Real Estate Brokers Distinctive Advantages. GMREB 2012 Tour
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1 Real Estate Brokers Distinctive Advantages GMREB 2012 Tour
2 February 2012, more than 100 stakeholders from the Québec real estate industry came together Objectives of the Summit Reflect on the future of real estate brokerage in Québec Define the best approaches for ensuring the success of real estate brokers Historic event: consensus among participants
3 New reality FSBOs are becoming more visible DuProprio, ViaProprio, Kijiji, etc. However Transactions are increasingly complex Largest investment of a lifetime No loss of market share vs FSBOs Brokers are increasingly better trained and better equipped
4 2012 Profession Barometer
5 Understanding and Identifying Opportunities 1. Consumer research
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7
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9 Buying or selling a home is a transaction that s too important to leave in the hands of just anyone! Jacques Nantel
10 Jacques Nantel: An industry that has become a commodity When the seller sees only the % of commission When the buyer doesn t pay for your services You become a commodity, and this is not a good thing Hence the proliferation of other solutions, ranging from Kijiji to DuProprio to other websites
11 Strong brands are relevant, different, respected and recognized. Pierre Léonard
12 With a broker
13 or
14 by myself
15 15
16 16
17 17
18 SIX ORIENTATIONS
19 We propose a return to mandatory basic training
20 We prosose that continuing education be mandatory, for brokers and for agency executive officers, in order to maintain and increase our expertise
21 We propose placing greater value on collaboration between brokers, for the benefit of the client
22 We propose that agency executive officers, and not just brokers, be subject to increased accountability
23 We propose defining the unique role of brokers (Unique Selling Proposition USP) and engaging brokers around common values
24 We propose working together to promote brokers unique contribution in a real estate transaction and to raise awareness of this contribution through an integrated communications program
25 A lot of progress has been made Basic training to return at the end of 2013 Continuing education New forms in 2012 Comprehensive program for 2013 Task force on collaboration Task force on accountability in agency executive officers 2012 ad campaign coordination and partnership
26 TWO OF SIX PROPOSALS
27 Define the unique role of brokers Engage brokers around common values
28 Work together to promote brokers unique contribution Raise awareness through an integrated communications program
29 Task Force Service Offering and Integrated Communications Plan
30 USP Service offering and integrated communications plan What does this mean? Defining brokers distinctive advantages Grouping all of these advantages under a logo, a slogan Getting buy in from members Once buy in has been achieved, disseminating this information to the general public
31 Task Force Participants Michel Tremblay, President Marc Cousineau Isabel St-Laurent Julie Gaucher François Bissonnette Daniel Dupont Christiane St-Jean Sébastien Abran Benoît de Villiers Éric Charbonneau Alain Dussault Gina Gaudreault Broker, Via Capitale VP, RE/MAX Québec VP, Réseau Via Capitale VP, Sutton Québec Independent broker Independent broker Broker, RE/MAX Broker, Royal LePage VP, OACIQ CEO, GMREB Broker, Via Capitale Executive Officer, CIQ Five meetings: April 27 May 24 June 27 August 28 Yvon Cousineau Jacques Nantel Francine LaHaye Pierre Léonard Broker, Sutton With the participation of Professor of Marketing, HEC Montréal National Public Relations Firm Parallèle October 24
32 USP Distinctive advantages Brokers common and unique offering, not the service offering provided by each broker Building the foundation: What is a broker and what can we expect from a broker?
33 USP Why is it important to define them? A good understanding by consumers allows them to make informed choices If consumers do not understand the added value, they will choose based only on price A clear definition encourages healthy competition
34 Paradox USP Québecers are the least tolerant to risk, are overinsured, buy the most extended warranties and, at the same time, are the least likely to do business with a real estate broker! However Québecers traditionally like to do things themselves!
