By Barry Lebow
I wanted to write a piece on the future of real estate – about where this business will be in a decade. What innovations will there be? Will there be a major shake-up? Will the excessive access to information by the public make Realtors go the way of travel agents?
The irony is that I interviewed Dan and Michael Plowman of the Dan Plowman Team recently and was surprised that they have trademarked the slogan, “The Future of Real Estate.” The Plowmans are actively engaged in training others in real estate across Canada about how to set up, manage and thrive from teams. They were my go-to people for this interview.
Dan Plowman started in real estate sales more than 22 years ago; Michael Plowman has been with the team for eight years. It turned out to be a three-way interview as Dan and Mike responded. Their comments to my questions follow:
Dan: At first when the concept of having an assistant started, maybe 12 years ago, more or less, a lot of top producers did it to support their egos. They did not know exactly what was the role of the assistants, what were their tasks and worse, they did not know how to leverage their position. I was guilty of that and if something went wrong, I blamed the assistant. I did not take responsibility if something went wrong. I should have understood that it was my fault for not having systems in place. Blaming an assistant is a typical knee-jerk reaction by a boss and is wrong, usually because of a lack of having systems.
Back then, few understood that the assistant was there to provide value, both to the leader, the public and of course, to themselves. They did not understand that the assistant could be leveraged into providing three or four times the effort that one person could do. That is just the power of compounding.
Michael: So we speak today of systems. We wanted to create a new concept. A concept where stress is reduced, where every member of the team can prosper as there is more money.
Dan: Traditionally, we have been trained that if you want more, you must work harder. A system allows for more quality time, more personal time and in business more profitable time. We do more than 400 house sales a year and that has allowed the team and its members to thrive.
Michael: A lot of critics of course will say that when the public calls, they want the boss. The old-style teams cause this by their own actions. They call their team members “assistants” or “juniors” or some other label that conveys to the public that they are lesser. This demeans the team. It implies that they are not the senior person whom you wanted to deal with in the first place. We changed our wording so that all team members are equals. If we expect them to act as partners, we should call them partners. That’s exactly what we call them, partners.
In the franchise concept they are in business for themselves. Realtors do not want to work under someone else. That is why they came into real estate. By putting them on a team and then labelling them as an assistant, that takes away from their dream of being their own boss. It takes away the entrepreneurial spirit. We encourage them to grow, to do the business for themselves but to take advantage of the benefits of being in a team.
Dan: Let’s look at the concept of the traditional team leader being a boss. That is just wrong. We lead with culture. Yes, team members must turn up for duty time and meetings but that is about it. They must be part of the culture. Those who cannot be part of a culture choose to remove themselves.
Today, there is a problem between teams and brokerages. Most brokerages do not understand how to work with teams.
Brokerages today appear to be more and more like desk landlords. Most brokers do not know how to get out of the way of a team. They do not allow for teams to thrive. Many brokers are scared when a team or teams control 50 per cent or more of office production.
For team members, their costs are lower and they don’t lose their identity. They have more leads and spend more time on listing and selling. Those who embrace a team thrive, but only in a progressive team atmosphere. Not all teams are equal.
Teams are the most significant change to real estate in the last 40 years. The problem in our industry overall is that the culture of traditional brokerages is still broker first, teams second. Meaning, a model that accommodates teams and puts their needs first will surely end up with all the chips.
Now there are emerging new models and more and more brokerages are cutting fees and resources until they undervalue themselves out of the market. Many brokerages are appearing to be more and more like glorified landlords. This void in service has given the opportunity and the advantage to teams.
Michael: Teams offer more value and more money at end of the day for everyone inclusive of the client. Our field agents get four to five hours per week of training besides retreats and conferences. They have to qualify to be on the team. This includes having to learn buying and listing presentations, and scripts to name a few.
There are two months in training before you can be a team member. It does not matter if you are 20 days or 20 years in the industry, you have to qualify to train to be on the team and that is what we are teaching across Canada.
Dan: Let’s look at the estimate that 50 per cent of people leave the real estate industry in the first two years. Team members don’t leave for the most part. Human resources are important. People want to be part of a great culture, want to be proud, want to make more money and want to learn. Brokerages are focussed on renting desks and filling seats.
Within a team you can actually have a life. You are not always qualified to do the day-to-day stuff, bookkeeping, clerical, marketing and prospecting, nor should you spend time on this part of the business.
We have a strong rule, the 122 Day Rule. There is no substitute for picking up the phone. Each team member must be in touch every 122 days minimum and at least three times a year. That does not include written communication and electronic marketing.
Michael: The future is unfolding and we believe that our message about training teams is the right fit for the next decade. We are in the evolution of the brokerage. “The Future of Real Estate” is our new trademark.
Dan: I want to say something about the part-timers in our industry. Some can do it but most can’t. They can’t, because customer service is the key to good value. I do not believe that the public is well served with the largest purchase or sale of their life by a part-time person.
As we all know, there are more choices for the public on MLS. List for a minimum fee, get the property on MLS. That should not hurt us or other professionals. Teams that offer value, they have nothing to lose. They bring value to the public. There is always a market for the greatest value. Teams offer an educated choice for the consumer.
Look, when we go over our various packages of service, our six per cent commission deal is wanted by 65 per cent of the public when it’s explained to them and we market more than 200 homes a year.
Our next steps are to go into this new year training our team, offering to show others how to create their team culture. The future is going to see major changes in real estate and we intend to be on the leading edge of whatever plays out and teams are where it is at for us and for the consumers.
Barry Lebow: I did not know the day that I interviewed the Plowmans they had just given notice to their long-time brokerage and were in transition to their new brokerage in Toronto’s east end, Clear Goal Realty. It’s a brokerage that they explained to me has the sole focus to provide an empowering environment for teams.
From the beginning of traditional brokerage, the broker had control. According to most provincial legislation, brokers are responsible for the conduct of their sales staff. The staff came to the office at regular hours, worked at the office and learned through synergy with others. Mentoring was common, as was in-house mandatory training.
Now, many brokers have become license factories, taking monthly fees and becoming landlords. People come and go as they please. Brokers may be responsible but they have little control. People work from home in vacuums without an office energy, without mentors. And the turnover in real estate is astounding.
Teams have grown and they have enforced rules of conduct. Team members have to have training, they have to learn from each other and work with each other, the team leader has control and team members can be fired. It seems that old-fashioned brokerage has not died; it just has been re-invented in the guise of teams.
For more information about teams, go to www.danplowmanteamsystems.com.
Barry Lebow is a long-time columnist for REM. He started as a Realtor in 1968. He is an appraiser, arbitrator, Realtor and educator. Today he specializes in being an expert witness in stigma and agency matters, having testified in more than 500 trials. He is the founder and now advisor to the Accredited Senior Agent professional designation program for Canadian Realtors. 416‑784‑9806; Email [email protected], or connect with him on Facebook at Barry Lebow Professional Practice.
