Strategic Planning Presentation - Jeremy Conaway
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Strategic Planning Presentation - Jeremy Conaway

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Presentation given by Jeremy Conaway at the ORRA Strategic Planning Session (October 30, 2012).

Presentation given by Jeremy Conaway at the ORRA Strategic Planning Session (October 30, 2012).

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Strategic Planning Presentation - Jeremy Conaway Strategic Planning Presentation - Jeremy Conaway Presentation Transcript

  • Orlando Regional REALTOR® AssociationCurrent Trends That Are Impacting the Market and Transaction Strategic Planning Meeting Tuesday, October 30, 2012 Dubsdread Country Club
  • The most significant force impacting today’s American real estate marketplace is arising from the fact that despite the fact that the“market” has returned a number of other factors have come into playcreating a new market environment.
  • How are these forces playing out?
  • The North American real estate industry is at a turning point. The level of tension and anxiety is high. Things that can’t happen in themarketplace yet are happening in the association environment.
  • Quebec
  • CREA Today
  • Toronto
  • Las Vegas
  • Chicago
  • The Pinnacle Group Project
  • An unprecedented level of AE terminations with clerical replacements
  • The Why of Today
  • The American real estate marketplace,industry and transaction is currently being impacted by a number of demographic, generational, economic, technology and informational forces.
  • While there is adequate evidence todocument the current impact of these forces no consensus has emerged with respect to when they will generate sufficient momentum to force a fundamental change in the traditional industry.
  • As the monitoring of these forces continues and the intensity of the conversationincreases it is essential to keep in mind that it takes 24 - 36 months to introduce andimplement meaningful institutional change
  • The Brokerage Conundrum
  • What Do We Know Today• The consumer is in command• The average broker is 63 years old• Agents are not transitioning into the new reality• Third party Internet firms are gaining ground• The consumer is being attracted by 3P• Brokerage profits from commissions are minimal• Brokerage values are lowest in years• There are no buyers for traditional brokerages• There is no plan in place, the Boomer brokers are in denial
  • The success of your brokeragecommunity moving forward is of major concern
  • The elephant in the room
  • What’s happening out there …The current market environment is marked by a growing level of disconnect between the traditional agent and the contemporary consumer. Increasingly when Labarie andConnie get together the sparks fly and we don’t mean romantic sparks. This situation can not be allowed to continue.
  • Who is the best agent around here … Example #1: Consumers want to know who the best agents are in terms of production andneighborhoods. Way too many traditionalbrokerages are refusing to be transparent
  • “I want more information …” Example #2 The contemporary consumer has an insatiable appetite for very specificinventory related data. By and large agents are refusing to provide it
  • What exactly do they want …
  • What about lifestyle information … Example #3 Today’s consumer wants to talk about lifestyles and quality of life issues. The vast majority of agents are only prepared to discuss bedrooms, baths and prices. This iscontributing to the growing gap between the contemporary consumer, especially within generation “Y,” and brokerages.
  • What does lifestyle mean …• What about the schools• Where is the nearest decent golf course• Do airplanes fly over here• Where can I find organic vegetables• Where is the nearest synagogue• Who lives in this neighborhood• Is this neighborhood “walkable”• Are there babysitters around here
  • Example #4Today’s consumer (especially the 40% thatwill be forced by circumstances to live in arental for the next few years) wants to talk about issues and options that compare ownership and rental options. Too many agents see this discussion as a threat to home ownership and refuse to engage.
  • Where are they getting it …
  • They want TM … Example #5 Many contemporary consumers want to enjoythe benefits of transaction management so that they can track their transaction. Very few brokerages in each market offer this service.
  • What’s the big deal with TM … During this presentation we will make the case that Transaction Management is thesingle most important process in real estatetoday. It is and it will be the gateway to the new brokerage business model
  • KWI does TM …
  • 92% want TM …
  • I need to know now … Example #6 More and more consumers are asking thatcommunications with their agent occur using smart phones, i-Pads and other mobiledevices with messages being delivered now. Too many agents are responding that they will call after their regular day is over.
  • Is there a problem …What’s the problem here?
