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(a subsidiary of A Bit of This Publishing Pty Ltd) ACN 169 805 921 Postal Address: Suite 904, 121 Walker Street North Sydney NSW 2060 Telephone +61 2 8854 6123 Registered by Australia Post/Print Post 100020180 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. EDITORIAL DISCLAIMER: Some opinions expressed in Elite Agent are not necessarily those of its staff or contributing editors. Those opinions are reproduced with no guarantee of accuracy although Elite Agent endeavours to ensure those opinions and comments are factual. Our subscriber list may sometimes be made available to relevant brands who might be of interest to our readers and from time to time we may be in touch to inform you of new Elite Agent products and services. Please visit eliteagent.com.au/privacy for details on how we collect and use your personal information. Please email subscriptions@eliteagent.com.au if you would rather not receive these communications. © Elite Agent 2018. All rights reserved.
4 ELITE AGENT • FEB – MAR 2018
Contents Regulars 006 EDITOR’S LETTER Samantha McLean 010 READER PROFILE Kathy Tsai 012 WATERCOOLER Catch up on what you may have missed 022 MINDSET CORNER Jet Xavier 023 PEOPLE PARTNER Alison McGavin 026 DATA INSIGHTS Eddie Cetin 028 BUSINESS DEPOT John Knight
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030 ASK THE COACH Claudio Encina 056 THE HOME STRAIGHT Mark McLeod
The International Edition 014 HOME AND AWAY with Dan White, Ray White Group 016 VUE DE MONDE with Thibault Guillaume, VitrineMedia 048 NEW YORK STATE OF MIND Nick Harrington
First Person 018 HOW TO CHARGE MORE Josh Phegan 020 IN SERVICE OF OTHERS John Cunningham
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021 OFFSHORING READINESS TEST Aimee Engelmann
Cover Story 032 BILLION-DOLLAR BROTHERS Josh and Matt Altman
Features 036 HOLLY HITS A HOME RUN Kylie Dulhunty 040 DON’T LOSE YOUR NEXT LISTING Adam Flynn 042 FIND THE REAL STORY IN REAL ESTATE COPY Kylie Dulhunty 044 THERE ARE NO SUCCESSFUL HERMITS IN REAL ESTATE Rik Rushton 046 ‘FIELD OF DREAMS’ Latitude Real Estate 050 LOVE.WHERE.YOU.LIVE Emma Guthrie
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052 HOW TO LEARN NEW SKILLS THE EASY WAY Pancho Mehrotra 054 HOW TO EXPERIENCE WINNING IN EVERY SITUATION Michelle Jaggard-Lai
eliteagent.com.au 5
S EDITOR’S LETTER
SINGAPORE. Global Financial Hub. Foodies’ Paradise. Real estate heaven. It’s been a while since I’ve been back to South East Asia, which I called home for a while living in Kuala Lumpur as an expat about 16 years ago. Some things haven’t changed: The hot summer nights, the smell of spices and Singapore Slings and the outrageous downpours that come out of the heavens from pretty much nowhere. Since I said goodbye to that all those years ago, there are more buildings – from the architectural feat that is Marina Bay Sands to hundreds of thousands of condominiums as far as the naked eye can see. Sometimes, looking out at all that concrete, you have to wonder how it is that in round figures Tasmania is nearly 100 times the size of Singapore, yet Singapore is home to 10 times as many people as Tassie.
original interiors of tenants in the 1950s have been recreated. Offering a rare glimpse into the lives of Chinatown’s early residents (Sinkehs, as they were called), these small ‘eight by eight’ living quarters were simply furnished. Every object tells a story, some of them heartbreaking. Many of the early immigrants were not educated formally – life was that wellknown line of Cold Chisel’s Khe Sanh, “hours long, pay packets lean” – all for the sole purpose of giving their children better lives. Someone should provide a mascara warning on the way in, particularly as you stand in the doorway of the family of two adults and six kids… When I say ‘eight by eight’ we are talking feet, not metres. That’s the size of a walk-in wardrobe in an average family house on the Gold Coast. I was amazed that, despite
Someone should provide a mascara warning on the way in, particularly as you stand in the doorway of the family of two adults and six kids. When I say ‘eight by eight’ we are talking feet, not metres. So let’s go back in time, before we go to the future, to see what we can learn by looking beyond that pristine veneer of efficiency and economic growth that is today’s Singapore. Something that first caught my eye were the colourful ‘shophouses’ in Chinatown, the original settlement south of the Singapore River. Rows and rows of cool boutiques and markets of all different cultures and races. There is a heritage centre located on Pagoda Street where the
6 ELITE AGENT • FEB – MAR 2018
the Sinkehs’ lack of education, they seemed to understand a couple of today’s widely accepted pieces of wisdom: ‘If you don’t want to slip over, don’t hang around slippery slopes’ (sadly lots of them ended up turning to drugs to numb the pain and prostitution to pay for it), and ‘If nothing changes, nothing changes’. They saw education as a way out of the poor shophouses for their children. And when you look at Singapore now compared to
just 60 years ago you have to wonder if, alongside the vision of Sir Stamford Raffles, and just plain hard work, this attitude to education became one of the big reasons the country has come so far. Living in the same shophouse there could be a tailor, a carpenter, a trishaw driver, a doctor, a teacher, nannies, rice field workers and more. The story of the doctor really got me. He only charged a fee when he felt the person could afford it. My mind wandered to Chris Hanley for a moment. ‘Good Works’ has certainly been around for a long time, and in many cultures. My takeaway was the second we landed back home on January 4. I sat down at my computer with renewed vigour and got straight into updating all our training material on Elite Agent Academy; it really made me want to focus this year on making a larger contribution to real estate education that is relevant, current, easily accessible and affordable. Next: Shopping – so close to many a Singapore tourist’s heart! There were a few places I remembered; specifically, in the middle of Orchard Road there is a place called Lucky Plaza. Back in the 80s when I first visited Singapore, it was the place where you could get a pretty goodlooking copy watch, a tailor-made suit, a rip-off handbag and a fantastic tasting curry puff, all under the one roof. Well, as you’d expect, they’ve cleaned up the touts and the overly enthusiastic purveyors of counterfeit goods; there are all sorts of fancier shops now, too many to get through in one day, let alone a few hours. And it’s overwhelming
because they all look kind of the same and sell the same stuff. So, out of hundreds of stores over several floors we actually spent money in just two. One was a camera store where the guy was just likeable and decided to have a conversation about photography and videography with my husband. One of the few people in the place that was just about straight talk (“No, you will be disappointed with that lens; not for you, lah”) and had a genuine passion for what he was selling that was pretty infectious. The other was a referral to a jewellery store, where the camera guy insisted my husband buy me something nice. Ahhh… the power of a referral. There is a lesson right there in customer service and showing interest in the person that will always cut through a heap of superfluous noise.
And what about the real estate market over there? I picked up a copy of Singapore Business Review in the lounge (as you do) to read about the trend towards ‘mega mergers’ in real estate firms. Singapore is an excellent place for technology start-ups and Proptech is also shaking up the industry over there in a big way. More than half of the top 20 largest agencies slashed their sales forces last year, as technology innovations were opening up platforms for consumers to handle their own property transactions. On the other hand, four of the top 10 agencies this year increased their staff; but the CEO of the largest firm, PropNex Realty (7,000 agents nationally), has said that consolidation in the Singapore real estate industry has become a question of when, not if – commenting
that mergers are becoming more attractive given the tougher operating environment. It is interesting to note that Singapore is coming out of a slightly softer market, with improving market sentiments, with still low interest rates - their government implemented a few cooling measures back in 2013 which led to a bit of a decline in prices. Is any of this sounding familiar to you? We’ve known for some time that teams are a trend, but if this type of consolidation is any indication I started to think about what mergers we might see to optimise back-end efficiencies and operating costs while providing the customer a better experience here in Australia. I didn’t have to wait long once getting home, with the announcement of the merger between Perth titans Altitude
Real Estate and Realmark as they gear up for a much hopedfor upswing in the WA market. More on that in our podcast with John Percudani and Paul Tonich, which you can find at eliteagent. com.au/elevate. With Josh and Matt Altman on the cover, and tales of New York, Europe and Asia, this magazine has been affectionately titled internally, ‘the international issue’. So I might end this column with a bit of Chinese astrology; 2018 is the Year of the Dog. Apparently the key word is ‘action’! But, as you know, the Chinese are quite specific about their superstitions and it’s not just any dog; 2018 is a Mountain Dog year. According to chinesefortunecalendar. com, “Mountain Dog might be a wild dog. It could block your way out. That implies you might encounter some obstacles before executing your plan. You need to use your wisdom to remove the blockage first, then you will see the wide-open road.” So maybe the answer is somewhere in South East Asia after all. In 2018, education, along with hard work and leaning on your mates, is likely still the way to lasting change. To that end, we would love to see you guys in Transform this year (something for everyone, where you get to experience learning, comradeship and lasting change) or over in eliteagent.academy. Stay focused, watch out for the blockages and have a great year.
eliteagent.com.au 7
RIK RUSHTON SPEAKER AND COACH, INSIGHT PERSONAL DEVELOPMENT
52 PANCHO MEHROTRA SPEAKER, FOUNDER AND CEO, FRONTIER PERFORMANCE Where are you from originally and where do you call home now? I was born in Rajasthan, India and migrated to Auckland, New Zealand with my parents as a child, moving to Sydney as an adult. I now call Sydney home. Who or what inspires you at the moment? As a high-performance sales trainer, my professional inspiration is knowledge: to increase productivity and to make a positive difference to other people’s lives. Knowledge enables people to stay ahead of the market, gain new insights about future trends, acquire new skills and identify new ways to respond productively. What’s the most important project you are working on right now? The ability to work with sales teams to help them become resilient through change and deliver the skills that takes performance levels from ordinary to extraordinary. I’m working towards changing the game of the sales industry by producing Master Persuaders who are high-performing role models in their industry. Trend to watch in the industry or in business? Greater customer control and personalising the customer experience are the ones to look out for this year. The importance of social intelligence will become critical; self-awareness will be just as important as understanding the behaviour of the client. Business leaders need to understand the science of human behaviour, finding the correct combination of knowledge and technique to deliver a personalised customer experience. Favourite quote or words to live by? True success is being independent of other people’s opinions.
8 ELITE AGENT • FEB – MAR 2018
Where are you from originally and where do you call home now? Today, I live in the pristine Dandenong Ranges, just above the hospital I was born in. So whilst I’ve travelled the world, my home has always been in one of Melbourne’s most idyllic settings. Who or what inspires you at the moment? We live in the most opportunistic time in human history, where the ability to gain all the wisdom of the ages and the possibilities for the future are just a click away. I’m inspired by the connection and collaboration with those seeking a better quality of life. What’s the most important project you are working on right now? I’ve just had my first book published, The Power of Connection: How to become a master communicator in your workplace, your headspace and at your place, which was a major project for most of 2017 and the early part of 2018. I am doing multimedia interviews and sessions now it is released around Australasia and online (Amazon, Booktopia.com.au).
Trend to watch in the industry or in business? The modern real estate landscape is all about two things: technology and methodology! Agents today need to know how to use technology to drive their methodology of moving clients with added value. Favourite quote or words to live by? “Tune in before you broadcast.” In other words, understand the other person before expecting them to understand you.
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CONTRIBUTORS MICHELLE JAGGARD-LAI SPEAKER, COACH AND FORMER PROFESSIONAL TENNIS PLAYER, WAKEHURST TENNIS
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Where are you from originally and where do you call home now? I grew up in a small suburb in Sydney, Bardwell Park, and now reside in Frenchs Forest on the Northern Beaches. I want to build a home in the country regions of NSW and live half the year in Spain in future. Who or what inspires you at the moment? I’m inspired by great people who stand for something, aren’t
KYLIE DULHUNTY MANAGING EDITOR, CONNECTED MEDIA
42
Where are you from originally and where do you call home now? I grew up in the historic former gold rush town of Chiltern in Northeast Victoria. I now call Albury, just 30km away, home. Over the years I’ve also lived in Sydney, Auckland and Geelong, and loved each of them for different reasons. Who or what inspires you at the moment? Turia Pitt. Need I say more?! Also my family and friends inspire me every single day with their love and kindness, and attitudes towards the everyday challenges they face. What’s the most important project you are working on right now? The most important ‘project’ I will ever work on, along with my husband, is parenting our daughter. Workwise, I have a mixture of writing and editing jobs spanning everything from real estate to education and health. I love variety. Trend to watch in the industry or in business? In the housing industry I’m keen to follow the progression of tiny homes, in terms of their quirky and eco-friendly construction and benefits, as well as their uptake and price growth. Favourite quote or words to live by? “Isn’t it nice to think tomorrow is a new day with no mistakes in it yet?” from Lucy Maud Montgomery’s Anne of Green Gables. I take this to mean you can’t change the past, but you can start again and have an impact on the future.
afraid to be their own person or impact and share knowledge with others. I often find myself thanking my mentors as I come full circle and realise how lucky I’ve been to know them. What’s the most important project you are working on right now? I’m working on the vision as principal for a 20-year project, developing a multi-purpose sport venue which includes a team of specialised businesses in sport, health, education and cross-pollination learning concepts in predominately a community-based venue. Besides this ‘Project Michelle’ is always evolving.
