Gumiyo... relevant?

I recently provided comment to The West Australian which ran a story on the introduction of Gumiyo into our commercial business and our use of other marketing mediums. The Real Estate Institute of WA chairman Victor Sankey also provided comment and said the use of Gumiyo might not be as relevant to commercial as it was to residential property.

Of course, everyone is entitled to their opinion, and getting two sides to every story is the name of the game in the media. And he may be right, innovative mediums may not be as relevant to commercial as they are to residential – but despite this, they do have a place and that is why we are launching this new initiative. It may not be typical of the commercial sector, but we are willing to try.

The nature of the commercial industry means that things tend to move a little slower than they do in residential, especially here in WA. But in business, those who follow are always left behind, it is about not being afraid to embrace something different, having enough confidence to do something that is perhaps a little outside the box. In the eastern states, commercial agencies are far more open to innovation and fresh thinking, things are a little stale here sometimes.

I feel that agents in WA have still not fully realised that they are no longer in control of the information feed and it is now firmly in the hands of the consumer. It is the consumer that will decide when and through which medium they will receive the data they want. I feel that those businesses that let go of control will in turn reach favour with the real estate consumer and be winners.

Here at Realmark we are not afraid to push the envelope, we are always open to and looking for, newer and fresher ways of delivering outstanding service and better solutions to our clients. Both residential and commercial. And the fact of the matter is, digital is the future and we want to be ahead of that curve, not playing catch ups.

Our ongoing research into new marketing concepts and technologies led us to Gumiyo and after looking closely at the technology, we realised that this would work well with our commercial niche.

Realmark Commercial provides a distinct alternative choice for clients who are looking for a non-corporatised style agency; we relate to those clients seeking an agency whose focus is not primarily on the CBD. And we think these clients will find Gumiyo a useful marketing tool. It won’t replace other marketing tools, it is just another string in the bow for our clients.

Gumiyo is convenient, smart and efficient and able to deliver data rich responses to consumers exactly when they want it via a mobile phone.

We’re proud to be the first commercial agency in WA to take it on board and the feedback we’ve received from clients has been positive. Of course only time will tell how this plays out, but as anyone in marketing knows, most good things are a gamble in the beginning.

Believe it or not, interest rate rise is good news

Interest rate rises are never seen as good news, because for the everyday borrower they simply mean another cost to worry about. And while that is understandable, people need to realise that the first interest rate rise since the global financial crisis is actually a very good sign.

I believe the recent rate rise was a bold and wise move by the RBA, and it is also an indication that here in Australia we have managed to come out of the global financial crisis in a far better position than other nations. For us, the outlook is good. We are only the second developed nation to officially increase rates since the emergency lows.

What this really highlights is how strong both our economy and our banking systems are. And I think we need to understand how lucky we are to live in a country where the RBA is willing to make a move ahead of the curve to ensure our economy is not exposed to any further risk. Despite the fact it was never going to be a popular move.

This rise was necessary especially for WA. Why? Because with the Gorgon announcement and growing confidence there is a risk WA may slide back into a boom time mentality.

The increase will assist in protecting housing affordability here in WA by ensuring that the market isn’t fuelled by misplaced confidence. Gorgon may ignite the market somewhat and dropping stock levels are already threatening affordability, there is a significant risk that another housing ‘bubble’ may occur.

What I am asking people to see here is the bigger picture. When the cost of housing increases it causes a wide ripple of problems, rents go up and other living costs are affected. As a consequence, those most vulnerable in society are the hardest hit – this really is a social issue, not just an issue for borrowers.

In the short term rapid price increases favour a few people and businesses, in the medium term, unsustainable price hikes are actually detrimental to the overall strength of the market.

For all you borrowers out there who are facing bigger repayments as a consequence of the rate rise, remember to keep it in perspective. The three per cent interest rates were at emergency levels because there was significant risk to our economy, they were never going to stay there for long. At the moment interest rates are still very manageable.

The outlook for interest rates is that they will now continue to trend upward, so understand this and stay informed so you can make the best decisions when the time is right.

Agents must think laterally

Despite the West Australian boom ending almost two years ago, some agents and agencies in this state are still living with a boom time mindset and are resisting the need to adapt to the needs of a new market and a new era in property and finance.

The past year has been a very challenging one in this industry, but we had the First Home Owners boost firing up the market. We are now facing a whole new range of challenges and those agents who cannot shake that boom time mentality are going to find survival very difficult and in turn find it very hard to deliver for their clients.

In WA, the most critical issue facing agents is plummeting listing stock. There is going to be a whole new level of competition in the market place and agents are going to have to fight for listings.

Agents should already be proactive in seeking listings. Often agents are only ever focused on the immediate and the ‘sale’, this is a serious mistake. Their focus should shift more heavily to an emphasis on business development, concentrating on that first part of the cycle and their role should involve aggressive and proactive measures to attract more sellers. This is the perennial challenge all real estate principals face through all phases of the property cycle.

The fact is competition will increase as fewer properties become available, creating a whole new playing field for agents. It will be the agent who thinks strategically who will score the new listings. Roll up your sleeves and sell yourself, or you are simply going to be left behind

In my opinion this situation will see some agents leave the industry, because if you are accustomed to easier times, these conditions will feel very difficult. What is interesting is the fact I’m seeing a high level of employment enquiries from people outside the industry who are looking to enter. We usually only work with experienced agents but we are starting to see a real opportunity in hiring inexperienced agents. The thing is these new agents haven’t been spoilt by the boom or practices that belong in another era. They’re fresh and ready to meet the demands of the new market, as opposed to some existing agents who will stick with old comfortable approaches and wonder why business is so difficult. Of course, we are also always on the look out for established agents who have the ability to shift with the market.

