA or the other sites they feed from it won’t appear. If an agent doesn’t know about the site,

create a Google account. An office I know had a situation where a competitor wrote something negative about them. They could prove it was another agent, but it didn’t matter. Google told them they would not remove the offending comment because ‘the competitor did not break the law.’ It’s like the issue of whether something is classed as freedom of speech or a warped public opinion. Recently, a well-known industry leader/trainer slammed an agent referencing a Product Review site. He said that even though the agent had won awards for being ‘the best agent’, he clearly wasn’t because of what the Product Review site had to say. When I visited the site, it seemed to me that there were competitors making comments about a very prominent, active agent. I contacted the agent, who said

that he had wind of competitors making comments on the site, and then when they were in a listing presentation against his office, they were directing potential sellers to this Product Review site. Now, in the guise of authenticity and transparency, surely these sites verify the details? After all, they are claiming transparency in their information. They surely must check that what the person is saying in their review is true and that it is verified? They could ask the person commenting to include details of their transaction – not publicly, necessarily, but so that if the agent has a bad review written about them they can challenge the authenticity of the comment. Surely it can’t just be based on hearsay, can it? Yep, it is. I logged on Product Review and made my comment. All I needed to do was put in my hotmail account and a name and it was done. I had the option to connect it to my Facebook account, but I declined. My comment was displayed after about half an hour. I wrote a lovely review, but have never used this agent. I’m not sure what can be done to improve the quality of reviews online, but what I am sure of is this: it certainly does pay to keep on top of what people are saying about you so that you are truly prepared if the subject ever comes up from a potential client or vendor. Lisa Tremolada helps agents to become famous in their area. For more information www. dominatetheinternet.com.au.

Marketing Attila Kovacs

Behind the scenes Most professionals will tell you that no video is better than bad video, so it’s not enough to just show up on the day and hope for the best. Attila Kovacs from Industrie Media provides his top five tips for making your next marketing video a true blockbuster and the envy of your competition.

Y NOW, agents will understand that video is a powerful tool for listing and selling property. However, it should also be noted that it can very quickly turn into a negative tool if the video being produced is not of the highest quality in all aspects. Here is a breakdown of some of the key elements that need to be executed to a professional standard in order to maximise your next video listing, as well as your brand.

VISION The footage of the home, location, lifestyle and the agent needs to be of the highest standard in terms of the angles used, the areas covered, the brightness, the colour saturation and vibrancy. If any aspect of the video feels dull, lifeless or withdrawn this will negatively impact the marketing initiative by the agent, regardless of what they are saying on screen. The vision must take the lead in the video. It cannot undermine or contradict the photography, write-up or what is being communicated via the voiceover. The vision should take the viewer into a space by capturing mood, colour and texture, rather than just documenting it in news-like fashion.

EDITING Bearing in mind that the average viewer will start

to tune out after 90 seconds, the content of the video needs to be ‘sticky’. What’s sticky? The vision frame rate (the interval between new cuts of vision) needs to be energetic so as to keep the viewer engaged for longer periods of time. There is no point in longdrawn-out sequences; they only delay the delivery of content and subtract from the rate of information being communicated to the viewer.

selling points are for their new listing prior to a property video shoot. So to secure an easy, stress-free and relaxed performance on your next property video it is often best to turn up to your video appointment unscripted. Yep, that’s right; it’s best not to do any type of preparation other than ensuring you have your best suit on and feeling sharp.

AUDIO Having highly emotive music accompany the property video is vital. Music can subconsciously manipulate the viewer’s response to a scene by triggering a pre-determined feeling the producer wants you to experience. The experience can arouse various emotional responses such as intrigue, romance, happiness and laughter. The target, when it comes to real estate videos, is to allow the viewer an opportunity to immerse themselves into a new world, a world they could see themselves living in with their family, entertaining their friends and connecting with the property at a deeper level than just its features. They should get to experience and feel the property and its benefits, not just read about them.

AGENT It goes without saying that every agent will already know what the key

VIDEOGRAPHER Good videographers should assist by taking charge of the shoot and sharing ideas on what to say during the intro, body and outro sequences. Great videographers will even step in and identify key selling points of the home if you happen to get stuck. Ultimately, their job is to reduce an agent’s word count, make things supereasy to remember and nurture the end result by only allowing you to move to the next scene when they are totally happy with the quality of the take. These are vital safety-nets designed to protect your brand. The onus should be on the videographer and/or the video

There is no point in longdrawn-out sequences; they only delay the delivery of content and subtract from the rate of information being communicated to the viewer. company you are using to ensure they are maximising each video listing for you. They should be fully aware they are not only producing a video that’s helping to sell the house, but arguably even more importantly selling you, the listing agent. Although video can be incredibly powerful, you should be aware that it doesn’t necessarily constitute a successful marketing campaign; as always, it is the quality of the content that matters. Attila Kovacs is the Managing Director of Industrie Media. For more information visit industriemedia.tv.

eliteagent.com.au 25

Leadership John and Stephanie McCloskey

All aboard! Do you know where you’re going in your business, and do your team know which direction you’re headed? It’s up to you to provide the beacon for navigation with an agreed Vision Statement, driving the right types of winning behaviour in your team.

E LOVE the song Ship of Fools by World Party. It’s a reasonable commentary on how some real estate agencies once operated. ‘Where’s it coming from? Oh where’s it going to? It’s just a ship of fools’. We didn’t need to know where we were going; we just needed to know when the sale went ‘unconditional’! For many agents money was the only driver. About 15 years ago, the futurists starting talking about a more flexible workforce, with

and effort was often enough to compensate for their youthful inexperience. Now if this influential group is to be utilised effectively, the challenge is to have them connect to your business in a way that recognises their potential and input while also encouraging the more established members of your team. How do we do this? One way is to create a Vision Statement.

know what they are doing dayto-day that supports it and feel good about their efforts.

THE VISION IS THE GLUE Creating a Vision Statement is not rocket science, and you do not need a team of management consultants! An effective Vision Statement is agreed, easy to

GET A LODESTONE RATHER THAN A MILLSTONE As real estate companies get bigger, rather than becoming a millstone the ship (your business) needs a compass with a lodestone that magnetises results and money. Your vision is that compass. It keeps everyone heading in the same direction and makes it easy to spot when someone is not on track. The benevolent dictatorship is replaced with a simple coaching question: ‘Do you think what you are doing is in line with where we are going?’ People will answer honestly for themselves. In the right leader’s hands, the compass or vision is a wonderful tool.

Gen Y and Gen Z need a process where they have input or an understanding of ‘what it means to work here’. If there’s no ‘buyin’, there will be ‘opt-out!’ a higher number of casuals as well as greater mobility between jobs. Today we have a different working environment from a ‘ship of fools’. The average tenure within the Australian workplace is four years. People will not stay where they are unhappy, especially Gen Y and the soonto-be-a-consideration Gen Z. These cohorts have traditionally been the engine rooms of our business. Their enthusiasm

26 ELITE AGENT • NOV-DEC 2014

understand and quick to buy into. In the 1970s, Honda’s vision was ‘We will destroy Yamaha’. Simple: you are either on board or you’re not. And everything you do in the company is to further that end. There are some brilliant Vision Statements and there are some very average ones. Too many get lost in translation with no one knowing exactly what it means to work there. Rule Number 1 is Make it simple! Your people must be able to relate to the vision,

WHO DECIDES THE VISION? As leader you will instigate it, but Rule Number 2 is involve everyone at the early stages. Gen Y and Gen Z need a process where they have input or an understanding of ‘what it means to work here’. If there’s no ‘buyin’, there will be ‘opt-out!’

DO IT TOGETHER Rule Number 3 is Get it agreed. You as the leader must sell the idea to the team. If you can’t sell the idea, then you haven’t explained the benefits well enough. Organise a collective team meeting off-site. Get your people excited and have them brainstorm in small groups or by department, knowing that their opinion does count. Aim

to produce an agreed Vision Statement, or at worst two options for all to come back to in a week’s time. Rule Number 4 is Build your pillars. Work with your people or a selected team to pull out how the vision translates to everyone’s day-to-day activities. Agree on a set of pillars (short statements, rules or principles) against which your people can benchmark their activities in the daily grind or core business to see if they are ‘on vision’. SETTING COURSE Rule Number 5 is Reinforce, reinforce and reinforce. The leader’s message and actions must be consistent across every activity, attitude and communication. They must reinforce that ‘this is where we are going and this is who we are’. Reviewed annually, this living document will help to take stock of where you are as a company and where you are heading. Like any seaworthy vessel, once it has an agreed destination, a set compass and a willing crew; your chances of succeeding in having a business rather than a job is greatly increased. Or you could stay with the ship of fools – it’s your vision! John and Stephanie McCloskey run Get Real Estate Training to activate engagement and leadership competencies in agents and provide coaching for real estate business owners. Contact them at getrealestatetraining@ gmail.com.

Mind Matters Jim O’Connor

What are you aiming for? How do you know when you have achieved success? Is it money in the bank or the excitement of the moment when you achieve a milestone? Is it all of the above or is it something more? In the first of a series of regular articles, professional performance coach and clinical psychotherapist Jim O’Connor examines the definition and psychology of success and why happiness matters.

OW DO you define

‘success’ in real estate? Is it having loads of listings, sales, property under management, achieving your personal goals and maxing profits? Or is there something more to success than a bunch of numbers and volume? My aim as a regular columnist will be to explain to you the psychology of professional performance so you can get the best out of your life and career. I’m going to introduce you to beliefs and behaviours, strategies and practices that will enable you to succeed at the highest level without losing your mojo to the sales funnel. Let’s start by looking at success. What is it you’re really aiming for as you pursue your career and live your life? It will cause you some difficulties if you start chasing after something when you don’t know what that something is. You don’t want to exemplify the line from that great rock classic “I still haven’t found what I’m looking for” (thanks Bono, Edge, Adam and Larry – great song) because you didn’t know what ‘it’ looked like. The trick to unravelling this puzzle is not to ask what you’re looking for but why you’re looking for it. Spending countless hours on the phone is not where you want to be if you’re not clear about your

‘why’. The ‘why’, or in more conventional psych terms your ‘intention’, affects everything. Your intention sets the purpose of your decisions, your perceptions, your behaviours. Your intentions matter. I remember something I heard a very long time ago. Here’s my paraphrase, ‘What gains you if you win the whole world but lose your mojo along the way?’ It actually comes out of the Bible and has really stuck in my head. What do you gain if you win the whole world but you’re miserable for having won it?

what you’re doing? Success is not just about the numbers. Oh yes, the numbers matter, but they aren’t everything. But there’s more to success than just feeling good, isn’t there? It’s about resilience as well. No one gets through life without getting knocked over a few times, so success is also about your ability to pick yourself up, struggle and adapt. Success is about being courageous in the face of difficulties; it’s about optimism when the cards fall the wrong way. Success is also about a

Happy, secure, emotionally balanced people are much more likely to be successful. Success is not just about the numbers; it’s about keeping your ‘mojo’ alive while you achieve the numbers. If you don’t believe me yet, I’m sure you’ve seen the ‘Top Five Regrets of the Dying’ somewhere on the Internet and you can relate to it in some way. (If you haven’t seen it, Google it now.) Who cares if you have a whole load of numbers beside your name, you’ve smashed a bunch of milestones, even walked on hot coals (yep, done that) if at the end of the day you aren’t happy and enthusiastic about

commitment to make the best of this thing called life and career. In fact, if we really unpack what true, authentic success is, it would have to include a lot of important attributes. It would also have to include your ability to form secure, complementary relationships, as well as your ability to give and receive positive regard. Your ability to express and accept positive emotions by definition makes you a happier, higher-functioning person. For the cynics out there, be careful not to deride happiness.

Happy, secure, emotionally balanced people are much more likely to be successful; they tend to attract more opportunities, they have more motivation, more enthusiasm and more resilience. Happy people are often more efficient than unhappy people. The most successful people demonstrate mastery of a wide range of high-quality attributes, not just numbers and drive. In performance psychologyspeak success is measured by your ability to satisfy all your needs and wants. The ‘journey’ of success is simply learning how to grow this ability. Personally I prefer to think of success in my life and career as a great adventure because it sounds a lot more exciting, but it helps to know that there is a scientific basis to all this. This brings me to an important question: how do you know you’re a success? Fortunately that’s fairly easy to answer. You’re a success when you have a desire to engage positively with your life and career. More specifically, you’re a success when you feel optimistic; you function at a high level and you perceive this thing called life with confidence and enthusiasm. Jim O’Connor is a professional performance coach and clinical psychotherapist. His clients include professionals and executives from some of the smallest to some of the largest companies in the world.

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cover story

28 ELITE AGENT â&#x20AC;¢ NOV-DEC 2014

Real

KATE SMITH IS THE PRINCIPAL of Raine & Horne Semaphore/Port Adelaide. This year, after

doubling her solo settled sales and growing her commissions by more than 117 per cent, she scored Silver in the ultra-competitive Residential Sales category at this year’s REISA Awards for Excellence. A former basketball ace with the Australian junior team, the Gems, Kate says there are a lot of good lessons in the world of professional sport. Story by Samantha McLean.

