Windermere Owners Windermere Owners MeetingMeeting

November 13-14, 2007November 13-14, 2007

How Soon Will We How Soon Will We Notice?Notice?

How Soon Will You How Soon Will You Notice?Notice?

Lilys grow geometricallyLilys grow geometricallyOn the first day, one lilyOn the first day, one lilySecond day two, third day fourSecond day two, third day fourOn the 30On the 30thth day, pond will be full day, pond will be fullMost people will not notice until the Most people will not notice until the

2828thth day when pond is one-quarter day when pond is one-quarter fullfull

On the 29On the 29thth day it will be half full day it will be half full

3 Waves in Real Estate3 Waves in Real Estate

Owner Owner AgentAgentConsumerConsumer

First Wave in Real EstateFirst Wave in Real Estate

Owner – How much do I need to pay Owner – How much do I need to pay these darn agents?these darn agents?Owner controlled the dataOwner controlled the data

Gave to agents Gave to agents

Owner had leads (the Glengarry leads!)Owner had leads (the Glengarry leads!)Owner had clientsOwner had clientsOwner kept most of commissionsOwner kept most of commissions

Second Wave in Real Second Wave in Real EstateEstate

Agent – How much do I need to pay Agent – How much do I need to pay this darn ownerthis darn ownerAgent has clientsAgent has clientsAgent access to data directlyAgent access to data directly

Agent gives data to clientsAgent gives data to clientsNo addresses, keep prices secret…No addresses, keep prices secret…

Agent keeps most of commissionsAgent keeps most of commissions

Third Wave in Real Third Wave in Real EstateEstate

Consumer – How much do I need to Consumer – How much do I need to pay all these darn people?pay all these darn people?Consumers can access data directlyConsumers can access data directly

Prices, addresses, picturesPrices, addresses, picturesActive, Sold, Title …Active, Sold, Title …

Dollars paid to all parties very visibleDollars paid to all parties very visibleWant to know - What am I getting for Want to know - What am I getting for

my money?my money?

3 Waves in Real Estate3 Waves in Real Estate

Owner Owner AgentAgentConsumerConsumer

Trends follow the Trends follow the dollarsdollars and the and the datadata

Consumers Do ChooseConsumers Do Choose

Starbucks versus Dunkin DonutsStarbucks versus Dunkin Donuts

Nordstrom versus Men’s WarehouseNordstrom versus Men’s Warehouse

Lexus versus Toyota Lexus versus Toyota and Toyota versus Scionand Toyota versus Scion

The Pond is ChangingThe Pond is Changing

““Success often comes to those Success often comes to those who get in front of the who get in front of the inevitable”inevitable”

What are we going to do?What are we going to do?

Setting The StageSetting The Stage

Some statisticsSome statistics

What some others thinkWhat some others think

Our own pondOur own pond

Information Used Information Used by Home Buyersby Home Buyers

• Real Estate AgentReal Estate Agent 85%85%• InternetInternet 80%80%• Yard SignYard Sign 63%63%• NewspaperNewspaper 55%55%• Open HouseOpen House 47%47%• Home Book/MagazineHome Book/Magazine34%34%

Information from NAR 2006 Profile of home buyers and sellersInformation from NAR 2006 Profile of home buyers and sellers

How Buyers How Buyers Found Real Found Real

Estate AgentEstate Agent• Referral/KnewReferral/Knew 45%45%• Used Agent BeforeUsed Agent Before 13%13%• InternetInternet 7%7%• Open HouseOpen House 7%7%• For Sale SignFor Sale Sign 7%7%• Walk in or callWalk in or call 4%4%• Personal ContactPersonal Contact 3%3%

Information from NAR 2006 Profile of home buyers and sellersInformation from NAR 2006 Profile of home buyers and sellers

How Sellers How Sellers Found Real Found Real

Estate AgentEstate Agent• Referral/KnewReferral/Knew 48%48%• Used Agent BeforeUsed Agent Before 30%30%• Open HouseOpen House 5%5%• Personal Contact by AgentPersonal Contact by Agent 5%5%• RelocationRelocation 3%3%• Direct MailDirect Mail 3%3%• Web SiteWeb Site 2%2%