The way forward for agents is to rebrand themselves, they need to become seller managers, not sales agents. Sure the sale is a big part of what we do but the cycle begins with attracting listings and this needs time, energy and resources. At Realmark we promote this internally by building on the thing agents find easiest – the sale – and automating work flows in a way that automatically draws more and better sellers and listings to them.

There are two types of sellers; ones who are ready to sell today and others that will sell in the future. Too often the attention is on the immediacy of the seller for today, not on building long term working relationships with potential clients. Our business begins with the seller and many agents are just not putting enough effort into connecting with them in a meaningful and distinctive way over time.

As originally posted on Sold. The Magazine for Real Estate Professionals.

Realmark wins x 2

Last week Realmark was announced as the winner of two major awards at this year’s REIWA Awards for Excellence. Voted Residential Estate Agency of the Year and taking out the Communications Award for the third time.

We are incredibly honoured to be recognised by our peers in this way. There is no doubt that these two awards belong to the people of Realmark, who work so hard everyday to ensure we are the best at what we do.

Next stop is the national REIA awards in Adelaide early next year, fingers crossed for a national win!

What comes next?

As we edge closer towards the end of 2009 I think we may have seen the worst, but I don’t think that means everything is coming up roses.

The market is moving into a new phase which also means a whole new set of challenges.

Stock levels are plummeting. To date, new listings have dropped by 40 per cent. This is of major concern because together with other pending economic factors, such as looming interest rate rises, affordability will be the next challenge. It is likely that prices are going to be inflated by this shortage of stock and some potential buyers will again be squeezed out. This will also make it harder for real estate agents as the competition for new listings becomes tighter.

People will also start to find it difficult to borrow, banks have already started to tighten their lending criteria in preparation for interest rate rises. The cost and availability of money will be a big factor and it is likely to impact negatively on the participation of investors and developers, the two groups we really need to be more active at this time because they are part of the solution to Australia’s significant housing shortage.

We are also going to see the end of the First Home Owners boost at the end of this month and while first home buyer participation has already eased, it is still likely it will have some impact.

It will be interesting to see how these fundamentals come to play over the next few months. But there is no need for negativity or panic, there is just a real need to be prepared.

A spring in our step

The recent and far-reaching decision to green light the Gorgon gas project off the State’s north-west coast has certainly injected some enthusiasm and faith into the economy.

In Greek mythology a gorgon was a vicious female monster with sharp fangs. One of her incarnations was Medusa, who had a head full of snakes and could turn anyone who looked at her into stone. A meeting with her certainly wasn’t going to be pleasant.

At the same time, images of the gorgon were placed over doors, on floors, on shields and coins to ward off evil. So perhaps that’s the preferable interpretation – an image to stave off bad things and offer renewed hope.

It’s been amazing to see how quickly people have taken up the Gorgon announcement as a symbol and used it to buoy their spirits. There’s a spring in our collective step again because we perceive something big is happening and feel there’s going to be a flow-on effect.

We’re closing in on the last quarter of the year and I think many people in WA anticipated some truly cataclysmic events this year. Yet, we’re still shopping and eating out.

We really are living in a very lucky place and feeling that life is pretty ok. Unlike previous cycles, particularly after the crash of ’89, when things shuddered to a halt, things are still flowing. Yes, the bump in the road rattled us, but we’re getting back on track.

Despite the scare, there’s little doubt we’re still a rather self- indulgent society and we expect life to draw us an easy but rewarding ride. When our political leaders are peddling the “nice life” line, who wants to argue?

There’s a lot of criticism of Gen Y but perhaps they are simply the obvious examples of where our world and values have moved to. They demand that everything should be ok tomorrow but they are also impatient. They don’t want to be humble – they just want to get there now. They’re expressing it bluntly, openly and directly.

So maybe if we are a little more honest we would admit how keen we are to embrace a gorgon in such a reactive manner! Equally, we need to keep good news stories in perspective realising it takes many successes to fully assure our future.

Gorgon great news, but don’t hold your breath for a boom

Unless you have been living under a rock, you would have been reading and hearing a lot about the Gorgon project in WA’s north, and probably a few headlines around how it is tipped to push WA back into boom. There’s no doubt the Gorgon project is certainly a positive. It will definitely produce much needed employment and inject some strength back into our economy, but is it going to save the day?

As important as this project is to our economy, it is not the answer to all of our woes. It isn’t going to see us return overnight to the prosperous boom times, where WA in particular, reaped the benefits from the booming minerals sector. It is naïve to think the Gorgon project alone will have the same affect and return us to the same position we were in two years ago, there are so many fundamentals that come to play in a recovery.

The thing about the recent boom is it has given many people in WA unrealistic expectations and this longing for good times gone by. The boom was not real life and if you spend your days wishing it back you’re wasting time and energy in the wrong place. If you understand the situation you can react to it, if you’re living on false hopes you’re not doing anyone any good.

Ever since the economic fallout people have been grasping at facts and figures that may signal that everything will be A-OK, it is human nature. And the Gorgon story is just another example of this.

In saying all of this, it is worth noting how compared to other countries around the world, ours has experienced much less damage from the global financial crisis. WA in particular has been quite sheltered from the fall out experienced in countries like the USA and Japan.

So yes, Gorgon and the recovery of the minerals sector is positive news for us but keep it all in perspective and keep focused on the bigger picture.

Finding your spirit level

Stop dreaming because of the recession! Too many people have put their lives on hold this year. Yes, it has been a good chance to take the lay of the land but it’s been an even better chance to change direction and look at fresh options. While we can be cautiously optimistic, we’re also living in promising times.

It’s fallacious to talk about the world “going back to normal”. The boom before the bust was by its very nature unnatural. What we should be doing is looking for a new spirit level; one which is sustainable and contributes to the betterment of the world today, tomorrow and next year.