Estate Gem R

AINE & HORNE Semaphore is situated right in the heart of the town and is built on a family tradition going back two generations. In 2009, Principal Kate Smith began managing the office that her mother Helen started in 1983. I start by asking Kate what age she was when she first started in real estate. “I was 19 at the time I officially started. I remember going to opens, or when Mum had late appointments, Dad and I would sit in the car and wait. He didn’t like her going to her late appointments by herself. And she would always work weekends, so I got used to that early.” Kate continues, “I remember we’d go to the supermarket (the local supermarket that’s still there on Semaphore Road) and we’d be walking up and down the aisles. It would take so long to do the shopping because she would stop and talk to every person. Now it’s really funny because that’s what happens when I go there.” I ask if Helen is still involved in the business? “Yes, she still holds a current real estate licence. She still does some opens for me and gets excited about it; she’s still involved in the business but not from a ‘Principal’ point of view. She does help out at auctions and things like that when we need her to, though, which is great.” Semaphore itself is approximately 14km from the main town centre of Adelaide. Semaphore’s white sands, family-friendly shallows and colourful foreshore make for a

“I can handle people telling me ‘you haven’t made it’ or ‘you didn’t get the deal’. I still have incredible stamina; I don’t really get tired, and I feel it makes a big difference.” classic Adelaide beachscape. “The high street is Semaphore Road; that’s the main centre so everyone wants to be within walking distance of that,” says Kate, “About two or three years ago it went through a major upgrade. They’ve redone all the roads and the parks and we’re seeing a lot of cafes and a lot more restaurants. On the weekends it’s pretty busy.” Have you always lived in Semaphore? “Apart from when I was playing basketball, I’ve been in Semaphore my whole life. All our family are from Semaphore originally as well. Years ago, when mum started up, no one wanted to be in Semaphore or Port Adelaide. It used to be considered a ‘wharfie’ area but now it’s very sought-after.”

“We’re seeing a lot of people coming in now from outside the area. More younger people; a lot of professional footballers live in the area. It’s trendy. I wouldn’t even say ‘up and coming’ any more because it’s probably already arrived!” Kate continues, “The good thing about Semaphore, as opposed to Glenelg or Grange, or Henly, is that there’s a conservation zoning on the area so they don’t allow people to demolish character homes. The earliest one I’ve ever sold was dated around 1870 or 1880. They’re big stately homes, and some of them are incredibly beautiful.” So given all the character homes, it’s a strong auction market? “Yes, I think it’s a pretty strong auction market. People probably

eliteagent.com.au 29

cover story trended away from it a little while ago, but we tend to operate a quite few auctions in our area because it’s a popular location. Especially with the character homes or the coastal homes – we’ll generally take them to auction. It just depends on the property.” Our conversation then turns to basketball, and I asked Kate to tell me about her experiences in being a part of our national team. “I studied at the Australian Institute of Sport (AIS); I received a scholarship when I was 15. Part of that was that we left home and lived at the AIS in Canberra full time. I was selected for the Junior Australian team, the Gems.” “We were all very young at the AIS; I was there from the ages of 15 to 18. We’d probably only go home six weeks in every year. Every school holidays we would go home for a week – so it may not have even been six weeks, probably more like three to four weeks. We had to do schooling, and we trained three times a day. Not only were you living with your team, but they were also your competition.” Does that sort of training set you up for life? Are you still competitive? “Yes, I’m all for setting ambitious goals and exceeding them. I wouldn’t change any of it, and I definitely think it has helped me to get where I am.” “I think I’m now very disciplined; it comes naturally to me. It doesn’t feel like I ‘have to be disciplined’, because that was my training from a very early age. At the AIS we used to get up at five or earlier because we had to be at weights or training by five – in Canberra, where it snowed.” What other lessons have you taken with you? “When things don’t go so well in real estate I can normally handle it pretty well. I absolutely get that some things are beyond your control and you learn to deal with that.” “I found that in sport, even if you did all the hard work, you didn’t necessarily get

“The good thing about Semaphore, as opposed to Glenelg or Grange, or Henly, is that there’s a conservation zoning on the area so they don’t allow people to demolish character homes. The earliest one I’ve ever sold was dated around 1870 or 1880. They’re big stately homes, and some of them are incredibly beautiful.”

rewarded for it. You may not be a favourite; you might have a personality issue with a coach or a teammate and it might be beyond your control. But in real estate, if you do the hard work and you do the right thing by people, you do see the rewards. I think that’s what I love about being in the industry.” What does a typical day look like for you now? “Well, now, even on weekends, I still get up at 5 am! My typical day is to get up at five and I’ll go into my office; I’ll do all my emails to vendors or purchasers and reply to anything outstanding. I set up my day and then I’ll go to the gym at 6 am. After I finish at the gym I’ll go straight to the office and work through until the last appointment. That could be up to 6 or 7 pm; I still do later appointments if people need me to. On weekends I’ll do Saturdays and Sundays. Occasionally I’ll take a Sunday off, but it’ll just depend on the workload. I’m not an agent that says ‘I don’t work Sunday.’ I’ll do seven days.” You’ve won lots of awards at franchise and industry level. What does it take to achieve that sort of success? Kate is incredibly humble. “I’m not sure, I just do what I have to do. I don’t know if it’s a good thing or not, but I rarely say no to people. If someone wants to view a property and I have the capacity to do it, I will. I’m also very much about communication. I’m constantly on the phone – all day. I think that might be a big part of it! I’m not big on email, but I am always on the phone with my clients.” What advice would you give your younger self starting out in real estate? “I guess I probably went through that period in my life where I was a bit distracted, being in the industry so young; and I was young when I started selling! So I guess my advice would be to just commit 100 per cent. In real estate you can’t be half in or half out.”

THE ‘TOP 8’ FROM KATE 1. Smile at people, wave and say “Hello!” 2. Always follow through on your promises. If you say you will call at 3 pm, do it at 2.45 to establish trust. 3. Be open and transparent in all your dealings. 4. Nothing worthwhile came from within your comfort zone. 5. Get out and about in the community and shop, eat and drink locally. 6. Daily vendor phone calls: Not emails 7. Without goals it is difficult to keep score. Write them down and keep a clear vision of where you are headed. 8. What you feel, you will project: Make time to train everyday.

30 ELITE AGENT • NOV-DEC 2014

“I also think that fitness is a really important thing. If you’re going to be a professional you need to have that fitness about you, so I think that may have helped me. Having been in sports and because I didn’t make it all the way in basketball (to the Open Women’s team) I can also handle rejection. I can handle people telling me ‘you haven’t made it’ or ‘you didn’t get the deal’. I believe that has really helped me as well. I still have incredible stamina; I don’t really get tired, and I feel it makes a big difference.” So what are your goals for the next 12 months? “For the next 12 months we’ve got a big focus on growing our rent roll. We’ve pretty much doubled it in the last year and we want to keep growing. From a sales perspective, we’ve started getting recognition. My goal this year was to be a finalist at the Awards; I never thought I’d be runner-up! To be number four for Raine & Horne for Australia is something that I didn’t expect would happen, but it has. I think maybe I’d like to see how far we can go with that. I’m competitive by nature, so now having been runner-up, we’d hope to maybe win it next year. Other than that, it’s constantly trying to improve myself and the service to other people.”

eliteagent.com.au 31

marketing

How to avoid missing out on the

China opportunity

ANDREW TAYLOR, CO-CEO of Juwai.com, discusses the

advantages of embracing the Chinese market.

HY HAVE

Australia’s four largest real estate networks all signed exclusive agreements to market their listings in China? It’s because the knowledge is finally sinking in that Chinese buyers have become a permanent part of the Australian real estate market. Whether they are here to invest, immigrate, study or work, Chinese buyers are the new reality.

32 ELITE AGENT • NOV-DEC 2014

Ray White Chairman Brian White summed it up perfectly when he said, “This is the ‘Asia Century’. On a practical level, Ray White agents are able to express to potential vendors that by appointing Ray White their property will receive excellent exposure to the lucrative Chinese market.” Australia ranks high among the countries where Chinese prefer to buy property, second only to the US. Australia even ranks higher than the UK (which is third). Overall there are about 63 million Chinese who – due to their finances –

can be classified as possible buyers of international property. Meanwhile more people are joining this group every day, as the Chinese economy just keeps growing. Today it is twice the size it was just seven years ago. Income per person is also set to double, in this case by 2020. Think about what that means. In less than six full years, the average Chinese person will have twice the money they now have. If they allocate roughly the same proportion of their income to international real estate, how do you think that will affect their demand for Australian property? It’s not just about the money. It’s also culture. In fact, there are two elements of Chinese culture that favour international real estate investing.

First of all, the Chinese are big savers. One young Chinese man who bought a property in New Zealand told the local television station that he saves 40 per cent of his income every month. In my experience, that is not an uncommon rate of savings. As a result of putting so much money aside, the Chinese have more available to invest in real estate. In addition to being world-record savers, the Chinese are on the whole big believers in property as an asset class. This faith

on the world stage – as a large, wealthy and cosmopolitan nation. Economic growth has been explosive since the country began opening in 1978. It has happened at a scale and speed that has never been seen before. That’s why it seems as if China has gone from poor to rich overnight. If you want to work with Chinese buyers, my best advice is to consider it a long-term strategic move, not a one-off thing. As with any buyer group, it will take time to learn to understand these buyers and their needs. Begin in the simplest way by advertising

In less than six full years, the average Chinese person will have twice the money they now have. in real estate is so powerful that, until a young Chinese man owns his own home, it is hard for him to find a desirable marriage partner. This is a fact of life in a culture where owning your own home represents financial security much more than it does in Australia. Besides Chinese culture, something else drives Chinese real estate investment. The country has appeared practically all at once

myrealestatetraining.com.au national enquiries 1300 155 144 PPM AD.indd 1

your property on a Chinese-language portal like ours. Experiment with various advertising upgrades to see what works best with your listings. The next step can be intimidating, because it involves travelling to China. I can tell you from experience that you shouldn’t be put off. Agents who go to Shanghai or Beijing to exhibit in a property expo find the experience transformative.

Amit Miglani, CEO of MIG Real Estate in the Melbourne area, told us that he generated an estimated $18 million in sales at an expo we helped him attend. Besides learning a lot, he also made alliances with two Chinese agents. They now send him buyer leads when their contacts want to purchase overseas. Agents ask me all the time if they need to learn to speak Chinese. The short answer is ‘No’. Cultural and linguistic knowledge can’t hurt you. But a good agent will always do better with Chinese buyers than a bad agent who happens to speak Mandarin. This is especially true in the higher price brackets. If you focus on your strengths, you should do well with this buyer group. And who knows? You may even pick up some Mandarin as you go.

Andrew Taylor is co-CEO of Juwai.com, the No. 1 international real estate portal for Chinese buyers. In the first half of 2014, his website sent buyer leads worth $3.3 billion to property marketers in Australia. Andrew has decades of experience managing real estate print and online media in both Australia and greater China.

MAKE IT YOURS. 26/08/2014 7:44 am

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sales

Becoming a better auction agent

AUCTIONS ARE AN ART FORM. They are more than just

calling for bids, trying to reach a reserve and popping champagne afterwards. Brett Macadam of Strong Property shares a ‘start to finish’ guide to running a successful auction campaign.

SKILLED auction agent can make tens of thousands of dollars of difference to a sale price in a matter of minutes through their choice of words, teamwork, body language and theatre. The performance an agent displays on auction day can have a huge influence on their reputation and whether or not they receive future business from neighbours.

Andrew Cooley, Cooley Auctions.

34 ELITE AGENT • NOV-DEC 2014

DURING THE CAMPAIGN At open houses, qualify your buyers. Whether they’re neighbours, just getting a feel for the market, somewhat interested or red hot buyers, every person you meet is an opportunity for either present or future business. Ask smart questions for smart buyers. Experienced buyers will be cagey and refuse to answer blunt, personal questions. Ask questions instead that give you the information you want whilst being conversational, tactful and friendly. For example, to discover a buyer’s budget ask them if they’ve looked at similar properties. Find out how your listing compares to others they’ve seen. Listen and learn about whether they’ve perhaps been an under-bidder

at an auction recently. Were they close to being successful or were they blown out of the water? These questions alone will tell you how active they are, how much they’re prepared to spend on a property and some of their buyer preferences – crucial knowledge that you can use to determine their likelihood of buying your property. Contact your vendors daily, either through a phone call, face to face, text, email or post. If things don’t go to plan on auction day, they can’t fault you for your work ethic and communication levels. Therefore they are more likely to realise that you have achieved the absolute best possible price on the day. It’s an excellent conditioning tool if your owners have lofty expectations, and it can at least maintain a good relationship postauction if the property is eventually passed in. As far as actual communication goes, even if it’s ‘We had no enquiries today’, use it positively and with purposeful strategy: ‘I will rewrite the advertisement and rearrange the photos online, and I think we should also perhaps reconsider our price guide or marketing budget to generate more interest.’ Encourage setting a reserve early and get regularly updated price expectations from your owners throughout the campaign. It may also be worthwhile advising your vendors of recent, comparable sale results to realign their expectations. Keep their feet on the ground and always remember to under-promise and over-deliver.

