Today’s Challenges

As associations look forward to the new real estate transaction in 2012 they should be considering their responsibilities, status and role relative to a number of factors that are currently impacting our industry and marketplace or will be impacting them within the next few months.

First and foremost is the “shadow inventory” issue. Based on the information we obtained during the Core Logic “Risk Summit” meetings we were advised that this circumstance could involve up to 11 million residential properties. At the present time decision makers from both within and outside the industry are considering how to deal with these liquidations and, more importantly, whether or not to process them through the existing system rather than through a process like the one used by the Resolute Trust Corporation during the 1980’s savings and loan crisis. Your leadership should be deciding whether or not your association should play a role in this process.

Following closely behind the shadow inventory situation are a number of other challenges that we have listed below.

Each of these factors will have a significant impact upon all local markets and thus on your association. Understanding how they will present themselves in your marketplace and considering the various association response options is an essential exercise for your leadership and management team.

The centerpiece of this learning process should be your annual strategic leadership and planning process. We would encourage you to revisit the critical importance of an annual leadership conference. Staff and member training programs on these same subjects should compliment that process. Keep in mind that at the present time few brokerages and almost no franchises have the resources to bring this information to their associates. If your association doesn’t bring this knowledge to the membership they will at both the broker and agent levels be vulnerable and unaware.

Over the past 60 days RECON has attended every major industry meeting or conference and has presented in several. In addition we have conducted in depth interviews with a wide range of industry experts regarding the current situation and circumstances. We have used the information gained during this process to create two program sets, one for broker related issues and the other for association operations issues.

It is essential that your organization at both the staff and leadership levels acquire a conversational if not operational familiarity regarding the following subjects.

Your membership will not be served by our underestimation of the impact of these forces on our industry. One expert predicted that upwards of 100 substantial brokerages will fail over the next six months. This is a serious time in our industry, a time when our associations will want to prove their relevance, value and purpose.

RECON is prepared to assist your association in meeting this challenge. We invite you to consider how you will deal with the following subjects and invite you to contact us for more information or to schedule an event or consultation.

A.      Current industry/market dynamics:

o      The shadow inventory, “the factor of consequence”

o      Current trends in the American real estate marketplace

o      Likely outcomes over the next 24 months

o      New issues in finance/mortgage

o      The rapidly expanding “to buy/to rent” decision

o      The rise of the “neighborhood focus.”

B.      Consumer Dynamics:

o      Who are they today?

o      Who will they be moving forward?

o      How are they different?

o      The generational impact

o      The economic quandary

o      The lifestyle challenge

o      What do they want?

o      How will the current real estate services package have to change?

C.      Brokerage Dynamics:

o      What shape are they in today?

o      Who will be the broker of 2013?

o      Re-engineering the traditional brokerage

o      Understanding the emerging brokerage business models

o      What do the new brokerages look like?

o      What should the Company do to engage the new brokerage dynamic?

o      How brokerages are meeting the generational challenge?

D.      Agent Dynamics:

o      Re-engineering the agent/broker relationship

o      Agent accountability reaches the top line

o      The emerging role of knowledge

o      Creating new consumer relationships

o      Creating the perfect value proposition

E.      Technology/Internet/Informational Dynamics:

o      Understanding the emerging role of information

o      Focusing on the seven levels of data/information

o      Getting ready for Web 3.0, “from publication to conversation.”

o      Who will play the commanding role in the REALTOR information space moving forward?

A more focused program that can be tied to specific REALTOR® association strategic and leadership development agendas would incorporate the following subjects.

A.      Understanding the new millennium member

o      Who are they?

o      What to they want?

o      What are their expectations?

o      What are their demands?

o      How to mentor them

o      How does their decision-making processes differ from previous consumers?

B.      Understanding the new millennium agent

o      Who are they by profile?

o      What do they want from their experience?

o      What are their expectations?

o      How to mentor them

o      How will they differ from their boom predecessors?

C.      Understanding the new millennium leader

o      When, in their careers, do they present themselves?

o      How do they present themselves

o      How to best integrate them into the governance process

o      How to keep then engaged after their terms expire

o      How to keep them engaged with other generations

D.      Engineering and implementing support elements for the new brokerage business model

o      Talent searching

o      Brokerage value propositions

o      Standards of Practice

o      Agent accountability

o      Managing the new approach

o      Integrating social media

o      Customer testimonials; the new marketing

o      Lifestyle marketing programs

o      Neighborhood programming

o      Community participation

o      Information/Technology issues

A recent industry survey showed that 81% of REALTORS prefer to attend events that include information valuable to their businesses. The annual leadership retreat is a great opportunity to provide this experience, futher establish the association’s value proposition, and increase affinity.

Most importantly we can develop whatever program meets your existing needs and expectations. These are just a few suggestions. We would appreciate your consideration of RECON for this important assignment. If you would like more information please contact Chuck Curtiss at 231 938 7326 or chuck.curtiss@reconis.com.

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