A valuable thing you can have done over the past year is to take stock. We’d been running so fast and so hard, no one had time to stop.

So stop! Take a deep breath. Remember what standing in the sunlight for two minutes feels like. (Actually it’s quite energising!)

The boom and bust has made people realise firmly they can’t take bumper business for granted. There’s an end to gratuitous good times. We’ve seen and felt it.

There are now sensible decisions to be made and work to be done. Oh yes – work! That four letter word we kind of forgot about when business was so successful all we had to do was spend each day taking orders and not always caring about the quality of our service.

Work requires skill, application, energy and consistency – all the foundations that have been removed from our working world in recent years. Sheesh, just writing about it makes me feel like my grandfather sprouting old fashioned values. They STILL stand though; now more than ever perhaps.

While BC (before the crash) all you had to do was buy a ticket, stand in the marketplace and the work just happened. We can no longer take for granted the dollars will roll in.

Businesses cannot deal in sales platitudes and casual commentary. Our survival on many levels demands a return to meaningful information and solutions.

Are we missing the real crisis?

It’s a fact we cannot ignore. Australia is in the midst of a national housing shortage which has the potential to cause major repercussions including driving new house prices up, affecting affordability.

Despite all the uplifting stories emerging in our news media about the property market’s resurgence, the bigger concern not being addressed is the shortage of homes.

Alarmingly, experts are predicting by 2010 the nation will be short of 200,000 homes, a fact we can no longer ignore.

The shortage is driven by Australia’s population explosion. The Australian Bureau of Statistics recorded a 1.9 per cent national population growth during the 12 months ending December 2008 and WA alone recorded a 3.1 per cent increase, the highest of all the States and Territories.

We have been too caught up worrying about the economy, and as a result we’ve neglected to address this very real problem.

It is fairly well known that these issues partly stem from the layers of bureaucratic red tape authorities have put in place which property developers must fight their way through to achieve any sort of progress.

It is hard and expensive to develop and approvals around it need to be simplified and improved.

Governments need to remove the hurdles put in front of property developers so that smoother processes can be put in place and more homes can be developed to meet the demand.

And this revamp of the system is a must do.

Housing stocks need to be replenished otherwise we risk driving up the cost of new homes affecting affordability.

I must emphasise the importance of keeping homes affordable because if we don’t, we risk imposing a stalled market. We need to keep the market ticking over.

People need to be aware of what the bigger issues are here, the small statistics emerging about property may ease our anxiety in the short-term but the issue still remains, we have a serious problem with the shortage of homes in our country.

Go digital, grow your audience

The rise of digital media has forever changed the way most industries do business. For some this change is frightening, for Realmark it is the way forward.

From our perspective, the most positive thing about the digital space is the potential to reach a far greater audience than we can manually. Today real estate agents cannot rely solely on contact with potential buyers in their local suburb, they need to have networks and communication tools that reach much wider. Digital media delivers numerous ways to tap into new audiences but more importantly, it gives you the power to target your communications so you know you are talking to the right people, not just any people.

This is why we recently introduced an e-version of Realmark’s IN magazine to the PerthNow website. PerthNow is the news choice for many West Australians and they will now have the opportunity to sign up to receive an email version of the magazine. This is good news for sellers who market their property in the magazine because IN will now be reaching an entirely new audience which has the potential to reach into the thousands.

Like anything, the key to digital success is strategy, there needs to be a solid strategy behind every move you make. And as I have said before it is all about finding the right mix, digital media needs to play a part in any business strategy, but it cannot override the fact that there is still a need to provide a high level of service that can only come from old fashioned face to face meetings. It is only one piece of the puzzle.

Sign up for the new IN magazine via the PerthNow daily news alerts by clicking on this link.

Find your technology mix - and stay human

There are growing numbers of people who prefer technology to communicate rather than speaking to you. It’s unfortunate because it can be such an incomplete and inefficient communication method.

Have you noticed it’s a lot easier to be aggressive in an email, especially compared to talking face-to-face?

Sure, technology allows you to communicate news which isn’t popular and shields you somewhat from backlash. It can also be a coward’s way out. Breaking up with someone via text or resigning a job is discourteous and surely spits in the face of the relationship you have built up. Someone emailing you with a catch line of “call me” doesn’t engender you wanting to call them at all, does it?

This may sound like I am advocating moving back to life BE – before email. Far from it. We need to embrace all forms of social and business communication but must learn to use them in a way which gives us the most clout and still remembers the conventions of being human.

I want you to stay human. Don’t let technology take that away from you in your dealings with others, even if it is over the bandwidth.

If someone makes the first overture to you electronically, take their cue. If a client chooses to communicate this way, they have made a choice to be separate from you. They are looking for a little safety, if only initially. Push them too hard and they might disappear altogether.

In our business, we have the opportunity to leverage a mix of ways to interact with our clients. Using them properly – and targeting the audience who respond best to each medium – gets us the best results.

I encourage our sales people to email a client report on the Monday after their home opens on the weekend. No one has to wait for a posted document or a mutually convenient time to physically hand it over. The client can digest it and a follow-up call on Tuesday further cements the relationship and offers forum for discussion.

There’s a level of decorum which must apply to communication for it to be effective. Hide behind it to your own detriment, because when you are building relationships it can stop a lot of good communication simply because people aren’t necessarily deft enough with the written language.

We reveal so much more with things like body language and our tone of voice so at some point, there’s nothing like meeting belly-to-belly. People want to experience empathy, trust and understanding and you can’t do that in the same way via an electronic medium.

Looking someone in the eye, a firm shake of a hand or a round table discussion to ascertain a position can work perfectly in tandem with initial discussions done via email.

An expressive personality will want to do coffee right away but the analytical person will prefer an email to digest things before talking it through. Recognise the kind of person you are working with and use the communication tool which gets the best outcome. Not everyone is the same.

