Industry Visionary

The industry is so exposed right now; it is more difficult to say who will emerge as true”players”. In the real estate boom, we saw many companies run into what is now seen as a boxed canyon. Many companies loaded up on debt, took unnecessary risks and now do not have the capacity to sustain, much less make changes that are necessary in a down market.   

As far as driving change, the likes of Google Earth and Craigslist and others outside of the real estate arena will use their external perspective to change how we view real estate. Redfin, Coldwell Banker and John L. Scott will continue to reinvent the business using new paradigms. Regardless of your stance on various new concepts, those driving change elevate the entire industry.

At Stewart, our deliberate and steady growth has provided a financial position that allows us to continue innovating and spending on key initiatives which will propel us forward in the market and enable significant success as the market turns. We have the capacity to leverage the downturn and assure our continued long standing value-added position in the real estate space.

Generally speaking, it is the individual entrepreneur who emerges successful in down markets. They are not constrained by excessive overhead or bureaucracy. They can take risks and capitalize on opportunities while everyone else turns introspective and doesn’t have time to look around the corner.

Individual trendsetters are pursuing customers, not waiting for them to knock on the door. They are utilizing social networking, blogging, podcasts and “search stores”. Ed Krafchow is a good example as he positions Palacio Magazine as a completely new vehicle to reach the Hispanic consumer and meet their additional needs.

In all honesty I think we have more individual trendsetters in the industry than we have had in some long time. Stu Siegel, Michael Yang from Yahoo, Sami Inkinen from Trulia, Mark Lesswing from NAR are just a few of the names that come to mind that are challenging the way we think.

Of course, I have to throw one of our own into this ring. Stewart Morris, Jr. has an unquenchable thirst to innovate and ensure that we are leading the way in how people buy and sell real estate. SureClose, eMortgage, e-sign, e-vault, eRecording are all part of our initiatives to remove paper from the transaction, increase transparency to the parties involved, and streamline and simplify the process while making us the most environmentally friendly provider of settlement and closing services.  

We have become the “custom fit” society.  Once you find a provider who will provide exactly what you need, why go to the general store and pick out the “one size fits all”? We talk about customer centricity, but at the core of that is the simple fact that no two customers are alike. They all have unique needs and it is up to us to identify those needs and add value to the relationship.

The emerging customers are smart- they already have access to tools, resources and information and soon that will be coming out so quickly you will have no way to keep up. They do not want to be sold what they do not need and they do not want excuses about how “it doesn’t work that way.” The fact of the matter is, if you can’t make it work for them, someone else will.

Innovate and educate. The role of any governing entity or association is to create an environment where those within their ranks can thrive.  There is a real opportunity for associations to leverage their strengths to set the bar for the minimum standard and elevate the real estate profession. 

There was a point in time when only a few brokers in an association had the resources to provide an online directory of listings to consumers.  Most MLS or local Associations now provide the toolset to make it easy for all agents and brokers to provide online listing searches to consumers. 

The introduction of electronic signatures on contracts and document/transaction management systems that together add convenience and give consumers insight into the real estate process will also allow associations to set the standard and drive additional value to the consumer.

Brokers need to provide tools and training to make sure their agents are effective and can easily work within the guidelines of the brokerage. They should have a transaction management platform that allows them to have visibility into the agent activities without cumbersome paper-intensive processes. They should ensure best in class automated forms and electronic signature capabilities so agents aren’t tied to an office or additional data entry in the broker’s systems.

As in any situation, people pay for value. If I, as an agent, can sign up with a broker that gives me the brand reputation and provides me the tools and training I need, the broker will receive remuneration for that value provided. Once the broker becomes “overhead” and cumbersome, that value proposition gets fuzzy.

This may be a left field response, but associations should consider promoting the value of governance. At the end of the day, the success of the U.S. real estate market rests in a system in which people play by the rules and which is reputable and honest. In addition, they should raise the bar to elevate the reputation of the industry.  I fear some associations try to get outside of that scope and try to become all things to all people. There is tremendous value in governance, structure and coordination that the MLS provides. I hear frustration when the associations try to veer too far from that core mission.

I haven’t held back from discussing our products in previous answers, but all of our initiatives focus around enhancing the real estate transaction process. We have a unique seat at the table in that we see all types of systems and processes used by parties in the real estate transaction. Tools such as SureClose, Trueforms, electronic signature and online ordering simplify the transaction, increase the transparency, make it easier to do business with us and reduce the amount of paper involved.

We were the first title company to launch a green initiative combining our paperless processes with environmentally friendly offices to reduce the impact our industry has on the environment and serve the green market. 

We are altering our web presence to be more transparent, particularly as it relates to customer segmentation, pricing and the value of title insurance.  Customers want tailored solutions. They want to know what they are getting, what it costs and who the world class providers are.

I tend to think more in terms of structure and strategy so I would have to point to more classic works by the likes of Michael Porter. Once you have an understanding of why businesses work and how consumers think, you have the framework into which daily news and trends guide your ability to capitalize on new opportunities. 

In addition, Good to Great is a classic with strong solid basic truths in business. Some other recent reads include:

·          Silos, Politics and Turf Wars by Patrick Lencioni

·          The Tipping Point by Malcolm Gladwell

·          First, Break all the Rules by Marcus Buckingham