Since 1967, Real Living took over the number one spot in central Ohio's real estate market and has yet to relinquish that position.  Thanks to our great agents (who average more than three times the national transaction average), innovative technology and continual reinvestment into the firm, our goal is growth in Columbus in 2009 and beyond.  Due to some of the initiatives and leadership in our firm, I believe that when this article appears in 2010 there will be a greater distance between us and the other central Ohio competitors. 

Below is a copy of this week's Business First ranking. 

Real Living has done it again! 

This week Real Living is celebrating the newest program for buyers and sellers designed to provide additional comfort in this uncertain market... Real Living's Peace of Mind Mortgage Payment Protection Plan.  Real Living is the first and only firm in central Ohio, Dayton, Cincinnati and Louisville to offer a program of this nature. 

The Peace of Mind Plan is being implemented to differentiate our agents from the competition and to provide an opportunity to send a one-stop-shopping message to consumers. 

Here is the scoop...

Real Living is covering the cost of an insurance policy that will pay the mortgage for up to 6 months (maximum of $1,500/mo) for a buyer upon involuntary loss of job.   The buyer will receive one year of protection if they use Real Living Mortgage and buy any home on the market.  They will receive 2 years of protection if they finance through Real Living Mortgage AND buy a Real Living listing!  What a great message to relay to current listings... Real Living is doing all it can to sell your listing with this bonus incentive.

If you are not a Real Living agent and your buyer buys a Real Living listing and uses Real Living Mortgage, they too will receive the benefit.  We appreciate all of our co-op agents!  Or if you are interested in joining us please connect with me confidentially and I'll refer you to the office manager who is the best fit for your location. 

Additionally, the Peace of Mind Plan will apply to those refinancing with Real Living Mortgage - these borrowers will receive 1 year of protection.  Another excellent opportunity to reach out to your databases and position yourself with your past customers as their full-service real estate professional. 

Real Living Momentum 2009 was a huge success.  It all started with the best venue to ever hold the event, The Lifestyles Communities Pavilion (aka. the LC).  The LC is an intimate venue that attracts well know bands in a close setting.  Real estate is primed for a strong turn-around and this party served as the kick-off for Real Living. 

Registration started at 1pm and below is a picture of the entry to the LC...

The event kicked off with Harley and Kaira Rouda opening the awards ceremony.  Hundreds of Real Living agents walked the stage to receive their awards...

This year marked the firsts for a few new awards, The Harley Rouda Manager of the Year award, which was an old door.  The door is symbolic of Harley Sr. starting the company on two old saw horses and an old door and the doors we as an industry open for Americans by helping them acheive the dream of homeownership.  TAdditionally, we created another new award, an oar.  The oar is awarded to the office who most effectively "rowed together" during the prior year by exhibiting the best support of all company sponsored services (e.g. RL mortgage, RL title, and RL Homegard warranty).  Below, is Harley with the oar annoucing the winning office. 

Immediately folllowing the awards ceremony, speaker David Knox spoke about a key topic, getting buyers off of the fence. 

Next, we introduce the E-Team, online lead generation platform.  This program generated much interest and Real Living's own Ric Devore introduced the program to the group.

The event concluded with an open bar, dancing, food, and the music of Conspiracy. 

Nearly 500 agents, managers, guests and franchise owners joined the fun.  This year's celebration will be tough to beat in 2010.  Thanks to all who attended for a great evening of fun, networking, and bonding!! 

Since taking over the marketing department at Real Living, I've had some eye-opening experiences.  The first of which that I want to discuss is the formation of new listing syndication sites with local slants owned by local newspapers, radio stations and the like.   On the surface and in your first meeting, here is what these wolves look like this...  cute and harmless

But here is the real scoop...

These new sites have a great advantage because of their ownership.  In Columbus, The Dispatch Media Group owns ColumbusRealEstate.com, in addition to the local newspaper, the local CBS affiliate, radio stations and localized free weekly newspapers.  What great advertising opportunities to drive traffic to the site.  When they came to our offices 2 years ago they stated, that they were going to be the #1 destination for Columbus homebuyers.  Wait a minute; RealLivingHER is the #1 destination.  Why would we fuel this engine who clearly stated their desire to beat our site in traffic???  They are simply trying to re-capture the advertising revenue they are losing from the traditional mediums our industry is fleeing from - e.g. newspapers.  Ad revenue is paramount... Consumer experience is secondary. 