Trend to watch in the industry or in business? I think people are respecting learning from excellent communicators and knowledgeable mentors who provide strong base foundations and vision for performance results, whether for business or personal development. Teamwork and simplicity are also valued more today. Favourite quote or words to live by? I created my own when I started coaching 20 years ago: Be better than yesterday. It has always kept me motivated and loving learning, or giving me peace in knowing I’m doing my best in what I know today.
eliteagent.com.au 9
READER PROFILE
LIFE BY DESIGN When former dietitian Kathy Tsai found herself at a career crossroads, she heeded her mother’s advice and entered the world of real estate. Despite having a young family, she dug deep and wrote $340,000 in GCI within 12 months – including a $5.225 million sale to a Chinese buyer. Kathy attributes her success to two things: building credibility and believing in herself. Tell us a bit about yourself and your role at RE/MAX Bayside. Before starting in real estate I worked in various other sectors, including R&D product development in the food industry. I also owned a private practice for five years as an accredited practising dietitian. In September 2015 I started as a sales consultant at a franchise agency, and have been busy building my contacts daily. Nurturing client relationships and uncovering new listings have led me to achieve several suburb record sales. I now work at RE/MAX Bayside; this award-winning number one RE/MAX multioffice has helped me build my profile as an acreage and prestige home specialist. What motivated you to get into real estate? Real estate has been in my blood since I was a little girl. I remember my mum used to say to me, “Invest in real estate as long as you can afford the mortgage payments.” After giving birth to my two beautiful girls, I arrived at a career crossroads. I thought perhaps I should try real estate
as I had accumulated abundant local market knowledge and met so many real estate agents before and after the property booms in Brisbane since the 1990s. What is the market like in your area right now? Redlands, the market in the Bayside of Brisbane, is such a hidden gem that property prices have been so affordable. Enjoying lovely bay breezes and slightly lower temperatures than Brisbane makes life a haven. Currently we are seeing
My mum used to say to me, “Invest in real estate as long as you can afford the mortgage payments.”
10 ELITE AGENT • FEB – MAR 2018
some corrections in prices all over Australia, and it is also evident in my area. The stock levels in 2017 were 20 per cent lower, which makes a huge difference in the real skills of good real estate agents in putting the deals together. I believe the market will steadily improve in the next few years as we should see a property boom in my area. Who or what inspires you? Tom Panos. I have been very fortunate and grateful in following him ever since I started real estate. He is so real, and cares about seeing agents excel. In addition, my wonderful little family of four has inspired me along this tough journey. My little girls always ask me, “Mummy, how many houses have you sold? If you sell 100 houses, do I get 100 toys?” Seeing the beautiful smiles on my clients’ faces is also very inspiring. I love the feeling of being helpful in people’s lives, being the trusted property advisor. In your ‘briefcase’ right now is… My iPhone, a powerbank and my planner! I use my iPhone for everything, to save/screenshot some new marketing ideas, and make sure my phone is charged twice for the daily hustling. A big breakthrough is that I am starting to combine my online diary and print planner to plan my family life, real estate
milestones, marketing, and so on. Writing things down makes them sink in and ticking them off produces dopamine, aka the happy hormone. Something (or someone) you couldn’t live without? I couldn’t live without sunshine and a good diet! I love the energy and radiation of the sun when I wake up in the morning. Having been a dietitian, I try to eat a healthy diet while running a busy lifestyle. What do you enjoy most about Elite Agent Magazine? I love reading the cover story and features. Success leaves clues! There is always something I can learn and resonate with the wonderful human beings who contribute to this sensational magazine. What apps do you use most at the moment on your iPhone or iPad? I use RP Data Pro App to get a snapshot of the estimated property values when I am out and about. Homeowners appreciate that they can be shown real-time information. What advice would you give someone starting out in real estate? Be prepared to work hard. Some seeds you sow today may or may not sprout tomorrow, but keep on planting and watering, and you will be pleasantly surprised to see a farm ready for you to harvest in due time! Any words to live by? Firstly, be the architect of your life. Live by design, not by default. Yes, life does throw its curve balls at us, but it’s how we react to things and people that matters. Secondly, people buy energy; consider whether the energy you exhibit is positive or negative. Before you know it, you could be attracting like-minded people to help build your world of paradise!
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THE WATER COOLER
Our daily newsletter #THEBRIEF brings you the latest real estate news, tech and marketing tips straight up every day. In case you’ve missed anything, here are some of this month’s trending stories. Subscribe to #THEBRIEF eliteagent.com.au/subscribe.
Employers – are you up to date with the new rules? The Fair Work Commission is about to rule on a number of matters in relation to salary levels and types of work-related payments in the real estate industry. The Real Estate Employers Federation (REEF) believes these are due to come into force on 2 April 2018. These changes include increasing minimum awards wages, changes to commission-only arrangements and debit credit restrictions, plus other items. These are explained in detail by Bryan Wilcox, CEO of the Real Estate Employers’ Federation, online at eliteagent.com.au/fairwork.
Negotiation the key to success in a softer market In light of softening conditions in many property markets, the chairman and owner of Century 21 Australasia has provided his three top tips to help agents succeed in 2018. Charles Tarbey’s first tip concerns the growing use of broadcasts and electronic mail by agents: “While it’s great to see agents adopt new technologies, too many agents seem content with simply sending out a broadcast and expecting business. “I strongly believe that many agents will get more out of a conversation with a few people than a generic broadcast to a hundred people. “I think savvy agents will be sending out broadcasts in 2018 but will be equally as committed to personally following up with people and investing into human-tohuman communication,” said Charles Tarbey. Mr Tarbey also believes that 2018 will see increased negotiation between buyers and sellers, and this should shape the way agents approach the next 12 months. “Agents would do well to invest in improving or enhancing their negotiation skills. This may be critical to achieving successful results in markets where sellers need to revise down their price expectations, and buyers and sellers need an agent’s help to meet in the middle,” said Charles Tarbey.
12 ELITE AGENT • FEB – MAR 2018
CLICK TO CLOUD RELEASES ‘ONESTOP’ REAL ESTATE PLATFORM A new tech tool is offering a ‘one-stop’ sales platform tailored specifically to the real estate industry, with features including lead generation, listing presentation, a mobile property appraisal app and simplified reporting. Known as ctcProperty, the mobilefriendly platform is designed to handle all stages of the sales process and comes complete with access to CoreLogic data, which is cleverly integrated into the product workflows. The software harnesses the power of Salesforce but is built specifically to the real estate industry’s needs. ctcProperty Managing Director Peter Hutchison explained that the vision for the product was a onestop shop for agents that offered a simple yet comprehensive solution in the one trusted and secure platform.
“We wanted to give the real estate industry a new and modern tool that increases listings and income generation, and improves customer engagement between the agents and their clients,” he said. ctcProperty includes CRM functions like prospecting, marketing, listing and client management, but also features its own inbuilt mobile inspection app, exchange and settlement ledger, and sales trust accounting. It integrates with other Salesforce tools and apps, and will incorporate AI and big data capability in 2018 to drive listing volumes for agents. “Our vision is to provide one solution that provides the industry with the core of what they do in one place,” Mr Hutchison said.
MOMENTUM IS BACK IN 2018
realestate.com.au and News Corp Australia are excited once again to take another series of Momentum around Australia, with events taking place in Sydney, Melbourne, Canberra, Brisbane and Adelaide. Speakers will include Tom Panos and Steve Carroll, along with expert panels of industry leaders. Registration and attendance is free of charge for real estate professionals. CPD for some states is available via eliteagent. academy. To book visit agent.realestate.com.au/momentum-2018.
THE INTERNATIONAL EDITION
HOME AND AWAY
RAY WHITE is a household name in Australia and New Zealand, with a growing network
in Indonesia, India, Malaysia, Papua New Guinea, China, the Middle East and Atlanta, USA. Group Director Dan White spoke to Elite Agent about the similarities and differences in the industry across countries and some of the things can we learn from our international counterparts. RAY WHITE remains a familyowned business, celebrating 116 years in 2018, whose activities span residential, commercial and rural property plus livestock, hotels, marine, property management and property funds investment. In
14 ELITE AGENT • FEB – MAR 2018
the last fiscal year (2016-17), Ray White sold over $44.7 billion worth of property. Ray White Group Director Dan White said the industry drivers in most Asian countries are very different to Australia and New Zealand, being more of a
brokerage market. “Most markets operate in an open-listed environment, with vendors preferring to list their properties with multiple agents. Vendor marketing is not a feature of the market, nor [are] auctions or other marketing-
driven sales methods. Agents focus on developing relationships with buyers and matching them to available stock,” Mr White said. “One of the big attractions for agents to belong to Ray White in Asia is that we bring a very
“One thing is we have learned from our Hong Kong team is the ability to sell property to remote buyers who may never go and see their new property.” long history and commitment to an industry that is developing there. In doing so [we are] creating a shared commitment and identity. “While the method of selling is quite different, office structure and business leadership is consistent, and we find that our business leaders in the Asian markets share the same issues and opportunities as our leaders in Australia and New Zealand. “Inside our Asian businesses, much of the systems are the same. Our CRM and branding is consistent, and they are starting to use [our brokers at] Loan Market. Our sales and management training is also applicable.”
HONG KONG “One thing is we have learned from our Hong Kong team is the ability to sell property to remote buyers who may never go and see their new property. “It’s pretty amazing in Hong Kong to think that our selling principal, James Li, has created a showroom to feature Australian properties and many of his local buyers don’t go and see their apartment in Brisbane, Sydney or Melbourne. They have faith in our brand and [in] James that we’ll look after them and their assets through property management after the initial sale transaction. “James Li in Hong Kong is seen as the Australian expert, and our customers know we will stand behind our team and the properties we market.” NEW ZEALAND Mr White said the New Zealand market was very progressive and “as developed, if not more developed, than the Australian industry”. “So many of our Australian business owners regularly travel to New Zealand to learn about how they do business. There is so much for them to learn there,” he said. “The New Zealanders generally have larger teams, which allows more capacity to provide a deeper level of service to their customers.” There are also different industry drivers in New Zealand relating to industrial relations policy, which has led to bigger businesses with the resources to reinvest in their teams and their customers.
INDONESIA Ray White Indonesia CEO Johann Boyke Nurtanio said local agents prospect and develop relationships with their database, the same as in Australia. “They understand the importance of referral. Some creative agents marketing international projects may encourage their clients to refer their friends for a fee,” he said. “For example, a client will get a referral fee of up to 10 per cent in foreign currency for the successful referral of another client.” Mr Boyke Nurtanio said Ray White’s top agent in Bambang, who specialises in marketing international property, derives as much as 30 per cent of his sales from referrals based on this program. “The Indonesian secret to success is rooted in human talent, the right human talent.” Mr Boyke Nurtanio’s advice to Australian real estate agents was to be disciplined in their work. “Discipline is a value that we all believe in. One of our principals, Aldila Wibowo of Ray White CBD Jakarta, gets up at 5am every
morning and is already at the office by 6am. She will then swim and be ready for her day by 8am. She leaves for home at 8pm at the earliest. She is a living example for her office to emulate.” Mr Boyke Nurtanio said customised and personalised after-sales touches were important features that Nataliya Lia of Ray White Kemang Premier lives by. “Not only communicating through the phone, she also schedules lunch and dinner meetings with big investors once a month in order to update them regarding the property market’s condition,” he said. “She will also bring to their attention which properties are worthy for investments. “In addition, she never forgets to send birthday cakes or hampers to her clients’ homes for the appropriate festive seasons such as Christmas, Chinese New Year, and Eid Mubarak (Muslim Celebration Day). Furthermore, after she sells a property, she will treat her clients and their families [to] lunches or dinners at five-star hotels. “As for caring for those working in the company, Wilson Ho of Ray White Prestige embodies that trait. He is well known for his caring demeanour. Reward, recognition, appreciation and humility are the daily mantras in his office.” Mr Boyke Nurtanio said Ray White’s Indonesian network of 133 offices celebrates excellence in customer service in many different ways. “We award agents in different cities, countries and invite them as panellists and guest speakers during many events. For example, our top principal from Ray White Prestige Kelapa Gading, Wilson Ho, decided to reward excellence in customer service by presenting his salespeople with their awards in Hong Kong. “During a tour of three countries, he surprised the winners by awarding them the plaques with the City of Hong Kong as the backdrop.”
“The Indonesian network of 133 offices celebrates excellence in many different ways.” eliteagent.com.au 15
THE INTERNATIONAL EDITION
VUE DE MONDE
FOUNDED IN 2007, VitrineMedia Enterprise is a privately owned
French company credited with pioneering backlit LED window displays in France’s real estate market. Now they have delivered over one million displays to in excess of 40,000 customers worldwide, including Australia. Elite Agent caught up with the company’s Global Enterprise CEO, Thibault Guillaume, to chat about some of the trends emerging in the French and European markets – and what we can expect to dominate the 2018 landscape.
VitrineMedia Enterprise CEO Thibault Guillaume 16 ELITE AGENT • FEB – MAR 2018
Thibault, tell us a little about yourself, your role and what it is you enjoy most about the property industry? I am the CEO of VitrineMedia and I’m responsible for ensuring the product and service we provide creates a great experience for our customers and that the company continues to grow. What makes the role enjoyable is that I’m an entrepreneur. I started my career in sales and can relate to real estate agents who are essentially sales people, filled with an entrepreneurial spirit to grow their businesses by offering customers the best products and services.