Ultimately, whether it’s Twitter, email or Facebook, they all have their strengths. There is a place for all of it but to engage effectively you have to understand them and find the right combination for you and your clients.

Like it or hate it, these days, it’s an essential part of your business equation.

The Set-Date-Sale

In challenging economic times like these, it pays to think outside the square.

Penetrating an exhausted real estate market can be difficult which is why it is important to stay one step ahead of the game.

I believe understanding the current market situation and knowing what people are looking for in terms of buying and selling homes, is vital to business and vital to client needs.

In my experience fresh and innovative ideas in difficult times keep business alive, healthy and prosperous.

This is why we’ve developed a new concept in the world of real estate which, if early results are any sort of indication, is a winning formula.

Set-Date-Sale (SDS) has the characteristics of an auction (but without all the stale conditions associated with it such as deposits and cash payments) and the reliability of the trusty traditional sale.

And when we married the two concepts together we came up with a practical selling method to suit current market conditions.

The way SDS works is simple. After launching a marketing campaign to attract buyer interest, the property is then advertised with a buyer’s price guide or alternatively no specific price at all.

Now this may seem unusual, but in a market where it is difficult to price properties, potential buyers are able to present offers they deem fair and of market value, and sellers find out what the market is willing to offer.

The beauty of SDS is that control is entirely in the hands of the buyers and sellers. They determine the outcome of the sale.

Buyers are required to submit their offers to the agent by a certain date and unlike the traditional sale, the agent is required to present ALL offers to the seller who is then in a better position to negotiate and ultimately decide which offer best suits them.

The buyer has the confidence that their offer will be submitted for consideration and the seller has the freedom to choose which offer they like.

And because of the set date, the property doesn’t linger on the market for months on end. It is a quick and fair process where everybody wins.

This method of selling is exclusive to Realmark. We developed it because the current market demanded new, effective solutions for sellers.

SDS helps to attract and maintain buyer interest. It provides a higher degree of fairness to buyers and great transparency for sellers in comparison to the usual basic sale approach.

The injection of SDS into our business operations has given our clients another option when it comes to selling their homes and a boost I believe the market needed during these times.

The bright side of life

Human beings are natural optimists and they react to people who don’t fear and offer solutions.

Recession doesn’t mean retract.

In fact this is the time to harness all that negative spin and energy and actually stand up and articulate yourself very clearly in a positive manner. That will help you stand out and hopefully be at the front of the next wave of rising fortunes.

We know what a recession does and feels like. Acknowledge that and let’s move on in positivity because that can also be its own self-fulfilling prophecy.

When people come out of their caves you want to be there. You want to be the one they see and you want to have some workable answers.

Have you noticed how fast marketing and advertising initiatives have been to respond to the new language of the downturn?

They’ve certainly figured out which consumer hot buttons to push. An increasing number of ads on TV, radio and in print are articulating a link to bad times and in turn suggesting that they and their products are your solution.

At the same time this amplifies and manifests a herd mentality and might well make people actually retreat into their homes and businesses, away from public spending and profile. Instead we must continue to nurture individuality and big ideas out of the box.

The world is moving so fast, that we seem to continually move in extremes. TV shows are almost turning into reality TV because they are being produced close enough to their airing times, we’re seeing all manner of up-to-the-minute references nightly.

All this is saturating our world and that makes it too easy to focus on the negative. “Everyone’s doing it,” you cry, “so I’ll be there with them.”

Think about it – why is the well-worn Aussie question “how are ya?” usually answered as “not too bad”. Why is 8% unemployment the figure always bandied about when that means there’s 92% employment?

Perhaps our psyche needs an overhaul as a way to see the bright side of life.

A balancing act

How do we achieve balance in the property market? "The market needs balance", published on Sold Magazine's website on Thursday July 9, 2009 - http://bit.ly/i2oQl

We all need heroes

It has crept up on us, but for a while we’ve been living in a society which doesn’t value quality as highly as it does quick solutions and immediate satisfaction.

Our parents and grandparents came from generations where you knew you had to do the hard yards to advance up your chosen ladder, personally or professionally. Reality TV introduced us to the cult of celebrity, teaching people they can be catapulted virtually overnight to the final rung just because they showed up.

The death of Michael Jackson and other great figures has shown us we all advance because of the greatness of things individuals do and by not by rewarding mediocrity and instant solutions.

Jacko’s amazing commercial and artistic success went hand-in-hand with a highly-criticised, turbulent and controversial personal life. Society often punishes that oddness – for good or bad – even when it may well be what fuels creativity in the first place. Ironically, it’s these people who can contribute so much to our everyday lives.

Despite his personal issues, would Americans have ever been able to dream of how great a nation they could have without someone like JFK? Popularity aside, John Howard always had a vision for our country and people responded by taking ownership of Australia and dreaming about what we’re capable of.

Human nature naturally has us looking towards someone or something to believe in; something that’s bigger than we are and by association carries us forward to be part of something good – and if we’re lucky, something great and life-changing.

That’s why we still need heroes in all aspects of our lives and why they need to be those who through quality hard work have shown their best. They help us be better people and strive for our dreams. They are inspirational; they empower us and offer the leverage to kick up to the next rung.

We need to remember to recognise quality. The cult of celebrity is like fast food – it tastes great now but the high doesn’t last long. Alternatively a lovingly home-cooked meal fuels dreams for the long run.

Nothing great comes without sacrifice. We’ve been lulled into thinking that as long as we buy a ticket and get on the train it will deliver us to the top of the mountain without effort. Sorry! You’ll have to expend some creativity and effort over time to get there.

You might not be able to do it alone either. Michael Jackson did some of his best work with other talents like Quincy Jones, I do it with my team when we are both looking in the same direction and successful companies thrive on collective creative effort with heroes to guide them.

