Steve is the President and Owner of REALTrends and earned his credibility by having been in the residential real estate field since 1977. He has co-authored four books on the valuation of residential real estate brokerage firms; co-authored the 2011 book “Game Plan”, about the past and future of residential brokerage; and co-authored the 2014 book, “Game Changers: The Unfounded Fears and Future Prosperity of the Residential Real Estate Business”.
Steve has also served dozens of state and local Realtor® associations and MLS organizations in a consulting capacity and has consulted with several large technology firms over the years.
This in-depth and highly informative conversation with Steve is something you do not want to miss.
We cover so much ground and if you want to know what the value of your Real Estate Business is or how to go about getting that information then keep reading AND watch the video below. Steve drops some serious T about the real estate industry and industry giants.
Here are a few juicy tidbits we discussed with Steve, but make sure you watch the video to get the full conversation.
Keeping your brokerage alive in the shifting market :
Steve says that you won’t be in business much longer if you don’t recruit talent, develop that talent to increase productivity and spend less money than what you have coming in.
If you are operating team your priorities should be:
1. Expanding your database and building a leads system should.
- Have the right people and systems to convert those leads
- Spend Less Money than what you have coming in.In this declining or flat market, if all you’re doing is treading water then you are losing ground. The best operators take market share to avoid shrinking business but its neve going to happen unless you focus on the basics. Do not get distracted by what’s going on around you and focus on your business.What systems should you have in place for successful recruitment:
-Know who you are as a company.
-Truly define who you are. What is your culture, what do you stand for, what is your commission plan, what is your model?
-Use available data from your MLS or other sources to find people who would fit into that definition.
-Focus intently on your database.
-Do it in person.Develop Talent for your brokerage:
Developing the talent you recruit is a commitment to taking each of your team members’ strengths and allowing them to evolve those strengths for success. This also means having the right systems, tools and support in place in order to give your team the best avenues possible to be productive within your business.
On Valuating your brokerage:
The bottom line is that the value of a brokerage business is how much profit it produces. Your “business name” means nothing. Business is not valued by its name but on net profits or EBITDA – Earnings Before Interest Taxes Depreciation and Amortization. Basically, it’s how much cash did your business produce.
On Hiring an assistant:
5 years ago Steve hired a non-revenue producing person (Assistant) in his company for the first time.
Within 3 years he doubled the size of his company because he wasn’t doing $20 stuff anymore. Do not focus on the fact that you are increasing overhead expenses, rather, focus on the time you will be getting back to focus on revenue productive activities within your company. Keep 3 priorities for your business, if you have more than 3 then you have no priorities at all. You need to focus on what is important to growing your business and leave the rest to other people.
Steve talks a lot about the current market and shares exclusive industry information too! Make sure to watch the video to get the full conversation! There is so much more that you do not want to miss.
Click here or on the image below to watch the video now!