I have been in offices with long tables where numerous people sit—consumers and real estate agents together, with other people working on their computers. When I talk about that echo boomer generation being open and collaborative, I mean that they are not afraid to sit in an open space and talk. So that is what offices will evolve into. But it will be a transition.”
Tell us a bit more about the ‘Beta Brokerage’ project? “This was a project that we started a couple of years ago, and it’s ongoing. We wanted to do research on what we call next generation real estate companies. So we identified 24 companies that were doing things differently. We wanted them to be outside Better Homes and Gardens Real Estate ground, so we contacted these companies and they agreed to answer a series of questions about how they were running their businesses.
Four common things emerged:
- The office space was not important.
They did not have private offices for agents, but instead had offices like the ones I described to you; open spaces, long tables, inviting, where people could come in. - They all use cloud technology.
They do not invest in antiquated infrastructure technology that becomes more and more out of date. They found simple ways to use the most modern technology to their advantage. - Social media was really at the core of their business, effectively used as a marketing and communication tool.
- They are all practicing what I call extreme customer service, taking service to the next level.
Therefore, it was very interesting for us that these four common threads ran through all the companies. That helped us build our existing value proposition for the BHGRE brand, and it helped us identify potential franchisees to join our network. Based on this information, we are practicing business in such a way that we believe is the future of the industry.”
Tell us a bit more about the brand and about the brand philosophy? “I know the Better Homes and Gardens® brand itself is very strong in Australia, although we currently do not have any real estate offices there; we certainly hope to in the future as we expand our international expansion strategy. The Better Homes and Gardens trademark is owned by Meredith Corporation, a leading media and marketing company. Back in 2007 Realogy approached Meredith because it identified changes taking place in the real estate industry, and wanted to launch a brand that was different; a brand that really spoke to the new generation of buyers, sellers, agents and brokers. So we entered into a 50-year term licensing agreement, with a renewal option for another 50 years with Meredith; we have the rights globally for the brand within the real estate realm. We built a brand value proposition around lifestyle and community that really resonates and speaks to the brand itself because people today are not just buying houses. They are looking for a lifestyle that speaks to their needs, so our proposition is heavily weighted in that direction. We have built a lifestyle search into our website based on this notion to help consumers find locations that meet their lifestyle needs. We have access to a lot of statistical data and information on communities all across the country that is accessible on our website www.bhgrealestate.com.
We are the first real estate brand that reaches out directly to the consumer via social media, and we are able to do that because of the brand awareness achieved through our Meredith relationship. Ninety-seven percent of adult American women are aware of the Better Homes and Gardens brand and know stands for: home enthusiasts, passion for the home, decorating, cooking, and gardening.
The tools and resources that we provide our network and consumers are based around providing a high level of customer service. The tools we provide our agents are designed to help improve their business and allow them to work at a high level of efficiency. Those provided to consumers include community information and tips for finding the right agent as well as home design and do-it-yourself tips. Our technology is simple to use; including our branded lifestyle iPhone app. This app is designed to help consumers find an agent, choose the right home and choose the right neighbourhood, while allowing them to collaborate and share photos and data with their friends via Facebook and other social networks.”
This approach is different than those taken by other brands, not just in the U.S., but throughout the world. “We have gone in a different direction; when we think about lifestyle and the branding itself, I think about Starbucks as the lifestyle brand of coffee. They are very different from other coffee shops. Apple is the lifestyle brand of technology; when you go into an Apple store it is a very different experience and a very different service level. Therefore the goal of our brand, Better Homes and Gardens Real Estate, is to be widely known as the lifestyle brand of real estate.”
We move onto the topic of women in real estate, and I am interested to know what percentage of REALTORS® in U.S. are women, and whether that has changed, or will change in the future? “Right now, according to NAR, the proportion is about 60 percent women and 40 percent men. I am happy that there are as many women as that in the industry. In fact, one of the strongest groups in real estate across the U.S. is the Women’s Council of REALTORS®, which I am involved in myself. Their research tells us that 90 percent of buying decisions, not only real estate but in general are made by women. In the real estate transaction, from the emotional point of view, it is the woman who is making that decision.
Some of our top producers are women who have successfully figured out how this business works. I know a number of women whose retired husbands have now joined them in the business and are helping with management. I have come across couples working very well together, with the woman as a lead agent and her husband supporting her in getting the job done.”
What piece of advice would you give people thinking about becoming a real estate agent or REALTOR®, or to someone new to the industry? “For someone thinking about getting into the industry, I point to myself when I started, having no idea where I would be sitting today. The sky is the limit. You can achieve all your goals and then some by being in this industry. There is so much opportunity: to succeed individually, to go into management, to exceed any financial goals you may have for yourself. It is just a matter of putting your mind into it and working hard to achieve your goals.
For a new agent, creating a scenario where you are providing the best service for your clients is going to be the key in the future; agents have to think about that. You cannot be complacent in this industry; you always need to be ahead of the pack. You need to be looking for the next great thing for the consumer. You cannot just wander into real estate and expect to pick up some leads! Take a step back; take advantage of the learning that is available. There are so many classes and online learning opportunities today. Educate yourself about providing exceptional customer service.”
What about if you have been in the industry for a while and need a kick start in your career? “For someone who has been in the industry for a while, differentiate yourself. What can you do that is different from what everyone else is doing? Back when I was starting to sell, they said if you were a dog lover, you should make sure that that is on your marketing material because other dog lovers will identify with you and be interested in you as an agent. Those were good marketing tips back then, but may not apply today.
Today you need to be pretty focused on what it is you want to accomplish. Putting some photos on your website or your marketing pieces is not enough. There is much more to it than that. Real estate is a lot of hard work; nothing comes easy. Agents will look at one of the top producers and say, “That person is so lucky.” Luck is a form of intelligence. It is being able to identify an opportunity and act upon it.”
Following their leader’s mindset of agility and innovation, I have no doubt that the members and stakeholders of BHGRE will continue to shape the current and future state of the industry.