Is it a challenge to manage and motivate a sales team across different cultures and geographies? Yes, it is complex and challenging, but it’s always richly rewarding when I see the unity we’ve created across our many operations around the world. We may come from different cultural backgrounds and live in different parts of the world, but my job is to celebrate this diversity and bring it all together in a corporate culture that we all buy into. In VitrineMedia’s case, our shared ‘raison d’être’ – or very reason for existence – is to be remarkable in all we do. What’s the state of the real estate market across Europe and in France in particular? Are these
markets similar in where they’re at – or do they have their own characteristics? Right now the French and European real estate markets are very much aligned. The French market has picked up over the past few months, much of the boom following the May election of President Emmanuel Macron. It’s this surge, too – with 2017 a record year during which real estate sales jumped 30 per cent to more than one million transactions – that’s driving the high national confidence and contributing to the overall French economic growth of two per cent in 2017. Europe – barring the UK and most likely Brexit-related – is also experiencing favourable trends. There’s been strong economic recovery in Portugal, with growth in the region of three per cent, while countries like The Netherlands and Italy show positive signs, as does Germany, where low property prices continue to stimulate real estate activity.
What do you believe is driving the markets? Most economies across Europe are strong. There’s stability and optimism and, with all indications suggesting the European Central Bank’s quantitative policy of low interest rates will continue at least for a further 12 months, there’s reason to be confident the European real estate market will sustain strong growth through 2018. How is the industry different in Europe than in Australia? A general observation is that home ownership rates are higher in Australia, thus skewing real estate activity towards buying and selling rather than renting. Around 70 per cent of people in Australia own homes – which is much higher than densely populated countries such as Germany, Austria and Switzerland, where the majority of people rent – and dealing with buyers rather than renters requires a somewhat different skill set. Yes, the core skill is always being passionate about customers and looking after their needs, but it is true that renters, generally speaking, are less discerning
than buyers, who are making a major capital investment and want to feel there’s a bond, built on trust, with the agent. Another major difference is the maturity of the various markets when it comes to embracing technology. We’re a little behind Australia which, it seems, has already gone through the exercise; the Australian real estate sector understands that the internet is not only an important source of leads but also serves to build the agency’s brand and profile, and enhance its reputation. There’s a term for it – phygital – which is essentially appreciating the relative values of the physical and digital presence, and achieving the perfect balance. Looking into your crystal ball, where do you see the market in 12 months’ time? What do you expect the major shifts and trends will be, and will the customer be the winner? The pressure is surely on the independently-owned corner real estate shop – and precisely because of the emergence of phygital as not only a major point of difference but also as an added element of customer service. It’s all part of the French and European players becoming more au fait with the merits of technology and following their Australian contemporaries in embracing aspects like the internet – which, incidentally, already has Google featuring customer reviews on just about every French real estate agency. •
eliteagent.com.au 17
FIRST PERSON
Josh Phegan
How to charge more With every real estate agency seeking to win more listings, top coach Josh Phegan says there are only two ways to increase profitability. You can focus on the competition, or you can focus on the customer. But choose wisely, as only one of them is responsible for paying your invoice.
OUR INDUSTRY is obsessed with what the competition is doing. We still follow what others do, and if someone breaks the mould, we wait and watch. If it looks successful we replicate it fast. The disruptors are eating at the edges of our business, stripping away the value proposition, and it leaves us complaining that the competition is stiff; that it’s hard to compete. The advent of lead-generation websites, new models that charge lower fees and provide higher splits, leaves us dazed and confused. The reality? All of that is a distraction, because it focuses on the current environment, on the ‘right now’ customer. Even the banks are entering with full artillery to provide consumers with the ‘real market value’ of their homes. The age-old market report, market appraisal and free assessment are done. So how do you win? You put the customer at the centre of everything you do. It’s called customer-centric design. You work hard to identify the sticky points, the friction, the things that don’t work; then work out a way to deliver it so that the customer finds you valuable. The customer has never argued for a lower fee; they’ve argued for value. In a good market, agency looks easy. You’ll never know the strength of an agent until a market
18 ELITE AGENT • FEB – MAR 2018
The customer has never argued for a lower fee; they’ve argued for value. turns, or they have to negotiate. Any agent who started in the last five years on the East Coast of Australia has a limited memory of GFC conditions; we’re certainly not headed there, but we are reshaping what it is that great estate agents do to earn the right to the customer. It comes down to your customer acquisition strategy and, if you think social’s the answer, watch your business fry. What makes a business move and turn quickly on its head, the type of thing that adds accelerant to your growth, is relationship. When everyone is equal on digital, which is happening fast, it goes back to the relationship. That’s why those who focus on making the calls, getting in the doors, getting face to face, always win. It takes guts to avoid an industry fad, an apparent trend. You must become
more valuable. For excellent buyer work, it means making a pest, building and strata report (if applicable) available from day one to reduce the buying friction. For the seller, it’s having a buying service to help them find where they are moving to, assisting with property preparation, even sending someone to help have the property ready every Saturday morning for the open. People are time poor; we live in a fast-paced society, a mobile society that expects to press a button and just make it happen. You could focus on the champagne you give to the customer, but isn’t it of more value to send a cleaner round in the hours before settlement, for both the buyer and the seller? To send the locksmith to replace the locks and keys alike for the buyer just after settlement, and provide a spare key at our office service to continue that consumer
relationship with the future customer? The most successful businesses in this industry focus on the customer, never on the competitor, so be careful about who you’re trying to replicate, who you hold up as a role model. You may be following a path into lower fees, lower profitability and possible extinction. The easiest way to drive service innovation is to go through a real estate transaction yourself from beginning to end. Look at every point and ask yourself: what are the things you have to do and how can an agent make that easier, faster, better? We use a service called Getfeedback.com to survey our clients, and the ideas they have for innovation on what we can do are astounding. Pick up the phone and talk with 30 customers a day; find out what their real challenges are, the blockages as to why they can’t move, why they can’t sell and so on. Find a solution and you’ll nail it. The last thing we need is another market report, another Just Listed or Sold in the letterbox. What we need is a relationship that matters – one that’s built on trust. You do that through being relevant; that relevancy determines the frequency and consistency always wins in business. Set your service delivery standard; train on the customer lifecycle and what you do to add the value. The true purpose of any great agent is to help people have a much bigger future through property. The industry is bright for those who choose the alternative path. Do the work and watch your business thrive. •
Josh Phegan is a high performance real estate speaker, trainer and coach to some of the best agents and agencies around the world. For more information visit joshphegan.com.au.
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FIRST PERSON
John Cunningham
In service of others
IT IS WELL KNOWN that all great achievers, no matter the endeavour, have one common trait: they have a clear purpose. The same thing applies in real estate. But do we really understand what purpose is all about in a service industry, or are we just considering our own purpose? John Cunningham says putting the consumer’s interests first must be non-negotiable.
AT OUR CORE, we are a service industry and that means we are here to serve the interests of our principal: the people who pay for our services. And the most effective way to serve that purpose is to take care of our customers. But do we individually and collectively have the guiding principles in place necessary for that outcome to be achieved? The answer, in my view, is that we do not. A true professional, no matter the vocation, has a set of core values; the guiding principles that apply to everything they do in their daily life, both personal and business. These values set up how they function and behave, and determine the lines in the sand they do not cross. The best way they achieve this is by stepping into their consumer’s shoes and taking a good hard look at themselves from the consumer’s perspective. What impressions are they leaving, what impact are they having and what value are they adding? We talk about this frequently in the real estate industry, but are we really stepping into our customer’s shoes – or are we
still seeing our own perspective and justifying our behaviours and performance accordingly? There is no better example of this than the recent Victorian Underquoting cases, where alleged justifications for certain behaviours were all about a methodology for a means to an end that had become an industry standard system, regardless of whether it was right or wrong. One thing I have never been able to understand is how many in our industry have failed to see the connection between the
manner in which we perform and the longevity of our careers. The greater the service and connection we provide, the greater our success; the greater the clarity of communication, the greater the confidence there is in our advice; and the greater our integrity, the greater our reputation grows. It is fundamentally the simplest form of common sense and ethical business practice that leads to a Trusted Advisor status for the person involved. When trust is in play it instills confidence in the consumer, and that confidence creates engagement and commitment to your product and service offering. To quote Mark McLeod, “If an industry loses connection it loses its future”, and it is our future that is at stake. In this industry, we are so focused on the next deal, the quick gratification and the dollar that we forget our true purpose. GCI appears to be the current goal and, being a competitive bunch, we strive for this goal, often at a huge personal and professional cost. Trails of destruction can be left in our wake; train wrecks and burnt bridges are the results of
Many have failed to see the connection between the way in which we perform and the longevity of our careers. 20 ELITE AGENT • FEB – MAR 2018
dissatisfied consumers, who may have got the result or secured the property but were left wanting by the manner in which it was achieved. As Chris Hanley says, “Good people doing good works is what I look for”, and they are the ones who don’t leave trails of destruction. Instead they leave a trail of advocates, and that surely must be our preferred goal. And when you consider the personal damage that comes in the form of no balance in family and work life, poor physical and mental health and poor business relations, either way it is not healthy for anyone. Imagine a world where awards were given out based on Net Promoter Scores and client reviews that determine not only the efficiency of an agent but their effectiveness and their ability to connect and deliver. In my own business, for example, our major quarterly awards are based on three principles: Service to Clients, Service to Community and Service to Team, with the top annual award being Team Champion, as voted by our peers. Top performance is, of course, also acknowledged but it is not the main focus. There are a number of rating agencies out there, with REIWA adopting the ‘Real Satisfied’ rating system for its Agent Finder platform, and others are starting to gain some traction so change is in the wind. So, what needs to change? What needs to happen for our purpose to become clear? I believe the answer lies in leadership, and in particular empowering leadership, where we are amplifying rather than diminishing those we lead and influence. Nothing changes unless the leadership forges that positive change. •
John Cunningham is the Principal of Cunninghams in NSW, and Chairman of the Professionalism Committee REIA.
Aimee Engelmann
FIRST PERSON
Offshoring readiness test
OUTSOURCING BASIC OFFICE TASKS to the Philippines has recently gained a good deal of attention. The benefits are compelling and the idea of freeing up your team to focus on more important aspects makes complete sense for many, but the practical details may put others off. Aimee Engelmann explains the tools you’ll need in your office to manage the virtual team outside the office.
THE REALITY IS that
establishing tailored outsourcing operations in the Philippines is both relatively easy and inexpensive if you know what you are doing. There is an extremely broad range of technology now available which we have found useful in establishing and maintaining offshore operations, especially if those operations include virtual assistants with whom you need ongoing communication. Many of these items can already be found in most offices these days – regardless of how large the real estate agency is. The range of useful technologies include: • Video call services such as Skype or Zoom • A webcam for video calls • Standard computer • Internet connection • Headset for video and phone calls • Microphone and speaker for group calls • A television for web conferences • Web conferencing software For as little as $60, the tools you need to make sure your staff can communicate with each other – and you – are readily available. For video conferencing software we recommend Zoom, which can be trialled for free and allows you to have free 30-minute meetings, or you
can pay around $50 annually to unlock all its functionality. Zoom also works on a smartphone. To connect your television to your computer for web conferencing, we recommend using the Intel Compute Stick CS125. This plugs straight into your television’s USB port and can run Windows, web conferencing applications, web browsers and so on. For our microphone and speaker system used for phone conferences, we use the JABRA
SPEAK 510, which sells for around $120. We have found that establishing open lines of communication early on is the key to having the offshore support you need. This includes letting your staff in the Philippines know what is expected of them, explaining your operations and procedures, and ensuring their early training covers exactly what you need. Not communicating and
Establishing open lines of communication early on is the key to having the offshore support you need.
engaging with your staff both in the Philippines and at home will have the same impact, producing a raft of errors which can be costly in terms of time, money and customer goodwill. When done properly, establishing outsourcing operations in the Philippines can be the next step in growing your business. The technology is already available, accessible and affordable, making it easier than you think. •
Aimee Engelmann is the founder and CEO of Beepo, one of the fastest-growing outsourcing companies in the Asia-Pacific region. For more information visit beepo.com.au.
eliteagent.com.au 21
Mindset Corner Jet Xavier
How to eliminate distractions for good For many of us, boosting productivity is a priority on our list of new beginnings each year. However, as top mindset coach Jet Xavier says, you can’t achieve big things if you are distracted by small things.
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t work are you always reading or checking unimportant emails? Being interrupted by chatty co-workers? Having endless, pointless meetings? Surfing the net or engaging in social media unnecessarily? Checking your phone constantly or texting? Not getting everything done in the allotted time? Finding yourself not focusing as you need to? Letting your mind constantly wander or ruminate about the past and the future? Distractions are at the heart of low productivity, efficiency and effectiveness. And they are everywhere. A Harris Poll for Career Builder study showed the top four work distractions are talking or texting on the phone, gossiping or chatting at work, internet surfing and social media. Various research shows we check our phones between 80 and 150 times a day; a Dscout study found people touch their phones up to 2,617 times a day. To be honest, as I write this article I have checked Facebook, Instagram, sent texts, checked my phone, stared at the cricket, gone for a swim and surfed the net on repeat mode for the last two hours. Neuroscientist Adam Gazzaley, author of The Distracted Mind, speaks about distraction being goal interference: noise that degrades the ability to achieve
22 ELITE AGENT • FEB – MAR 2018
a goal, or irrelevant information you are trying to ignore. A study by Gloria Mark at the University of California found that people switch activities every three minutes and five seconds. Mark goes on to say that this is not only time wasted but also mental progress lost for up to 30 minutes. Furthermore, a study by Killingsworth and Gilbert from Harvard University found that 47 per cent of people’s waking time is spent not paying attention. I would add to this the constant mental gymnastics and mind wandering that happen inside our heads are a major source of distraction as well. When you are continually ruminating on the past and focusing on the future it is hard to concentrate on the present. “A wandering mind is an unhappy mind.”
