Alex Steele, of Battleground Texas
From Bloomberg comes this story about how Democrats are taking a run at Texas, the home of Rick Perry and Ted Cruz. Personally, since I’m a conservative, I will be doing what I can to make sure that Battleground Texas fails, and fails miserably. But that isn’t the point of this post.
The point of this post is that the Democrats are trying at all. There is a major lesson here for REALTOR Associations to learn.
The Greatest Band in American Music
Once again, it is time for the world famous (in my own mind at least) annual tradition of making predictions for the coming year that are Guaranteed to be Wrong, or Your Money Back! This year, I thought I would pay tribute to the greatest musical act still working today: Alison Krauss and Union Station. If you haven’t experienced AKUS, please click on the embedded videos; you will become a fan. If you are not a fan, you should be. “But I hate country music” is no excuse when it comes to the awesomeness that is the Hall of Fame lineup of Alison Krauss, Jerry Douglas, Dan Tyminski, Ron Block, and Dan Bales.
My 2012 Predictions turned out to be mostly wrong, which is great news, since many of them were dire indeed. Here’s to hoping that my 2013 predictions will perform about the same.
Let’s get into it.
Image: Xaxor.com
I was going to just keep posting my series on REThinkFuture, but this development simply demands attention:
The Chicago Association of Realtors (CAR) is suing Andrea Geller, a CAR member and agent for Coldwell Banker, for defamation for public statements she made on Chicago Agent magazine’s story on the impeachment of former CAR President Bob Floss.
The lawsuit, which seeks damages in excess $50,000 from Geller, according to a Chicago Tribune story on the lawsuit, is believed to be the first such lawsuit in the association’s 129-year history.
Oh. My. God.
I wrote a couple of months ago about the unfolding drama in GLVAR, in which three members of the Association are suing the Association, its past CEO, and possibly members of its Board of Directors, and said that was a story that Association leaders simply could not ignore. I could not imagine for a second that a mere two months later, a major Association would actually take the step of initiating legal action against one of its own members. For defamation.
I don’t know the specific facts behind this lawsuit, and I suspect we’ll find out over time, but… I have to ask the Board of the Chicago Association of REALTORS something: Y’all didn’t read my post on GLVAR, did you?
There are some vital takeaways in this story for other Associations.
Image: David Spiro
Facebook can sometimes be a gold mine for content. Consider these two seemingly unrelated events:
Marie is a friend who used to work in the real estate industry, as the Director of Marketing for MRIS. She relocated to Florida, and asked me months ago for some agents I knew in the area. I didn’t, so reached out to my friends who did, who promptly came up with a few local REALTORS who are supposedly at the top of their game, rock-solid professionals, top producers, and the like.
You see the result of that above: “Fourth time is a charm.”
What struck me was that on the very same page where I was reading this status update from Marie, I see this ad off to the side:
Look at the copy:
“Top Broker shares unusual marketing strategy for consistent commissions.”
Emphasis is mine.
Why do so many real estate agents spend so much time looking for “unusual marketing strategies”, talking about the latest social marketing tool, spend thousands of dollars or hundreds of hours doing the unique, the unusual, the different, the “this will help me stand out” stuff… and totally miss the basics like, oh, I don’t know… returning a frikkin’ phone call from a possible client?
Because there’s far too much magical thinking and far too little cold hard boring reality going on in real estate.
Wow…
I just saw that picture above on Facebook today. I don’t know the man, and he could be the best real estate agent ever to walk the earth. He could be a charming, personable, ethically upright family man who should be running for President in 2016 to save the country.
But man, that billboard ad is awful on so many levels.
But this post isn’t about Mr. Chris Clarke, “The Real Estate Guy”. This post is about RE/MAX whose logo is prominently displayed on this billboard. And while RE/MAX is the company in this case, one can easily imagine that any other brand, any brokerage, and even local, state, and national Association of REALTORS(R) could face this same issue. If Chris Clarke had prominently put “REALTOR(R)” after his name in the billboard above, NAR would also be implicated in this as RE/MAX is.
Here’s the issue: Real Estate desperately needs a Roger Goodell. Maybe even several Roger Goodells at every company and organization.
For those who might not know, Roger Goodell is the current commissioner of the NFL. His big accomplishments to date have been to piss off a ton of NFL players for handing down giant fines for violent hits, for going after the New Orleans Saints for “Bountygate“, and of course, the NFL Personal Conduct Policy.
Under the Personal Conduct Policy, Roger Goodell has made it clear that what a NFL player or coach does off the field is within his purview. Went to a strip club and got into a fight during the off-season when you’re not working? Goodell might be suspending you for a few games. Put your hands on your woman during an argument and the cops got called? Bet your ass Roger’s gonna be on the phone with you. Cries of “You ain’t my daddy” or “I don’t work for you” or “Mind your own business” or any such protest have been met with steely resolve on the part of Roger.