We’d love to know who your heroes are. Are they famous or is it someone in your local community whose simple everyday actions are inspirational?

Where is the happy ending?

It is human nature to want everything to be OK. That is why we love and crave a happy ending in a movie and always want our footy team to win. It is also why we are scrambling for a sign that the economy is going to be just fine, phew the hard times are over!

It is human nature to want everything to be OK. That is why we love and crave a happy ending in a movie and always want our footy team to win. It is also why we are scrambling for a sign that the economy is going to be just fine, phew the hard times are over!

Well it is a bit early for that yet. There is plenty of talk in the headlines around the first ‘green shoots’ of recovery, but in my opinion we are not going to get off quite that easy. It is likely we will be feeling this global financial crisis well in 2010 and any talk otherwise might make us all feel good on the inside, but really it is just spin. When you look at the fundamentals the second half of this year is going to throw up a range of challenges, from rising unemployment, to increased interest rates and the final deadline for the First Home Buyer Grant. The recent economic fall out is like nothing we have seen in recent decades and we need to understand that the issues we face are not going to vaporize so quickly. The regeneration of the economy takes time.

I am not saying that now is a time for pessimism, it is simply a time for realism. Clasping your hands over your eyes and blocking out the reality isn’t going to do anyone any favours. But fronting up to the real situation and forward thinking is.

If you are in business, you always need to think beyond the present day. You need to put strategies in place and be ready and willing to make changes. This is nothing new, even when times are good, solid businesses plan for the down times rather than just letting them sneak up.

If you are selling your home, it is a time to be informed and it is a time to find the right advice. Don’t choose an agent who just tells you what you want to hear, choose an agent who understands the market and is realistic. If you are looking to buy, then ensure you don’t make decisions on what the rest of the world is doing. Don’t be tempted to follow the herd, look at the facts and again, be informed.

No matter who you are, keep your eyes open for the opportunities that present themselves in this current climate, because I assure you they are there.

And in finishing, I have to say it is refreshing to see a little confidence return, it just needs to be harnessed in the right way.

We're celebrating!

Realmark has been recognised at the 2009 Australian Business Awards, winning the Marketing Excellence category http://pitch.pe/16846

The brave will inherit

Is it just me, or are you feeling like a stand of bamboo which, if you believe the government, is sprouting the first green shoots of new growth after a dry season.

If that’s the case, it must mean there’s been plenty going on underneath the surface too if I’ve been capable of actually creating these tender leaves.

While I’ve been working hard at that, consumers have been feeling a little cocky with the infusion of money into the system, mainly through government stimulus. But that’s already starting to dry up and forecasters are shadowing Western Australia in particular, is yet to hit the bottom and truly feel the full effects of recession.

If forearmed is forewarned, then we can do something to smooth out the immediate future.

The boom that has passed and the recent period of government-subsidised activity has meant it’s been easy for even ordinary business people to do well because a buoyant economy has papered over any mistakes and naturally readjusted.

But no more. Because from here on in and for a little while, you will wear your miscalculations and the market won’t be hauling you out of it.

It’s time to act smartly to prepare now for what’s coming. If you’ve been a huge or solid success in your industry or your investments to date, don’t automatically assume that doing things as you always have will see you through.

If you consider until the GED your world was working at an arbitrary level of factor 12. Now perhaps your world is having to reset and operate more at a 7 or 8. This is still an excellent level to be at; it’s simply a matter of changing your mind-set.

There are more challenges to come and lifestyle and business MUST change. These changes will have some negative effects in the marketplace but with a little preparation, adapting practices and resetting your head space, you can address a constricting volume of opportunity successfully.

It doesn’t matter if you are a businessman, buying a new home or dealing with your personal life, it’s time to look in places you haven’t explored before. Use all the skills you have gained to date and refashion them to this brave new world paradigm.

People who don’t (or won’t) adjust haven’t seen the reality of the economy. Just as you let a bull market ride you to the top, it can also send you screaming down the rollercoaster into a dip.

Most people don’t like change or to be challenged. This market is showing us all who they are – and be it at your own peril if change is not understood and embraced.

History recounts some of the world’s most notable companies making their biggest headway during down times. They’ve done it because they’ve looked ahead, changed their ways and grabbed new opportunities.

Now it’s your turn…but it’s up to you!

Wise Words

Yesterday morning I went along to hear Christine Christian of Dunn and Bradstreet speak as part of The West Australian’s Leadership Matters breakfast series. And it wasn’t pretty, she offered up a very frank account of the economic situation we are facing. Her opinions are very similar to mine in that despite what the headlines might be saying, I don’t believe we are seeing the beginnings of a recovery just yet. I am not sure that we are going to get off that easy. My sense is that we will be feeling this crisis until well into 2010 and talk of “green shoots recovery” may be a little overly optimistic feel good spin. I am not going to go into all of the finer details of the morning, but I have to say her last words were the most important. They went something like this ‘many businesses are going to realise and maximise the opportunities that are thrown up by this market and those businesses that do survive won’t act like victims.’ Wise words.

Craft is the key to smooth sailing

The world as we knew it is no longer. We’ve never been here before. Forecasters can’t predict with certainly the way anything is going to happen or act. We are on a new island – and the ocean around us has receded many miles.

Because it’s new ground, there are so many givens which no longer apply. It’s also your chance – and my chance – to do things differently; to stand out.

I went to an industry gabfest last week which brought together not just real estate companies but professionals which interact with the real estate industry. A Melbourne visitor with a respected marketing company reminded us that in times of a downturn, we can’t totally retract spending. Instead we need to use what we can afford in a more powerful way, have meaningful interaction and offer clients a clear point of difference.

It’s no good promising the world anymore. People have become too cynical for that. I know bottled water is still water, even if it’s packaged in different kinds of bottles. But add fruit to one and I’ll start thinking about it. That’s the point of difference.

