November 17, 2021
Vision Over Noise
The ability to manage through “noise” is one of the many benefits of having a clear Vision.
Our industry has had an extremely noisy two weeks, from Z’s exit of their iBuyer platform to earnings calls and NAR’s recent decisions.
Noise can be a distraction - like a crisis – if you allow it. Reacting to every movement in our industry could easily be categorized as “crisis management.” You may not be managing a crisis but the energy devoted to conversations about the noise or distraction in many cases is irrelevant to your vision.
A well debated and shared vision is powerful and empowers a team to move through the noise without distraction. So confident in your direction, that mild movements don’t change the vision or the execution.
In the last two weeks, I have enjoyed the interactions in a Vision 2026 planning session with one of CA’s top independent residential brokerage firms and a 2022 strategy meeting with one of the USA’s top 10 independent mortgage banks.
The common themes were very compelling. Both companies and their client facing professionals seriously own their clients’ trust. This trust today includes a threat from billions of dollars being invested in prop-tech in consumer direct businesses. Generally, these well capitalized businesses are trying to displace the incumbents from owning the client’s relationship and trust.
So again, the race is on between the Cloud (innovators) and the Street (loan officers and real estate professionals.) I contributed thoughtful considerations to both companies – they are now in execution planning.
Let’s breakdown the noise:
- Zillow exits iBuying: OpenDoor, OfferPad and multiple other IBuyers seem to be doing fine offering immediate liquidity over maximum pricing to a seller with urgency. How does this impact your business practice?
- Public Company Reporting: Unless you are using the public company transparent fiscal reporting to benchmark your business, why does this reporting matter?
- NAR Buyer Fees Disclosure: Bring on the transparency! You are compensated for your valuable expertise, knowledgeable advice, negotiating skills and relationships. You own your clients’ trust – I suspect most buyers know exactly how you are paid. What will change for you?
- NAR Listing Attribution: When a seller signs an Exclusive Listing Agreement, it’s just that. The seller appointed you to be the exclusive representative of their property. Let’s promote you front and center. What changes for you and your client is for the better!
Escalating interest rates and sustainable inflation will have a far greater impact on your business than the above.
Single Family Rental [SFR] investors will have a greater impact on your business than the above. SFR investors purchased a record 18.2% of U.S. homes purchased in Q3, totaling 90,215 homes.
- Why does the noise matter?
- How does it impact my clients?
- What is our vision?
When we bought Pacific Union in 2009 it was losing $3.7 million in EBITDA. When we sold it in 2018 EBITDA was $14 million and growing rapidly. I can’t comment on the incredible performance currently as it would contribute to the public company noise.
Vision prevailed over noise - there was plenty of noise back then!
What is your Vision 2026?
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