PRE-AUCTION Regardless of your actual feelings, always be smiling and upbeat. It will convey confidence and that you are in control of the proceedings, as well as having the additional benefit of genuinely calming you down. Consider your auction day presentation: flags, a banner, balloons, pointer arrows – hey, why not even a free barbecue before a hot summer’s day lunchtime auction, or a complimentary coffee van on a chilly winter’s morning? Identify your key, registered buyers when they arrive and remember their names and what they are wearing. It sounds obvious, but it’s always good to address them by name when in negotiations – forgetting them would be embarrassing and unprofessional. Relay all the information you know to the auctioneer discreetly beforehand, including the reserve, number of registered bidders, what you think they will pay, where an opening bid should be called at, increments and any other important information. Relay a vendor bid strategy should it be necessary. This information is critical; it allows the auctioneer to be more confident and informed, and perform more smartly. Set up a video camera. I cannot stress this enough. Set aside half an hour or so later and re-watch the auction – good or bad. Focus on your body language, your facial expressions, when you approach bidders and how you control the floor. Would a prospective vendor be thoroughly impressed with your performance? Take constructive notes to improve yourself – even if you’re very good already. At most auctions, you will encounter a lot of neighbours coming through on the day for a ‘stickybeak’. Some may refuse to provide you with their details upon entry, which is fine. Try and get a first name and some sort of further identification politely and tactfully – a surname, what street number they live in, a contact number or an email – then follow them up later. GETTING THE AUCTION UNDERWAY Never intimidate, condescend or use negative language to extract an opening bid. Ideally, pre-arrange a confident bidder to ‘show their strength’ and suggest a figure for them to start the bidding on the day. A very low opening bid is fine – use it against the bidder when trying to get the next bid out of someone else. For example, ‘They may not have much to spend and could be trying to pick it up cheaply – smash them out of the park with your first bid.’ If available and appropriate, use your team! Support staff, assistants, the principal or other agents (if your office has a strong, team-based ethic) should be used

when multiple buyers are in play. Running around from buyer to buyer makes it very difficult to establish any credibility and other bidders will feel like you’re not there to help them - that you’re there to get them to spend money. Try to get your other staff to establish rapport with buyers prior to the auction through other open houses, personal contacts or on auction day itself. This establishes trust with bidders and makes it easier to convince them to bid. Where there are only one or two registered bidders, talk to other people in the crowd to create theatre. Create competitive tension. Ask buyers who decided not to register an obvious rhetorical question: ‘Decided not to register today?’ Perhaps thank prospective vendors for coming. Any excuse to talk to someone, do it.

allowing any feelings of stress, anxiety, relief or elation to show will generally discourage bidding in some way. Where you have an unrealistic vendor and are short of the reserve, consider pulling out the reserve letter when trying to negotiate with buyers. For example, if bidding is stalled at $900,000 and the reserve is $970,000, showing them an adjusted reserve of $940,000 does wonders for your transparency and credibility. This can prove the difference when trying to extract a higher bid.

POST-AUCTION If the property sells, go up and thank the under-bidders immediately – you’ll have the next half-hour to congratulate the successful purchaser. Your under-bidders may feel defeated, flat and frustrated at missing out on another one. Assure them

Set up a video camera. I cannot stress this enough. Set aside half an hour or so later and re-watch the auction – good or bad. If bidding stalls and you feel the auctioneer struggling to keep the flow going, go up to them and whisper in their ear. Ask them how their weekend was. You might already be $50,000 over reserve but it creates theatre and makes it look like you’re very close to meeting the vendor’s price expectations.

CLOSING THE SALE At every auction – without fail – go in and talk to your vendor before selling the property or passing it in, unless otherwise instructed. Create the idea in the heads of the buyers that they’re close to reserve, but not quite there yet. Besides, there’s no better feeling than chatting to your vendors when you’re way over their expectations, then going back out and getting even more money for them. The agent should never publicly announce that the property is on the market. Leave it to the auctioneer. Use it as a formality right towards the end of the auction when you genuinely believe there is no more money that anyone has to give. No buyer wants to feel like they are paying too much for a property – and it’s difficult to try and ask for more money off a buyer if they know they’re already way above the vendor’s expectations. Look confident and in control, but not cocky. You are an actor on stage and

you will help them find something and actually do it. You should already be keeping an eye on the local market as it is, so if you see a property that you think suits them give them a call. That level of service will pay dividends later on. Follow up all the neighbours that came through – through door-knocking, calling, email or searching them on RP Data. They may not want appraisals straight away but an excellent auction day result with quality follow-up service and promotional activity (letterbox drops, market monitors, and so on) is how you establish a true local reputation. In a quiet, close-knit, cul-de-sac street, consider handwriting cards thanking neighbours for their co-operation and patience throughout the marketing campaign. Attach a small gift if you see fit. Don’t pump it with branding and promotional material – it’s unnecessary and ruins the gesture. This is a much more impressive technique than simply doorknocking and offering an appraisal.

Brett Macadam is currently studying a Bachelor of Property Economics at University of Technology, Sydney. He is a keen writer and represents a fresh generation of exciting, innovative real estate professionals.

eliteagent.com.au 35

sales

Beyond Property: What value do you really provide? IF YOU DON’T TRULY BELIEVE that the value your client

receives is greater than the fees you charge, then you will always fear selling. Brad Caldwell-Eyles examines the role of the agent in the eyes of the public and how to demonstrate greater value in your buyer/vendor relationships.

T IS MY VIEW that being genuinely

assured that you ‘really know your stuff’ is vital to waking up every day truly believing you are worth your money. The alternative is being an imposter who simply tricks their clients into engaging them and taking fees they haven’t really earned. I know which mind set I would rather start out with each morning. The ultimate scenario is when it isn’t just we who believe we are providing value beyond our fees, but our clients also believe it. The perfect day is having clients who know your involvement has enhanced their outcome significantly beyond the commission you have charged. As agents we detest being told that we are not professionals and rather we are simply ‘parasites’ to the selling process. Many websites pop up seeking to assist owners to sell on their own properties without ‘hefty agent fees’. There has even been wider dialogue recently about one major property website posing the threat of commoditising our industry; taking over the selling process and eliminating the conventional agent from the process altogether. I have always felt there are three main types of salespeople: The Information Giver. They can stand at a front door and say ‘Hi – here’s a house.’

36 ELITE AGENT • NOV-DEC 2014

They close deals simply because they’re nice and the buyer wants the home. The Draughts Player. They are like an information giver; however, they can at least ask a closing question. They can take a deal from A to B by asking ‘Do you want to buy it?’ The Chess Player. They know their product and market from top to bottom and are aware that what they say now will have an effect in five minutes, two days, three weeks and four years. If we wish to avoid the commoditisation

1. What listings are currently on the market 2. All recent results 3. Every street 4. Development Control Plans. We should be monitoring city, state and national market trends. It may seem elementary; however, we should be fully versant across every contract of sale, including: • Inclusions and completion period • Special conditions and their implications • Title restrictions such as covenants; mortgagees; caveats and easements • Drainage/water board documentation and its implications • The differences between Torrens vs. Old System title, and Strata vs. Community vs. Co-operative vs. Company title, and their implications. In our office we regularly discuss a wide range of market indices that include: • State by state auction clearance rates • Median property prices – metropolitan variations across houses and units

The ultimate scenario is when it isn’t just we who believe we are providing value beyond our fees, but our clients also believe it. of our business we need to develop our standards of education and market knowledge to exceptional levels. Something else I know is that when your clients (both buyers and sellers alike) establish that you are truly informed and a genuine professional, the BS stops. So on what type of information should we be seeking to be experts? Firstly – let’s consider what should be the basics. We should be completely across our own Prime Market Area (PMA) or ‘patch’. We should know:

• The Australian dollar • International cash rates, especially out of the US Fed; China; Germany and the UK. • Government bond yields (Greece has been fascinating during the past three years) • The major Stock Exchanges, especially the ASX; Dow Jones: FTSE; Hang Seng; SSE and Nikkei • Purchasing Manager’s Index (PMIs) • The Kospi (Korean SX) and Copper Index, aka ‘The Doctors’ • RBA reports

TOP TWITTER ACCOUNTS TO FOLLOW Domain @domaincomau Realestate.com.au @realestate_au Bloomberg News @BloombergNews Reserve Bank @RBAinfo IMF @IMFNews Reuters Business @ReutersBiz Wall Street Journal @WSJ Forbes Magazine @Forbes Elite Agent Magazine @eliteagentmag Australian Fin Review @FinancialReview Business Spectator @BusinessSpec Property Observer @propertyobs REB Online @REB_Online Comm Sec @CommSec Brad Caldwell-Eyles @bradceyles

• International Monetary Fund (IMF) reports – especially GDP results/forecasts. I recently presented at a major industry conference and part of the discussion focused on the indicators and reports listed above. Many attendees were interested as I fleshed out dialogue on bond yields, PMIs and ‘The Doctors’. Others scoffed at needing to know this type of detail, suggesting ‘people in my market wouldn’t have a clue about this stuff’ or ‘how does this type of fancy info affect clients on my patch?’ The reality is that all of these issues

have influence on the dynamics of your particular market and we as agents should be seeking to elevate the scope and depth of our education and applicable knowledge. If we are to avoid the commoditisation of our industry (for example, allowing a large web player to simply market directly to vendors, sending out discount ‘information givers’ and removing us from the equation) we need to be exceptional as professionals and truly add value. To this end we should strive to surprise our clients and ultimately create a new expectation of how well

informed we are as agents. To elaborate: a client who is across all of these domestic and global indices will be pleased that their agent is equally so; and a client who isn’t as well versed on these subjects will be imbued with a sense of confidence that their agent is. There is insufficient space in this piece to provide outlines on the indicators and reports listed above. We all have access to ‘the Google’ to commence reading yet I would suggest that we should also all be on Twitter. I don’t mean to follow Kim Kardashian or ‘The Bieb’ necessarily, but rather to receive constant updates and articles that are delivered in easy to consume, bite-size 140-character snippets. Twitter should be our daily provider of new global information. Access to information is growing exponentially. As professionals who wish to remain essential to the process we need to be better informed than our buyers and sellers. Empowering ourselves with knowledge means that we will be able to continually surprise and delight our clients as we constantly exceed their expectations. Even more significantly, we also elevate our self-belief in our genuine and positive influence upon our clients’ experience and the ultimate selling outcome. Knowing every day that you are the ‘real deal’ (and not an imposter) and that your clients agree with this notion is the perfect way to run your business.

Brad Caldwell-Eyles is Principal of 1st CityHasemer+Caldwell.Eyles in Double Bay. He has been awarded a host of accolades as a top selling auction agent, published many industry articles, presented at various conferences and seminars, and led collaborative agent initiatives and negotiations head to head with major industry corporates.

eliteagent.com.au 37

agent profile

Chris Saleh

Starr Partners St Marys, NSW Chris Saleh is the Sales Manager of Starr Partners’ St Marys office and has been in real estate for 13 years. He also has a passion for the ultra-competitive sport of thoroughbred horseracing and is part of a syndicate. As far as his vendors are concerned, his ultimate aim is to make sure that ‘they couldn’t have got a dollar more, and this is exactly what unique sales method Property Launch is designed to do.

Tell us a bit about the area around St Marys? I’ve lived in the area for 21 years, so I think I have a pretty good understanding of our clients’ needs here. Essentially it’s a low- to medium-income area in Western Sydney, in terms of its demographic. We service most of the local area from St Marys, out to St Clair and over as far as Erskine Park. It’s still affordable, compared to other areas of Sydney, and it’s still a place where people can invest and get very good rent returns. Interestingly, we have people who have grown up here and lived here a long time, and now we’ve got a lot of people flooding in from outside the area. For example, people from the north-western region, Parramatta region and south-western Sydney where prices have increased so substantially.

PROSPECTING IS SOMETHING WE AGENTS MOSTLY DON’T LIKE DOING. IT SEEMS THAT IF SOMETHING ELSE COMES UP THAT WE LIKE DOING BETTER, WE DO THAT!

38 ELITE AGENT • NOV-DEC 2014

Infrastructure is also very good, with the announcement of Badgerys Creek airport and potentially a connection from St Marys train line out to there; the M4 motorway, the Erskine Park industrial area – a lot of things are happening in this area, which are really getting people’s attention. The combination of these two things means there is a lot of activity here right now. So that would make it quite competitive to secure stock? Well, it is very hard to get stock; many of our competitors are probably selling it a lot more than we are. That’s leading to people dropping their fees and maybe doing things that they shouldn’t do. We just keep sticking to the same system. I think our brand awareness is helping a lot with this; we still list 20 to 30 properties per month.

