How To Get It Done: Management

March 2003 COVER FEATURE
How to Get it Done: MANAGEMENT

New recruits
Experienced sales associates
6 exit interview questions
6 things salespeople want from you
The big 5 of good PR
Merger basics
Policy manual musts

8 questions to ask when hiring: New recruits
1.How do you plan to generate business?Good answer: Even though I’ve yet to sell real estate, I would bring local contacts and an extensive sphere of influence to my practice. Provided the interview goes well, ask the applicant to bring a computer disk of contacts to a follow-up interview. Following through shows a comfort with technology and evidence of a sphere of influence.

2.What’s your perception of real estate professionals? Good answer: Their success correlates to the effort they spend marketing themselves and helping their customers.

3. Tell me about a time you were rejected. How did you handle it? Good answer: I take it in stride, because I realize there’s a fair amount of rejection in sales of any kind. Expect the applicant to tell a relevant story—job-related if the person has work experience—explaining how it was resolved.

4.What’s your view on continuing education and training?Good answer: I’m eager to invest my time and money in improving my skills, because, among other things, I realize consumers expect me to keep my skills updated.

8 questions to ask when hiring: Experienced sales associates

1.What are your views on working from a business plan?Good answer: I see business plans as integral to setting performance goals and keeping myself focused on daily actions to meet those goals. If the applicant has developed a business plan in the past, ask to see it.

2.Calling on an experience from real estate, tell me about your work ethic?Good answer: I’m focused, hard-charging, and prepared to make the effort to succeed, but I don’t take shortcuts to close a deal. The applicant should relate a story to demonstrate a strong work ethic.

3.What’s your attitude about teamwork?Good answer: Even as an independent contractor, I understand the value of working with my sales colleagues cooperatively.

4. How would you respond upon learning that a prospect you’ve called is already working with a real estate salesperson?Good answer: I’d say, “That’s great. I’m sure the person you’re working with is a fine professional. Good luck!”

Sources: Pam Beard,CRB, CRS®, BrokerSouth Real Estate GMAC, Vicksburg, Miss.; Todd Hetherington, CRS®, GRI, Century 21 New Millennium, Alexandria, Va.; Mark Pratt, ccim, Breeden, REALTORS®/Developers, Columbus, Ind.

6 exit interview questions
Even the best-managed real estate companies face turnover. Make it a part of your practice to ask departing sales associates why they’re leaving. The information you gather can help you see your operations in a fresh light and help you retain top performers. Start your exit interviews with the easiest questions and build from there.

1. What company will you be moving to?
2. How many companies did you interview with before deciding?
3. Did the company recruit you, or did you seek it out?
4. Is there anything I can do to prevent you from leaving?
5. What one thing would you change about this company?
6. Are you familiar with our company’s policy on receiving compensation for listings and pending closings when you leave?

Reminders: Reinforce with departing associates that it’s unethical to solicit or divert clients or customers from your office or to take copies of customer or client files. And don’t express your disappointment about losing the associate as a negative comment about the company the person is joining. Wishing the person luck and encouraging the person to keep in touch can mean future referrals.

Source: Mary Johnson, Floyd Wickman Seminars, Minneapolis

6 things salespeople want from you
How can you attract strong associates and keep those you have? Here are a few keys to effective recruiting and retention:

1. Integrity. First and foremost, salespeople want to know they can trust the person with whom they’re placing their license.

2. Structure. Many associates, particularly those entering real estate from the corporate world, are looking for a career path. If possible, give them a blueprint for moving up the ladder, whether into a senior sales position or into management.

3. Training. Associates don’t just want training; they want training geared to where they are in their career.

4. Technology. If you can’t provide ways for your associates in the field to keep in touch with the office or to access the latest listings, many of them, especially the younger ones, will go to a broker who can.

5. One-stop shopping. Increasingly, associates want their customers to have access to an array of broker-provided services, from mortgage loans to title services, to help them speed transactions.

6. Marketing. Associates want brokers to provide them with solid support for getting the word out on their services and their listings.

Other top wants: Company name recognition and market share, mentoring, upbeat, success-oriented colleagues, built-in referral network

Sources: Pam Beard, CRB, CRS®, BrokerSouth Real Estate GMAC, Vicksburg, Miss.; Todd Hetherington, CRS®, GRI, Century 21 New Millennium, Alexandria, Va.; REALTOR® Magazine Online

The big 5 of good PR
Does it seem as if some brokers in your area get quoted repeatedly in the local media or in trade publications? That coverage is probably helping them attract business. To make your brokerage more visible in the media—or prevent bad coverage from hurting your business—start with these five tips:

1. Develop a relationship with the business editors of your local daily and weekly newspapers and news shows, as well as industry trade publications. Position yourself as an expert source on the real estate.