He will make your off-field conduct his business, because his business, as he sees it, is to “protect the Shield” and to protect the integrity of the NLF brand.
And lest anyone in the NFL remained confused, Goodell sent out a memo in April of 2010 making his intentions and his expectations crystal clear:
The Policy makes clear that NFL and club personnel must do more than simply avoid criminal behavior. We must conduct ourselves in a way that ‘is responsible, that promotes the values upon which the league is based, and is lawful.’ This standard reflects the recognition that the conduct and behavior of our players and other league and team employees is critically important. Whether it involves your team or another, these incidents affect us all — every investigation, arrest, or other allegation of improper conduct undermines the respect for our league by our fans, lessens the confidence of our business partners and threatens the continued success of our brand. [Emphasis added]
Might I suggest to RE/MAX higher ups that billboards like the one above undermines the respect for your brand by consumers, lessens the confidence of your business partners, and threatens the continued success of your brand? Might I suggest that you create some new position of Brand Commissioner to police these kinds of activities?
And in a larger sense, since we were just talking about the “value and relevance” of the REALTOR Association, from the NAR down to the local, might I suggest that NAR consider following the example of Roger Goodell? Frankly, Roger doesn’t see an incident by a Pittsburgh Steeler as just a Steeler matter; he considers it a negative for the entire NFL brand. RE/MAX might be the one most directly impacted by this billboard, but if you think that consumers will make a distinction between RE/MAX and every other real estate agent or REALTOR out there, you’ve got another thing coming.
Maybe NAR and the local/state Associations need to think long and hard about whether they should have a Roger Goodell or three? Maybe they need to consider whether issues like this or ethics complaints should be handled discreetly, away from the public eye, swept under the rug, and otherwise kept quiet… or be dealt with openly, so that the public can see exactly what it is that the REALTOR(R) brand does and does not stand for?
Your brand is not in the hands of your best and brightest. It’s in the hands of your worst agents. All of the positives of people like Drew Brees and Tom Brady and Dhani Jones and the hundreds of other NFL players who do the right thing, contribute to the community, and improve the NFL brand can be undone by a single Pacman Jones.
Because the work of thousands of real estate professionals, who recognize that divorce is a painful, sensitive time for a family, that might necessitate selling their house out of personal crisis… that can be undone by a single billboard suggesting that the only thing a REALTOR(R) gives a crap about is buying a larger house and collecting the commission.
Roger Goodell protects the shield. Who protects the R?
-rsh
Recently, I found out that the Pinnacle Group Project — something I had heard rumors about for a few months — had officially launched. What the hell is Pinnacle? From the website (the URL is “thechangechampions.com” by the way):
A two year intensive course of study for Association Leadership and Management.
This program includes:
- Eight (8) modules.
- Attendance by two people (AE and President or incoming President) for each module.
- Six (6) on site sessions for elected leaders and eight (8) for appointed management (travel and accommodation will be for Associations own account but meetings are dovetailed with existing NAR meetings).
- Sixteen (16) Coaching Call / Webinars.
- All courseware, templates and materials.
- Special access to a password protected Association portal.
Okay… so what exactly is this thing teaching? From the website once again:
There is an almost universal understanding that that our industry and our associations are now entering into a new era. The industry appears to have begun its recovery from six long years of difficult business conditions. While no one is suggesting a meteoric rise; there is reason to believe that over the next two years surviving brokers and agents who have made the right business decisions and who follow the right strategic course, will be successful in enhancing productivity and increasing profitability. At the same time a new generation of consumers, agents, technologies and business models are reshaping the broker and agents of tomorrow. What is evident is that that both the agent and brokerage communities, as part of their reinvention process, will be reconsidering and deciding what organizations will be seen as contributing to their future and which will be seen as expendable and unnecessary.
It is safe to say that the future of the REALTOR® association, at all levels, will depend upon the association being seen as relevant and part of the solution. The primary objective of the Pinnacle Project is to do everything possible to ensure that participating associations become even more viable and a relevant part of the solution. The core of this effort will consist of building and strengthening a number of skill sets and competencies that have been incorporated into The Pinnacle Program.
As we all work to find “our right course” there will be some whose thoughts, opinions and ideas will take them in different directions in search of a winning solution. The one absolute here is the lesson that the global business experience has taught every enterprise in America. We must increase our productivity, we must enhance our value propositions, we must do everything possible to present solutions to our member’s challenges, and most importantly, we can benefit from working together.