People are seeking an honest and resonating assessment of their needs, an achievable way through to them and straight talk. That makes people naturally more receptive and it will win you clients for the long term, not just one exchange. Anyone selling something wants a serious client. In return, clients want honest interaction.

We can achieve that on a personal level too. You might not have tons of money to throw about, but you can make time to give of the unique things in yourself. Be daring and see what wonderful results it yields.

While the economy may be bobbing about like a buoy on a rough sea, there is one thing you can definitely do: know your craft. Whatever it is you do, know who you are, what your business is and how you do it best. If you can explain why you are doing something clearly, then you are more likely to be heard and more likely to be listened to.

You must have a really solid keel on your boat to win the race. Too much sail and not enough keel won’t get you over the finishing line in good shape. Translated: too much salesmanship without method or craft will simply dash you on a reef with little hope of rescue.

Clients are very receptive in this market and are looking for new and fresh ways to get what they want. Put yourself in prime position to leverage that interest into something concrete. Construct a solid keel and confidently sail towards the finish line first.

To twitter or not to twitter, that is the question

My grandmother was born at the turn of the last century. She lived to be nearly 100.

During her lifetime she saw the most amazing changes in the world. With five daughters, an invention like the telephone was made for her. She embraced it.

Like us, she needed to make space in her life to adjust to new technology. We’ve come a long way from the first phone my nan used but at other levels things haven’t changed at all.

We learnt to talk on the phone so we visited less. Now we can twitter, Facebook and MySpace with “friends” all over the world. But do we really “talk” to people any more? Do we really connect or do we in fact just waffle inanely?

Networking technology is about creating a fan base, not a data base. The latter only serves to make people feel like a number and we’re well beyond that when it comes to customer satisfaction. Like the old Bob Seger song, clients no longer want to feel like a number. They want to be individuals.

If you believe any social or business networking site, I live in a world where I have the potential for billions of clients. But I really only need enough of them to keep my business growing at the rate which is comfortable. What I want to do with my portion of those billions is connect.

The severe disconnect between business and client is nowhere more obvious than in real estate.

For years the industry has used communication methods which build rapport and false friendships.

With these allegedly more personal ways to network, as businesses we need to be ahead of the curve and right on the edge. Otherwise we will always be playing catch-up.

Mailing lists which bombard people don’t offer true communication. People who engage with their clients, not who want to be false friends to make a sale, are the ones who give hope.

In this world, the key word is indeed hope. You want someone to give you genuine hope that they can do what you are seeking; that they can sell your home, find you the right car, lose weight or help you find love.

Consumers are looking for clarity and confidence. Genuinely connecting with them will give them that and it should put you in the strongest position possible.

Breath easy, the grant stays

So finally we have our answer, the first home buyers grant will remain for three months at the full rate and three months at a reduced rate.

*Insert collective sighs of relief from the entire real estate industry here.*

This is a good move by the Government and one that has seen the industry dodge a very large bullet. If the grant was ceased on June 30 first home buyer activity would have come to a screaming halt and the market place repercussions would have been quite dramatic.

Through phasing out the grant the Government has paved the way for a more orderly market adjustment. The economy is expected to stabilise over the next 6 months and interest rates are expected to stay low. Together these two factors provide an opportunity to offset any shock when the grants do finally stop. The move to keep the grant for both existing and new properties is also positive and avoids any distortion.

So what now? Well historically Government intervention coupled with low interest rates is the pre-curser to the upside of the property cycle. This doesn’t mean everything is roses, what is does mean I think is that the market is likely to continue ticking along as it is until well into 2010 – it is a time to have a positive, but balanced view of the market place.

What was missed in the budget is any sweeteners for investors and second and third tier buyers. Investors are a big piece of the puzzle that is missing right now and through creating strategies that would entice them back into market the Government could have created a far more balanced market place, rather than just relying on the first home buyers to keep us a float. Australia is also in the midst of an ever growing housing stock crisis which cannot be addressed by the first home buyers grant alone. I have pointed out the need to broaden the stimulus here before, so I won’t cover too much old territory there.

All in all budget night was a positive night for the industry. The ‘what ifs?’ around the first home buyers grant are now answered and it is business as usual.

Be happy, be innovative

The boom has left us hanging onto mediocrity. We’ve become comfortable because it’s been easy. We’ve been letting other people take the gamble and the chance. Now the GED has rudely shocked us and rocked us out of that rake-it-in coma.

People are preoccupied with the darkness and gloom but you’ll always find someone living with less light and hope. While Australia is the 18^th wealthiest economy in the world according to one website, apparently we are also the 6^th happiest country in the world.

If you’re not feeling like you’re part of the Top 10 happy places in the world, perhaps it’s because you’ve been paying too much attention to miserable advertising. Notice how quickly television and other forms of advertising have jumped on the bad times band wagon? They’ve taken up the language of a bleak economic climate and adjusted their global economic crisis vocabulary so quickly it’s hard to believe the Ikea-loving Swedes and Canadians are behind us on the happiness ladder.

The days of the spin merchant are gone however and we can’t afford to be seduced anymore. We have neither the time nor money. You just can’t “trust” blindly anymore. Find people who you know are good at what they do or come recommended by those you trust. Work with people who actually have the solutions to your problems, not just people who say they do.

Most of us are pretty clever about what we’re being told, but now more than ever it’s important to see the real message being communicated and not be manipulated by the spin.

The up-side of this down-turn is now we have the perfect chance to make a difference. To be different. To think differently. To strive to be better. To do things which have never been done before.

Whether you’re going to seriously commit to household recycling, buy a home or get involved in a business venture, it’s time for innovation and the climate is ripe for it.

