October 26, 2020 9 min read
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Real estate is a completely different business than it was 20 years ago and in many ways very different from a year ago. This change is largely due to the influence of technology – emerging digital tools and software that have disrupted nearly every facet of the market.
In addition to navigating the real estate technology or proptech phenomenon, real estate has faced the same difficulties as other industries around the world – moving to remote working, dealing with supply chain outages and dealing with the ongoing effects of a global pandemic.
If there is anyone who understands these challenges and the types of creative solutions they need, it’s Adam Contos, CEO of RE / MAX. I caught up with him recently for his opinion on the future of real estate and leadership in uncertain times.
Which leadership lessons were you able to apply not only personally but also for RE / MAX as a whole, since not only the real estate ecosystem, but also the larger business landscape has changed so much in recent months?
There is a saying that “constant communication solves uncertainty” and this year has proven that it sounds true. From the start of the pandemic, our leadership team focused on being visible, supportive and transparent with our 500+ employees and our RE / MAX and Motto mortgage networks. We started weekly Facebook live broadcasts, improved training, expanded communication and participated in countless Zoom calls. Our goal was and is to keep brokers, agents, lenders, and employees updated, inspired, and motivated to keep moving forward. A personal lesson that I have also applied to my approach to business is taking a holistic view of health. Every Thursday on Facebook Live, I share my thoughts on the connection between mind, body and business. I try to provide constant value to the people on our networks and I hope I inspire them to start each day with a win (my motto).
Most importantly, I learned from previous RE / MAX executives how to double, and not withdraw, support during a crisis. This has been hugely beneficial to our networks and, ultimately, to the consumers our employees work with. We have seen other players and industries withdraw into uncharted waters, but we have a solid foundation from which to actually improve the service, tools, training and technology we offer. There is a huge advantage in adding value when the competitors are calm. By giving our brokers financial relief, providing them with new technology tools to help them do their jobs better, and hosting world-class virtual conferences, we’ve helped our RE / MAX and themed mortgage memberships be the toughest Times to survive. It was the right thing to do and the resulting goodwill will pay off for a long time. That was a great lesson for all of us.
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Given the current climate, why would anyone want to buy a franchise? Especially now?
Because brand is important. Brand creates trust and visibility for those who use it. Every new RE / MAX franchisee benefits from 50 years of awareness and visibility of the RE / MAX brand. Think about the difference someone can make who decides to start a business in times like these. You have a head start and a clear advantage over someone opening a mom and pop operation with no visibility or built-in confidence.
Also, consider the services and resources of an established brand like RE / MAX. Franchisees don’t have to start from scratch like their independent competitors. As part of a franchise network, they get instant access to cutting edge systems, services, training, technology, marketing, and a host of other things. They also enjoy the benefits of scalability and collective purchasing power. And in the case of RE / MAX, you get instant connections with colleagues around the world. It is a far cry from opening an independent office, putting up a sign and figuring out what to do next. Franchisees can focus on growing their business from day one – while non-franchisees face a million issues that have no impact on sales.
Motto Mortgage, which launched in 2016 and has grown to over 125 open offices, is a little different in that it doesn’t have a 50-year history. But it has the foundation it shares with RE / MAX and the kind of benefits a fast-paced franchisor brings.
So for me the question is not: “Why should you buy a franchise in an environment like Covid?” – Why wouldn’t you? And that shows in our results. People are currently buying franchises and opening RE / MAX offices around the world as well as themed mortgage offices in the US under very unusual circumstances. These leaders do not hide on the sidelines; They move forward and take action to improve their life.
My colleague, RE / MAX’s Chief Customer Officer Nick Bailey, frequently cites a wise note from author Jack Canfield, who said that your response to an event – not just the event itself – largely determines your outcome (or E + R = O). When it comes to poor results, Bailey says, “Unsuccessful people blame the event and successful people blame their own reaction.” With this mindset, real entrepreneurs can overcome the fear that freezes most people in times like these. And these are executives who are interested in successful franchise brands such as RE / MAX and Motto Mortgage in times of crisis.
How did you advise your network of 130,000 brokers and agents to keep business as usual and take the lead as RE / MAX moves to a post-pandemic world?
In a rapidly changing industry like real estate, does business as usual ever really apply? An interesting feature of the business environment created by Covid is that real estate professionals have been forced to adapt and use already existing technologies. Three prime examples are video, video conferencing, and virtual open days or demonstrations. The technology was there before, but the pandemic has put it at the center. Brokers and agents who were reluctant to shoot videos finally had to step in. Offices that hadn’t used Zoom and other platforms needed to find a way to communicate in a group environment. (That being said, RE / MAX and Motto Mortgage gave every office in the world access to free Zoom Pro accounts. Hundreds, if not thousands, of companies took advantage of the offering and logged millions of virtual meeting minutes.) And in the world of social distancing, knowledge How to conduct virtual open days and demonstrations became essential. All of this involved learning new skills, which means professional growth. It’s always a good thing. And all of them will remain relevant in the post-pandemic world.
So for me it’s never about “business as usual” or “going back to normal”, it’s about always moving forward, always improving, and always finding new and better ways to deliver a great customer experience. That is the perspective and advice I share with my staff and members, and other leaders in our network bring the same message to their teams.
Our Chairman, Dave Liniger, always says, “If you do business today as you did yesterday, you will be out of business tomorrow.” I think the feeling is built into our culture – and it has driven our success for many years.
How has technology changed the way real estate agents sell homes and how will it change the industry in the years to come?
Technology has changed the order of events in real estate. It used to be to find an agent and then find a house. However, for many people now, the important thing is to find a home (generally search online) and then find an agent who can help you buy it. And that’s good for everyone. It empowers the consumer, which is great, and it enables the agent to deliver very real value in due course. After all, the market in many cities is so hot that it is not enough to just make an offer.
Agents interested in technology can provide a better customer experience. Technology increases the efficiency of the process. It cuts waiting times, cuts (and eventually eliminates) paperwork, improves communication, and keeps everyone in the loop. It’s an important piece of the puzzle today.
Related Topics: Moving From Physical To Digital: Technology That Is Changing The Real Estate Ecosystem
The mistake some people make, usually out of fear, is the thought that technology will replace the agent. It just won’t happen. People may be ready to order almost any product online, but when it comes to the biggest purchase of their life they want a human professional. Someone to guide, support, advise, and validate that their decisions are right. And that is the role of an agent – a role best filled by an agent who knows the field, is an expert on processes, can negotiate, spot unseen problems, and has the experience of keeping the transaction on track. As most “disruptors” end up realizing, it’s not as simple as it looks. It’s just that great agents make it look easy.
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