35 Nantel Theorem A USP includes 4 essential components 1. Training 2. Distinctive elements 3. Common denominator 4. Buy-in from brokers
36 Nantel Theorem 1. Training (Task force on training) Basic training and ongoing training Mandatory Recognized Known Training must, at minimum, address the distinctive elements (e.g.: collaboration)
37 USP Distinctive Elements 2. Distinctive elements Comparison exercise What can consumers do by themselves? What is very difficult or impossible for them to do without the help of a broker? Establish a preliminary list (26 items) Objective: maximum 3 to 5 Prioritize distinctive elements Individual prioritization exercise Compilation of results Editing of the list Grouping of common themes Validation with Mr. Nantel 4 distinctive elements selected
38 Distinctive elements Preliminary list 1. Understands the complexity of the file 2. Builds the file 3. MLS network 4. Network of experts 5. Intermediary 6. Negotiator 7. Manager of emotions (psychologist) 8. Marketing 9. Collaboration 10.Training 11.Consumer protection 12.Chain of events 13.Availability / presence 14.Services after the transaction 15.Communication / follow up 16.Advisory role 17.Human aspect 18.Well rounded 19.Versatility (ability to adapt) 20.Qualification of clients 21.Knowledge of the market 22.Objectivity 23.Listening 24.One stop shop 25.Project manager 26.Obligation to get results
39 Preliminary list: values Some advantages can be considered values: 1. Enthusiasm/energy 2. Integrity 3. Ethics 4. Discipline 5. Structure 6. Organization 7. Empathy 8. Patience/perseverance 9. Respect 10. Loyalty/diligence 11. Competence 12. Equity
40 Distinctive elements No. 1 Broker network For the large volume of clients who are of a certain quality, qualified and ready to buy now
41 Distinctive elements No. 2 - Protecting the seller and buyer To encourage transparency in transactions
42 Distinctive elements No. 3 - Expertise (skills tested by the OACIQ exam) To support, inform and reassure clients
43 Distinctive elements No. 4 Transaction management To free clients from the burden and stress of the transaction
44 Common denominator Brokers are organized and regulated The common denominator for all real estate brokers in Québec Must hold a licence from the OACIQ to practice real estate A Law, rules A signature! Lawyers, notaries, pharmacists, etc. A logo? A symbol? A slogan? Where dreams come true
45 USP A summary Brokers are properly trained and their skills are constantly being updated 1. They have a network of brokers 2. They possess extensive expertise 3. They protect the buyer and the seller 4. They strategically manage all stages of the transaction They hold a licence and work in an organized and regulated industry
46 Next steps (validation) Validate the distinctive advantages with consumers 1. Identify specific examples related to the distinctive elements 2. Meet with survey companies to determine the best method (accompanied by Jacques Nantel) 3. Conduct survey 4. Publish results
47 Examples of distinctive elements
48 Broker network Increased traffic 14,000 brokers working for you Roughly 2/3 of transactions in Québec Quality of clients (filter) Etc. Are consumers aware? Do consumers see an added value?
49 Protecting buyers and sellers 1. Mandatory seller s declaration (property s CV) Condition of the home List of work carried out List of work that needs to be done 2. Broker s obligation to verify Certificate of location, taxes Identity verifiction sheet with FINTRAC, etc. Everything relating to the property that s for sale Are consumers aware? Do consumers see an added value?
50 Protecting buyers and sellers 3. Reliability of the detailed sheet 4. Mandatory forms 5. Management of multiple / conditional offers 6. Transaction does not end at the notary (after sale resource) 7. Regulated industry Consumer protection Real Estate Brokerage Act, guides the profession Are consumers aware? Do consumers see an added value?
51 Expertise 1. Knowledge of a home s market value 2. Knowledge of the rules of law 3. Knowledge of financing Down payment according to the property, CMHC fees 4. Basic knowledge of buildings 5. Pyrite, iron ochre, vermiculite, etc. 6. Zoning, exemptions, etc. 7. Divided and undividedco ownership Are consumers aware? Do consumers see an added value?
52 Strategic transaction management 1. Manages the marketing (relief) 2. Manages the negotiations (reassures) 3. Knows the strategies (e.g., promise to purchase, counteroffer, multiple / conditional offers, etc.) 4. Role of mediator 5. Saves time 6. Meeting of conditions 7. Sends complete file to the notary 8. Accompanies client to the notary
53 Surveying consumers 1. Qualitative research Discussion groups 6 discussion groups (Montréal and Sherbrooke) Consumers planning to sell their property with a broker within the next 2 years Consumers planning to sell their property without a broker within the next 2 years Consumers who sold their property within the past 2 years (overall incidence rate forecasted at 7%) 2. Quantitative research Consumers planning to buy or sell a property within the next 2 years 500 respondents from all areas of the province Questionnaire with a planned duration of 10 minutes maximum, which corresponds to approximately 30 variables with a maximum of 2 open ended questions and 4 semi open questions. Timeline: final report in February
54 54
55 55
56 56
57 Ad campaign However... Broker buy in is essential If our advertising does not reflect the consumer s experience 1. We re throwing our money down the drain 2. And worse, consumers will turn against us The challenge is to engage brokers and show that they will benefit from this (What s in it for me?)
58 Broker buy-in Spreading the message Participate in various conferences, seminars, meetings The task force suggests organizing an event to follow up on the dossier Summit 2 (wider audience) Review and next steps Launch
59 USP A reminder! Brokers are properly trained and their skills are constantly being updated 1. They have a network of brokers 2. They possess extensive expertise 3. They protect buyers and sellers 4. They strategically manage all stages of the transaction They hold a licence and work in an organized and regulated industry
60 Conclusion Solemn commitment?
61 Questions? Thank you!
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