Explain to us what Property Launch is. It is a bit like an auction but geared directly towards the needs of Western Sydney. We find that a lot of the people who are buying out here are traditional first-home buyers or investors. Your first-home buyers aren’t really that conditioned as to how to purchase at an auction. They need to organise evaluation; they need to be sure about pests and building and that generally means spending money as well. Some people won’t do that without knowing that their offer is going to be accepted. Property Launch is a method of sales that allows them to do just that. It’s a two-week program where we list the property for sale; we follow a marketing process finishing with an open home on the second Saturday. It still allows

people to do their due diligence in terms of the market itself and pricing and the area. Then they can come along on open day and make an offer, based on what they think the house is worth from what they’ve seen during their inspection. They’ve still got a cooling-off period to do the necessary inspections and so on that they need to spend money on afterwards, but they can do this knowing that they’ve got the property. I find that works so much better in this area more than what an auction does. How do you ensure top dollar for your vendors using Property Launch? We’ve found that we’re getting better sale prices with Property Launch. If a buyer walks into a property on their own they tend to like what they see, but they don’t see any competition. They don’t necessarily get a feeling that anyone else is interested or a sense of urgency. When a buyer feels like they’ve got time to negotiate they will always try to negotiate. Under the pressure of a Property Launch, the buyers walk in and see everyone else there at the same time; that’s what creates that fear of loss and competition. Under those conditions, you will always get a better price. This is purely a set-up for our owners. I find a lot of agents in this area are not even listing the property for sale but selling it before it

What do you feel are the key aspects of maintaining good relationships with your vendors? It’s all about communication. I find a lot of people go in and promise a lot, and then tend to under-deliver on that. I’ve always said that if I promise to do something, I do it. This type of market makes it a lot easier to communicate and I’m calling my vendors every day. I’m giving them feedback on the advertising and what we’re getting back from that. It’s really about following through and delivering on what I’ve promised.

hits the market at full price, where I think an owner could have got a lot more from someone else who liked the property more. At the moment with Property Launch we’re securing abovemarket and above-listing price probably 90 per cent of the time. Some properties are even going substantially higher. In some cases we’re getting $30,000 to $60,000 above the listed price. What’s the most memorable property you have ever sold? It was a property we sold recently; it needed a fair bit of work, but it was four bedrooms, two bathrooms, double garage. That style of house in this area is ‘the upgrade’, because a lot of the houses are probably three bedrooms, one bathroom, single garage. It was listed by my colleague Sara; we actually had 116 groups go through the property. It was on at $529,000 and we sold it for $625,000.

IF A BUYER WALKS INTO A PROPERTY ON THEIR OWN THEY TEND TO LIKE WHAT THEY SEE, BUT THEY DON’T SEE ANY COMPETITION. THEY DON’T NECESSARILY GET A FEELING THAT ANYONE ELSE IS INTERESTED OR A SENSE OF URGENCY.

Best piece of advice you’ve ever been given? Stick to the basics. A lot of the trainers that I have met say the same things. Don’t get me wrong, you’ve got to keep improving your skills, but the basics are the things that work. Prospecting is something we agents mostly don’t like doing. It seems that if something else comes up that we like doing better, we do that! Prospecting is something that we never like doing but we can’t ever afford to stop. Lastly, what advice would you give to someone starting out in real estate? Have an ideal day and stick to it. Do the things you need to do in the day to create the opportunity you need to be successful. When you’re at work you’ve got to be at work. Keep learning and learn with good people. If there’s someone in the office who’s getting good results, go grab them and pick their brains, practise what they do and you’ll get better. It’s a lot about attitude as well. You’ve got to have the right attitude, but don’t forget you have to practise your skills too.

eliteagent.com.au 39

human resources

WHETHER YOU are working

for someone or running a business it is crucial to establish who is a contractor and who is an employee. Ursula Hogben, co-founder and Managing Director of LegalVision, discusses the topical issue of staff contracting arrangements.

CONTRACTOR OR EMPLOYEE: What you need to know

RE YOU hiring new staff

or checking your current staff arrangements? If so, congratulations on the growth in your business and your attention to the relevant law. It is crucial to establish whether a worker is a contractor or an employee. Why? Your tax, superannuation and other government obligations vary depending on the answer. It’s illegal to incorrectly characterise an employee as a contractor, due to taxation and superannuation requirements. Just because a worker is engaged as a contractor (reasonably common in real estate), does not mean that they will be treated by law as one.

RISKS TO AVOID Businesses that fail to recognise this important distinction are at risk of being penalised. These penalties may include: • A monetary penalty for failing to meet PAYG withholding requirements • A super guarantee charge for failing to make the correct superannuation contributions, which consists of the shortfall (up-to-date payments), the interest on the shortfall, and an administrative fee. For example, you may hire someone as a contractor, at $50 an hour, for 35 hours per week for six months. If they are actually an employee by law, then you may be required to pay the minimum superannuation guarantee of 9.5 per cent, in addition to the contracting fee that you have paid. This would be over $4,000, plus interest, penalties and fees.

40 ELITE AGENT • NOV-DEC 2014

THE ATO TEST When engaging a new worker, you need to check whether they are an employee or a contractor before entering into the agreement. An employee typically works as part of a larger organisation. A contractor is running their own business under their own Australian Business Number. RECORDS Once you’ve decided their employment status, you need to keep records to support your decision and the factors you relied on. WHAT ARE THE KEY DIFFERENCES BETWEEN AN EMPLOYEE AND A CONTRACTOR?

ABILITY TO SUB-CONTRACT OR DELEGATE Employees are not allowed to sub-contract or delegate their work and cannot pay someone else to do their work for them. Contractors are allowed to delegate or sub-contract and pay someone else to do the work.

BASIS OF PAYMENT Employees are paid in salaries,

hourly rates and/or on commission-based structures. Contractors have varying arrangements, including to be paid once they have completed a piece of work.

EQUIPMENT In an employer-employee relationship, the employer usually pays for the business equipment. Contractors usually provide and maintain their own equipment and tools.

RISK Employees are generally not at commercial risk while employed, as the employer has legal responsibility for the actions of its employees while at work. Contractors, however, are responsible for their own conduct and the commercial risks of the work.

CONTROL OVER WORK Employers are expected to give employees direction in terms of the type of work that is required and how the work is performed. Contractors are able to perform the work as they choose, provided they adhere to the terms and conditions of the agreement.

It’s illegal to incorrectly characterise an employee as a contractor, due to taxation and superannuation requirements.

INDEPENDENCE An employee and employer are working for the same business and the same goals. Contractors are running their own business, independent of the hirer. They can elect whether or not they will do extra work (depending on the terms of the contract) and are allowed to enter contracts with a third party.

WHAT IS THE DIFFERENCE BETWEEN AN EMPLOYMENT CONTRACT AND A CONTRACTOR’S CONTRACT? An employment contract is an agreement between employer and employee, and establishes the terms and conditions of the

Even if you employ someone as a contractor, the ATO can rule that the worker is actually an employee, and require you to pay superannuation penalties and fines.

employment. It can be verbal or written. A contractor’s contract is an agreement between a company (known as the ‘principal’) and a service entity (known as the ‘contractor’). The agreements address the different legal requirements of the employee or contractor relationship, including: • Term and payment • Insurance, taxation, superannuation and reporting • Subcontracting, exclusivity and restraint and termination provisions.

WHAT ARE THE DIFFERENT TAX REQUIREMENTS? Employers are required by the Australian Tax Office (ATO) to make compulsory superannuation guarantee contributions to the employee’s chosen superannuation fund, or the employer’s fund. On top of this, employers are required to withhold Pay As You Go (PAYG) tax from any income paid out to employees. The taxation obligations are different for contractors. Unlike employers, they are responsible for organising their own taxation and superannuation. Employers are generally not required to make tax deductions from any amount that the contractors have been paid.

CONCLUSION The ATO test on who is an employee or a contractor is strict. Even if you employ someone as a contractor, the ATO can rule that the worker is actually an employee, and require you to pay superannuation penalties and fines. We recommend taking the test on the ATO website, and checking that your legal contracts correctly reflect the contractor or employee arrangement. To determine whether your worker is an employee or contractor, use the ATO online tool available at https://www.ato.gov.au/Calculators-and-tools/ Employee-or-contractor.

Ursula Hogben is the co-founder and managing director of LegalVision ILP, an online business legal services provider offering free legal information and fixed-fee prices. She speaks regularly at business events, writes on business law issues for Fairfax media, startup and business publications, including the Australian Financial Review and Business Review Weekly, and has appeared on Sky Business News.

HIGH RES ELITE AGENT W BLEED HABITAT.pdf 1 8/28/2014 4:24:02 PM

THERE’S NO PLACE LIKE HOME C

Will your staff appreciate the opportunity to volunteer and help build homes for people in real need?

CMY

Visit habitat.org.au/changelives Call 1800 88 55 99

eliteagent.com.au 41

summer reading

N MY LATEST book, The True Believers, I share how to use the three superpowers of belief, conviction and commitment to reach fulfilment. And although this final step on the growth ladder may not necessarily be easy, the way to get there is simpler than you think. When we consistently work towards what we want, and persist until we arrive, we hit our target more often. But before True Believers take aim at a target, they stop and start at the beginning. They start with deciding why they want to hit their chosen target. Without a strong ‘why’ many miss hitting their target. Finding clarity by getting super-clear about their ‘why’ is what brings stamina, drives productivity, fuels discipline and leads them to their desired destination. True Believers are loyal and dedicated to a cause they truly believe in. True Believers commit to finish and as a result deliver on the promises they make to themselves. They attract other True Believers who live with the same sense of purpose and fulfilment. When these tribes form, the collective contribution creates a powerful increase in consciousness, turning cultures and communities around.

Are you a true believer? THE FOLLOWING IS AN extract from Christina Guidotti’s

new book The True Believers, where she explains the importance of mastering the three superpowers of belief, conviction and commitment.

42 ELITE AGENT • NOV-DEC 2014

How do you become a True Believer? I’m a believer in the idea that anything’s possible. I think your life is like a blank canvas, and if you want to bridge the gap between the life you have and the life you want you need to paint your own masterpiece. As you begin to create the life you choose there are lots of people who will tell you that you can’t, you won’t, and you shouldn’t. But the bottom line is that you have to be a True Believer in the life you want to create. You should also surround yourself with other True Believers. It’s your frame; you can own it, and true belief is how you create it. Those who choose this path are True Believers. Have you ever met a True Believer? I’m not talking about the religious or political type. I’m talking about a person with so much confidence, courage, conviction and resilience, so much commitment aligned to their values, that they barely waver. These people know their true north. True Believers know that life is like a marathon. In sprints it’s about who crosses the finish line first, but in marathons it’s about finishing. True Believers may or may not cross the finish line first, but they do finish marathons! I’ve been studying True Believers for over 30 years. As a little kid at school I would observe those who stood up and led and those who didn’t. I studied those

– either with or without authority – who later went on as adults to turn cultures, companies and communities around. I try to be one myself, but more than anything, I have learned from them. I want to share what it takes to be a True Believer.

TRUE BELIEVERS MAY MAKE SUCCESS LOOK EASY Success may look easy. But we know that success is not always easy to come by and takes discipline and commitment. There is often an interesting back story to someone’s success that involves a lot of hard work. While it may look simple to the onlooker there is rarely an easy road to success. So how do True Believers make success look easy? • They get on with it rather than talking about it. • They get the things done that really matter. • They take responsibility and stay out of drama. • They stay focused on a clear path ahead. What’s really going on? Five facts that matter. 1. THE QUALITY OF LIFE IS GOING DOWN In the Western world the standard of living is going up, but the quality of life is going down. Human stress and suffering is increasing in our homes, next door, in our businesses, and around the world. We have

The bottom line is that you have to be a True Believer in the life you want to create. You should also surround yourself with other True Believers. so many choices, and we still want more — more money, more things, more knowledge, more success, more respect. But sadly, happiness for many is an epic fail.

2. MENTAL WELLNESS IS CAUSING DISEASE The World Health Organisation reports that by the year 2020 mental illness (primarily depression) is going to be the number one condition in the developed world and will be the leading cause of disability and disease. That is staggering! 3. WORKING PARENTS ARE DOING IT TOUGH The Australian Bureau of Statistics reports that 78 per cent of mothers and 92 per

Have you ever met a True Believer? I’m not talking about the religious or political type. I’m talking about a person with so much confidence, courage, conviction and resilience, so much commitment aligned to their values, that they barely waver. cent of fathers with children aged from six to 14 years are in the paid workforce. Working parents are doing it especially tough: struggling under great pressure, juggling work and family life, being pulled physically, psychologically, emotionally and financially.