Information from NAR 2006 Profile of home buyers and sellersInformation from NAR 2006 Profile of home buyers and sellers

• 80+% of clients very satisfied with agent80+% of clients very satisfied with agent• 66% of Buyers would use agent again66% of Buyers would use agent again• 63% of Sellers would use agent again63% of Sellers would use agent again• 65% of Buyers interviewed one agent 65% of Buyers interviewed one agent

(20% interviewed two – 15% 3 or more)(20% interviewed two – 15% 3 or more)• 69% of Sellers interviewed one agent 69% of Sellers interviewed one agent

(18% interviewed two – 13% 3 or more)(18% interviewed two – 13% 3 or more)

• 13% of Buyers and 30% of Sellers actually 13% of Buyers and 30% of Sellers actually used same agent!used same agent!

• Information from NAR 2006 Profile of home buyers and sellersInformation from NAR 2006 Profile of home buyers and sellers

The Good NewsThe Good News

Vast Majority of People use a Vast Majority of People use a Real Estate AgentReal Estate Agent

Majority Happy with their AgentMajority Happy with their Agent

Majority Would use their Agent Majority Would use their Agent AgainAgain

Other Good NewsOther Good News

• Median miles moved for new home – 15 Median miles moved for new home – 15 milesmiles

• 71% moved 50 miles or less71% moved 50 miles or less• 66% of people moving to Oregon from 66% of people moving to Oregon from

out of state come from CA, WA, NV, out of state come from CA, WA, NV, AZ, ID, UT & MTAZ, ID, UT & MT

2007 NAR Profile of Buyers’ Home Feature Preferences2007 NAR Profile of Buyers’ Home Feature Preferences

What some others thinkWhat some others think

Marc DavisonMarc Davison

• 1000 Watt Consulting1000 Watt Consulting• Inman News ColumnistInman News Columnist• 805-305-9756805-305-9756• www.1000wattconsulting.comwww.1000wattconsulting.com• ““In a post Zillow World In a post Zillow World

Presentation” – 2006Presentation” – 2006

2006 CAR 2006 CAR Internet/Traditional Internet/Traditional

Buyer SurveyBuyer Survey

The Internet is not about The Internet is not about AccuracyAccuracy

• The circle of trust on the Internet is The circle of trust on the Internet is based on:based on:

No strings attachedNo strings attachedImmediate Results to queriesImmediate Results to queriesFast Fast CleanCleanEasyEasyProgressiveProgressive

Anti-sales and pro-customer/self- serviceAnti-sales and pro-customer/self- service

5

SalesSalesO•Provider of the Information

•An Analyst

•A Professional

7

Consumers – Consumers – Neanderthals vs. ModernNeanderthals vs. Modern

• Modern Consumers Modern Consumers – Spend more time doing Spend more time doing

researchresearch– Less time with RealtorLess time with Realtor– They spend considerable They spend considerable

more money more money – More satisfied with RealtorMore satisfied with Realtor

NeanderthalsNeanderthals– Uses 300% more of the Uses 300% more of the

agent’s time searching for agent’s time searching for propertyproperty

– Views 3x # of homes Views 3x # of homes – Spend less to purchase a Spend less to purchase a

homehome– Use 4x more of the Realtors Use 4x more of the Realtors

resourcesresources

9

The Threat to Real The Threat to Real Estate todayEstate today

1.1. Is Is NOT KNOWINGNOT KNOWING who your online competition who your online competition is.is.

2.2. Not accepting Not accepting CHANGE.CHANGE.3.3. Not being Not being PARTPART of that change. of that change.

4.4. DISCOUNTING DISCOUNTING technology as an ancillary part technology as an ancillary part of real estate.of real estate.

5.5. DISREGARDINGDISREGARDING new distribution models. new distribution models.

6.6. Not Not BEING OPENBEING OPEN to conflicting viewpoints. to conflicting viewpoints.

7.7. Not Not CONTINUINGCONTINUING your education. your education.

8.8. Not Not STAYING CURRENTSTAYING CURRENT on consumer shifts & on consumer shifts & not realizing the result - the disservice that not realizing the result - the disservice that is to your customers. is to your customers.

11

Marc Davison Marc Davison

• In the Future….In the Future….