HOW TO STOP DISTRACTIONS FOREVER Firstly, you need to understand what the goal interference and irrelevant information is. Workflow consultant Edward G Brown calls chatty co-workers, for example, “time bandits”. These time bandits, I would also add, can be any of the top distractions: the phone, emails, social media, and so on. Understanding this allows you to target the interference proactively and effectively. Once you have identified the time bandits and other goal interference, you need to set boundaries around your
time and environment so you have control. Create “time locks”, as Brown calls them, which improve productivity by 40 to 60 per cent. Set agreements with yourself, other team members and management about what is acceptable and needed for effective workplace productivity. Turn access to the phone and internet off at certain times and
mind become calm and clear. Mindfulness expert Jon Kabat-Zinn describes it as paying attention in a particular way, on purpose, in the present moment. Mindfulness decreases the head noise, negative rumination and mind wandering. It reduces stress and anxiety, improves focus and makes you emotionally less reactive.
A study found that 47 per cent of our waking time is spent not paying attention. avoid interaction with tech or other team members. Stopping distractions is also about the value, importance and priority you place on a task. As Tim Ferris says, it’s not that you don’t have enough time or are too busy; it’s just not a priority to you. This thinking, applied to distractions, means that you allow them to happen because you place no value on what you are doing – therefore you will allow goal interference or irrelevant information to distract you every time. Finally, the biggest thing you can do to stop distractions forever is to train your mind to improve its concentration and focus. This is where practising mindfulness is important. Mindfulness helps your
Mindfulness gives you the opportunity to create a force field around you to enable you to zero in on what’s important and what needs your focus, whilst giving you the mental power to concentrate and not get distracted for long periods of time. A great place to start with mindfulness is with neuroscientist Richard Davidson at www.centerhealthyminds.org or Chade Meng Tan’s book Search Inside Yourself. “Men stumble over pebbles, never over mountains.” H. Emilie Cady. •
Jet Xavier is one of Australia’s leading mindset coaches for real estate sales professionals. For more information visit jetxavier.com.
People Partner Alison McGavin
Regaining the trust Every single person reading this article has made a mistake at work. If it’s a large mistake you might need to start over again with your work colleagues. And whether a lot of time has passed or just a little, Alison McGavin explains what you need to do to get your working relationships back on track.
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o one likes to be responsible for mistakes. However, if you’ve stuffed up at some point, and your manager is not happy with you, dust yourself off because there is good news; mistakes, even big ones, don’t have to leave a permanent mark on your career. Here are some steps to gain back your manager’s trust and perhaps increase the respect in the meantime.
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OWN IT AND ‘FESS UP’ The blunder has happened and, no matter what you do, you can’t change that. The most important part of making a mistake is how quickly you own it. This will keep the collateral damage to a minimum. Hidden problems become serious threats! Tell your manager straight away, but don’t make it about you. Keep it to the facts and don’t make excuses. Explain how it happened and try to have a couple of potential solutions prepared to show that you’re working towards repairing it and ensuring it doesn’t happen again. Remember – businesses succeed because they recover from the mistakes people make, not because nobody ever does anything wrong.
Businesses succeed because they recover from the mistakes people make, not because nobody ever does anything wrong.
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APOLOGISE There are right and wrong ways to apologise! Your manager is upset that this mistake has occurred and so it’s only right to apologise to those who have been let down. Your apology needs to be in three parts – admitting the mistake, saying sorry and acknowledging what needs to be done differently in the future.
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FIX IT Don’t hand the problem over. It’s your mess-up and you’ve owned it, so now you must fix it. Sure, you might need help and it’s okay to ask for that help, but let it be known
that you want to rectify this; you want to figure it out yourself. This will help you not repeat the error in the future. The faster you engage in owning a mistake and in repairing it, the more quickly your manager will stop thinking about the mistake and who made it in the first place.
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REFLECT AND ADDRESS THE CAUSE Take the time to truly think about what steps led to the mistake and what could have been done to avoid it. What can you do differently? Reflection can often be easier when some time has passed; as they say, hindsight is a wonderful thing.
Reflecting might make you aware that there are patterns in your performance or behaviour that contribute to these errors. Once you realise that, you can then address how you might change, or put measures in place to prevent the same mistake occurring again. Would implementing an ideal week ensure that you don’t miss that task? Or perhaps you need to be more organised or follow checklists. Find out what works for you and make it easier for yourself by implementing the solution.
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SHARE WHAT YOU LEARNED At one time or another the highest-performing teams are those that make the most mistakes! The difference is that these high-performing teams share their mistakes and the solutions so that everyone, not just you, learns and grows beyond them. Following the above steps after a mistake is crucial, but it’s what you do from there on in that will preserve the trust you’ve worked so hard to build. Not only are you allowed to make mistakes, you’re expected to; but now when that happens you’ll know exactly what to do to keep the damage to a minimum. •
Alison McGavin is a Senior Recruitment Consultant with Real+. For more information visit realplus.com.au.
eliteagent.com.au 23
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Data Insights Eddie Cetin
5 Emerging trends in technology With 2018 well under way and the summer holidays a fond memory, it’s time to refocus your attention on your business. What can you do today, this week and this month to maximise your results? Eddie Cetin looks at five ways to use technology paired with practical prospecting to own your area.
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t’s all too easy to fall back on prospecting techniques and communication habits that served you in the past. What worked yesterday won’t necessarily work tomorrow. My advice is to stay ahead of the bell-curve and use technology to amplify your influence.
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ANNIVERSARY FOLLOW-UP This sounds like an obvious prospecting call-to-action, but you’d be surprised how few agents conduct anniversary follow-ups in a consistent manner. Rather than trying to book an appraisal with an existing client, why not send vendors and landlords a general annual appraisal via email? If required, you can then follow up with a more accurate appraisal.
This process ensures you stay top-of-mind with your clients; people always love to know what their investments are worth and how the market has moved. Personalise your appraisals by targeting clients in areas with recent sales – this is an ideal
26 ELITE AGENT • FEB – MAR 2018
opportunity to showcase your local knowledge. Ensure you factor in any renovations or improvements they might have made by proffering a current market estimate, an estimate of a high-end property in the area, a mid-range property in the area and a low-end property in the area. Often, median sales statistics on national real estate portals are void of local market fluctuation context, which impacts on appraisal values. Don’t neglect to include rental appraisal and investment property-specific information – this data is useful for both landlords and vendors.
opportunity to reinforce your brand – and to offer listings for sale directly to your landlords, helping you continue your relationship and grow your rent roll. Consider communicating with tenants regularly too: they could
2
well be your next prospective buyer or landlord. Touching base with tenants and providing great customer service may also help you realise off-market sales opportunities when they arise.
LOVE YOUR LANDLORDS In too many real estate agencies across Australia, sales and rental teams simply aren’t in regular communication about their mutual clients. This can lead to embarrassing gaffes, and doesn’t leave a good impression of a competent team. Ongoing landlord updates are critical; not only do updates keep landlords in the loop with their marketplace, your agency also remains top of mind should they consider selling. Landlord updates are an
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SHINY NEW TECH Invest wisely in technology that is going to make a difference to your business’ bottom line. Don’t make a decision based on marketing hype alone; see the proof. There are many start-ups developing real estate-centric tech products, with a variety of
very interesting prototypes on offer. It’s important to consider the depth of the business and its resources to ensure long-term viability for the technology. Be discerning with your technology investments – what might work for one agency may not work for your own. Being innovative is clearly the name of the game, but remember: cultivating genuine relationships is where true gold lies. Overdoing communications can work against you, so don’t throw social media, SMS, e-marketing and predictive tracking at your
audience in one fell swoop! Test new tech on a segment of your database who you know will appreciate the communication – don’t expose your whole database to technology fatigue.
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INVEST IN YOUR PEOPLE Your people are your agency’s greatest assets. Having
Test new tech on a segment of your database who you know will appreciate the communication.
an enthusiastic team of estate agents who know how to use the tools you’ve provided them with is the very best asset of all. Make sure you invest in regular training for new and existing staff. This could be by upskilling them on your CRM, professional development coaching, or roleplaying intensives. Bring your team together to learn new ways of doing tasks they have done forever – that’s the only way to stay current in a quickly shifting real estate market. Encourage your staff to learn from one another, and empower them to understand the new tools necessary for their trade. Learning is an important part of everyone’s professional development plan, and is critical to achieving targets.
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COMMIT TO A CHANGE PLAN When you commit to using market-leading technology, you simultaneously need to invest in a plan to drive its adoption across your business. Come up with clever, fun ways to excite your staff about impending changes, show them why technology contributes to their
success and reward them for their efforts. Changing habits is difficult for many people, so make sure implementing your change plan is a priority. Consider choosing one topic each month to upskill your team on. When adopting new technology into your business, ensure roles of responsibility are clear, processes are in place and systems have
been set up correctly to reflect your way of doing business. You can’t purchase a technology solution and expect it to work for you without a corresponding ongoing commitment to driving change. •
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Eddie Cetin is the founder of Agentbox. For more information visit agentbox.com.au.
eliteagent.com.au 27
Business Depot John Knight
The exit lounge Only an estimated 10 per cent of real estate businesses have a succession plan in place. Many default to the idea that when the time is right they will simply sell the rent roll, while others assume their kids will take over at some point. As John Knight explains, neither of these plans are in fact ‘plans’ unless you have wrapped around them a full succession and exit strategy.
D
• A combination of all options; maybe a partial sale of the rent roll before selling shares in your company to family or management.
one well, a succession plan can deliver real value to both the incumbent and the successor – it has to be a winwin situation for both parties.
START PLANNING EARLY I suggest that you need to have started your succession plan at least three to five years out from a potential exit date. This gives sufficient time to: • Minimise tax by reviewing the legal structure and understanding the tax implications of a sale • Prepare your rent roll for sale by checking your compliance and removing inefficiencies • Maximise the value of your rent roll by showing good profitability and minimising risk • Identify potential successors, whether from within or externally • Market your business, however you decide to do this. SALE OR TRANSITION? Not every succession involves a sale of your rent roll – in fact, the most successful successions I have been involved with did not involve a sale of a rent roll to an external party in one transaction. I would urge you to also consider:
28 ELITE AGENT • FEB – MAR 2018
• Entity sale rather than rent roll sale; in some states this can result in material stamp duty savings to the successor • Family generational transition, a very taxeffective way to transfer control if you have a family trust within your structure • Manager or key person buyout, often involving the incumbent retaining some equity in the business or financing with vendor finance • Rent roll breakup and offloading in parcels, with the idea of maximising the value realised – although this will result in an increased administrative burden
IS IT MORE THAN ONE TRANSACTION? As rent rolls get bigger and bigger, the market for those who can buy the rent roll in one transaction is getting smaller and smaller. Yes, there are the well-known big players in the market who may be able to afford to fund it in one transaction, but for someone to buy even a $1m rent roll they are going to need to have equity of around $400k available to make the transaction happen – and that’s before working capital. SUCCESSFUL SUCCESSION The most successful successions I have seen: • Started well before the exiting party has any urgency around an exit • Involved the incumbent reducing their equity interest
As rent rolls get bigger and bigger, the market for those who can buy the rent roll in one transaction is getting smaller and smaller.
over time in a structured selldown (say, 10 per cent a year) • Required the incumbent to help the successor fund their purchase into the business, usually by allowing them to use security in the rent roll for debt but also to justify a higher price • Knew exactly how the exit would work from a cash and tax perspective by modelling different scenarios in advance • Documented the succession plan for all parties, including the valuation methodology to be used within the shareholders’ agreement. Don’t know where to start with your succession plan? I’d suggest taking a simple, classic ‘Now, Where, How, Why’ planning approach. Where are you now? Where do you want to be – and when? How will you make that happen? Why do you want to sell? The ‘how’ is the hard bit because usually there are many options available, but the ‘why’ is important to make sure the incumbent has a planned life after their exit. •
John Knight is the Managing Director of businessDEPOT, a team of energetic accountants and advisors. For more information visit businessdepot.com.au.
Q&A ASK THE COACH – Claudio Encina Top coach Claudio Encina answers our reader’s burning real estate questions. This issue he tackles the topics of leadership and setting vendor expectations.
Q.
3. WEEKLY VENDOR REPORTS If you want to create influence, if you want to move people towards action, it’s not about manipulation; it’s about creating a logical, clean, persuasive case that moves people towards action. To build a persuasive case that is logical you must support it with facts and evidence. Well-constructed weekly vendor reports, supported with visuals such as a price/buyer feedback graph, can increase the delivery of your message.
I want to be a better leader and connect better with my staff. Any tips? – Ben Lawson, Lawson Estate Agents Lake Macquarie As a principal, understand your leadership style. Some principals have a style that is nonrelational and they are usually seen as no-nonsense leaders. Positional leaders often use their positions to distance themselves from subordinates. High-achieving principals in an office sometimes intimidate their agents by their results. But when principals are relational, their agents naturally get closer to them, and that sometimes means they may be taken advantage of. To connect better with your staff, develop authentic relationships by being authentic. You must admit to your faults or mistakes; be the real deal to receive the trust and respect of your team. Every person in your team needs someone to come alongside them to help them improve. As a principal, it is your responsibility and privilege to be the person who helps them do that. Finally, great principals are ‘caring and candid’. Care without candour creates a dysfunctional relationship. Candour without care creates resentment. Your aim is to have a balanced, caring and candid relationship to create a solid rapport.
So, know your leadership style and be authentic to be valued and trusted.
Q.