4. ABSENTEEISM IS COSTLY The cost of absenteeism in Australia has been estimated at $7 billion each year, while the cost of presenteeism, where we are at work but not fully functioning because of a medical condition, is at almost $26 billion. 5. CONNECTION IS CAUSING A DISCONNECTION I acknowledge the wonderful time-saving advantages of technology in a rapidly changing world. There are enormous gains to be had at work and in life by using ICT well. Nevertheless, the time we spend on social media, surfing the net and reading or writing emails is having an impact. It reduces the time we spend on ourselves: nurturing our health, relationships, recreation and achievements. We have to do something about these statistics now. The clock is always ticking and every precious minute counts in our personal life and in our business. True Believers have a healthy respect for time. It’s never too late to become a True Believer and to avoid becoming an unhealthy statistic. REJECT BEING ‘FINE’! Regardless of these five facts that matter, how many times have you said ‘I’m fine’ to describe how you are doing? The ‘I’m fine’ statement and the thinking that supports it can encourage us to avoid specific areas that need attention. By looking closely at all areas of our lives we can identify where we are fine and where we are not. There’s a risk that avoiding certain issues by using the ‘I’m fine’ mentality will lead

to decline. Life goes by so fast that we can sometimes forget who’s in the driver’s seat. It’s important to press ‘pause’ or take our foot off the accelerator, check in to see what’s going on and, perhaps, update our plan of action. Problems begin when we hide our truth and numb our pain. Numbing our psychological pain protects us from feeling hurt. In the short term this coverup provides some relief; but long term the effects of anaesthetising what’s really going on can be harmful. Fear is often the reason for the masquerade; disguising problems prevents us from finding solutions. Concealing what is really going on and how we are truly feeling is damaging to our wellbeing. When we are not fulfilled we can turn in frustration to addictions in order to feel good. The journey from problem to solution gets interrupted with short-term relief and this masks the truth. Relief includes drugs, cigarettes and alcohol. It also includes avoidance techniques like procrastination, denial, overeating, oversleeping, oversocialising and overworking. The first step to a better quality of life is to uncover our truth, unmask the problem causing the pain and then treat it. We then have a chance of avoiding the interruption of the numbing addictions that prevent us finding solutions to create fulfilment. Uncovering the truth is where fulfilment begins and it’s what True Believers do. Uncovering the truth is where the magical tipping points can be found.

Christina Guidotti is one of Australia’s leading experts on belief, conviction and commitment in the areas of sales, leadership, productivity, achievement and fulfilment. As a powerful and inspiring speaker, author, and mentor she partners with individuals and teams to create sustainable outcomes. For more information visit christinaguidotti.com.

eliteagent.com.au 43

CHAMPIONS

REINSW AWARD WINNERS 2014

Australia’s real estate industry is continually shaped by hardworking, high-achieving professionals who are passionate about their careers and their businesses. Elite Agent Magazine would like to congratulate this year’s REINSW award winners.

Real Estate Agency – Small. Second Winner: Wilson Property Agents, pictured (L to R): Phil Oakes, Tiffany Glover, Adrian Wilson and Malcolm Gunning.

Rising Star Winner: Michael Holloway – Raine & Horne Double Bay. Pictured (L to R): Malcolm Gunning and Michael Holloway

Real Estate Agency – Small. First winner: Atkinsons Real Estate, pictured (L to R): Phil Oakes, Martin Wells, Virginia Wells and Malcolm Gunning

Residential Sales Team — Winner: Cunninghams Property, pictured (L to R): Andrew Lutze, John Cunningham and Malcolm Gunning

Real Estate Agency – Large Winner: Morton & Morton. Pictured (L to R): Mike Anderson, Ewan Morton, Noel Jenkins, Amanda Stiles, Ettiene West and Malcolm Gunning.

Residential Salesperson, Winner: Peter Chauncy – McGrath Crows Nest. Pictured (L to R): Fariha Neda, Peter Chauncy and Malcolm Gunning

4 4 ELITE AGENT • NOV-DEC 2014

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marketing than 20 times each year. 5. He uses email, real mail, text messages, the telephone (remember that?) and meetings in person. He never relies solely on email, which is what most agents do. So this article is about attracting a big email list of potential buyers and sellers. How are you going to do it? Allow me to offer some ideas that have worked very well for me, and also for many Bestagents members whom I’ve worked with. I call it give-to-get marketing. Take a look around at what your competitor agents are offering.

The more ‘warm’ contacts you have in your database, the more sales you will make each month.

How to grow your real estate business by building a solid email marketing list Ray Wood, CEO of real estate marketing group Bestagents, shares how Aaron Shiner built his list of 2,500 contacts and how you can too.

VEN THOUGH the open rates are

not as good as they were, email is still an awesome and very cost-effective way to connect with future buyers and sellers. The trick is to keep building and keep engaging. Here’s a real estate success clue that should get you pumped and motivated to build a big email list of potential buyers and sellers: The more ‘warm’ contacts you have in your database, the more sales you will make each month. Let’s look at an example I’m very familiar with. Sydney agent Aaron Shiner makes about $100,000 each month in real estate commission. He carefully manages a database of roughly 2,500 people. But he didn’t always have that many contacts. In fact, he was ‘stuck’ for quite

46 ELITE AGENT • NOV-DEC 2014

some time on about 1,000 contacts. Guess what? His income was pretty much half what it is today. Can you see the direct correlation? So Aaron has a few things in place. 1. He uses a lead generation website that automatically keeps in touch with his new contacts and builds rapport. He drives traffic to his site with cool Facebook ads. 2. He also uses his Facebook business page to engage and attract new contacts. But it doesn’t look like a real estate site and he never posts listings in there, no matter how good they might be. 3. He uses an opt-in function on his website so visitors have the opportunity to download a report and a digital copy of my book, How to Sell Your Home for More. 4. Then he works on a solid plan to make contact with the names on his list more

They mostly offer the old ‘Free Appraisal’ letter or certificate with their face and company logo plastered all over the flyer. But if effective marketing is about offering a point of difference, why would you offer the same as everyone else? Put yourself in the seller’s shoes for a moment. What could you offer that is of interest to them? The process works like this: 1. You put your attractive offer out there 2. A potential client wants your offer and contacts you 3. You nurture the new relationship with even more information 4. You keep in touch with your new contacts on a regular basis 5. Your pipeline is constantly full of potential leads. The really great news is that most agents don’t think like this. It makes it all the easier for you to stand out from the crowd. Most agents wake up in the morning and look for that instant fix of a new listing. They have no monthly or even weekly marketing plan and no systems in place to generate leads and build their email list. There is so much business out there in real-estate-land. All we need to do is package our offer attractively to engage potential clients on a regular basis and then build our relationships.

Ray Wood is the CEO of real estate marketing group Bestagents, a founding partner of real estate software company LockedOn and the bestselling author of How to Sell Your Home for More.

EPM ELITE PROPERTY MANAGER

HARCOURTS NORTH LAKES Dynamic Duo talk Rent Roll Growth PAGE 52

Natalie Hastings Relax, itâ&#x20AC;&#x2122;s Christmas! Page 48

Tara Bradbury 5 ways to attract new landlords and tenants online Page 50

Jo-Anne Oliveri 13 proven strategies to help you retain your team Page 54

Sarah Latham From ground zero Page 56

Loretta Morgan Raise your profile Page 58

Justin Melton Why you need a service charter Page 63

Property Management Mentor

Natalie Hastings

Relax, it’s Christmas!

A bit of R&R during the festive season may well sound like the impossible dream if you are in property management. But with a bit of pre-organisation it is totally ‘doable’, says Natalie Hastings.

RE YOU looking

forward to a relaxing and uninterrupted Christmas break? ‘What Christmas break?’ I can hear the property managers of Australia shrieking. As any seasoned real estate professional knows, property management is the one department of our industry that never sleeps – regardless of public holidays, natural disasters or Santa Claus coming down the chimney. Property managers are at the beating heart of our housing economy. Their role means they must be accessible to both landlords and tenants whenever necessary. But if you are a property manager, these demands don’t mean sacrificing your life to the job; difficult though it may seem, there are ways you can plan to have an enjoyable Christmas break this year. TELL EVERYONE Not all agencies are willing or able to shut their doors over the Christmas and New Year period. If you are one of the agencies who plan on closing both your sales and property management departments down over this short period, begin preparations now and ensure you tell all stakeholders affected. A bit of extra legwork now means that your whole team will benefit from the respite of a holiday; they’ll be able to return in

48 ELITE AGENT • NOV-DEC 2014

2015 ready to lease, list and participate fully in your business. Communicate with your landlords about the upcoming closure by popping a note in their end-of-month statement, informing them of the day they will be paid and your availability over the break. Likewise, advise all tenants of your closure and provide them with key contacts for repairs and maintenance. If you would like tenants to contact preferred tradespeople with any emergency maintenance during your closure period, tell these tradespeople – you’ll likely

with easy-to-use software programs specific to property management, remotely sending receipts and balancing accounts shouldn’t prove too difficult a chore over the Christmas break. If your property management team are not up-to-scratch with all the features of your software, now is the time to have them upskilled with training. Alternately, you may choose to use an outsourced trust accounting business to balance the books in your absence. To streamline this aspect of balancing the books,

A bit of extra legwork now means that your whole team will benefit from the respite of a holiday; they’ll be able to return in 2015 ready to lease, list and participate fully in your business. receive an extra candy-cane and referral or two into the bargain. Update your website and social media pages with your days of closure, and include a limited list of staff contact details for emergencies – these should be repeated on your ‘out-of-office’ email and voicemail, too. SMART ACCOUNTING Complying with legislation in relation to receipting and paying rents can feel onerous during holiday periods. Luckily,

encourage your tenants to pay their rent in advance before going away on holidays. MINIMISE MOVES No one wants to deal with a complex vacate or bond challenges just before or during the holiday break. Of course, these situations can’t be completely avoided; but you can encourage your tenants to move their vacate date around your office closure dates by alerting them nice and early.

Additionally, advise your tenants that you will not be conducting final inspections during the office closure period or dealing with bond claims, further minimising reasons for them to contact your team while you’re enjoying a little ‘R and R’. USING TEMP STAFF If you’re planning on staying open over the holiday season, consider using temp staff to give your team a break. A pre-holiday handover session will be crucial to keeping your team hands-off during their break, so make sure that you have updated your systems and processes manual in relation to receipting rents, banking and maintenance requests. Think about training your temporary staff in the basics of the property management software your business utilises – after all, prevention (training) is better than cure (cleaning up a giant accounting mistake). Additionally, employ the services of outsourced real estate trust accounting professionals to keep your books in immaculate, secure shape during your absence. By separating the procedural functions of your temp staff from your precious trust account, you’ll be safe in the knowledge that your clients’ needs are taken care of while you are having a hard-earned break. Natalie Hastings is the Managing Director of Hastings + Co. For more information, visit hastingsandco.com.au.

Business Development Mastery

Tara Bradbury

5 ways to attract new landlords and tenants online

If you build a great website and then neglect to keep it updated you are wasting an opportunity to generate new prospects, says business development coach Tara Bradbury.

VER THE last

12 months I have spent a lot of time contacting BDMs and checking out agency websites. When I phoned one company to speak with a lady I was surprised to find she hadn’t worked there for two years, although her name and profile were still listed on the website! Why is it that so many businesses build a fantastic website which draws a lot of business in the first few months, and then forget to

following them up. Make sure they update staff changes, office structure updates, add testimonials and, if you move your office to a new location, update the address details and add any new information about your products or services. The BDMs should write a few blogs that will provide value added information to investors. No matter what industry you are in, if you have a website make sure you have a plan in place to ensure it is maintained. Too many agents build fantastic websites and leave them for months, even years, before

Testimonials are like references on a résumé and are most powerful when they are recent. update the information? If you are building and forgetting you are just wasting your time. If you don’t have the time to ensure your website is managed and updated with new information, you should delegate the task to one of your property management department members. Hand the responsibility over to them and set yourself the task of

50 ELITE AGENT • NOV-DEC 2014

making improvements. Here are the five crucial areas I believe are neglected when maintaining (or not) agency websites.

PROMOTE YOUR PM DEPARTMENT One of the most common points I make to principals is the lack of property management information on the website. With the technology we have

available, it is important that your website has investor information to encourage them to call you first. Today’s landlords are highly educated. If they don’t like what they see on your website, chances are they won’t even pick up the phone or send you an email to ask about your services. Use your website as an area to share your knowledge and expertise. Have separate sections where your landlords and tenants can access material about your agency. This area could also include frequently asked questions or standard documents so landlords and tenants can have direct access online. For example, having your application forms available on your website will make it easy for tenants researching rental properties after hours.

STAFF CHANGES AND UPDATES Many agencies will have an ‘About Us’ or ‘Meet our Team’ section. These are great places to talk about each staff member. Make sure the photos are recent and the content is up to date. If the staff member has just started, arrange for a photo to be taken within the first week with an introduction profile of up to a hundred words.

If you are going to post a new staff member on your website, do it 100 per cent or not at all. One of my pet hates is going in to meet team sections and find photos missing, or the photo has been added but no profile has been included. The profiles and photos section of your website is where a landlord can get a feel for your agency and team members before meeting you face to face. Remember, a lot of investors will never set foot in your agency, so make sure your staff profiles have the information necessary to get them to pick up the phone. AGENCY CHANGES AND UPDATES Have you ever Googled somewhere you would like to go only to find it has moved? This has happened to me several times when I have been trying to find a particular agency. How do you expect your potential buyers, sellers, landlords and tenants to find you if you don’t update your address details when you move? Ten years ago we used to search the Yellow Pages, but now most landlords will go straight to Google. Your website may be the first point of contact with your client, so make sure they have the same experience they have walking into your office.