2. Keep editor relationships positive. Avoid using your advertising relationship with a publication or radio or TV station to leverage coverage for your company. That puts editors in an awkward position by breaching the line between editorial and advertising that’s at the foundation of good journalism.

3. Suggest story ideas. Media professionals are always looking for their next feature or news item. Take advantage of reporters’ and editors’ appetite for content by suggesting a story and then demonstrating how your company can factor into the story in a positive way. They won’t use every idea, but they’ll be grateful to you for the ideas they do use.

4. Manage potential disasters. If you’re hit with a lawsuit or other damaging event and a reporter calls, be cooperative. Ask the reporter about the focus of the story, and ask for a few minutes to gather your information. Prepare for difficult questions, then call the reporter back.

5. Close the information loop. If a reporter calls for comment on the market or other industry issue, return the call as soon as possible. Journalists typically work on tight deadlines, and if they can’t get your comment, they’ll get someone else’s.

Sources: Aaren Muhleman, Lavidge & Baumayr Public Relations, Scottsdale, Ariz.; Shelley Rossi, John L. Scott Real Estate, Seattle

Merger basics
Gather data on these five factors before you negotiate an acquisition.

1. Culture. Does a professional management staff or a broker-owner operate the company? Like-operated companies have a better chance of clearing that all-important first hurdle: compatibility.

2. Growth potential. Is the company concentrated in a market that’s poised for growth? Even stumbling companies can be a smart buy if new households are forming in their area.

3. Profit picture. Is the company making money, or can it be coaxed into profitability, say through management reform?

4. Existing management. What are the strengths and weaknesses of the people who run the company? With good managers at the helm, the logistics of merging your company with one outside of your market area are significantly eased.

5. Acquisition structure. What kind of deal makes the most sense? For example, if you want to keep key officers at the helm, it may make sense to buy a percentage of the company and leave a portion in the seller’s hands.

Sources: Richard Smith, CCIM, CRB, president, Coldwell Banker United, REALTORS®, Bryan, Texas; Merle Whitehead, CRB, president, Realty USA, Orchard Park, N.Y.

Checklist: Policy manual musts
An office policy manual is a road map for success. Make sure yours communicates your company’s goals and expectations by covering all these bases:

Your mission statement and business philosophy statement
Company history, including milestones and background on any mergers
Target markets, demographics, and property types the company typically sells
The NAR Code of Ethics
Fair housing regulations and an equal opportunity statement indicating that applicants are considered without regard to race, color, religion, sex, national origin, age, or disability
An independent-contractor agreement
Sexual harassment policies
The fee and commission structure, including splits, cooperative policies, and bonus plans
The advertising strategy, marketing costs to salespeople, rules about signage, and advertising submission process
Internet and e-mail policies, including use of logos, photos, and the company name on salespeople’s sites and e-mail; rules for opt-in marketing (as opposed to spamming); content copyright issues; and legal and illegal online contests
Office procedures, including hours, floor time, dress policy, and personal safety
Business procedures, such as presenting offers and disclosure statements, delivering paperwork, and holding open houses; and forms of agency permitted at the brokerage—for example, dual vs. designated
Keys—where they’re kept, how they’re managed
Expense management—who bears responsibility for board dues, MLS fees, and continuing education costs
The sales meeting attendance policy
Overhead costs—who’s responsible for local and long-distance calls, postage, and photocopying
MLS policies, including responsibility for entering listings, length of time listings can remain on your personal site after sale, and whether your company opts in or out of IDX (Internet posting of MLS information)
Job descriptions
A personal assistants policy, including guidelines for hiring and supervising assistants
A substance abuse and smoking policy
Info on provided and suggested errors & omissions and liability insurance
Your policy on handling associate disputes and disputes between associates and clients
Your policy on who “owns” clients and pending sales of departing associates
A confidentiality statement about company and client information
An acknowledgement form to be signed by salespeople and staff showing that they’ve received and understood company policies

Portions adapted from “Deal with office policy decisions manually,” Bob Hoffman, Real Estate Today, April 1993

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