How can I close the gap with vendor expectations? Sarah Bourke, Di Jones
1. SET-TO-SELL MEETING Also known as the expectation meeting. This lays the foundation before the first open home and should be set up a few days prior to that date. The key areas to focus on in this meeting are benchmarks: How many contracts do you expect to be requested after the first
“You must admit to your faults or mistakes; be the real deal to receive the trust and respect of your team.” 30 ELITE AGENT • FEB – MAR 2018
open home? How many buyers through the first inspection? How many buyers requesting a second inspection and level of price guide feedback? Finally, explain that sometimes the first offer can be the best offer, especially in a changing market.
2. WEEKLY VENDOR FACETO-FACE MEETINGS Aim to have the meetings in your office if possible; pull your vendors away from the comfort zone of their home. Discuss each week the progress on the sale of their property by reviewing and analysing the benchmarks mentioned above. This will allow you to make any recommendations for price adjustments or change the sales strategy based on facts and evidence from the benchmarks. Book your vendor meetings at the set-to-sell meeting, weekly for auctions and fortnightly for private treaty sales.
4. VENDOR SUMMARY REPORT This where all the key indicators are summarised after three to four weeks of the sales campaign from web hits, buyer feedback, similar properties on the market, just sold and in competition currently to their property. Include a recommendation plan moving forward for the lead-up to the auction or private treaty sale. 5. AUCTION RESERVE MEETING FOLLOW-UP EMAIL After your reserve meeting, follow up with an email summarising all the points from the meeting. This will reinforce and reaffirm everything that should happen on auction day, with no hidden surprises for the vendor. Good structure and framework are key to sales in 2018! • To have your question answered email askthecoach@eliteagent. com.au. To connect with Claudio visit claudioencina.com.
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cover story
32 ELITE AGENT • FEB – MAR 2018
BILLION– DOLLAR BROTHERS I
N 2006, MILLION DOLLAR LISTING Los
Angeles opened the world’s eyes to over-the-top, luxury real estate, the likes of which we’d never seen before. Owned by the exceedingly wealthy one per cent of the population, as well as the rich and famous, these were the properties of dreams. Better yet, the reality TV show introduced us to the next level of real estate agents selling the properties. Think suave, powersuited agents dripping in Prada and driving the streets of Hollywood in the latest Rolls Royce; agents elbow-deep in handling transactions where just one commission equalled a full year’s salary for the typical Australian real estate agent. Million Dollar Listing also showed us a world where glitz and glamour collided with guts and glory, and we couldn’t get enough.
THEIR VISIT DOWN UNDER Year after year we have sat glued to our screens watching the Altman Brothers, Josh and Matt, thrive in the high-stakes drama of high-end real estate sales, and
MENTION THE NAMES Josh and Matt Altman, and
a room full of real estate agents is sure to tune in eagerly. The Beverly Hills and Los Angeles luxury real estate agents are the stars of reality television show Million Dollar Listing Los Angeles. With the brothers set to tour Australia’s east coast in March, Nikki Horner discovered that behind the glory of flash suits and fancy cars, and billions of dollars worth of property exchanged, there’s also a lot of guts and hard work.
Think suave, powersuited agents dripping in Prada and driving the streets of Hollywood in the latest Rolls Royce.
now we will get to see them in person when they hit the stage in Sydney, Melbourne and Brisbane later this year. The March tour, aptly named A Million Dollar Evening with the Altman Brothers, is a Q and A-style event, and an opportunity for us mere mortals to find out about the elbow grease behind all that polish. It’s been two years since the brothers last visited our sandy shores and since then they’ve achieved $850 million worth
eliteagent.com.au 33
cover story of sales, including Kim Kardashian and Kanye West’s Bel Air mansion in what Josh describes as “double-ending a $17.8 million deal”. Josh says the decision to head back Down Under was an easy one to make. “A lot of people know that Australia is one of our favourite places in the world, so it wasn’t tough to get us back out there again,” he says. “We really just want to be accessible to all the people that come to the shows and hear their questions and address exactly what they want to hear.”
BABY MAKES THREE There will be plenty of subject matter to use as question fodder, given Josh and his wife Heather became first-time parents when their daughter Alexis Kerry Altman was born in April. While other cast members on the show keep their personal lives rather low key, the Altman family, much to our social mediastalking delight, quite literally opened up the maternity wing doors, so we didn’t miss a thing during Season 10. “It’s totally different this season,” Josh says. “You’re going to get to see the birth of my child, which of course to me is the most
“Family is more important now than ever because of the new baby. I think for me it’s more about working smarter, not harder.” exciting. We really gave the cameras a free pass for everything this year, and we even let them in the delivery room.” Matt’s involvement is more behind the scenes, which is justifiable when you handle more than 200 transactions a year. He really does keep the wheels in motion. The show continues to break the boundaries of the traditional real estate program, but strikes the right balance between allowing us into the lives of the cast and showing off incredible homes and real estate transactions.
WORK-LIFE BALANCE Despite all the glitz and glamour, Josh’s most recent hurdle is one all parents face: finding the balance between business and parenthood. “Family is more important now than ever
because of the new baby. I think for me it’s more about working smarter, not harder. My favourite thing to do now is be home by 5.30pm and give my little baby a bath, kiss her goodnight, put her to bed and go back to the office at 7pm.” Josh says he’s now more aware of his time and prefers to pick and choose his listings, including taking on “realistic buyers and sellers” as opposed to those he terms “time suckers”. It’s something he wouldn’t have done when he was starting out and a tactic he would advise new agents to avoid in their quest for new business. “If it’s something that’s overpriced now, back in the day I probably would’ve taken it. I won’t do that anymore. I’m very upfront, very to the point with my sellers and very realistic. If they’re not, then that’s okay, it just wasn’t meant to be, us working together. Maybe I’ll hear from them six months down the line, which is typically what happens when they go with someone else, who tells them a higher price. Then they call me six months later because it hasn’t sold.”
MATURE MINDS Josh has come a long way since the early seasons of Million Dollar Listing LA. Back then bickering fuelled the show and it was not uncommon for a sneaky shot to be fired when competing for business. However, over the past few years, Josh says many of the cast members have matured. “A lot of the guys got married on the show, the other one is getting married and I had a kid. We’re all growing up and we’ve all had a huge amount of success in real estate and I think that we’ve all gotten to the point where we don’t take things so personally anymore just because of the success that we’ve had. “We’ve sold over $2.5 billion worth of real estate in our career, which is more than most companies sell. If someone wants to talk badly I’ve kind of just brushed it off. I don’t know if that’s now because I have a daughter or because of the success and the number of sales that we had, but we just kind of laugh it off.” Life at the top doesn’t mean the brothers have lost their sense of reality; they realise there’s always going to be someone ready and willing to take them down.
NO GLORY WITHOUT GUTS “When you’re at the top there’s always going to be haters, always,” Josh says. “As long as you’re confident, confident in you
34 ELITE AGENT • FEB – MAR 2018
and your life and you’re happy, that’s all that matters.” Josh says with countless real estate television shows gaining massive ratings around the world, a career selling property looks glamorous to would-be agents. But he explains that behind the cameras and fancy cars are experts in their field who do know what they’re doing. “The younger generation are watching shows like Million Dollar Listing, they see the commission flash across the screen, they see the fancy cars we drive and the mansions we show and of course that’s going to pique the younger generation’s interest,” he says. “Because of that it’s gotten super, super competitive because there are a lot of real estate agents. It’s very simple, you’ve got to be an expert in what you do. You can only fake it so much and if you are looking to be in that high-end market, people expect the best out of you. Wealthy people expect you not to waste their time and to know exactly what you’re doing. It’s pretty easy to see if somebody doesn’t.” Despite all of the competitiveness shown on screen, Josh says it’s not all one big
dogfight. In fact, archrivals often join forces for the greater good. “There are really only eight of us in the Los Angeles market that sell 90 per cent of it [high-end real estate] and if it’s our competition sometimes we’ll look at them and say, ‘Hey, do you want to sell this together? We’ll do this one together and then that way we all win’.”
FAMILY FIRST It isn’t just the dynamics with competitors that team Altman have to worry about, especially when Josh, Matt and Heather are all high flyers. Running a family business presents its own set of rules, and Josh says boundaries are exceedingly important. “With Heather, it’s pretty convenient because she’s one of the biggest closers in our office. In fact, she is, behind Matt and I. It’s more of Heather and I figuring it out together because we both love closing deals. “It’s about making boundaries for
“When you’re at the top there’s always going to be haters, always.”
ourselves, which we haven’t done before. It’s getting off the phone when we get home and spending some quality time with our daughter and then turning the phone back on. It’s still difficult.” Still, Josh doesn’t deny he is a workaholic. “We sold almost half a billion dollars worth of residential real estate in 2017; it was our best year ever. In fact, in the past ninety days we sold $200 million, just in three months. We’ve also elevated our game a lot.” How much further can the Altman brothers go in 2018? Sadly, there are no plans to open an Altman Brothers Bondi office. But with a bestselling book, It’s Your Move, seven seasons of MDLLA and with sales figures in the billions, I have no doubt the new breed of agents, just like me, will continue to be entirely entertained and inspired. •
Nikki Horner is a sales consultant with Luton Properties, Canberra’s largest privately owned real estate agency. She’s also a massive fan of the Altman Brothers. For more information on A Million Dollar Evening with the Altman Brothers, including ticket prices and venues, visit milliondollarevening.com.au.
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eliteagent.com.au 35
feature interview
HOLLY HITS A
HOME RUN
36 ELITE AGENT • FEB – MAR 2018
HOLLY KOMOROWSKI DOES THINGS DIFFERENTLY. Her signboards have ditched
the words ‘For Sale’ in favour of ‘Buy Me’, and her ‘Sold’ stickers come in the form of eye-catching hearts with the words ‘#sold.byholly’ standing out boldly. Having won the AREA Residential Property Campaign of the Year award, she talks to Kylie Dulhunty about her unique approach to property marketing.
H
OLLY KOMOROWSKI’S
business cards are distinctive: she’s not opposed to having her business name glowing in neon pink, and you’ll find her posting pics of happy vendors and buyers jumping for joy on social media. Perusing her website, home.byholly, there’s little sign of overused real estate jargon coined to dress up homes. Long forgotten are phrases such as ‘commanding street appeal’ and twee references to ‘quaint front porches’. Rather, there’s quotes from 19th century designer, writer and activist William Morris, talk of lifestyle choices, Christmas traditions and making the most of second chances in life. Casting an eye over one of Holly’s marketing photographs would have anyone oohing and aahing as much over the vendor’s pet pooch as you are over the ensuite spa bath. And that’s the point. “It’s about conveying emotion and generating emotional engagement,” Holly says. “First and foremost we try and find the story behind the home. What’s the pitch? Is it the story of the home? Perhaps it’s the story of the people who have lived there or the features that make it liveable. “We want to create a ball of positive energy around each and every property we market, and we use creativity to generate that.” It’s a method that’s served Holly and her boutique Canberra agency well, with it securing the Residential Property Campaign of the Year gong at the 2017 Annual REA Excellence Awards. Holly and her small team, including her ‘Girl Friday’ Key Chantharasy and
photographer Adam McGrath of H Creations, secured the national award for an innovative, social media-driven campaign that saw 44 Frome St, Griffith, sell under the hammer for $1.495 million after just a two-week auction campaign. Holly says she had to think outside the square when her vendors, fuelled by a previous failed attempt to sell their home at auction, told her they’d prefer an ‘offmarket’ approach this time around.
“I was faced with a client who was telling me ‘I don’t want to do it that way’,” Holly explains. “I loved that it challenged me to ask myself what I could do differently.” After countless conversations about the vendors’ requirements and how they would approach achieving a premium result for the property, Holly suggested a two-stage, PR-style campaign that used social media to build excitement and anticipation around the home hitting the market, followed by a
“Whether you’re doing an off-market campaign or taking a more traditional route, the presentation of the property is the most important thing.” eliteagent.com.au 37
feature interview
a short, two-week auction campaign. First on her to-do list was to style the home for sale. “Whether you’re doing an off-market campaign or taking a more traditional route, the presentation of the property is the most important thing,” Holly says. Next came what Holly has affectionately named the ‘hero’ of the campaign: a stylised photoshoot conveying a Gatsbystyle, poolside lounge party with people in the picture. “It seems like such a simple thing to put people in a picture, but traditionally people aren’t featured in real estate marketing collateral,” she says. “Bringing people into an image conveys livability, it makes it personal and it conjures images of a particular lifestyle in the minds of those people looking at the photo. “Having the stylised photoshoot allowed us to create our hero shot for the campaign and we were able to create a brand for the home just as you would for a commercial development. “As well as being a very beautiful house by Kenneth Oliphant, a renowned architect in the 1940s, the home had a feel of being a party house, a real entertainer’s house, with it all centering around the amazing inground swimming pool and pool house.” In a new-age move, Holly decided to
38 ELITE AGENT • FEB – MAR 2018
“Bringing people into an image conveys livability, it makes it personal and it conjures images of a particular lifestyle in the minds of those people looking at the photo.” livestream the photoshoot on Facebook before implementing a four-day social media campaign, featuring photos and two 10-second video teasers, ahead of an invitation-only, VIP buyer preview event at the property. “We used the photoshoot to start anticipation on Facebook of this property coming to the market and the story of how it would come to market,” Holly explains. “We invited buyers’ agents and buyers to the VIP preview event and we were able to generate an offer of $1.38 million. “Still, we decided to continue with a succinct campaign and took the property to market, putting it live on real estate channels, including allhomes digital and print and real estate.com.au digital.” Holly held five appointment-only open homes and the property and campaign also attracted media editorial coverage, including a Canberra Times lifestyle story.