TESTIMONIALS Testimonials enhance the credibility of both the BDM and the team, along with endorsing the product and service you provide. Landlords are bombarded with advertising messages every day. A great way to sell your service on your website is by using testimonials. You will stand a much better chance of securing the business if you can convince prospective landlords that you’re credible. Testimonials are like references on a résumé and are most powerful when they are recent. This is why it is so important to always ask for them and update them on your website. Featuring testimonials that are over 12 months old, or from landlords who are no longer clients and have left due to mismanagement, is not recommended. Go through

When I phoned one company to speak with a lady I was surprised to find she hadn’t worked there for two years, although her name and profile were still listed on the website! your testimonials and make sure they are up to date.

BLOGS Writing a blog has many different advantages for your entire agency. Write every day or just once a week; something is better than nothing and it gives you the opportunity to provide valuable information about the industry to your investors. Writing blogs will help you stand out from the crowd of competitors online and is very powerful when consistently updated. A blog can give your

agency a much-needed boost in effective branding, so make sure this powerful tool is harnessed and used correctly. Your website is a very persuasive device which allows you to brand your business as you never have before. It’s the most popular way to engage with your prospective landlords and showcase why they should choose you. CHECK YOUR USER EXPERIENCE With a user-friendly website, you make it easy for clients to share your business. Not only can they access all

your business information instantly, but with social media platforms like Facebook and Twitter they can easily share material they love or would like to recommend. Your website is a central place for potential clients to learn more about why your property management department is the agency of choice in your area. Allocate time to go and have a look at your website. Picture yourself as a landlord looking at it for the first time. Do you provide material that will encourage them to ask more about your property management department? Read through all the current information on your website and check for spelling and grammar errors. Look at the team profiles and the images of the agency or the local area. Are they recent and do they give your landlords the same first impression as they would get were they to walk into your reception area? Make a list of the points needing attention and organise a team meeting to discuss when and how to action the concerns. If you follow these five basic steps, you should end up with a website that you will both be proud of, and that will work well alongside your team as a tool for developing new business. Tara Bradbury is the Director of the BDM Academy. She shares her business development ideas and strategies with property management BDMs and Principals. For more information visit bdmacademy.com.au.

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Dynamic Duo

Having the largest Harcourts property management portfolio in Queensland and the second largest in Australia, the dynamic duo of Brett Mason and Paul Considine have set a incredibly high standard of achievement for property management in the Northlakes Area.

PENING IN November 2005, Harcourts North Lakes has grown from a partnership into a 22-staff agency. With more than 1,100 properties under management, and a community driven approach, Brett and Paul have grown with the North Lakes community over their nine-year tenure. Although the competitive climate has changed in the region, with an acknowledgment of the dynamic growth of Brisbane’s Moreton Bay area, Harcourts North Lakes continues to set the standard through continual innovation and a culture that is hard to come by in the industry.

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With their passion for the development of their business and of the team that drives Harcourts North Lakes to the success they have realised, we spoke to Paul Considine to get a better understanding of what it is that underlines that success. You are the longest standing real estate agency in North Lakes. What changes have been the most significant in the time that you have been in the area? Competition has been the most significant change. This has resulted in our team striving for continual growth by constantly reviewing our business; how we are developing as a business, and driving for that positive development.

What do you feel makes Harcourts North Lakes such a powerhouse in property management? Our leadership structure. By having two business owners who manage hands-on and separately - the sales department and PM department – we have been able to provide the leadership and support that is necessary to run a successful PM. The property management team looks after an impressive 1,100-plus properties. What it is that allows you the capacity to maintain them at such a high standard? Our structure and people have evolved at the various stages of the PM growth, and having the structure with the right people is so important. It’s also important that the staff

IT WAS ONE OF THOSE EXPERIENCES WHERE EVERYTHING THAT CAN GO WRONG DID GO WRONG, BUT IT ENDED UP IN ONE OF THE MOST POSITIVE SITUATIONS YOU COULD EVER IMAGINE. and office management can do their job to a high standard. If the organisational structure is not right, and without the right tools and resources for your team, you will not achieve that high standard that you are looking for. Team culture must play a pivotal part in the development and growth of not only your staff, but also of the agency. What are the key drivers to the culture at Harcourts North Lakes? It starts with treating people with the way you would like to be treated. You give them supportive leadership, great structure, the right tools and resources so they can actually do their job. With having a work life balance you can achieve a great culture. Being the number one agency for Harcourts in Queensland for such a long time, how do you remain focused on continual growth, and keep the motivation running for continued success? Competition has been a great motivation. This has resulted in us striving for continual growth by constantly reviewing our business, and how we are developing as a business, looking for that positive development. We have tried lots of things that worked and lots of things that have not, but the biggest secret is that you must try out ideas and give them a good go if you want continued success.

What are some of your most memorable stories about your time in North Lakes? We received a call years ago from a tenant after a thunderstorm, when lightning struck the TV antenna on the roof. The direct impact of the lightning bolt had blown a twofoot-square hole in the roof, and lifted the Gyprock ceiling off the rafters. The strength of the strike was so intense that it blew the gas line! It was like a bomb had exploded in

IF THE ORGANISATIONAL STRUCTURE IS NOT RIGHT, AND WITHOUT THE RIGHT TOOLS AND RESOURCES FOR YOUR TEAM, YOU WILL NOT ACHIEVE THAT HIGH STANDARD THAT YOU ARE LOOKING FOR.

the house. It was so memorable because a) you wouldn’t read about it; b) the damage was such a nightmare to organise getting it repaired; c) it’s one of those experiences where everything that can go wrong did go wrong, but ended up in one of the most positive situations you could ever imagine. What is the best advice you have ever received? Treat people the way you would like to be treated. Your business is only as good as the people you have. What advice would you give to someone wanting to enter real estate or property management? Be realistic and understand that it is a hard business to enter. It takes a lot of hard work and perseverance to be successful. You need to understand that no matter how good you believe your business is, you are dealing with people; and sometimes people do not do the right thing, whether that’s owners or tenants. Continue to be the best you can, but realise that not everyone will be happy because of their own issues and just deal with those situations with professionalism. What is in store for the future? With perseverance, consistency and professionalism, there is a massive opportunity in our area for continual growth and development. It is still rapidly expanding and with the influx of new people to the area, the challenge becomes one that is driven by that change in dynamics. Competition is looking to enter our market, which is a great thing. It allows us to continue to strive for greater heights and push ourselves to further refine and develop not only ourselves but the team, and it’s that reflection of internal evolution that makes this all so worthwhile.

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proven strategies to help you retain your team

Jo-Anne Oliveri of ireviloution intelligence demonstrates how to find and keep the staff you need to grow your business.

ETENTION IS how you

can unlock a sustainable income stream in your property management business. To achieve retention you must first build a loyal, skilled team; then, using that team, build a loyal client base. What follows are 13 proven strategies that guarantee team retention.

RECRUITMENT: HIRE FOR ATTITUDE, TRAIN FOR SKILL When you recruit new team members always remember: hire for attitude, train for skill. That’s because applicants with the right attitude are far better choices than applicants who are set in their ways and cannot be moulded to your agency’s culture. To hire for attitude, clearly articulate the personal attributes needed to fulfil your roles. This helps you hire the right people for the right roles and train them into team members who love to uphold your agency’s culture.

ROLE DEFINITION: DEFINE, REFINE, ASSIGN You should define, refine and assign every role within your business. This means creating clear descriptions of what each team member does and the standards they must maintain. To do this, outline how each role interacts with every other role, which tasks are shared and in what way. When roles are defined and understood, team members work together harmoniously and productivity ensues.

STANDARDS: MAKE YOUR BUSINESS UNIQUE Your business standards make your agency unique. Write standards for every area of your business, including personal presentation, service delivery, task

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completion and customer relations. Written standards mean everyone knows each party’s expectations: your clients know what to expect and your team know how to deliver them. Standards therefore minimise confusion and maximise structure, which leads to increased efficiency and job satisfaction.

POLICIES: GIVE YOUR BUSINESS DIRECTION Policies provide you and your team with direction. As the business owner, you must write your business’ policies so you are in control of the who, what, when, where, why and how of your agency’s operations. Your written policies should encapsulate legislation, business culture, service standards, processes and codes of conduct. Designing your policies gives your team a clear direction.

TEAM INDUCTION: INDUCT, INDUCT, INDUCT! Your team needs to be inducted, and induction must never stop. To do this, design a program to ensure new recruits are inducted into every area of your business and continue to receive training once their probation period ends, because induction must be ongoing. That way, team members internalise your business’ vision and values and become agency assets and advocates.

WHEN YOU RECRUIT NEW TEAM MEMBERS ALWAYS REMEMBER: HIRE FOR ATTITUDE, TRAIN FOR SKILL.

TRAINING: PLANNED, CONSISTENT, ONGOING After induction comes training. Research shows that employees receiving planned, consistent and ongoing training are more committed to remaining in their current employment than if they are receiving no training and support. So, like induction, train your team members and don’t stop.

CULTURE: ATTRACTIVE AND DESIRABLE Your business’ culture can attract employees to your business and make you an employer of choice. To create a highly attractive and desirable culture you must plan, implement and proactively manage your business’ values, beliefs and norms.

Doing this builds a clear and consistent culture which attracts recruits who want to be part of your business.

ONE-TO-ONE MEETINGS: 30 MINUTES AND ONCE A MONTH One-to-one, 30-minute, once a month meetings with every employee help you manage, measure, monitor, mentor and retain your team. These meetings give critical analysis and compliments where due so individuals improve their performances. They also help you establish how team members are handling positions, whether they are enjoying their roles and if they are suitable for promotion. In essence, they help you get the most out of your team and help your team get the most out of working for you.

CAREER PATHS: PROMOTE FROM WITHIN As the business owner, it is your job to give each team member a clear career path. You can do this by promoting from within your existing business structure. This gives you the ability to recruit for a basic position, say receptionist, and then induct, train and develop them for the next level of your business. That way, they continue to be the best candidates for the next position up the ladder. This not only keeps your team committed but is a cost-effective recruitment solution.

INCENTIVES: WIN-WIN SCHEMES A successful incentive scheme is about win-win – it creates a win for your business, a win for your property owner, a win for your tenant and a win for your team. Win-win incentive schemes ensure higher returns for your property owners, higher than average increases in property capital values and higher bonuses for your team. Implementing such an incentive scheme is also a sure-fire way to build your bottom-line, as your team is rewarded for servicing both new managements and current properties.

LEAD FROM BEHIND: NURTURE YOUR TEAM Leading from behind means seeing everything that is happening in your business. To lead from behind you must implement systems and processes that follow, track and identify what is happening at any point in time. Your eyes are always on your business and your arms always wrapped around your team, keeping them nurtured and supported in their roles. This is how you can become a true leader and win your team’s loyalty.

LEADING FROM BEHIND MEANS SEEING EVERYTHING THAT IS HAPPENING IN YOUR BUSINESS. TO LEAD FROM BEHIND YOU MUST IMPLEMENT SYSTEMS AND PROCESSES THAT FOLLOW, TRACK AND IDENTIFY WHAT IS HAPPENING AT ANY POINT IN TIME.

SYSTEMS AND PROCESSES: DESIGN, DOCUMENT, MANAGE You must design, document and manage your business’ systems and processes to ensure team members complete tasks consistently. You cannot run a successful business if you continually change your systems and processes, or simply make them up as you go, since your team will never understand their roles and tasks. Instead, design your systems and processes, document them and then teach them to your team.

ACCOUNTABILITY: THE CORNERSTONE OF BUSINESS SUCCESS Accountability is the cornerstone of a successful business. To keep your team accountable you must implement systems and processes which ensure each team member consistently carries out tasks through to completion. This ensures that your team is always maintaining and protecting your agency’s standards and reputation. Implementing these 13 proven strategies helps you build and retain a loyal, skilled team focused on growing your property management business. Jo-Anne Oliveri, CIPS, TRC, Founder and Managing Director of property management business solutions company ireviloution intelligence, has trained over 500 agencies and thousands of agency owners and property managers worldwide. With over 20 years’ real estate experience, she regularly speaks at the industry’s top Australian and North American conferences. Visit ireviloution.com to find out more.

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From ground Award winning PM professional Sarah Latham shares a personal account, with examples of how her specialist property management company has achieved its phenomenal rate of growth.

ROWING A RENT roll from scratch is perceived as a difficult thing to do, and since Latham Cusack Property Services won the 2013 Australian Real Estate Award for ‘Best New Office’ we are often asked how we grew our rent roll so quickly. But it’s really not that hard, and you don’t need to be a gun salesperson or a smooth talker to expand your client base. How did we do it? It’s simple. Take the time to talk to people. I’m sure in the early days of our fledgling company we were super-annoying. Every opportunity we had we were asking everyone we spoke to if they had, or knew of anyone that had, investment property.

