Real Estate Brokers` Distinctive Advantages

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