The result was an auction culminating in three registered bidders and a sale price of $1.495 million, which was $105,000 above the first offer at the VIP event. “Social media has presented us with fantastic opportunities,” Holly says. “The key to what we do is storytelling and social media is a great platform to do that. For this campaign our social media reach was in excess of 12,300, along with the Canberra Times print and digital reach of more than 55,900.” For Holly, the REA award is a just reward for her seven years in real estate, culminating in going out on her own about two years ago. She says she felt she had built ‘a brand within a brand’ at her previous agency and did so largely through leveraging social media. Even though she describes starting home.byholly as a “leap of faith”, she felt the success she had generated during her first five years in real estate was due to her hard work and unique approach to selling property. “I always wanted to continue to improve and take things in the direction I had already started to go in,” Holly says. “It’s all about storytelling, images and being creative. I feel we’ve now really affirmed ourselves.” Holly predicts the dramatic surge in real
estate video marketing will continue, as will a focus on property-related content that gives audiences valuable information which is not a blatant or direct promotion of the brand or agent. One example of this is home.byholly’s sponsorship of DESIGN Canberra last year and this year. As a platinum partner, Holly helps present the popular Living Rooms – open homes of acclaimed architecture, teamed with emerging designers’ pop-up exhibitions. With her storytelling approach Holly has also marketed other properties in her unique style, teaming with photographer Adam to present “Jean’s house”, at 68 Ebden St Ainslie last year. A home most other agents would have marketed as a ‘knockdown’, Holly instead told stories of the vendor’s African violets enjoying the sunny kitchen and the chooks scratching around in the yard, with pictures to match. A family bought the property and are doing it up. “I love what I do; I know it works, and having that point of difference has been received positively in the market,” Holly says. • KYLIE DULHUNTY
The AREAs are back in 2018! Featuring all new awards, they promise to be bigger and better than ever.
For details visit theareas.com.au
eliteagent.com.au 39
sales AS REAL ESTATE AGENTS,
Don’t lose your next listing
A
FTER ENTERING THE INDUSTRY at the tender
age of 18 and working my way from Sales Assistant to CEO over the last 20 years, I’ve had the opportunity to experience a number of major industry changes and learn exactly what it takes to grow a successful business. I learned very early on that the key to succeeding in this business is to win listings. However, after more than two decades, I still see agents making the same old mistakes – mistakes that hurt their business and brand in the marketplace. Here are the five most common errors I see agents making that cost them listings, and therefore the opportunity to grow their business, on a regular basis.
1
UNDERESTIMATING THE IMPORTANCE OF THE LISTING PRESENTATION
The listing presentation is typically the point at which the seller will decide whether they’ll list with you or give their business to your competitor, and yet I continuously observe agents underestimating its importance. Simple errors are consistently made, such as not turning up on time, not having done research beforehand and not positioning yourself as the expert – all errors which reduce the likelihood of the vendor selecting you to represent them. If you choose to perfect any part of your role as an agent, choose the listing presentation. Knocking this out of the park
40 ELITE AGENT • FEB – MAR 2018
we all know that errors can be costly. Small mistakes can cause us to lose clients, listings, commissions and even the reputation we’ve worked so hard to build. The problem is that many of us only identify our mistakes long after the damage has been done. But it doesn’t have to be that way, as Adam Flynn explains. each and every time is going to contribute a great deal to your overall success.
2
NO STRUCTURED LISTING PRESENTATION
I frequently observe agents delivering listing presentations with only a vague plan in mind, which I view as a huge mistake. If you fail to plan your presentation adequately, you’re essentially flying blind. Systemise your presentation and break it down into different steps. Think about the initial phone call and draft a spiel to follow. Plan the actual presentation itself. Think about what you’ll say and when. Prepare some case studies of comparable clients. And, most importantly, test and measure your results. Even the slightest alteration can have far-reaching consequences.
3
BUILDING RAPPORT THE WRONG WAY
Building rapport with customers is important, but so often I see agents going about it the wrong way. Rookie agents assume they need to make friends with the vendor and engage them in a lengthy, non-real estate-related conversation in order to gain their trust. However, I believe that’s a strategy only the unconfident and inexperienced employ. Vendors aren’t looking for a friend – they want to know that you are the best person for the job. Stop wasting your time and theirs on irrelevant small talk and start communicating how your expertise will help them sell their home. If the conversation isn’t about their property, you aren’t offering them any real value.
4
FAILURE TO DISPLAY PROFESSIONALISM
If you think it doesn’t matter if you’re a few minutes late to an appointment, think again. Arriving late, failing to return phone calls or letting your grooming slip communicates to vendors a lack of professionalism and they may start to see you as less than capable of handling their sale. It’s the little details like this that can alter a potential customer’s opinion of you, so don’t give them reason to take their business elsewhere.
5
FOCUSING ON PRICE AS OPPOSED TO STRATEGY
Want to know the biggest error rookies make? Their entire game plan is based around the fee they charge, as opposed to focusing on the strategy they will adopt to achieve the best possible sale price for the vendor. The fact is anyone can offer a lower fee, but will it help you become a better agent and build your brand presence over time? Not a chance. In order to really succeed in this increasingly competitive industry, I believe it’s necessary to devise a carefully considered strategy which will simultaneously help you increase your listing conversion rate and positively represent your brand and ability in the marketplace. •
Adam Flynn is the CEO and Director of Biggin & Scott Knox, an award-winning sales agent, auctioneer and property investor.
1
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marketing
FINDING THE REAL STORY IN REAL ESTATE COPY PROPERTY EDITORIALS don’t have to be boring, says Kylie Dulhunty.
Properties have personalities, and those come as much from the people who lived there as the bricks and mortar features themselves.
P
ULCHRITUDINOUS is a word I’ll always remember for all of the wrong reasons. For the past 11 years it’s been a constant source of amusement, and a reminder to me to think outside the square but to keep things simple. For a while I even had it printed out and taped to the wall at my desk at the newspaper where I was working as a real estate journalist when I first saw the word. Pulchritudinous. It means ‘beautiful’. Rather than reading it in a Jane Austen
42 ELITE AGENT • FEB – MAR 2018
novel, I came across it as I was editing a real estate agent’s prose on a renovated period home about to hit the market. The home was indeed ‘beautiful’ but, given most of the wordsmiths working alongside me didn’t know what pulchritudinous meant, I doubted readers of the newspaper would either. If they did, I have little doubt they’d scoff and put its use down to an agent trying to oversell the property. After a few laughs it was cut out. Now, more than a decade later, I have written thousands of real estate editorials
for newspapers and real estate agencies themselves. It wasn’t until I worked for agents that I understood why a word such as pulchritudinous had crept into Agent X’s copy all those years ago. They wanted to be different. They wanted this home to stand out amongst all the other editorials in the paper that day, as well as online. The use of the word pulchritudinous was their attempt at the big sell. That’s an agent’s lot – they have to present a home in a glowing light. They have vendors to please and a sale to make. How do you balance the need to detail a home’s
features and sell the property with the need to provide useful yet inspiring content that buyers, particularly sceptical buyers, will love? With real estate also a hot topic for fans of the industry, regardless of whether they are buying or selling, content needs to be engaging, not smarmy. So how do you stand out in the real estate copywriting crowd?
FIND THE LIFE Call me crazy, but I firmly believe every property, be it a period home brimming with heritage features or a sleek new apartment, has an aura. Properties have personalities, and those characteristics come as much from the people who have called those four walls home as the bricks and mortar features themselves. So, instead of immediately launching into the spiel about how many bedrooms and bathrooms the property has, why not let buyers know the vendor’s great-greatgrandmother was born by the cast iron fireplace in the front living room, or the piece of timber lining the kitchen benchtop came from a dismantled wharf 300km away? Over the years I’ve written about a house the owners painted black and another with every room painted a different colour in the brightest hues possible. Instead of glossing over those details or ignoring them they became the ‘hooks’ for the editorials, as each had a personal story that showed how much the vendors had loved the property. If something is different consider celebrating it, not hiding it, as it just might be the story behind the feature that gets the sale.
With today’s time-stretched buyer looking for cold, hard facts fast, why not use a timeline to detail the home’s journey from building, through renovating all the way to auction date? Highlighting items such as ‘November 2001, held Sarah’s 21st in the new Queensland room’ is a creative way to list the property’s features as well as paint a picture of how the home was and can be lived in. Another way to stand out from the crowd is to turn the old-fashioned real estate flyer, filled with paragraphs of copy, into a succinct postcard highlighting just one standout feature in a quirky way. A quote from the owner on how they adore relaxing in the ensuite’s freestanding bathtub with a glass of wine and a good book will have people picturing themselves doing the same. That’s what you want to create – potential buyers imagining themselves in the home.
FORGET THE HYPERBOLE When you write real estate copy day in
and day out, it’s easy to use the same tired phrases over and over and over again. If you’re bored writing about ‘quaint front porches’ and ‘sun-drenched entertaining decks’ so too will be the reader. Plus, I don’t think it’s a big secret that many take real estate copy with a grain of salt. People expect clichés and exaggeration, so when they read something fresh and new it really stands out. One of the things I try and instill in my clients is to play things with a straight bat. That cupboard under the stairs is not a study or potential fourth bedroom (unless you’re Harry Potter, of course) and as for the Juliet balcony where you can enjoy a lazy Sunday brunch, don’t be silly; everyone knows you can barely fit one foot on one of those balconies. Instead, forget the clichés and hyperbole and paint an accurate picture. You don’t have to include every element of the property in an editorial, so if it’s not a selling point don’t exaggerate it to become one; just leave it out. • KYLIE DULHUNTY
An agent has to present a home in a glowing light. They have vendors to please and a sale to make.
STOCK YOUR TOOL KIT They say a picture is worth a thousand words, and today we also have video, virtual reality, floor plans and interactive floor plans, among a host of other tools, to use to sell the features of a property. It’s often a combination of these elements that work the best. However, if you want to stick to the written word there’s a lot you can incorporate when telling a home’s story that goes far beyond just a long-winded spiel. Features listed in dot point format are effective, but that’s not exactly unique.
eliteagent.com.au 43
personal development
THERE ARE NO
SUCCESSFUL HERMITS IN REAL ESTATE
SUCCESS, HOWEVER WE DEFINE IT, is not a solo performance. We need to
connect with others to obtain the outcomes we seek in the 3 Ps: our professional, personal and private lives, as performance coach Rik Rushton explains.
S
UCCESS IS NOT always measured in dollars: many of us feel most fulfilled when what we do on a daily basis meets our highest values. However, to achieve our goals we all need to connect with other people. Here are some simple shortcuts to develop deeper connections in three arenas: the professional, personal and private theatres of our lives.
THE PROFESSIONAL ARENA I don’t have to be your friend to work with you, but I do have to connect at some level. So how can I do that? There are several things to
4 4 ELITE AGENT • FEB – MAR 2018
remember in order to achieve this connection. People are not their behaviours! Often they are responding out of an emotional challenge. Tune in to that challenge and, by displaying empathy, you will enhance your rapport and deepen your relationship with colleagues. People don’t like surprises and prefer to engage with others who are ‘just like them’, so by understanding the personality traits and triggers of colleagues you will know how best to connect and collaborate with them. Showing up is the job half done.
Connection and collaboration with others is where it’s at, so copy others in whenever you can (‘Email CC’ is connection 101). ‘If it ain’t broke, don’t fix it’ is the language of those workplaces stuck in the comfort zone. If it ain’t broke it’s probably obsolete! Be a workplace ‘disrupter’ in a positive sense; challenge the status quo, and progress your team and organisation. If there’s dialogue in your workplace starting with ‘What the company needs to do is….’, you need to correct that in yourself
I don’t have to be your friend to work with you, but I do have to connect at some level.
and colleagues to ‘What our company can do to improve is….’. And remember, it’s not ‘the company’; it’s ‘our company’.
THE PERSONAL ARENA Success in this area is all about work/life balance. When you’re at work… work! When you’re at home, it’s ‘family first’. Don’t mix the two. Let your family know that your professional arena is not your life but that it funds your lifestyle. What we do here and who we are here is more important than money. ‘What is it I do that makes you know I love you?’ is a great question to ask on the home front. In fact, your ability to deliver emotional dialogue may just be the most important leadership, parenting and ‘self-leadership’ skill you can develop.
THE PRIVATE ARENA Get your head in the game – it’s all about perspective. Going the extra mile is the cost of becoming a master communicator and
Any day above ground is a great day to connect with myself and others. connector, and it starts in your headspace. Any day above ground is a great day to connect with myself and others. However, just turning up or ‘dialling in’ is not OK in the professional or personal arenas. Remember, energy is everything – so ask yourself, ‘Am I ready to give the best version of me today?’. It’s OK to drop the ball; we all have bad moments. It’s not OK to do nothing about it. Reassess quickly and return to the better version of you. My advice is start each day with key outcomes you seek in each of the three ‘P Arenas’. What’s a key Professional outcome I can achieve today? What’s the best outcome for the Personal arena I can accomplish today? What’s the gift I can give myself today in the Private arena?
Outcomes are more important than activities. You can tick off everything on your to-do list and still go home feeling like you haven’t achieved anything of real purpose. So start measuring your day by outcomes in the three P Arenas, not activities. These strategies are covered in greater detail in my book, The Power of Connection: How to become a master communicator in your workplace, in your headspace and at your place. In it we explore the full subject of communication, collaboration and deeper connections with others in your workplace and, more importantly, at ‘your place’. There are seven easy-to-read (and even easier to implement) tools that you can use starting now to improve the quality of your connections, communication and, ultimately, of your life. •
Rik Rushton has been a peak performance coach, platform speaker, conference emcee and trusted advisor to many of the leading brands, organisations and professional sports teams throughout Australasia since 1995.