Basically, the Pinnacle Program represents a mix of training and consulting for REALTOR(r) Association executives and elected leaders to do strategy, tactics, and learn how to do stuff. I got into a little discussion with Stefan Swanepoel — who is one of the three principals, along with other industry veterans, Jeremy Conaway and Jim Sherry — on Facebook, and he and Jeremy graciously agreed to an email interview for YOU, the faithful (or not quite so faithful) readers of this blog. 
The interview — interspersed with my personal thoughts — follows.
I’ve been really busy the last few days, but did not see anyone in the real estate media world — even bloggers like me — pick up on this extraordinary story:
Three members of the Greater Las Vegas Association of Realtors on Tuesday sued the trade association, its board of directors and its immediate past chief executive, Irene Vogel, alleging misappropriation of funds.
I’m baffled why the real estate media is not all over this story. Inman? RISMedia? AGBeat? Where you guys at?
So um, I guess I’ll take a few minutes to press this here Big Red Button to sound the alarm.
If you are involved with Associations in any official capacity — serve on the Board or as an Executive Officer — this is a story you cannot afford to ignore. Call your general counsel right now. Make sure your D&O insurance coverage is up to date, and consider increasing the limits.
Why?
Could this man even be a Democrat today?
For whatever reason, there’s quite bit of chatter going on around the RE.net about the future and role of the REALTOR Association. This Facebook Group is more or less ground zero of the discussion. But I saw an interesting take on the topic from Victor Lund, the influential proprietor of the WAVGroup. Here is his post, worth reading in full:
Remember this leadership statement?
“Let every nation know… that WE shall pay any price, bear any burden, meet any hardship, support any friend, oppose any foe, to assure the survival and the success of liberty.”
More than any political speech, this was the voice of a committed leader.
Who the hell is that crazy neocon Bushitler-sounding warmonger? It’s patently obvious that the Rethuglicans are a danger to global peace.
Anyhow, Victor then goes on to quote Jeremy Conway:
Today Jeremy Conway, my most highly respected industry mentor answered the question.
Is everything NAR does perfect? Certainly not! Is everything NAR is currently doing supportive of everyone in the real estate space? Certainly not! However:
For those who perceive a threat in the present situation, NAR is a suburb [superb?] lifeboat.
For those who perceive the opportunity begging to be discovered in the present situation, NAR is one of the most powerful battleships afloat.
For those who deny any situation exists, NAR is a great insurance policy.
Most importantly, NAR and its local association system are a magnificent action resource that can, with a little effort, be ready, willing and available today with tools that can affect the best result.
As I read these words, I recalled the words of one of our Nations’ greatest leaders once again.
“The world is very different now. For man holds in his mortal hands the power to abolish all forms of human poverty and all forms of human life.”
These are words of empowerment. These words told a nation to contribute to fighting hardship. These words that told a nation that the future was in their almighty hands. Surely, at nearly 1 million strong, REALTORS® have the potential to create their destiny. “Let the word go forth… that the torch has been passed to a new generation” of REALTORS®.
Stirring, indeed… if you’re into all that warmongering Republican rhetoric, anyhow. Wait, what? That wasn’t some Reagan-worshipping Tea Partier? That was John F. Kennedy? That guy who dated Marilyn Monroe?
Okay, smartassery aside, I don’t know if Victor meant to get so close to the heart of the question that confronts the REALTOR Association today, but he did. All he had to do was to use the more famous quote of one Jack Kennedy:
Ask not what your country can do for you, but what you can do for your country.
I agree with Jeremy Conway that NAR is a “powerful battleship”; I disagree that it is a lifeboat. And in that difference lies the key question of the future of the REALTOR Association. Let me explain.
It was the best of times, it was the worst of times. The recently concluded NAR Convention in Anaheim that is. On the one hand, it was great to see old friends, make new friends, and engage in some wonderful conversations about everything from IDX Policy to branding to dating habits of college students. On the other hand, the entire convention was infused with an air of obstinate unreality, as if we all were jewel-bedecked revelers on The Titanic, dancing the night way sipping on champagne….
Based on hallway conversations, based on drunken whispers at industry parties, and based on what I’ve read and heard over the past few months, I believe there is an extinction-level event approaching the real estate industry. And all of the official groups, all of the powers that be, have failed to address it. So I will.
There is, I believe, a real chance that in the next three to six months, we will see the splintering of the foundation of the industry: the MLS and the Associations. The world that comes next, a world without the Multiple Listing Service, will be one filled with unintended consequences.
Had a most interesting discussion with a REALTOR friend last night over dinner about professional ethics, and came across an interesting question. We didn’t know the answer, so I figured I’d blog about it and ask you all.
The question is whether a REALTOR has a duty to disclose bad acts by a client, or more importantly, by an ex-client, if she knows that what the client is planning on doing is (a) illegal, (b) unethical, and/or (c) fraudulent.