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Slide 1: www.roren.ro Warning: Education for Real Estate Professionals is not enough to add higher value Stefan Negritoiu Co-founder, Romanian Real Estate Network December 5, 2008
Slide 2: www.roren.ro Agenda What makes a professional a professional? DIY (Do-It-Yourself) vs. Full-service on the real estate market State of affairs on the Romanian market The missing link to becoming a market of recognized professionals
Slide 3: www.roren.ro Let’s look at a few established professions...
Slide 4: www.roren.ro Doctors, Nurses Specialized education: 2-6 years Specialized tools:
Slide 5: www.roren.ro Architects Specialized education: 2-4 years Specialized tools:
Slide 6: www.roren.ro Accountant, Financial analyst Specialized education: 2-4 years Specialized tools:
Slide 7: www.roren.ro Specialized Education Professionals (Specialists) Specialized Tools
Slide 8: www.roren.ro RE agents, appraisers, mortgage and land record specialists Specialized education: 0-24 months Specialized tools:
Slide 9: www.roren.ro Why should I care? 1) Difficult to win business
Slide 10: www.roren.ro Added Value 10 1 Non-specialist Specialist (Education + Tools + Experience)
Slide 11: www.roren.ro Why should I care? 2) Easy to lose business
Slide 12: www.roren.ro Non-specialist (i.e. your clients) Specialist (i.e. you) DIY (Do-It-Yourself) Full-service FSBO (For-Sale-By-Owner) Real Estate Brokers Plan (when should I sell?) Prepare (how should I prepare?) Promote (how do I find a buyer?) General press Point-and-shoot camera Classifieds (newspapers, “portals”) Negotiate Haggling (how do I get the right price?) Close (what paperwork do I need?) Payment (how do I get my money?) Bureaucracy Stress
Slide 13: www.roren.ro No wonder is hard to show value... “Since the client doesn’t think of you as a provider of services, but rather as a worthless amateur, it’s very obvious the situation is a non-starter. “Often, you look bad in front of a client right from the start; I’ve been through many such situations; clients would ask me how much their house is worth, I’d tell them, to which they quickly reply that another real estate agent told them they could get 10K more.” “At present, whether your client is a seller or buyer, trust in real estate agents is relatively low; there are many outfits claiming to broker transactions... some more professional, others a lot less...” *quotes from a RoREN market study surveyed in Sept. 2007
Slide 14: www.roren.ro Yes Virginia, there is a better way... 1) Study, study, study 2) Build, sell, buy, and use tools, tools, tools
Slide 15: www.roren.ro Statistically-valid statistics
Slide 16: www.roren.ro Information exchange platform / MLS Developer Real Estate Broker SellWell FairPlay Real Estate Broker Real Estate Broker
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Slide 18: www.roren.ro
Slide 19: www.roren.ro Marketing tools: 1) Market segmentation 2) A/B testing
Slide 20: www.roren.ro Non-specialist (i.e. your clients) Specialist (i.e. you) DIY (Do-It-Yourself) Full-service FSBO (For-Sale-By-Owner) Real Estate Brokers Plan (when should I sell?) Prepare (how should I prepare?) Promote (how do I find a buyer?) General press Point-and-shoot camera Statistics Improvements, decoration, photography Marketing, CRM, MLS Less emotion, more market analysis Simplicity, automation Financing, escrow, insurance, safe Classifieds (newspapers, “portals”) Negotiate Haggling (how do I get the right price?) Close (what paperwork do I need?) Payment (how do I get my money?) Bureaucracy Stress
Slide 21: www.roren.ro Call to Action Learn, practice, repeat... Differentiate yourself through the use of specialized tools Join RoREN to build the next generation information infrastructure for the real estate market Thank you! © 2008 RoREN Development S.A.