#1#1 There will always be a There will always be a

RealtorRealtorNo dot com No dot com

service will everservice will ever replace the value replace the value

of having aof having apersonal personal

relationship with relationship with aa

professional real professional real estate advisor.estate advisor.

#2#2 Real Estate will no longer Real Estate will no longer

emphasize “sales”emphasize “sales”

Value will be measured by Realtor’sValue will be measured by Realtor’s || Ability to provide instant market Ability to provide instant market analysisanalysis

InteractiveInteractive and result driven websites and result driven websites

Progressive Progressive MarketingMarketing Techniques Techniques

Use of Use of TechnologyTechnology

Variety of Variety of CommunicationCommunication methods methods

It will emphasize customer service

#7#7IIndependent Realtor ndependent Realtor

branding will disappear.branding will disappear.

This will be influenced by:This will be influenced by: The influx of corporate recruitsThe influx of corporate recruits

The cost to build private brandThe cost to build private brand

The cost to build market awarenessThe cost to build market awareness

The cost to purchase technologyThe cost to purchase technology

The cost to market and advertiseThe cost to market and advertise

The cost to the Broker who’s brand is The cost to the Broker who’s brand is not leveraged not leveraged

….Replaced by strict adherence and use of corporate branding.

Davison on BrandingDavison on Branding

Steve Murray – Real Steve Murray – Real TrendsTrends

• 800 companies tracked800 companies tracked• Looked at top 15 for growth & Looked at top 15 for growth &

profitabilityprofitability• Interviewed 169 people in those Interviewed 169 people in those

firmsfirms• Findings were…..Findings were…..

People Still MatterPeople Still Matter

Attributes and Practices of Best FirmsAttributes and Practices of Best Firms• VisionVision• TransparencyTransparency• CommunicationCommunication• AccountabilityAccountability• EmpowermentEmpowerment• DisciplineDiscipline• CommunityCommunity

VisionVision

• Know what you want to achieveKnow what you want to achieve• Know who you are and what you Know who you are and what you

believe inbelieve in• Know how you want to be viewed Know how you want to be viewed

from within and outside your from within and outside your organizationorganization

TransparencyTransparency

• Be open with your organizationBe open with your organization• Share results, successes and failuresShare results, successes and failures• Learning should be shared Learning should be shared

throughout the organizationthroughout the organization• Establish methods for allowing Establish methods for allowing

questions from withinquestions from within

CommunicationCommunication

• The best communication is too much The best communication is too much communicationcommunication

• Communication must be two-wayCommunication must be two-way• Opportunities for communication Opportunities for communication

must be both vertical and horizontalmust be both vertical and horizontal

Accountability for Accountability for ResultsResults

• If it can be measured, it can be managedIf it can be measured, it can be managed• Set objectives and measure resultsSet objectives and measure results• The more specific you are about The more specific you are about

objectives and acceptable results, the objectives and acceptable results, the greater the likelihood you will get desired greater the likelihood you will get desired resultsresults

• Transparency and communication count Transparency and communication count heavily – be open about your expectations heavily – be open about your expectations and be and be transparent about resultstransparent about results

EmpowermentEmpowerment

• You cannot do it all yourself, so You cannot do it all yourself, so share responsibility throughout your share responsibility throughout your organizationorganization

• Match the responsibility for results Match the responsibility for results with the accountability for getting it with the accountability for getting it donedone

• Recognize everyone, regardless of Recognize everyone, regardless of position, for delivering resultsposition, for delivering results

DisciplineDiscipline

• Every part of your business should Every part of your business should have a planhave a plan

• Review the plans and results Review the plans and results frequentlyfrequently

• Be consistent about your meetings Be consistent about your meetings and your processesand your processes

CommunityCommunity

• Being a part of a company is one thing. Being a part of a company is one thing. Being part of a community is entirely Being part of a community is entirely differentdifferent

• Establish methods to build communities Establish methods to build communities inside and outside your organizationinside and outside your organization

• Supporting your communities pays off Supporting your communities pays off because your organization feels proud because your organization feels proud to play a part – which often leads to to play a part – which often leads to employee retention and higher moraleemployee retention and higher morale

