Industry Visionary

  • David M. Michonski
    Chairman and CEO, RealShare International

In 1996 David Michonski became Chairman and CEO of Coldwell Banker Hunt Kennedy. Despite a power packed schedule and a line always outside his door, he remembers to take top agents out to nice lunches, gives his agents an encouraging message and even sends a personal card on their birthday. 

David is currently serving as International Liaison for Enlarged Leadership Team of National Association of Realtors, President of Manhattan Multiple Listing Service,  Board of Directors:  International Real Property Foundation, and Senior NAR  instructor:  Certified International Property Specialist Designation “CIPS”. He was awarded Recipient of CIPS “Instructor of the Year” Award by NAR and “Realtors Honor Society Award” from New York State Association of Realtors.

David has a history of outstanding accomplishments in the real estate industry:

• 2002  President of Manhattan Association of Realtors: Regional Coordinator for Asia for the National Association of Realtors “NAR”;  Board of Directors:  International Real Property Foundation; Senior NAR  instructor:  Certified International Property Specialist Designation “CIPS”. Recipient of “Realtor of the Year Award” by Manhattan Association of Realtors.

• 1999  Chairman , International Operations, National Association of Realtors.
NAR Committee Organizer for Transact 99, America’s first Commercial International Real Estate Conference and Auction,  Sept, 1999; Chairman of  Certified International Property Specialist Faculty Oversight Committee for NAR.

• 1998-1999:   Vice-Chairman of International Operations, National Association of Realtors. Member of the Presidential Advisory Group for International Strategic Plan for NAR. Senior Instructor for CIPS Program for NAR in Commercial Investment and Financial  Analysis, plus Europe, Asia and Latin America.

• 1997-1998:    Chairman of International Forum for National Association of Realtors
Member of the International Operations Committee. Senior Instructor in above courses for Singapore Association of Realtors.

• 1996:  Named as one of Top 10 Realtors in the United States by Today’s Realtor Magazine for international experience.

• 1994-1995:  Realtor News, November 1994 edition. Commercial real estate experience in Eastern Europe covered by NAR publication.

• 1993-1994:  President, Poland Development Partner – Warsaw, Poland. Developers of commercial and residential real estate in Eastern Europe. Founder Warsaw Association of Real Estate Property Professionals.

• 1992-1993:  Vice-Chairman, International Operations of the National Association of Realtors. Board of Directors, FIABCI-USA, International Real Estate Federation. Member, National Association of Realtors Presidential Task Force on International Real Estate. Speaker, National Association of Realtors National Convention on International Real Estate. Founding Member, National Association of Realtors International Section. Speaker, “How to be an International Player in Your Local Market”, at over thirty (30) NAR and local Board functions throughout the United States and the Tri-State area. Consultant to National Association of Realtors on founding the Eastern Europe Real Property Foundation funded with $6M of Congressional Appropriations for fostering real estate brokerage development in Eastern Europe.

• 1991-1992:  Chairman, International Affiliates Committee, National Association of Realtors. Speaker, on Eastern European real estate at National Association of Realtors Conventions. Advisor hired by the U.S. Department of Labor to consult on “Market Oriented solutions to Eastern Europe’s Housing Problems”. Organized, with National Association of Realtors staff and committee members first International Forum at a National Association Convention with representatives of over 40 countries. Member of FIABCI. Awarded FIPC designation (FIABCI International Property Consultant). Founding Member, National Association of Realtors International Section.

• 1990-1991:  Vice-Chairman, International Affiliates, Marketing and Special Conferences Committee, National Association of Realtors. Advisor hired by U.S. Department of State to create “A Methodology for Valuing Real Estate in Non-Market Economies”.  Created together with Daryl Lippincott, former President of Coldwell Banker, after extensive travel in Eastern Europe.  This work was distributed throughout Russia, Hungary, Czechoslovakia and Poland as a tone on how to value real estate where there is no market. Member, International Education and Publication Committee, of National Association of Realtors.

• 1989-1990:  President, FIABCI-New York, the largest Council in the world of the International Real Estate Federations, Paris, France. Awarded CIPS designation, Certified International Property Specialist, at the time one of less than 40 individuals in the world to hold this certification.  Today some 300 people have earned this designation.

• 1985-1989:  International Real Estate Consultant, and Managing Director, LandVest.
Major work included: Complete world study of health spa industry on behalf of Schlumberger Family.
   Consulted for Citibank on disposition of property in Italy and Germany.
   Sold the Italian Estate of Basia Johnson, Johnson and Johnson, Ansedonia, Italy.
   Sold the Italian Estate of Seward Johnson.
   Consulted in St. Lucia, West Indies for Windjammer Landing Resort.

David can be reached at David.Michonski@cbhk.com


As an "industry visionary", what do you see as the major changes occurring in the real estate industry?

