Recently the NAR (National Association of Realtors) in the USA in conjunction with Stefan Swanepoel (Renowned author and real estate visionary) released the D.A.N.G.E.R Report … Definitive Analysis of Negative Game Changers Emerging in Real Estate. http://www.dangerreport.com
In a nutshell it is a wide ranging list and analysis of the threats and challenges facing the real estate industry in the next 3-5 years.
Although the USA has some differences to us, in how real estate is bought and sold, this report is still very relevant to the industry here in New Zealand and I suggest we ignore it at our peril.
Hats off to the NAR for instigating this report and encouraging our Industry to have a good look at itself.
There is no doubt that the industry (world wide) is in need of a rethink.
Bottom line, 90% of consumers don’t trust the real estate industry or see our service and fees as added value. Surely those two facts alone are a “wake up” call.
The industry excuse of “a few bad agents give the rest a bad name” just doesn’t wash with me. The issue runs much deeper than that.
Like it or not, real estate is changing. And I’m not talking technological change here. Certainly, technology is playing a big part in changing the real estate landscape. What I’m talking about is “cultural” change.
We can cling onto the “way we’ve always done it”, stick our heads in the sand and hope it goes away, or embrace the change and evolve our industry into one that is trusted and valued by our clients.
How can we raise professionalism, increase trust and at the same time add better value to those we serve? In my view the answer is actually very simple, but demands a fundamental shift in our business model and thinking.
The real estate industry is based and built entirely upon a 100 year old sales business model, which is in my view out of sync with the modern world. It is massively inefficient (have a read of this article by Alistair Helm) and, at the risk of upsetting the majority of my fellow real estate agents, it is also in direct conflict with our duty to our clients.
In a nut shell, a ‘Sales Culture’ is about Self interest.
Just take a look at how the industry works and what it focusses upon. Self profile reigns supreme. Remuneration is mainly commission only. It celebrates gross commissions generated. It’s training is mainly focussed on ‘sales’ techniques and persuading clients to do something that enables the industry to get paid.
Now contrast that with professions that are trusted and valued by consumers. They are based on a ‘consultative’ culture. They focus on whats best for the client. They use their knowledge and experience to their client’s advantage.
In a nut shell, a ‘Consultative Culture’ is about Client Interest.
As my old friend Chris Benn points out in this recent piece if we want to change our culture, if we want to be more trusted and valued, first we have to change our behaviour. We need to restate who we are and how we work for our clients…
And so Restate was born.