ZERO

When I look back it was really embarrassing. We nagged our tradespeople, we harassed the few tenants and landlords that we had, and we pleaded with our friends and our families. It worked! Our tradies, bless them, were on a mission; every now and then they would phone up with “We’ve got another one for you!” As you know, the most effective way to grow your client base is by word of mouth. Our friends spread the word for us too and were soon referring work colleagues, friends of friends, family doctors, friends in mothers’ groups and friends at the gym. Anyone who had a rental property was instructed to contact us. I’d like to share two success stories that really make me smile.

One is how we managed to inherit six extra properties as a direct result of the determination of one very happy landlord (who owned a small one-bedroom apartment, on reduced fees, that didn’t really bring in much income to the business), and the other is a totally random story about how chatting to people can lead to a fantastic management.

HE WORKED THAT AGM LIKE HE WAS ANGELINA JOLIE AT A HUMAN RIGHTS MEETING. AS A RESULT WE GOT TWO OWNERS OUT OF THAT. BUT THERE WAS MORE TO COME.

STORY NUMBER ONE One of our landlords was so happy with the level of service and proactive attention that we were giving him that he decided to spread the word and recruit more owners for us. Being on the body corporate, he started there. He worked that AGM like he was Angelina Jolie at a human rights meeting. As a result we got two owners out of that. But there was more to come. One of those owners had a two-bedroom apartment (worth $650pw) in the same building as his. The other owner had three properties – a one-bedroom apartment in the same block (worth $620pw) and two houses with rental returns ranging from $1,000 to $1,200pw each. This same person also has a brother with rental properties in our area. So far we’ve only managed to get the one from him, but he’s promised us we’ll

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get the other two in due course. Finally, we’ve just signed up their father’s property and leased it for $1,180pw. So, because we’d taken the time to chat to this owner and let him know that we were a start-up business and very keen to grow, he said a few nice things about us and a domino effect led to six additional properties, with hopefully more on the way. When you only manage a small number of properties, six new ones is a big deal!

Sure enough, true to her word, she signed up with us and we leased the house in four days for $1,880pw ($200pw more than the previous tenant was paying). IN SUMMARY Sydneysiders love talking real estate and you’d be surprised at just how many people you already know own an investment property, or know others who own one. Let your tradespeople know that you’re looking for

WHEN I LOOK BACK IT WAS REALLY EMBARRASSING. WE NAGGED OUR TRADESPEOPLE, WE HARASSED THE FEW TENANTS AND LANDLORDS THAT WE HAD, AND WE PLEADED WITH OUR FRIENDS AND OUR FAMILIES. IT WORKED! STORY NUMBER TWO My second success story strangely begins with eBay. I needed to buy an oven for my kitchen renovation. I saw one advertised on eBay at a house near to home, which is also near to work. I knew the street; there were some very nice properties there. So I made an appointment to check out the oven and got talking to the lady selling it. Why was she selling the oven? Was she moving? Did she own the house? Yes she did. But she was about to undertake some major renovations which meant moving out and renting somewhere else while the work was being done. They weren’t going far; they were renting the house next door directly from the landlord for six months, then moving back. “In fact,” she said, “the landlord is there right now; you should pop in and say hi.” So that’s exactly what I did. The next-door landlady and I got talking too and by the time I left she’d promised to give us an opportunity to lease it once the tenant moved out.

more rental properties; they speak to property owners all the time. Some of our tradespeople have even given us their own investment properties to manage. We feel really humbled at how many of our clients and tradespeople have referred investors to us and helped a small boutique business like ours grow from nothing to something special that is still growing in a sustainable and exciting way. Sarah Latham began her property management career in 1993. Since then she has worked in four different offices ranging from a small portfolio of 200 properties to running a large property management department of 13 people and overseeing the management of around 1200 properties. She has now started her own boutique property management business on the lower north shore of Sydney. For more information visit lathamcuscack.com.au.

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property manager profile

Kylie Harbo

Davey Real Estate Scarborough WA Kylie Harbo of Davey Real Estate is this year’s REIWA Residential Property Manager of the Year. With a mantra of ‘Excellent service’ she is an industry leading Business Development Manager and also manages a portfolio, albeit a small one at 60. She is as comfortable working single bedroom units as she is working up to $1,500+ per week mansions. Currently on maternity leave with daughter number one, this is Kylie’s first hand account of her career so far.

My dad is my biggest fan. He was working on the Daveys’ house back in 2001 and arranged my high school work experience with them for years 11 and 12. After that I worked casually on reception during the school holidays and got a taste for property management there. I graduated from high school at the end of 2002. After a quick break I started my

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full-time career as a property management assistant in early 2003 at the age of 17 and never looked back. Jan Davey, the now-retired director of Davey Real Estate, was my mentor back then. She allocated me a small and tough portfolio, with a lot of tenants on government benefits. She taught me to take a zero tolerance approach; I had 19 court cases in the first 18

months of my career. Back then my biggest challenge was age. Who was going to list their investment with an 18 year old? But from that point my career flourished within the Davey group. My passion to win the business and lease properties was my new love, and I’d say my enthusiasm and confidence won me a lot of business.

Local knowledge and attention to detail are two of my strong points. I always knew about transport options, where the closest school was and the dates of the local fete. Perth’s population has increased dramatically in the last 10 years so knowing this information earned me a good reputation with the tenants and I became a go-to girl for people immigrating

to Perth. It worked both ways as I always had a list of potential tenants to show clients when appraising their homes. Back then business development managers weren’t heard of, so to grow a rent roll you had to take the property on and manage it. Now reputable property managers or business development officers (BDOs) are highly sought-after in the real estate industry. I learned along the way to sell the PM department to the client. PMs specialise in the day to day management of the investment and the BDO specialises in leasing, tenant selection and client relations, to ensure the customer service promised is followed through. We manage some beautiful properties at Davey. I work at the Scarborough office within a stone’s throw of our beautiful coastline and famous Scarborough beach. Davey have five offices located along the northern coastal corridor; the business is family owned and operated. This is the best thing about Davey: you feel like part of the family as they train you and encourage career development. They invest in providing their staff with innovative and modern facilities. I won the 2004/05 Property Manager of the Year within the Davey Group. I won PM of the year again in 2013/2014, Top Listing PM in 2013/2014 and Innovative Marketer 2013/2014. In 2006 my now husband, Jesper, and I decided to move to the UK. We went on working holiday visas and travelled the world for 18 months. Returning to Perth in 2008 I went knocking on Davey’s door for work and threw myself into PM again. In 2010 I went back to REIWA to complete my triennial certificate. Again my dad Eddie encouraged me to study. He has an admirable work ethic; when I was young he worked full time and studied at night school to complete his diploma in law. I enjoyed learning the different facets of the real estate business and trust accounting, and knew I needed

KYLIE’S AWARDS WITHIN THE DAVEY GROUP • Award for Lowest Arrears across the Davey Group 2012/2013 • Award for Top Listing PM of the Year 2012/2013 • Award for Property Manager of the Year 2012/2013

WE MANAGE SOME BEAUTIFUL PROPERTIES AT DAVEY. I WORK AT THE SCARBOROUGH OFFICE WITHIN A STONE’S THROW OF OUR BEAUTIFUL COASTLINE AND FAMOUS SCARBOROUGH BEACH. this knowledge if the market ever turned. As we all know, the demand for mining jobs in Perth was huge back then and we enjoyed 20 per cent growth across the rental market and several applicants per property. Being in real estate you need to be a good negotiator. I now train PMs and sales reps at Davey and my first rule of thumb is ‘be flexible’! More recently my mentor was Rob Mason, consecutive winner of the REIA auctioneering championship. He was my manager from 2010 to 2013, but last year he moved his family to Albany so they could experience a slower pace of life and more of a country upbringing. Rob had a way with clients. His 13plus years’ experience gave him such a brilliant reputation that the majority of his business came from referrals. He taught me a lot; for example, spend money to make money, and say thank you to your clients. From this I came up with a dynamic marketing plan and some

different and innovative gifts. I’ve been playing netball my whole life, I play for my local team, Scarborough, and I’ve been the Vice President two years in a row. This keeps me even busier, but the networking is fantastic for referrals and playing a competitive team sport is a good stress release for anyone! I’m currently on maternity leave since having my first baby girl, Ella, in June this year. Motherhood is hard work, but my husband and I make a good team and I look forward to returning to Davey next year.

KYLIE’S BUSINESS DEVELOPMENT PLAN INCLUDES ACTIVITIES SUCH AS • Newspaper advertisements, • Poster advertisements (office windows) • REIWA.com banner advertisements and other internet marketing • ‘No reason call’ and e-newsletters to existing landlords • Seminars and mail merges KYLIE’S OTHER POINTS OF DIFFERENCE 1. Market appraisals that include CMAs, suburb demographics and ‘why Davey’ 2. Outstanding client gifts including hand-branded wine boxes with champagne and Davey branded rock candy for our landlords to share with their work colleagues 3. A zero tolerance for arrears, with multiple procedures in place to keep her tenants paid in advance 4. Arranging with local businesses to provide discount cards for tenant packs including the Rendezvous Hotel 5. Proactively suggesting improvements to owners to increase capital value of property.

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Raise your profile!

You have chosen a career in property management and you are passionate about what you do. You’d like to be recognised by the community and the industry. Where to next? Here are 15 ways to build your profile from Loretta Morgan.

GET A TRACK RECORD. GET EXPERIENCE. Be eager to learn and learn from the best. Research your leading property managers; what do they do, and how do they do it? What have they done to get where they are today? I have had a career in property management stemming some 17 years; I started my career in reception and now I own my own business. I have become a leading property manager through experience in the industry, watching and learning from leaders in my field. So here’s my first tip: keep journals of everything you learn.

GO ABOVE THE CALL OF DUTY – DO MORE I believe one of the things you can do is to do more than what is asked or expected of you. Your clients will love you for it and your employer will see you as a shining star, and as a result will give you more responsibility. I’ve found that by giving more you gain more. Sometimes that has meant not getting paid for additional hours or more responsibility.

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BECOME AN AUTHORITY IN YOUR FIELD How do you do this? Attend industry forums and meetings. Become involved in industry bodies and groups. This is a way to network, build respect, get to know leaders in your field and develop your skills and knowledge. You need to be seen; you need to be amongst the action. Be patient and consistent to earn your stripes. This stuff doesn’t happen overnight!

READ, RESEARCH, WATCH AND BECOME A big part of my week involves researching online publications, industry magazines, videos, blogs and industry information, but it also involves looking outside my field for new ideas and material. Often what others are doing outside our industry can give you ideas to bring into your business, and this also helps with your role as a property manager. Don’t be afraid to do things a little differently and bring in new ways of doing things, as this will also grab the attention of others and push you to the top of your industry.

SOCIAL MEDIA I love all of the social media tools we have at the moment: Facebook, LinkedIn, YouTube, Twitter, Pinterest, Google+ and so many more. Use them all, and use them regularly. Put your name to it. Start writing about what matters to you in your industry and what you believe your target market and ideal client would want to know. Make sure you are adding value here also. Post often, but don’t post the same things on all of the sites. You need to post the same message but in a way that suits the site you’re posting for. Comment on other posts from leading property managers or sites regularly too. This will get your name out there and if you are commenting accurately others in your industry will notice. Start to brand your name. Get a domain name and put a website to it – wordpress. com is a great start and it’s free. You can get domain names cheaply as well. Blog regularly about your experiences; what you love, how you do things. This will get attention and also position you as a trusted and knowledgeable property manager.

CREATIVITY AND INNOVATION Don’t be afraid to be creative. In this competitive world you need to be creative and innovative. As I mentioned before, it’s great to look to other industries or even other countries to see what you can bring into your industry. Be careful here not to be seen as incompetent, though. I have seen people do some silly stuff and it doesn’t work. It might temporarily have interest and traction, but you want people to trust you and respect what you are doing, not to think you’re just seeking attention.

GIVE MORE TO YOUR CLIENTS AND THE COMMUNITY Something that I have found to give me great leverage is providing free information to my community on topics they may not know about. Why not write a regular column or blog giving free information on property management topics? There are plenty of property management educators out there blogging and posting for other brokers and property managers, but there aren’t many who post for the public. Most of my blogs are on topics such as water usage, lease renewals, inspections, the list goes on. Try to see it from the

to enter business awards and industry awards as well. Make sure you spend the time on writing the submissions though, and scrub up on your interview skills. Most awards are judged by both written application and interview, so make sure you are great at both. If not, get some help. You could even go to previous winners and finalists to get some tips and ideas. Being chosen as a finalist is a fantastic opportunity to get your name out there, but it’s also a great networking opportunity and a chance for some free publicity too. Whether or not you get chosen, get the feedback; this will help you grow and learn.

great for career advancement and building your profile. You could also approach these companies to see if they are interested in you blogging for them. Writing for different publications is a great way to build your profile too. Contribute to industry magazines and local property publications. You will also find if you start doing this journalists will start to contact you for comment in their articles, which gives you great traction as well as being free publicity. And don’t be afraid to send media releases on topics you feel will be really beneficial for readers to various journalists; they are always looking for great stories.