The other one is WonderfulColumbus.com.  This is a newer site owned by Clear Channel who is known for radio stations, billboards and possibly more.  Again, a huge advantage of the site to be literally in bed with advertising venues to drive traffic.  The goal of this site is similar to that of the aforementioned one.    

Real Living HER does not and will not share with either of these sites.  I told both of these sites that our data was too valuable BUT... if they were interested in paying us for them, we'd entertain that proposal.  

I encourage you and your brokerage to do the same.  By giving these local sites your listings, you are submitting to the fact that you see no value in your listings.  You are giving listings to these companies for "free," enabling them to beat your site in the traffic game, all while creating another local media relationship who will suck your advertising dollars dry and detract from your ability to focus on your own web presence. 

By not playing this game and sharing your #1 asset (LISTINGS) you eliminate their ability to provide a full-service consumer experience.  They use fear to get us to share by leveraging their sister media outlets.  Don't be afraid of the ads they'll run.  The consumer will always seek out the real estate sites they trust to provide all listing information - e.g. YOUR site.    

Think about it... If you are buying a home would you go to the sites who have 100% of the listings or 80% or fewer?  Due to the fact that we don't share, ColumbusRealEstate.com will automatically miss 20% of the listings (1 in every 5 will be absent from search results) - even more depending on the suburb.  Is this a good consumer experience?  Nope. 

Instead of sharing with these wolves, make your site the best in town!  Use the dollars you and your agents will spend (today or eventually) with these imposter sites to create your own consumer destination.  Otherwise you'll pay the price in the future!!   Sharing creates another "newspaper" that we'll be complaining about down the road because they charge us too much and our customer's demand we post their listing here.  Then, we'll end up like this buffalo... Surrounded, too dependent on the wolves and eventually... Dinner.

Yesterday on Yahoo Finance, this article appeared on the home page.  The article lists 15 reputable companies who, "might not survive 2009."  (read half way down the page to get to Realogy's write-up)  Realogy is the parent organization of top brands including Coldwell Banker, Century 21, ERA, Sotheby's and the newly formed (and certainly underperforming, mostly due to timing) Better Homes.  It's interesting that very few articles regarding the Realogy financial troubles even mention Better Homes. 

Realogy's struggles have been well documented.  You can Google "realogy bankruptcy" and find close to 11,000 results.  Times are definately tough and it seems even tougher for the largest of companies.  My firm, Real Living, sold Realty One (about 1,200 agents) in October to Howard Hanna, a Pittsburgh base brokerage.  This move for us while at first seemed negative (mainly due to how fast we were growing and the sale marked our growth going the other direction) has been an extremely positive event.  Our debt is now $0, our employees and resources are more focused than ever, and frankly there is less negativity as Cleveland is one of the most difficult real estate markets in the US.  It is like a weight has been lifted, truly.  I'm beginning to feel quite differently today than I did just 12-18 months ago... small is the new big in today's economy.  The bigger you are the more problems, less focus and higher the stakes. 

It'll be interesting to see what happens with this continuing Realogy saga.  I certainly don't wish ill will on any competitor and hopefully this mess will not lead to....

Today I met with a newspaper advertising salesperson over lunch.  He began the meeting by paging through some information regarding his newspaper.  Audience, age, income, gender, education, etc. etc.  Then he came to one section where he showed his newspaper having more monthly readers than the largest local radio station.  Then, the idea light went off for this blog.

Being close to our firms' web statistics I know RealLivingHER.com attracts around 200,000 visitors monthly.  The number one radio station in Columbus, Ohio, WNCI 97.9 boasts over 187,000 listeners/month according to the audit material he provided.  We do better than the #1 radio station in town!  I was impressed by the numbers and had never thought about it that way.   

So.... The next time a consumer or builder/developer (struggling to pay a salesperson to sit in a model) approaches you and asks how many times you'll advertise his product in the newspaper, share the stats. 

The point is that we should begin looking at our sites as the true mediums (just like radio, tv, newspaper, etc.) that they have become.  If you've done a good job with your site and attracting visitors, you don't need to rely on others as much as we have in the past.  Also, the next time you are approached by a traditional media salesperson, bring your stats.  When solicited the ability to advertise in a publication at $xx silly price per ad, turn the dialogue around and sell that salesperson ad space on your site! 