In our recent In Property magazine, Perth horticulturalist Josh Byrne shared with us how planting a verge garden got him out of the back of his house and greeting his neighbourhood. By creating a nice place to be at the front of his house, he’s met the people in his street and made friends with his neighbours.

It’s a grass-roots gesture, but we need them to lift our spirits. Feeling good about yourself and the world around us is what convinces someone somewhere with a great idea to pursue it. They say it takes a village to raise a child. It’s a valuable mantra to have at the moment.

Let’s cultivate the art of being better, of giving great service and “doing good”. Unprecedented times call for unusual measures.

Realmark the aging pop star?

This month at Realmark we are celebrating a very significant milestone – we turn 20.

20 years ago my wife and business partner Anita and I flung open the doors to our tiny little agency, just the two of us and some second-hand office furniture.

We now employ a team of more than 120 people across seven residential offices and a commercial division. I’ve been asked many a time what is the key to our longevity, how did we survive this long in the notoriously fickle world of real estate? Well I’ve got to say, we took a leaf out of Madonna’s book and learnt to reinvent ourselves over and over again.

No matter what you think about Madonna, there is no denying that the woman has managed to sustain a very successful career over many years through adapting and making herself relevant to the next generation of music fans. We may operate in the far less glamorous world of real estate but let me tell you, Realmark have had many different looks over the past twenty years and I honestly think that is what it takes to succeed in this industry.

Real estate is a funny business, it is so heavily influenced by the economy, by consumer sentiment – it is unpredictable. So if you want to work in that space, you have to be ready to take the ride and be willing to adapt and evolve with industry as necessary. While this definitely rings true for real estate, it really applies to any business – you need to stay relevant. Change can be a scary thing for many, but it is not something we fear around here because we cannot afford to. A major part of our everyday business strategy is keeping one step ahead. We are continuously researching technology, communication, marketing – anything that may improve the way we service our customers and help us stand out from the crowd.

No, Realmark is not the same business it was in 1989, and we won’t be the same business we are now five years down the track, I will make sure of it.

For me the past 20 years have been a challenging but very fulfilling ride. If I may get a little sentimental for a minute (well it is my blog after all), many people often measure success in dollars, but I can honestly say that for Anita and myself the highlight of the last 20 years is seeing the business and the people in it grow and prosper. What is a business without its people? We are lucky to have the best of the best working with us, so thanks to all of you.

Happy birthday Realmark.

Find your own value level

I went to an auction recently where an apartment was being offloaded for $2 million plus. I walked around it and marvelled at the designer taps and marble floors. I wondered if anyone ever got any sleep in a bedroom as ostentatious as this one.

By the way, how ARE you sleeping?

I’m sleeping very well. Why? Because I know my values. I know what they mean to me what I am willing to sacrifice. I am also clear on what’s not negotiable, both in and out of the office.

I saw Dr Markus Miele speak while he was in Perth. His great-grandfather co-founded the 110-year-old business which sells the quality appliance brand, Miele, worldwide.

During his speech, it struck me that this man and the company around him are clear on their values. Key points of how they operate include not becoming a discounter and focusing on always getting better by innovating and improving what you offer. Dr Miele noted that consumers will pay for value when the value of what you are offering is explained or demonstrated to them.

While he might have been talking about white goods, they are pretty good principles to apply across business and your life.

The uber-rich will always be so, but it’s the people renting their rich and famous lifestyle from the banks who are learning the hard lesson. It hurts. This rate of consumption is not God-given, or even a Jimmy Cho-given right. Those sprees are hitting you right in that $3000 King Street handbag. The devil (who is not wearing Prada) is standing at the door, banging loudly and demanding to be paid.

For the rest of us, quality is what now counts. We’re spending more carefully and want to know what the values of the products we are buying are.

It’s also about finding the new balance and level of those values. Does a salesperson turning up at your house in a shiny new luxury car make you want to deal with them more or is it now about the quality of the service they provide.

For most of us, we’re now looking for quality that will last and don’t mind spending a little more of our hard-earned dollars if it’s a cornerstone of the product.

Even British fashionistas Trinny and Susannah advocate spending money on classic pieces and less on trendy, seasonal items. They always look good, so it’s hard not to agree.

Perhaps now is the time for smart statements – not gauche ones – at every level, from how you invest to how to you live.

Hardwired to own

Property is more popular than porn.

Yes! You read that right.

I went to a seminar recently where Rental Express MD Chris Rolls told us that 42% of people who have access the web view porn but 74% of people who have access to the web check out the real estate.

Sure, some of them are looking at villas in the south of France, dream homes on the Dalmatian Coast or a funky loft in New York, but the majority of people are looking for a local place to call their own.

It’s really no surprise given shelter is one of the fundamental concerns in our life. Everyone should be invested in that idea.

People like to look at property or homes because they feel an emotional connection. Love and greed – or both – are drivers. There’s the desire to have a place which shelters your person, your family and your soul. It something you can make pretty and entertain in. Alternatively, it’s a place which offers good investment return.

Australia is a country so very wired into the notion of home ownership. Unlike our European cousins who in many cities never even consider the idea of owning. Renting just is what they do and they’ll do it for life.

We’ve adopted the post-war view of a house in the suburbs and very much built the foundations of our life around it. In times like this we naturally become rather sentimental about our homes and they morph into even more of a backbone and a blanket. Security equals salvation in this climate; homes become the icons of our lives.

Australian society honours ownership. From advertisers showing off massive plasma televisions to home builders and the government, everyone is trying to convince us this is the best thing to do – and do now. There’s an expectation that owning a home has become a divine right and buyers want the best deal.

The post-Gen X and Y’s are fixated with having things quickly and early and they’ve been partly responsible for the uptake in city apartments. There’s now a generational expectation they will become involved in the property market early rather than waiting to become established in other areas of their life. We’ve wired them to do that and push them at every level.

