Relocation in the New Economy

I recently attended the fall conference of the Relocation Directors Council in Seattle, Washington. It is one of the premier organizations for real estate relocation practitioners and its members are the best of the best. What struck me, as I shared many a conversation with relocation professional after relocation professional, was the massive shift that is, once again, occuring in our industry. As happened in the recession of the late 80's/early 90's, everyone is looking at and re-thinking their business model. How can we support our business without compromising the high level of personal attention that creates the positive consumer experience necessary for a successful relocation?

When so many transferees are putting off selling and purchasing real estate, the traditional manner of compensation (referral fees earned through the real estate transaction) can no longer sustain the business model. And is this major shift something that is a temporary condition of a "bad" real estate market or is it a new reality? Should we be re-thinking the types of services we offer and the manner in which we are compensated for them? Is it time to break down all that we do into a "menu of services" (i.e. area tours, rental assistance, spouse/partner employment assistance, school and area orientations) and charge for them piecemeal? Will the new and future employee still want to own a home or will the legacy of this deep recession be a "new normal" that creates the need for a variety of housing and lifestyle options and services?

Change brings new challenges and opportunities. This major shift offers us a chance to "re-invent" ourselves. At the recent conference, so aptly named "Robust Vision = Compelling Results," there was much discussion about new directions. I believe it is time to jump-start our businesses, re-think what we do, and deliver a viable "product" that addresses the new needs of both the employers who are hiring and transferring employees and the employees who need to get from point A to point B with a minimum of stress.

I'm reading: Relocation in the New Economy

Social Media & Real Estate

These days, the world of social media seems to be analogous with the real, physical world in which we live. It is the avenue through which news and information are shared, people socialize, and companies innovatively conduct business. Currently, H. Pearce Realty Co. is increasing our web presence and we all need to get involved because it is truly necessary.

A The New York Times article, "Broker Tech, Version 2.0," confirms this fact for real estate professionals, in particular:

Frank Dell’Accio, the service’s president and broker-owner of Century 21 AA Realty in Lindenhurst and Seaford: “To have a Web site today is not considered innovative; that is considered expected. Social media marketing is what the consumer expects today.”

Read the rest of the piece here if you are looking for a creative approach to increasing your business.

I'm reading: Social Media & Real Estate

New England's Recession Recovery, and more

Take a moment to read some positive news...

LAT (11/11/10): Vice President Joe Biden unveiled a new federal program to make it easier for Americans to make their homes more energy efficient, saying…that it will give families "the tools they need to invest in home energy upgrades. Together, these programs will grow the home retrofit industry and help middle-class families save money and energy."

MortgageLoan.com (11/11/10): Mortgage rates fell again to new record lows this week, following the Federal Reserve’s announcement that it plans to buy $600 billion in Treasury bonds to boost lending and the economy…Those who can get approved for a home purchase or mortgage refinance are finding historic bargains on mortgage rates.

WSJ (11/10/10): The commercial real-estate industry stands to benefit from the shifting political power in Washington, as Republicans attempt to roll back some parts of financial regulation and stanch any efforts to raise taxes.

NHR (11/10/10): The city continues to benefit from a stable tenant base, said H. Pearce Co. President Barbara Pearce. “Unlike other times of economic stress, there are not large new blocks of space coming onto the market and increasing the vacancy rate further. This makes New Haven better able to withstand the downturn, without precipitous declines in rental and sales rates,” she said.

AP (11/9/10): Even as the national unemployment rate remained at 9.6 percent in September, New England states benefited from more hiring. Except for Rhode Island (Stress score: 12.08), New England has been recovering from the recession better than much of the nation…The region has an educated work force in professional and high-tech jobs, it avoided the real estate boom and bust and it's home to a high-end manufacturing sector…"New England is outperforming the rest of the country in many respects," said [Ross] Gittell, [an economist at the University of New Hampshire].

The Commercial Record (11/8/10): To be successful in the current housing market, real estate professionals need to educate themselves about buying and selling distressed properties and working with investor buyers, who are a significant part of the market," said RE/MAX Chief Executive Officer Margaret Kelly.

I'm reading: New England's Recession Recovery, and more