  • Could it be generational … Some experts suggest that what is happening here is that boomer agents believe that they can control the marketplace by not accommodating theunique and well identified expectations and demands of Generation “Y”
  • Wow! Big difference …
  • Could it be …Other’s suggest that there a sense within the brokerage community that its future restswith the aging agent population rather than the contemporary consumer?
  • Orrie the REALTOR® How is Labarie doing …• He wants to be the center of the transaction• He wants to sell not connect• He thinks lifestyle is for girls• He doesn’t want TM to let Connie know he screwed up• He hates the idea of agent rating• He doesn’t believe Connie needs to know everything.• He doesn’t believe that real agents do rentals• Communication is not his priority• What in the heck is a consumer experience?
  • Connie the consumer … What happened to Connie …Not to worry about Connie, she found what she was looking for
  • Whose on line …The Rapidly Transitioning Real Estate InternetSpace: Brokerage Ally , Business Distractor or Skillful Competitor?
  • Let’s start by examining how the new breedof Internet based real estate companies are doing with the consumer demands and expectations discussed above.
  • I want to know which agents are good …On the subject of agent rating
  • Trulia does agent rating …
  • Yelp does agent rating …
  • Zip Realty does agent rating …
  • Redfin does agent rating …
  • Zillow does agent rating …
  • What about transaction management?
  • What’s the big deal with TM … During this presentation we will make the case that Transaction Management is thesingle most important process in real estatetoday. It is and it will be the gateway to the new brokerage business model
  • Redfin does TM …
  • KWI does TM …
  • What about advanced inventory information?
  • Remember what they want …
  • NuHabitat has it …
  • NuHabitat has it …
  • Zillow has it …
  • Sawbuck has HomeSnap …
  • Where to get rental info …On the subject of rental vs. ownership lifestyles
  • Information on the decision …
  • The Zillow breakeven …
  • The Zillow rental app …
  • Trulia Market Watch
  • Where can I live my life …Lifestyle information
  • Zillow can help …
  • Street Advisor knows the good stuff …
  • Where can we walk …
  • What about Zillow …Lets take a closer look at Zillow
  • They got listings …
  • They got rentals …
  • All the rentals …
  • They have agent reviews …
  • They have lots ofconsumer information …
  • Zillow television ads …
  • They are recruiting agents …
  • They are providing valuable agent benefits …
  • Lets try it again, Zillow is recruiting …Zillow has recruited 26,800 REALTORS®
  • So what is the big deal …Do you know what Zillow is doing with your agents?• They are taking a big piece of the commission• They are directing your agents to their consumers• They are setting standards for your agents• They are establishing a national system of transaction coaches who will work with your agents every week• They are telling your customers that they are better
  • Most ridiculous of all, your agents who refuse to cooperate with your efforts tocreate systems and consumer experiences are now blindly following Zillow’s.
  • What does all this mean …What is happening here?
  • Here is the bottom line …
  • Let’s talk about reinvention … Capital redefines Professionalism: TheBrokerage Success Formula Moving Forward
  • The story of the past five years …
  • Reason # 4 …Because the recession happen to coincide with social, demographic, and technicaldevelopments. When the going got tough thetraditional business model couldn’t get going.
  • Why traditional business models don’t create value in the new environment• Inability to respond to current social and demographic circumstances• Lack of management controls• Failure to employ metrics and benchmarking• Costs of labor• Lack of accountability• Failure to be consumer centric
  • How are we coping …
  • What is the basic challenge … A business model is a method forcreating value. When a model fails to create value it must be replaced
  • The traditional brokerage business model is not creating value for …• Consumers• Agents• Owners• Investors
  • Here is the moment of truth …It is time to reengineer thebrokerage business model!
  • Enter a new player in our industry … Welcome the investor.
  • What will investors require in order to provide funding for a brokerage.• Turn key systems• Universal accountability• Effective management control over key processes• Agent stability• Strong consumer connections• Strong business metrics and benchmarking• Appropriate market share
  • The other side of the story … As your brokerage community searches around the industry for friends and allies itmay be surprised to discover that those that it thought it could depend on may not bethere. Most franchisors are not in a position to assist with the development of newsolutions. They are either without sufficient funding, imagination or they have committed to global development.
  • The REALTOR® association can be part of thesolution. It has the resources, the staff and the guts to get you there. Just add leadership Give it some thought
  • Where from here …