The Real Estate Office of the Future

As part of our research for the upcoming 2010 Swanepoel TREND Report (www.RETrends.com) RealSure, Inc. has been researching the real estate business from a global perspective.  The international market continues to be a strong draw for our national franchises as they steadily add to their growing number of offices outside the country.  At the same time the United States has risen on the radar of several foreign companies (2009 Report - Trend #6 – The Foreign Factor) and in order to get some perspective we interviewed a local Floridian broker, Ray Alexander, that last year acquired two franchises (Anna Maria Island and Longboat Key - www.engelvoelkers.com/annamariaisland) from the European real estate company, Engel & Völkers. 

RealSure – Why did you pick a brand that was generally unknown in the U.S.?

Alexander – I have always worked in the high end segment of the industry and while  marketing a $17 million home internationally to cast the widest net,   I discovered a global online venue — primelocation.com. It was there I noted Engel & Völkers’ strong presence.  I kept running into them all over Europe.  Later I received a letter from E&V and decided to work through the due diligence process to find out what they were all about.  I was very impressed with what I learned in talking with a number of E&V licensees regarding their access to global markets, E&V’s distinctive reputation for unique/high end properties, effective marketing programs and infrastructure and their suite of internal tools.

RealSure – What stood out in your mind the most?

Alexander – For me it was E&V’s market presence, global perception as the exclusive international realtor and their brand identification. In addition, the tools and systems they have in place for dealing with the U.S. market are excellent.  The company has adapted very well and exercised the right common sense to tweak their tools  for use in a “compliance rich” U.S. market They have also been very creative to develop and blend their tools with existing U.S. real estate software and systems to overcome  any market differentials.  All of this plays well in our Florida gulf coast market where we have a lot of foreign investors — they respond very well to E&V’s corporate approach of placing the emphasis on the brand and not the agent.

RealSure – What do you like about E&V’s shop’s store front concept?

Alexander – I am a big believer in the Property Shop Concept.  The high end retail location coupled with the standardized design really captures the customer’s eye. The shop is designed to engage the prospect.  It goes all the way down to the simplest things like the slope of our property display cabinets, the bike rack, or the dog water bowl outside the door. It’s a real draw as we’ve had many customers stop by thinking that we were a jewelry shop until they saw our listings in the window.  Across the board the response of our customers has been very positive

RealSure – How have you been able to use the E&V brand to your benefit?

Alexander – The brand makes listings come easy.  Seller’s get it — especially our foreign customers.  Even domestic customers that are just drawn to the shop’s store front quickly adopt the E&V format once they come inside. They appreciate the fact that we market their property in 7 different languages, and is presented in Paris and Hamburg in exactly the same way it is in Florida.  They are also very impressed with the company’s Global Guide Magazine, which has for more than a decade defined architectural and design trends, provided tips to potential purchasers worldwide, and presented exhaustive reports and stories about homes and lifestyles.  Properties we market are presented to a select international audience in English, German and Spanish editions.  The whole process is first class from top to bottom. 

The other aspect that appeals to our customers is our process of creating a win-win relationship with them. We tell them what they need to hear, not what they want to hear.  E&V tools allow us to give our clients the honest assessment of their property so there are no misconceptions or unrealistic expectations.  It immediately bonds the relationship between agent and client because the clients trust what we tell them.

RealSure – Along that line, have you been able to attract quality agents and if so, what is the reason?

Alexander – Yes, it’s a very different economy now; it’s not about the quantity of agents but the quality you have on your team.  We have agents that come to us by word of mouth, but have a tendency to hang on to the previous business model that worked when times were good.  It’s always taken activity and touches to prospects to keep the pipeline full.  It is key to bring on agents who understand this and those that do, realize the value of the E&V business model which makes planning and activities with prospects and activities key.  One, they understand the process and the available tools; it really opens their eyes.  They also understand that the transition from agent branding to a company brand is an easy transition,   It doesn’t take very long for the agents to begin making the brand work for them.

RealSure – Do you believe the fact that E&V is an international brand makes a difference in your market and if so what is the value?

Alexander – The value is definitely in the brand and the worldwide presence.  As an example of how innovative our folks in Hamburg have been, they have developed our GO USA Program that automatically picks up a listing from the MLS and puts it into the worldwide EV System.  Searching for properties is seamless and easy.  Much like a Google search, it is very effective utilizing keyword search capability.  All the listings are branded and packed in the E&V format and emailed to the customer; it gives strong brand identity to the E&V agent on each property listing, which fortifies the perception of E&V’s global outreach.  The international segment of our market is growing as our presence in the market expands.  At the present time we are running about 10-20 percent of our business in the international market; both on the buying and selling side.

RealSure – Understanding that the Property Shop Concept in a high end retail location brings with it a higher cost, how quickly do you estimate that the initial costs can be recovered?

Alexander – That’s a little hard to estimate in this market.   Of course this is a function of the quality of agents, training effectiveness and market dynamics. Unfortunately, the high end market is moving very slowly at this point in time.  Most activity currently is with REO and distressed properties.  However, we believe there is a market for any property as long as it’s priced right.  E&V offers the best tools to get it right.  You also have to take into consideration the overhead related to operating in a high end retail location.  It’s that location that helps to keep us very competitive in that market. 

This interview was conducted by Thomas M. Mitchell of RealSure, Inc.(www.RealSure.com).To learn more about Engel & Völkers in Florida visit www.engelvoelkers.com/florida