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eliteagent.com.au 45
feature interview
T
HEIR ETHOS OF TRANSPARENCY AND RESPECT sees Latitude
complete over 120 land sales each month, notching up $142 million-worth of property sales in the last quarter alone. They are renowned as one of the most successful real estate agencies in the ‘off the dirt’ arena, with an identity entrenched in a century of real estate experience and a clear focus on the path ahead.
A STRONG PAST As a boutique, specialised project marketing and sales business, Latitude draws on the credentials of two dynasties in the real estate realm – the Hand and Simonds families. Together, they span three generations and boast over 100 years’ experience in real estate development, land marketing and building residential homes. James explains that his father Bob previously owned Oliver Hume Real Estate, the largest privately owned real estate company in the country, before starting Villawood properties and then Latitude in 2011. They were joined in 2014 by father-and-son duo Mark and Rhett Simonds of Simonds Homes, who took out a half share in the business. Since its inception only seven years ago, Latitude has gone from strength to strength. The company handles every step of the development process – from sourcing undeveloped land right through to securing the right developer, creating the marketing strategy and then handing over the keys to clients at completion. They describe themselves as a “boutique operation with a personal approach that enables each and every one of the four directors to maintain a ‘hands-on’ role in the business”. James’ position involves running the dayto-day operations of the project marketing component, and he explains that it was natural to follow in his father’s real estate footsteps. “I was always going to do this. I just loved what Bob did and would spend my Saturdays out on sites watching how he did it.” James brings a visionary approach to the Latitude table, utilising technology to complement the company’s commitment to customer service.
46 ELITE AGENT • FEB – MAR 2018
FIELD OF DREAMS IT TAKES INCREDIBLE VISION to sell the dream of stately
homes and high-spec apartments while standing in a field amidst grazing cows, but for James Hand of Latitude Real Estate in Victoria it’s a success story based on knowledge, innovation and, above all, respect for clientele. Here James explains to Elite Agent how his innovative development firm includes both the values of his family heritage and smart use of technology for future growth.
A CLEAR PROCESS While Bob takes care of acquiring broadacre land, James manages project marketing, with the core ethos of transparency and respect for clientele. Latitude currently handles eight projects and will take on another two to three early this year. While the company often bids for project marketing work with developers, sourcing untouched broadacre land also allows Latitude to ‘feed their own machine’. “We have particular relationships where, if we find a broadacre paddock for the developer, we’ll make a handshake deal that we’ll get it back at the other end.” Then the challenge lies in creating the vision to sell the land. “If a developer comes to us with 1,000 lots for potential subdivision, we usually go away and have a think about what’s driving that market and hit the ground with a presentation of how we’re going to do it.” This involves a comprehensive understanding of all aspects of the project. An in-house graphic designer prepares
the marketing submissions, with final submissions presented in book form. Should a submission prove successful, the team gets to work on selling the project, and it’s a targeted strategy relying on detailed reporting. “We set sales targets and work backwards. So long as we’re tracking to hit the target, we’re sitting sweet. If we’re not tracking to hit a target then we sit down and think about what needs to be done.” James notes they “report on everything” to ensure they’re hitting the mark in the most effective manner.
“Too many times I see other agencies making people sleep in their cars or go into a ballot.”
Each project has competitor, inquiry and quarterly reports that gauge every element of the selling process. There’s a particular focus on where sales leads come from to ensure the marketing dollar is spent in the right place. “Is it the newspaper, Google or realestate. com.au? We target what works in a heavier manner. Some areas are more online focused for sectors like first-home buyers. We can hit a lot of first-home buyers on Facebook in particular areas. In other regions that doesn’t work.” When it comes to Facebook, James says it’s a tool that allows them to “get seriously close” to their clientele due to the extensive data the social media giant has at hand. Meanwhile, it’s not the only technology that Latitude leverages for sales.
A TRANSPARENT ETHOS James attributes Latitude’s ongoing success to the transparent and respectful way they treat their customers. “We have strong respect
for our clientele. This is driven into our sales agents from the top – so much so that we have designed release strategies that are very transparent and keep the client in control of their purchase.” While other agencies use systems like ballots for land release events, Latitude is embracing technology. One of their pioneering initiatives involved using online ticketing platform Eventbrite rather than having people on site, in competition to secure a parcel of land. “Too many times I see other agencies making people sleep in their cars or go into a ballot. To me this is disrespectful to the people we should be looking after most.” Online ticketing allows Latitude’s clients to secure their land in the comfort of their own home. Clients then come into the Latitude office at a later date to sign a contract of sale. “It’s no fuss. They’re in and out within half an hour and it’s done on their terms.” The system has worked so well that others in the industry have followed suit, while James
has plans to better utilise online resources in the future. “We are now developing our own exclusive system with additional features on our own website.” Latitude is also actively researching online purchasing for land. “Allowing a person to purchase a property online would be a fantastic achievement for our industry. This would give our clients complete control to purchase a property in their own time, not being hassled by a real estate agent, and working around their schedule.” It’s all part of a selling process that keeps the customer needs front of mind. “We forget as an industry that half a million dollars is a lot of money that someone is about to trust us with. At Latitude, we ensure they know everything about what they’re buying. “Our clients are building their dream home. We need to make sure that dream sits in their mind whilst we do everything to get that land ready for them to build on. It’s about the story and the experience without the physical product.”
AN EYE TO THE FUTURE With 2018 well under way, James says he’s excited about the year ahead. “Our business is made up of young, energetic and innovative people. We have a clear direction into the future, and embracing technology is a huge part of this. In 2018 we will continue to build on everything we have done to date, getting bigger, better and faster. “At the end of the day, I would like to think that our clients continue having a better experience with us. For me, the end goal is that this then filters on to developers and they think, ‘Well, you know what? We can’t afford not to sell with Latitude’ – because we are sitting at the forefront of the customer experience, we’re responsive to the market, we’re agile and we’re quick.” • WORDS: CASSANDRA CHARLESWORTH INTERVIEW: SAMANTHA MCLEAN
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profile
NEW YORK STATE OF MIND BEFORE SETTLING DOWN in Sydney, Nick Harrington lived in France, Germany and New York, where he faced stiff competition against high-flying agents from Million Dollar Listing. But in the early days, desperate to compete with them, it was some wise advice to ‘start acting like them’ that set him on the road to sales success. How long have you been in real estate? I first started in the real estate industry in 2003. I began as the office gopher in Ray White Elizabeth Bay and was grumbling about not being a ‘proper agent’ after about one month. The father of my then girlfriend told me that they’ll ‘respect you as a salesperson when you act like one’. His advice was to go and find some listings; not wait to be made a salesperson, but just
How competitive was New York and what did you learn from the experience? Real estate in New York is incredibly competitive. When I arrived, Million Dollar Listing had been on for a couple of seasons and those guys were brokers actually in the market; guys against whom you’d try to pitch for listings! The biggest difference between New York real estate and anywhere else is the calibre of the agents. Many of the most successful
at all unusual that I’d go to have a look at a property and find myself speaking to the homeowner and their family in French.
Someone told me I was the most ‘normal’ person they had ever met. It’s not the best compliment, but it’s one I’ve never forgotten.
Most memorable or unusual property you have sold? The most memorable properties I have sold were the two apartments in ‘Del Rio’ (2224 Billyard Avenue, Elizabeth Bay). The building is one of the most attractive in Sydney: a beautiful Spanish Mission block
If you could give one piece of advice to your younger self, what would it be? Spend more time listening and asking questions.
“THE BIGGEST DIFFERENCE BETWEEN NEW YORK REAL ESTATE AND ANYWHERE ELSE IS THE CALIBRE OF THE AGENTS.” to go out and be one. A month later, at one of the team sales meetings when everyone else had finished, I asked if I could say something. The office sales team looked at me oddly and they were quite surprised when I placed three (at that time green) agency agreements on the table. That’s how I first got into sales. How does it tie in with your background in political science? I have always been interested in reading, in politics, philosophy, and so on. Political science for me is a personal interest; real estate is how I generate a lifestyle. I find both fascinating and feel I bring a little academic rigour to how I manage listings, and how I generate marketing and negotiating strategy.
agents had previously been attorneys, investment bankers, company directors, and so on. They come to the industry with a rolodex of wealthy clients that they then spend their time servicing. The biggest takeaway from my time in New York is the value of the longterm personal relationship. The game is a social game over there. It’s far less transactional than here in Sydney. In New York you have a broker for life, and the broker treasures and nurtures that loyalty. You speak fluent German and French – how has being multilingual helped your career? Back in the 1960s there was a surprising number of French ex-pats who bought properties in Elizabeth Bay. It wasn’t
48 ELITE AGENT • FEB – MAR 2018
with a stunning harbour-front pool and large apartments with portico terraces. What would you say your career highlight has been, and why? My career highlight was speaking at an elite conference during the Global Financial Crisis about how to manage the change in market conditions to ensure you continue to write the commission you need to write and your clients still get the results they expect. I enjoy public speaking and it is nice to know you can offer helpful advice to people who find themselves in the same situation as yourself. What’s the best compliment you’ve ever received, and why?
What would you do more quickly? Read! Best piece of advice you have ever been given? If you don’t believe in yourself, how can you expect anyone else to? What has been the best thing about joining McGrath? I appreciate the level of managerial support and the freedom to work on your own terms. What do you still find most challenging about being in real estate, and how do you overcome it? The most difficult aspect for me is the work-life balance. Real estate is an all-consuming profession. It’s always a challenge to find the right balance. What are your goals for this year? I don’t set goals. I just work as hard and as smart as I can, trying to maximise the outcome of every activity. •
“SOMEONE TOLD ME I WAS THE MOST ‘NORMAL’ PERSON THEY HAD EVER MET. IT’S NOT THE BEST COMPLIMENT, BUT IT’S ONE I’VE NEVER FORGOTTEN.”
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marketing
EVEN WHILE PERTH AGENT
Emma Guthrie was completing her real estate qualifications she knew social media, and particularly Instagram, would play a major role in her marketing strategy. Story by Cassandra Charlesworth.
Love.
A
S A FORMER PR and marketing professional Emma Guthrie felt Instagram’s instantaneous, picturedriven platform would help her build a contact base to get a foot in the competitive real estate door. So she established love.where.you.live – an Instagram feed dedicated to highlighting the positives of her community, while showcasing the people within it and the idyllic nature of her surroundings. A couple of years later, the results speak for themselves. Emma is a rising star at Davey Real Estate, North Beach in Perth and has a solid base of over 5,000 followers who share her journey in the beachside enclave. Her posts extend from picturesque
50 ELITE AGENT • FEB – MAR 2018
“It helped build a rapport, because by the time it comes to making an appraisal people already feel like they know me.”
beachside shots to inspirational memes, giveaways, client testimonials, local events – and a quick snap of the local deli in a particularly beautiful light. Her latest property listings and sales are featured too, but are an incidental element rather than the full focus of her feed. A major component has been Q&As with local businesses, profiling what they do. All build an alluring picture of the local community while showcasing Emma’s role within it. As she explains, this media profile has enabled her to build a rapport with her community, attracting potential listings and facilitating sales, resulting in numerous, wideranging benefits for her real estate career. Initially it allowed her to get to know local businesses as she set to work snapping moments of local life. Soon people were remembering her name, and then they were recommending her and allowing her into their homes for appraisals, advice and sales. The volume of her followers also became
“I say 150 per cent other agents have to do it; a picture paints a thousand words.” husband in the cubbyhouse in our backyard, and that got 200 likes and a host of personal messages.” Meanwhile, her reach extends beyond her own posts. She recently invited industry professionals such as landscapers and interior designers to an open home, and they too shared the event on social media, widening Emma’s profile and audience. “It’s created so many opportunities and opened so many doors,” she says. In addition to Instagram, Emma also uses Facebook, has a personal WordPress blog and, when it comes to marketing properties and her services, utilises traditional methods like DL flyers, playing each marketing method to its strength.
She explains how her Facebook page has a more informative focus, with articles and in-depth insight, and it too has around 750 followers. She ensures her marketing is consistent and repurposed; for example, the images used for DL flyers are sized to fit an Instagram post as well. Meanwhile, Emma is resounding in her endorsement of Instagram as a valuable real estate tool. “I say 150 per cent other agents have to do it; a picture paints a thousand words,” she states. “It’s a voice to your clients and future clients. “For future business it puts you on show, illustrating everything you are capable of. It gives people confidence that they already know you. Past clients also follow, and it reinforces they chose the right person. It’s about continuing contact and it puts you in the palm of their hands.” •
where.you.live
a valuable asset to clients for the way her properties were marketed and the type of sellers it would attract. “At first I wanted people to know who I was, because in real estate it’s all about remembering a person’s name. It also helped build a rapport, because by the time it comes to making an appraisal people already feel like they know me.” Emma was careful about the audience she cultivated, ensuring followers were local and relevant. She was also active in maintaining regular posts, and included a personal element. She shares her wins, her favourite morning coffees and select moments of family life. Posts are curated to maintain a positive, energetic feel. “I post frequently, at least every day, to keep audience interest,” she explains, noting the content depends on what’s going on at the time. “It’s about connecting with people to show who you are and what you do by posting content they can respect.” As to what’s popular, “Nothing beats a beautiful beach picture”. But Emma has also been surprised at the items people like. “Recently I posted a picture of my kids and
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personal development
How to learn new skills the easy way IT IS ASTOUNDING how
many people struggle to learn something new. But, just like a toddler starting to walk, we are all capable of mastering new skills if we go about it the right way. Pancho Mehrotra of Frontier Performance explains.