Any subscriber to my blog knows my distaste/crusade against the overspending of marketing dollars in newspaper advertising.  Below is a graph that should help consumers realize how their home will be marketed for maximum exposure and results.  Agents, yard signs the Internet accout for 81% of consumers first source of information.  Newspaper is 3%!

This chart was created and made available by the NAR via their Profile of Home Buyers and Sellers 2008 book.  This publication is loaded with more great information and charts like this.  The Real Living seller and buyer presentations both highlight this chart for consumers.  How is your firm spending its marketing budget?   

Truly!  This is how I see it.  The market downturn is providing an excellent opportunity for companies and agents to create a new way of doing business and do just as I suggest - align goals and arrive at a solution providing mutual benefit go forward. 

Here are my top 3 reasons why brokers and agent goals are not aligned today and never will be unless there is a change...

1.  Agents demand higher commissions and brokers are fighting over the last twenty-five cents remaining in a deal to keep the lights on.  Since the 100% concepts came into existence there has been a continual tug-of-war between agents and their brokerage over commission dollars.  This leaves brokerages with one of two choices -

• keep more and offer more
• keep less and offer less 

Imagine what would happen if/when agents and brokers begin to develop ideas and partake in actions that will add another $3 to a deal vs. fighting over the last twenty-five cents. 

2.  Due to the fact that brokers are paying higher commissions, they are forced to beg and plead with agents to use company sponsored mortgage and title products.  These products typically earn the brokerage significantly higher profits than the net company dollar in a transaction.  When agents have no financial incentive in keeping the mortgage or title part of the transaction "in-house," primarily due to RESPA laws, why would they?   Take this scenario for example...

A consumer enters a bank and asks the teller, "I need a checking account, am also interested in your CD rates and will need an equity line of credit established within the next month to do improvements."  Can you imagine this teller responding to the customer, "I'll handle your checking account, BUT, Fifth Third bank across the street has better CD rates for you and Wells Fargo next door has better rates on a line of credit." 

Sounds humorous, but this scenario plays out daily in real estate when agents take it upon themselves to drive consumers away from their firm's mortgage and title products, provide them 3 names of competing companies and send them on their way to shop.  Think of what the consumer, who demands a quality experience and one-stop-shopping (we've all read the stats) is thinking.  

3.  Agents are 1099 workers and many employ that mentality in their daily actions causing the consumer experience to differ greatly (even within the same brokerage).  Rightfully so, agents are out for themselves.  The analogy, "you never wash a rented car," comes to mind.  Just imagine the level of technology, support and more a broker could offer if everyone "owned the car" and supported ancillary services. 

This downturn in the market is an ideal opportunity to figure out how to align the goals of broker and agent and elevate the level of professionalism (agents and brokerages) in the business.  Who will be first to accomplish this? 

Above is a representation of unit sale market share for December 2008 (month to date).  This considers the entire Central Ohio MLS.  Real Living is number one with just under 21% market share.   It is amazing how fast the market share drops after you get pas the top two. 

To learn more about becoming an agent within Real Living's system or if you are considering buying a new home or listing your current property, check out our site.  We are #1 in Central Ohio for a reason.

Our company, like many (real estate and non-real estate), are trimming budgets for 2009.  On the marketing side of the house, since 1998 we've been re-allocating dollars from print to online and will continue that effort further, but until the "bottom" is reached.  Doing all possible to stay afloat is mandatory - hopefully change is coming too...

I caught the national evening news the other night and there was a story about how employees (who are lucky enough to still be employed in this economy) are doing 1.5 times as much as they did in prior years.  Fewer people, fewer budget dollars = more work. 

So, with that said, maximization and doing more with less is our theme in 2009.  Here are some tips to make your budget go further...

•  Continue to spend more in online mediums vs. print.  If done properly, these dollars will go further and results are easier tracked.  In these venues, you pay for what you get vs. the "if-come" associated with print advertising.

•  Maximize your human resources.  Manage your team tighter to ensure they are focused on tangible and real projects that produce results.  A job is a good thing in today's environment and keeping people employed is positive thing for the economy as a whole.

•  Don't cut just to cut.  Typically an accounting team will suggest/recommend cutting dollars without really understanding the marketing or operations ramifications of said cuts.  Make sure your business can live with your cuts.

•  Re-evaluate everything.  People are doing business differently today than they did just 90 days ago.  Take time to fully comprehend your expenses and make sure they still makes sense (today vs. 90 days ago). 

And, most importantly... Know that those who survive will thrive on the other side of the real estate depression we're experiencing.  Hang in there!