Accountability:  The Internet has changed Agent accountability.  Now it is possible to know every Internet generated lead and hold agents accountable for those leads and make sure the consumer gets a response.

 

Customer Service:  I think we are entering into a whole new era of better and possibly outstanding customer service for the public that will immensely enhance the image of real estate agents.  From Customer Care centers being established at firms, to VOIP that allows consumers to reach agents more immediately, to the ability to track leads, there are major structural changes occurring in real estate brokerage that will likely lead to a more satisfying customer experience.

 

Broker and Company Leads:  In the past the whole real estate model was based upon the agent providing the leads to a company.  That is changing and companies are now generating leads and providing them to the agent and often after the lead has been qualified for title and mortgage. This will now accelerate the trend toward “real estate related services” such as Title, Mortgage and Insurance and lead to the following:

 

Great profitability:  the industry will become much more profitable.  Whereas we have been stuck with 4% to 8% ROR’s in the past, I can see company’s generate 15% to 20% returns on revenue with “real estate related” or “ancillary services” added.  That will make the whole industry more profitable, professional and will lead to the following:

 

More players buying real estate brokerages.  When we were a business with marginal returns of 4% to 8%, not that many people were interested.  In the future there will be more players who want to get into an industry that is producing greater returns.  Thus, the multiple for purchase of firms will increase from the  5ish area to double digits.  If banks get into real estate it will definitely rise.

 

More agents will become principals, partners and shareholders of their real estate companies, a trend we started in 1995 with the establishment of our holding company, RealShare International, that allows our agents to buy stock, bonds and obtain stock options in our holding company and thereby participate in all our future growth. 


What major "corporate players" are driving change and what may be their impact?

Clearly, Cendant has proven that a low margin business can produce significant profit margins and they are to be congratulated for taking this sleepy business and pushing it into profitability.  The impact will be that Cendant will have more competition as players at all levels imitate their NRT model and get into the business.  Warren Buffet is already doing it and more will follow.


Who are the "individual trendsetters" that are shaping the future real estate industry?

Brad Inman is surely helping by creating technology conferences that help catch the pulse of the future.

Richard Smith of Cendant is high on the list for everything he has done with Cendant.

Larry Romito for his focus on providing accountability and customer service is surely at the top as his emphasis on the above was like selling straw hats in Alaska six years ago, but today he is being hired by firm after firm to provide superior accountability and customer service.

What are the expectations of the emerging real estate consumer?

  • IMMEDIATE responses.
  • Greater professionalism.
  • High tech exposure of properties EVERYWHERE.
  • An agent with an international mindset because the world is being so globalized so quickly.
  • Customer service like you get in other industries.

How should the Brokerage and Realtor Association / MLS respond to these real estate consumer expectations?

  • Lead tracking and routing are critical.
  • Provide the greatest exposure on websites including what NAR is doing, i.e. linking REALTOR.COM to 25 nations local sites.
  • Provide listing information in many languages.
  • Customer Service training.
  • Lead Center and Call Centers to put the consumer first, agent second.

What changes should a Brokerage implement to ensure profitability in the future?

  • Provide Lead Generation
  • Provide Mortgage
  • Provide Title
  • Provide Insurance

What role do you see the Realtor Association / MLS playing to ensure Broker profitability?

Understand the inter-relation of all the above and that we are NOT in the real estate brokerage business, but the Customer Care business related to the real estate transaction.  That means to service our customer we have to provide all the services that go with the real estate transaction. These became un-connected over the past 70 years and we need to re-connect them altogether, again.


Based upon your vision of the future of the real estate industry, what are you doing to help influence positive change?

2004 Expanded Leadership Team of NAR, 2004 International Liaison led efforts to overhaul all of NAR’s direction and programs internationally. Again, talk to Miriam LOWE  at NAR.

Created proprietary software to track all calls from consumers to agents and provide accountability.

Providing customer service training for agents and staff.

Modeling my company on the above.

What books would you recommend as a "must read" that have influenced your vision?

Aristotle’s Ethics for the finest study of human behavior ever written.

What advice would you give Brokerages and Realtor Associations / MLSs to assure they stay relevant and successful in the future?

  • Stay focused on what the consumer wants and needs.
  • Listen to the big brokers who have the capacity to induce REAL change. Smaller brokers just cannot do it.
  • Do not be afraid of banks and other players entering the industry. They will come regardless of what we do and we should partner with them. They might even  help the industry.
  • Do not be afraid of monumental change. It is a constant and it is good.
  • Understand the importance of international for the consumer, both the international markets here in the US and the need for listings to be exposed internationally.
  • Make sure we continue to keep markets everywhere, especially here in the US, transparent.

You can reach David at David.Michonski@cbhk.com