I
have often seen trainers getting people enthusiastically involved in the training, yet when these people leave the seminar they fall back into their old habits almost immediately, despite having the best intentions. That’s because people are often in the right mindset when they start to learn something new and are open to it; then suddenly, as if someone has flicked a switch, they turn off and become resistant to what they are learning without even being aware that this has happened. In fact, as humans we often tell ourselves we are open to learning, but the moment learning something new becomes difficult we shut down. Why does this happen? How can we stop it? To understand why we struggle to master something new, we need to understand how we learn. You may have heard of the four stages to learning. They are: 1. Unconscious incompetence: ‘I don’t know what I don’t know’ 2. Conscious incompetence: ‘I know about it but I don’t know how to do it’ 3. Conscious competence: ‘I now know it and do it deliberately when I need to’ 4. Unconscious competence: ‘I know it and do it automatically’ Think about the time you first learnt to drive: how excited you were, and maybe nervous of getting behind the wheel of the car. Can you remember the first time that you drove by yourself? Perhaps you were a
52 ELITE AGENT • FEB – MAR 2018
bit nervous and on edge. However, within a matter of months, driving became second nature; you could drive without having to consciously concentrate on the task. So you learnt something new, which was difficult but you managed to master it within a few months. Why? Because your level of motivation to learn the skill was high; learning to drive was a necessity, not an option. Simply put, you do whatever it takes to learn to drive and get your licence. In this case, you were: • Open to learning something new • Open to learning even with discomfort and fear • You persisted in learning • You mastered the skill. In the illustration on the following page, the learner started at the unconscious incompetence stage and moved very quickly and steadily to the unconscious competence stage. It just required some repetition, to put themselves in stressful situations, and they came out of it totally confident in their abilities. This applies to every learning situation. Learning something new requires a level of discomfort, and to be able to master learning requires a high level of internal or intrinsic motivation. Often the need for immediate gratification (of having the comfort of doing the same old thing) overcomes the desire to learn something new. In one way, not having a reference experience to judge what you are learning, or in simple terms a memory that has not been created, is a blessing in disguise. It is sometimes easier to learn something entirely new than to relearn something you have been doing for some time. This is why at times new real estate agents can outperform the established agents. The challenge for many people when learning is that they refer everything new to what they have known before. Unconsciously they create arguments in their head that what they are learning is not right for them or that they have heard it all before. With this limiting
HIGH
Unconscious Competence
Conscious Competence
LOW
Competence
outlook, how can they possibly pay attention to what is being taught? They are learning new things, yet struggle to see the relevance to their position or job function, which means they create barriers to learning. To counter this, be aware of what you know, put it aside and then think about what you are learning and adapt it for your needs. When we are learning something new, our attention needs to be on learning, not on debating the learning. Behaviours to be aware of during learning: • Be aware of your attention drifting from the task at hand. You might start to look at your phone, email, social media. • Check out your own body language. Are you habitually looking around the room, fidgeting too much, maybe yawning? • Show flexibility. Learn to accept other points of view, or at least pay due respect to them. Not everything has to be either black or white. Three forces – technological, social and economic – are jointly changing the real estate industry rapidly, along with every other sector. To keep up with this
Unconscious Incompetence
Conscious Incompetence
LOW HIGH Consciousness transformation, we need to have an open mind and embrace change. Past familiar practices provide emotional security, so it is understandable that, from a behavioural point of view, you may not like change. However, to progress we need to learn and to learn we need to embrace change. One way of embracing change is to ask different questions of ourselves. Instead of ‘I can’t see how this is relevant to what I am doing now’, ask ‘What can I learn from this information?’ or ‘What or how can I adapt this information?’ The simple process of asking yourself better questions will help to stimulate better answers that allow you to re-engage with yourself mentally, emotionally and physically. To
learn something new, we must adapt our behaviour to change the way we interpret the information. Have you ever wondered why children learn so fast and enjoy the process? One of the reasons is that they don’t have any reference experiences or memories of old knowledge or ideas. They don’t judge; they soak learning up like sponges. I do not advocate totally discounting the past in the work environment, but I’m an active campaigner for an open mind. Don’t let the past impact your future learning and development. What can you do to be a better learner? • Seek out new knowledge and skills • Be motivated to learn • Have an open mind • Ask better questions of yourself • Apply the knowledge before discarding • Enjoy the process of learning. •
Pancho Mehrota is the CEO of Frontier Performance and a recognised leading expert in the area of communication, influence and the psychology of selling. For more information visit frontierp.com.au
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mindset FORMER WTA TENNIS PROFESSIONAL Michelle
Jaggard-Lai knows what it is to have a competing mindset. While some of us are born competitors and some believe they can learn, others feel they just don’t have it in them – yet, says Michelle, all of us are capable of achieving more.
S
UCCESS IS NOT always about winning. As an ex-professional tennis player, sports coach, mentor to aspiring tennis players, parent of aspiring champions and currently a voluntary principal of a sports venue, I try to encourage the concept of learning to compete with oneself first, to truly enjoy competing. Many might disagree; they motivate themselves by money, wins, beating fellow players, being ranked above others or looked up to by their peers. In business you also see some looking for the edge over others, enjoying competitors’ failures or even talking themselves up to be bigger than life. Is this a healthy mindset to enjoy competing? One thing I know is that we can enjoy the game, compete and have fun without the need to involve others in this journey of self-improvement, and in turn have more fun competing. When I played on the WTA tour I loved the idea of finding answers, outplaying the opponent, being determined to find ways to play at my best more often. I enjoyed a win-win mindset of learning from every experience, knowing I can’t win everything but I can experience winning in every situation. I learnt I can have control over how I perform; I found ways to respond or react and rejoiced in the successes, big or small, alongside the progress I made on a daily basis. This motivated me every day to want to get better. It was no easy feat, as our pay on the WTA women’s professional tour was determined by wins and losses, but I was committed to continually improving. I figured if the number one in the world claimed they could improve then certainly
54 ELITE AGENT • FEB – MAR 2018
How to experience winning in every situation so could I. This inspired me each day to be better than yesterday. Today, after teaching thousands of children in sport schools programs, I believe when introducing competing it is vital that the first experience is positive, fun and just a natural progression that they feel ready to enjoy. I do this by educating students to learn to play the actual game, to understand that competing is just another way to enjoy the sport even more. It explores self-awareness, allows us to make quick, informed decisions and shows us where we are at, and how to grow even more. My belief is preparation is the key to competing confidently and as you practise
this skill of competing more often it becomes instinctive. One of my biggest challenges was when I taught a large elite schoolgirls’ team to learn how to compete at their personal best. They seemed to have a ‘brain freeze’ in what they thought were big events, so we wanted to improve their self-awareness. Many had the importance of beating each other for a position in the team as their priority, didn’t understand their own strengths and weaknesses or couldn’t analyse their opponents to devise a game plan. We changed the focus to learn how to become a great competitor, understanding
designed around performing at their best, they began playing to their strengths against their opponents’ weakness more often, started setting realistic goals each match and were interested in helping the overall team results, and in turn produced better personal performance. They were later rewarded by reaching their goal of coming at the top of the schoolgirls’ team competition. It was a very proud moment for our team. They even forgot who performed best as each contributed their personal best and reached their potential as a competitor. My proudest moment as a coach was to see them fall in love with the game and hear that they all increased their practice time without being forced to turn up. They have continued playing tennis in many forms today and recall some of these moments as pivotal experiences that made a positive impact on them. Alongside this I often found that their performance in sport helped them with other areas, like their academic
of the greatest compliments that another player gave me. We were going for breakfast in the hotel together before starting our matches for the day at a tournament in the USA and she said, “Michelle, do you know why you are so tough to beat? It’s because you never give up – anyone who plays you must go out and actually beat you.” I must say I was a little shocked that a fellow competitor would offer such important information to me over breakfast, but I thanked her for her insight on what it felt to be on the other side of the net. This is something I can be very proud of when I look back on my career, as in every match I always gave my best and fought till the last point. It still stands today and I have been told the same thing in different roles or jobs I have been in or opportunities I have been blessed to be given. One thing I have come to recognise is that I love completion and getting to the finish line, but also have a deep appreciation for the journey it takes to get there. I must admit that often I have been guilty of
I enjoyed a win-win mindset of learning from every experience, knowing I can’t win everything but I can experience winning in every situation.
the importance of competing and the value it brings to their overall life skills, and knowing it is just a game we play, with no relationship to life or death circumstances. I noticed after explaining this the change in their approach to training; many members of the team started to enjoy learning from each other and playing against each other for training purposes. They began to believe they deserved to win after recognising their own self-worth and contribution to the team. It soon became clear they started working harder on their overall skills because they began to really enjoy the game. When we implemented a plan
performance and social relationships with fellow students, and gave them the belief to achieve new goals in life after school. I believe every person can compete to their best if they have a strong desire not to accept anything less. We all have it in us as we were born competitors; we just need to learn how to access it, learn what is really important about what we want to achieve and go for it like there is nothing to lose – or just like you had all the money in the world and can make clear, unemotional business decisions. I recently spoke to a principal owner of a real estate business who is currently selling our own family home and I asked what it is he loves about his job. He said, “I love the thrill of the chase”. What I took from this is that he enjoyed competing by fighting to get the sale over the line, understood the importance of those last few moments of negotiations and the need for clear decision-making at pivotal moments – but he also got a thrill and thirst for the battle of competing and the crunch time of sealing the deal. It was almost like a sport, and this made me realise how closely business and sport can be. As a player on the WTA I remember one
saying to my closest support lines, “I really want to give up” but for some reason I just can’t agree to it in my soul, because it is who I am: a born competitor who loves fighting till the end. However, I stay true to what I stand for and how I want to be known by others – and most importantly myself. In short, there are five contributing factors to being a champion at whatever you do: 1. Build a thirst for self-improvement 2. Accept purposeful practice is needed 3. Learn to play to your strengths 4. Enjoy a performance-based approach 5. Have fun competing and being at your best. You were born a competitor. Good luck! •
Michelle Jaggard-Lai is a former professional tennis player on the WTA tour and a successful Australian Federation Cup player. She now coaches and mentors aspiring champions, and develops cross-pollinated sports and business programs. Her passions include teaching, writing and public speaking.
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The Home Straight Mark McLeod
Taking stock As markets across the country start to take a different form, every real estate agency will need to turn its focus to stock management. Many believe that days on market and clearance rates are what the market serves up to them, but when offices don’t have solid stock management structures the market provides a great scapegoat for why performance is declining. Mark McLeod explains how you might approach the changing market.
O
ur research shows that quite a large percentage of agents who joined our industry, say in the last five years, have never faced a changing market. In my world, stock management is one of the six divisions that you need to build process and structure around, to ensure that regardless of cycle your turnover remains consistent. Controlling days on market is without doubt the most important criteria in a real estate business; few people understand the impact of this statistic, firstly on the energy of the team and secondly on the effective turnover. Days on market and clearance are like a seesaw: days on market go up and clearance rates go down. Very few people understand that an extra 10 days on market can affect turnover by up to 30 per cent (to explain this takes longer than the space I am given in this article), yet so often I hear agents saying, ‘It’s just
56 ELITE AGENT • FEB – MAR 2018
taking a bit longer to sell, that’s OK’. No, it’s not OK. So how do you control days on market? Hard work, discipline and focus on the obvious. However, understanding certainly goes a long way on helping. Ask yourself a few questions. How many properties, when the market was booming, sold for more than you thought? Most agents are wrong on price when the market is booming, and will equally be wrong when the market is declining. Accept the position that we were wrong on the way up and we will be wrong on the way down. In saying that, it’s our sacred obligation to maximise price for our owners regardless of cycle. Over the years the best offices have always applied a simple process called the sequence of sale, which is simply: traffic, platform, reposition and sell. When the market starts to slow, the first thing we see is a decline in traffic; traffic through our opens and enquiry from the portals. This decline
often forces the agent to try to sell the property quickly, long before the vendor is ready. The first sign of a changing market is that many offices will have great offers they believe the vendor should have taken. Remember, to create a sale both parties have to be ready. When the market was booming, quite often it allowed us not to do too much work on the vendor component of the process. Which leads to the platform; if an owner is going
also shows the marketplace, by the way of changing method, that the owners are keen to secure a sale. The final step in the sequence is sell. This is the most obvious stage, but one of the pitfalls of a changing market is that many agents will try to sell the home before the owner is ready. Sometimes you may have to rotate through the first three steps a number of times before you can move into the sales arena.
Often I hear agents saying, ‘It’s just taking a bit longer to sell, that’s OK’. No, it’s not OK. to adjust their expectation they require detailed information. Our research shows across a number of years now that detailed, quality vendor reporting and offers will always be the greatest asset in this process. Owners will often accept market value when they believe all the work is done and they are fully informed. Which brings us to reposition. Repositioning is not always about price. It can take the form of method, such as switching from private treaty to auction. This shows the intent of the owner to sell and
This may seem a funny statement based upon my earlier observation on days on market, but in a changing market speed kills. Be patient, be understanding and, last but not least, be empathetic to the owner’s situation; after all, they have given us the gift of their greatest asset.
Mark McLeod is the Ray White Group’s Chief Executive of Growth. He works alongside both agents and businesses across Australia, helping them reach their ultimate potential to achieve success.
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