NETWORKING Every occasion, social, work or anywhere else, is a chance to network and be seen. Be sure to be your authentic self, however, while also being on your best behaviour. If you’re not great at networking, find someone who is and get them to help you. You want to be seen as someone who is open, friendly, willing to help, always available and knowledgeable in your field. People are automatically drawn to positivity.

SURROUND YOURSELF WITH GREAT MENTORS AND CREATE YOUR MASTERMIND TEAM. I HAVE FIVE MENTORS AT THE MOMENT; TWO ARE IN THE INDUSTRY AND THE REST ARE NOT. public’s eyes. What would they want or need to know to make informed decisions? You will then become the go-to agent because you gave them the knowledge they needed. So my second tip is you can use the information you have collected in your journals to write these.

MENTORS OR MASTERMIND TEAM Surround yourself with great mentors and create your mastermind team. I have five mentors at the moment; two are in the industry and the rest are not. These people are all highly regarded in their fields and push me, keep me focused and give me awesome ideas. All of them have a different skill set that they bring to develop my skills. If you set yourself a goal and get the right mentors around you who will push you and who are also locked in on your vision there’ll be no stopping you! Don’t cut on the costs; you get what you pay for, and you will need to invest in your career.

AWARDS Enter all the awards you can, even if they are not industry awards. Look

SHARE Share your knowledge and information with others in your industry. Don’t be afraid to talk with other agents; ask about their experiences, listen and learn from them. You will be surprised at what you learn from listening to others in your industry.

CREATE ALLIANCES Work with other property managers in other areas whom you respect and who also have great careers. It’s always good to have them around for troubleshooting and ideas. Why not create a social group where you can all meet once a month and hang out to talk about property management matters and how you can overcome obstacles or grow?

BLOGGING, WRITING AND COMMENTING FOR INDUSTRY Once you start blogging regularly you will find if your information is great that companies will start contacting you to blog for them. Grab every opportunity to do this. Other property managers and industry people will read these and it’s

THINK LIKE A BROKER Why not learn from a top broker – or a few? There is a certain element of sales and negotiation involved in property management and I believe my experience in sales has helped me become a great property manager. Awesome brokers have great skills in building their profiles and negotiating. Bring this stuff into your role. Follow great brokers, learn from them, pull out what you can and implement it into your role as a property manager. This will help you to develop your skills, build your profile and become a good prospector and closer. Prospecting is a huge part of a property manager’s role. What do the brokers do? Why can’t property managers do it too?

DO SOMETHING FOR YOUR COMMUNITY: GIVE TO A CHARITY OR CAUSE I help out with Rosie’s Friends on the Street. It’s an organisation that gives friendship to people on the street or who are homeless. I love the sense of fulfilment that this gives me, and also because I am a property manager it gives me an understanding of what is happening in my community with the housing shortage. This also shows that I am really involved in my community and have a giving and caring attitude. If you love what you do then it’s not a chore, it’s passion; it’s not work, it’s play every day. When things get hard it’s the love and passion for what you do and wanting to make a difference that keeps you going. Property management for me is not a job – it’s my life. Loretta Morgan has more than 17 years’ experience in the property industry, ranging from managing residential real estate to major commercial and industrial portfolios for private and institutional investors. For more information visit www.lorettamorgan.com.au.

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ELITE PROPERTY MANAGER NEWSLETTER TOPIC:

Bathroom renovations and rental properties: what every landlord should know

T’S IMPERATIVE that landlords approach property renovations in the right manner, and also take a little ‘wear and tear’ in their stride – it’s to be expected. Bathrooms can be a problem area and I would like to offer my top tips that provide the best return on investment for landlords.

RENOVATE THE BATHROOM WHEN THE PROPERTY IS VACANT Maintenance and repairs can usually go ahead while a property is tenanted; however, renovations should take place when the property is vacant except in special circumstances. A special circumstance could entail, for instance, carrying out renovations where the landlord wants to keep long-term tenants happy with the rental arrangement. Renovating when the property is vacant is less costly, less disruptive and less stressful than when it’s tenanted. Therefore, perform renovations that boost the value of the property and make it more appealing to prospective tenants after the property has been vacated. Landlords should invest in quality bathroom fixtures and fittings – cheap items are a false economy and incur greater costs in the long run. UNDERSTAND THE IMPORTANCE OF PROACTIVE RENOVATIONS Unlike most areas of the home, bathrooms need proactive renovations; that is, work carried out before a potential problem becomes a real one. Because bathrooms are ‘wet rooms’ there’s an inherent risk of pipes bursting and leaks occurring that could cause serious damage, not only to the bathroom but also to other areas of the property. By performing proactive renovations, landlords can reduce their overall property maintenance costs and mitigate the

62 ELITE AGENT • NOV-DEC 2014

>> The way in which property renovations should be approached differs between landlords and homeowners for a number of important reasons. Here are some great tips for your Landlord newsletter from Thomas Smith.

likelihood of problems arising between themselves and their tenants. MAKE THE BATHROOM MORE ENERGYEFFICIENT The more energy-efficient a rental property is the more appealing it will prove to potential tenants, so landlords are advised to look for ways to improve the bathroom’s energy efficiency. This could entail replacing leaky taps with new taps – up to 20 litres can go down the drain in a single day; adding ventilation – this would also reduce the odds of mould forming on grouting, walls and ceiling; and heating the water correctly. OPT FOR TILES Opinions differ regarding the best materials to use in bathrooms, though most experts will advocate tiles as the best choice. Why is that? Tiles are durable, easy to clean and maintain. They’re also more resistant to mould and infestations than other materials, making them a top choice in rooms exposed to moisture in the air, like kitchens and laundries. This is true of all areas of the bathroom, particularly the floor because of water issues, and to a lesser extent the walls. Landlords will find that redoing the floor with quality tiles is an investment that’s in their best interests. Light tiles are a natural choice because they’re bright, thus giving the illusion of greater space in small bathrooms; however, light-coloured tiles become spoiled and dirty more quickly than dark ones, so consider dark tiles with dark grouting. In fact, light-coloured tiles are great for one’s own property. The property owner is motivated to keep the walls and floors sparkling clean. However, they often prove to be a nightmare in rental properties when tenants are less motivated to take much of an interest.

LIGHT-COLOURED TILES OFTEN PROVE TO BE A NIGHTMARE IN RENTAL PROPERTIES WHEN TENANTS ARE LESS MOTIVATED TO TAKE MUCH OF AN INTEREST.

KEEP BATHROOM RENOVATIONS ‘NEUTRAL’ An error that many landlords make is adding personal touches when they renovate the bathrooms and other areas of their rental properties. Big mistake. Any renovations that landlords perform in the bathroom should be kept strictly ‘neutral’; that is, not in line with their personal tastes but rather keeping it, and all other areas of the property, as a ‘blank canvas’. This is important so that potential tenants can picture themselves living there and envision adding their own personal touches that make them feel more at home. Thomas Smith is a freelance writer who works for Soakology, a reputable provider of a wide range of bathroom fittings and fixtures in the UK.

ELITE PROPERTY MANAGER

Why you need a service charter Did you know that the quality of your customer service can correlate directly with your business’ bottom line? Positive customer service can drastically improve your customer retention rate, business reputation and profit margin. Justin Melton explains.

CUSTOMER SERVICE

charter is one way a business can outline their customer service commitments. By implementing a customer service charter you can increase the quality of your support team and see ripple effects across the company, including increasing your bottom line. Implementing positive customer service is easier said than done, which is why so many businesses fail. There are many complexities involved, including meeting legislation and standards, managing risks and ensuring the service you provide offers value to the client. Identifying what customers really value and ensuring you are ahead of your competitors are the keys to offering high-quality customer service.

A customer service experience can affect whether a prospect becomes a client. If a client has a negative experience with your company it is possible that they will terminate their relationship with you. Not only are they that, but they are also likely never to use your product or service again. It has been shown that it can take as many as 12 positive customer service experiences to make up for one negative experience. This statistic alone proves how important every customer interaction is and why it is vital that every interaction is positive. Customer retention not only reflects the quality of customer service and the value of the product but is vital to the profit of the company. Through utilising a customer service charter your business can monitor the retention and customer satisfaction amongst your clients.

IN SAYING ALL THE ABOVE, POSITIVE CUSTOMER SERVICE IS NOT ALL ABOUT PROFITS. ULTIMATELY THE GOAL IS TO SERVICE THE CUSTOMER.

The service your business offers plays a huge part in people’s purchase decisions. This can often be seen with telecommunications companies, where people are willing to go through the process of swapping providers to receive improved customer service. Providing positive service offers huge potential for new customers through word-of-mouth advertising, which simultaneously increases your reputation. Word-of-mouth referrals are often based on a customer’s service experience. They are a hugely effective tool for increasing business, but the only control you have over this is ensuring all customer experiences are positive. In saying all the above, positive customer service is not all about profits. Ultimately the goal is to service the customer. Great customer service allows businesses to stay connected with their customers and receive insightful feedback. Listening to a customer’s needs and understanding what they want builds a strong relationship, helping you serve your client base better. Building relationships is a proven way to growing your business into a trusted brand name. Investing time into creating a customer service charter will provide a huge return on investment for your company. A customer service charter will not only increase your business’ reputation but it will ensure all people in the customer service team are equipped to provide consistent service. Justin Melton is the General Manager of Sales and Marketing at Rockend, Australia’s leading provider of property software. Justin has extensive experience in management roles in telecommunications and machinery industries prior to Rockend. These roles focused heavily on the strategic planning of businesses, sales management, stakeholder management and market analysis.

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The Last Word Fiona Blayney

Look – up in the sky

Fiona Blayney spends a lot of time travelling, but her reflections lie closer to home. What does family teach us about business, and how do we make sure all our sacrifices are worthwhile?

HE NEXT time you watch the planes overhead, commuting people from state to state, country to country, holiday to home and business to office, you may be interested to know they are not owned by a myriad of companies across the globe. Each and every one of them is owned by me. Yes, that’s right, me; I own those planes. I’m not sure that the formality of ownership factors into the equation, but for my daughter these are my planes. You see, as we come to the end of conference season, my twoyear-old has seen a year of my travel commitments and has taken to calling any plane she sees ‘mummy’s plane’. I’m not sure what she thinks I do up there all day, but she thinks they’re mine and that’s all right by me – for now. You may think that’s cute, or sad, depending on your opinion of being away from home and a small family. But either way, you’d agree that to build a strong family in today’s aggressive business world is no easy feat, and for all of us there are sacrifices made along the way. I get a lot of time to think while I’m travelling on my planes, and one thought is the constant confirmation that what I’m doing is mapping to our team plan. Which team do I think about – my team at home or my team at work?

64 ELITE AGENT • NOV-DEC 2014

Perhaps both. My home team is a pretty solid team. We’re clear on our goals, we know our roles (for the most part) and believe the effort made is moving us one step closer each day. Of course there are performance reviews, but every couple has those, right? Yesterday on my travels my taxi driver shared with me various aspects of his culture; the non-negotiable values for himself, his wife, children, siblings, extended relatives and wider community, and how these values drove the functionality of his life. He told me about the significance of the ‘community’ and the connection that its unity plays in the raising of great members of society. He shared with me the process when someone doesn’t follow the rules, the interventions that occur and ultimately the price one may pay for not being on the same page as everyone else: exclusion at the highest level. I’ve been pondering these details. I’ve shone a light on business goals, the importance of teamwork and the need to take action if someone is not ‘on board’. I remember my conversation with my new friend and how everyone deserves support and the chance to ‘get back on track when they have lost their way’. While it seemed harsh to isolate a family member, I can see the position

in acting swiftly when an individual’s action is damaging and there are repercussions for not meeting expectations. There is a lot to learn from family in business. In 2014, we have met thousands of industry practitioners, business owners, contractors

follow the leader blindly into the future. There are teams whose members don’t know the part they play or don’t realise their importance in the plan, irrelevant of how big or small the contribution. A well-functioning team shares a set of values that

A well-functioning team shares a set of values that govern its actions. These values must not just be known, shared and believed; they must be lived. and employees locally and abroad. Each of you, at some level, are a part of a team with goals and values. You make sacrifices every day in pursuit of your goals, both individually and combined. The question is: are you making every moment and opportunity count? Each person we’ve met faces business challenges. Goals may be unwritten, unrealistic or unknown, rendering them unachievable. Values may follow the same pattern, or perhaps be non-existent. Even worse, the values may be there, but are not ‘lived’. When it comes to the team there are many lone rangers, attempting to single-handedly create an amazing business, or expecting the team to

govern its actions. These values must not just be known, shared and believed; they must be lived. Perhaps as you board one of my planes for your holiday vacation this festive season, or even if you look up to the sky, you may stop for a moment and consider your business: the values, the team and the goals. With the holiday season around the corner, now is a good time to reflect on the work you need to accomplish to realign your business and family for a successful 2015. Fiona Blayney is the founder and director of Real+, an industry first Property Management learning platform. For more info visit realplusonline.com.au.

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