People Still MatterPeople Still Matter

Attributes and Practices of Best FirmsAttributes and Practices of Best Firms• VisionVision• TransparencyTransparency• CommunicationCommunication• AccountabilityAccountability• EmpowermentEmpowerment• DisciplineDiscipline• CommunityCommunity

Larry Kendall / The Group / Larry Kendall / The Group / Ninja Selling / Walt FreyNinja Selling / Walt Frey

Ninja SellingNinja Selling

• The On-Purpose vs The On-Accident The On-Purpose vs The On-Accident RealtorRealtor

• A User Friendly Selling SystemA User Friendly Selling System• Schedules Flow ActivitiesSchedules Flow Activities• Focuses on Adding ValueFocuses on Adding Value• Realtor 7.0Realtor 7.0

An Overly Brief SummaryAn Overly Brief Summary

• People want to work with someone People want to work with someone they Know, Like and Trustthey Know, Like and Trust

• Develop a base of people who know, Develop a base of people who know, like and trust youlike and trust you

• Stay in the flow with themStay in the flow with them• Add value – Be a Proactive Trusted Add value – Be a Proactive Trusted

AdvisorAdvisor

Add ValueAdd Value

• People willing to pay to:People willing to pay to:– Solve a problemSolve a problem– Feel goodFeel good

• People willing to pay more for:People willing to pay more for:– Quality servicesQuality services– Quality skillsQuality skills– Quality advisorsQuality advisors

Larry’s PredictionsLarry’s Predictions

• Real estate agents categorized into 1 of 4 Real estate agents categorized into 1 of 4 modelsmodels

• Customer decides based on agents Customer decides based on agents ActionsActions• Agents no longer play both sides of streetAgents no longer play both sides of street• Rise of transparencyRise of transparency• Difficult for companies to appeal to everyoneDifficult for companies to appeal to everyone• Investment in Realtor 7.0 too high for most Investment in Realtor 7.0 too high for most

companies and agentscompanies and agents• Difficult for Realtor 7.0 and discount agent to Difficult for Realtor 7.0 and discount agent to

exist in same company and brandexist in same company and brand

My SummaryMy Summary

• Internet powerful but not the end allInternet powerful but not the end all• There is a market for Realtor 7.0There is a market for Realtor 7.0• Consumers want information and Consumers want information and

knowledge and are willing to pay for knowledge and are willing to pay for valuevalue

• Must choose what you want to beMust choose what you want to be• Be deliberate & openBe deliberate & open

Windermere Real EstateWindermere Real Estate

• Quality real estate companyQuality real estate company• A “feel good” experienceA “feel good” experience• We are:We are:

– Nice people to work withNice people to work with– Highly qualified, professional agentsHighly qualified, professional agents– Part of the communityPart of the community

How Do We Maintain How Do We Maintain andand Grow?Grow?

• Consistency in all areasConsistency in all areas– BrandingBranding– Marketing & advertisingMarketing & advertising– Level of serviceLevel of service

• Help our agents succeedHelp our agents succeed– Understanding environmentUnderstanding environment– Understanding expectationsUnderstanding expectations– Windermere toolsWindermere tools– Education & trainingEducation & training

3 Levels of Action3 Levels of Action

• Windermere ServicesWindermere Services• Owners/ManagersOwners/Managers• AgentsAgents

Each level has differing roles and Each level has differing roles and abilities to influence our successabilities to influence our success

What Are We Going To What Are We Going To Do?Do?

• Maintain brand consistencyMaintain brand consistency• Continue to roll out and spread the Continue to roll out and spread the

Ninja Selling philosophyNinja Selling philosophy• Help you help your agentsHelp you help your agents

Brand ConsistencyBrand Consistency

• Signage Signage – Lots of progress from last yearLots of progress from last year

• April 08 enforcementApril 08 enforcement– No StickersNo Stickers– Signs, riders & posts from approved Signs, riders & posts from approved

vendorsvendors

• Institutional MarketingInstitutional Marketing

Ninja PhilosophyNinja Philosophy

• 3-part Ninja Class3-part Ninja Class• Coaching groupsCoaching groups• Emphasis on how to implementEmphasis on how to implement

– A user friendly selling systemA user friendly selling system

Manager TrainingManager Training

• Will work with managers to help Will work with managers to help implement what we have talked implement what we have talked aboutabout

Your TurnYour Turn