Balancing that out, their psyche sees property more as a commodity and they have a positive, flexible attitude towards it. Unlike the homes of our grandparents which were homes for life and where the furniture may as well have been cemented to the floor, this generation will live in many more homes over their lives and have fewer or no reservations about diving in.

Property is a symbol about everything good in our society and it’s driving young people to buy in record numbers. If you’re a cynic, you might say that people are using real estate views on the Net as the new porn – to dream about the place they want but may never own.

Downturn? What Downturn?

It can be hard to ignore the endless headlines of doom and gloom, but I refuse to participate. Realmark is not participating in the recession.

I am not denying that things have certainly changed, but this is nothing new, this is what happens in this industry and I have seen it many a time before. Panic is not going to see you these times, being prepared and having a clear head will.

If you manage to look past all the bad news you will see a range of rare opportunities that don’t come about very often. The words recession and opportunity might not seem to fit together, but the way I see it, recession is a time full of opportunity for my business.

So exactly what opportunities am I talking about? Firstly the demand for agents has decreased significantly so recruiting quality people is much easier. Realmark has just employed seven new team members, something that was almost impossible during the boom. We are using the downturn to build our ‘dream team’. We launched an online careers website and to help us attract the right people and we have hired a full time human resources manager to help us retain the right people.

Now is also a time to stand out from your competitors. It was easy to be successful during the boom, being successful now takes skill because business doesn’t simply walk in the door. People will notice if you’re thriving now and it will build a premium and trust into your brand that is almost impossible to achieve during the good times.

Then there is the fact that now is a good time for growth into new markets, some competitors are going to scale back and opportunities will open up and we stand ready to take advantage of them.

So you can dwell on the bad news, but really what is that going to achieve? Open your eyes and look for the good news.

When you escape your comfort zone, good things happen

I attended the Elite Property Management workshop in Brisbane with John a few weeks ago and I thought I’d share some of my thoughts.

 

The workshop brought together a select group of property management professionals from around Australia and it was a very valuable opportunity to hear from our peers. Each one of us shared the same aim – to push the Australian property management industry to the next level.

 

It was also a great opportunity for us to step back and really look at what we are doing. Because getting away from your desk, your staff, your routine helps you stand back and look at what is really going on. What is working and what may not be the best.

 

Yes we found things about our property management services that need work, but most importantly it was a great feeling to know that a majority of what we are doing is definitely best practice in this country. We are not behind the eastern states, but in many ways we are different. The workshop attendees were blown away by our marketing materials and that was a reassuring endorsement of the way we do things at Realmark.

 

Overall it was serious motivation to keep getting better and we have returned full of ideas and ready to push our property management services to that next level. Which is very good news for Realmark’s property management clients. 

 

The year of the consumer

It must be a strange world for some of the younger or less experienced agents out there who launched their career during boom time. You only had to put a ‘For Sale’ sign out and the buyers came running. Obviously this is no longer the case, yes that’s right, it’s a ‘buyers market’.  However here at Realmark we also see it as the year of the consumer.

 

Real effective service has never been more important than now and our focus here is to deliver service that gets results for clients, because that is what it takes to not only survive, but to become a stronger and better business. Our focus is to service buyers and sellers in a proactive and considerate manner. No shallow promises, offering our sellers real solutions to achieve the best outcomes. Our agents are marketers, communicators, service providers and fact reporters all rolled into one, not just ‘sales people’.

 

While it is natural to feel a little jilted that the good times are over, it is important to remember that what we are dealing with now is ‘normal’, never ending good times are a fantasy. Agents and agencies now need to possess skill, not just in sales, but in relationships to get the job done. I believe that if your service isn’t up to scratch, you’re going to feel it in your bottom line. 

 

This idea of ‘the year of the consumer’ is not just something that applies to real estate. It applies to any business with a ‘client’ (which is all really). Sure times are getting tougher in many sectors but if your clients see value in the service they receive, your services are not going to be first on the chopping block. Make it worth their while, value add and deliver on your commitments, but don’t forget to deliver it all with a confident smile.

 

Making the difference

When the market gets tough, Realmark gets going. The Perth property market in 2009 looks like it will continue to be unsettled. But it is during volatile and uncertain times like these that our team’s industry knowledge, expertise and customer-focused approach sets us apart and finds superior results for our valued clients.

Despite the rest of the Australian property market starting to find a volume and pricing plateau, the Perth market remains in a state of volatility with decreasing stock volumes and a falling median price.

The good news is that this adjustment has increased affordability and attracted more first home buyers back into the market.

We sense that the overall feeling from a buyer’s perspective is one of caution and seriousness. But there are still active buyers out there looking for good opportunities to buy – especially the first home buyer segment.

In 2009, Realmark celebrates 20 years of business in Perth real estate. We believe we are well situated to really step up and show clients the Realmark difference now that times have got a little tougher. We are an award winning business and know what we have to do for our clients to stand out and deliver results.

Our  team spent valuable time at the end of the year and over the Christmas period undertaking forward planning and discussing the approach the team would take in 2009 and we are positive about the forthcoming year.

We differentiate ourselves from our competitors by acting as solution providers. We are focused on servicing buyers, tenants and owners  in a proactive and considerate manner. And we provide factual, unbiased, up-to-the-minute reports on the market so our clients can make the right decisions for themselves.

The entire Realmark team is committed to understanding our clients’ needs and offering real solutions to enable properties to be sold. Whether it is in residential or commercial sales or property management, the pro-active Realmark approach means dedicated customer service. We do not deal in shallow promises.

In summary, Realmark “lives” the belief that real estate agents should not have a dictatorial opinion about the market or property values, but instead be the best marketer, communicator, fact reporter and service provider they can be.

 

We wish all our sellers, buyers, landlords and tenants a happy, healthy and prosperous 2009!