REINSW Journal Jan-Feb 2017

it’s a question that everyone in the industry
needs to ask.”
But there is good news, according to Ewan.
“We hold the client relationships,” he said. “The
long-term trend is that people are holding onto
their homes for longer, so if we nurture our clients
correctly we can hold a relationship for 20 years
or more. The real question is: what is it that we’re
offering to those clients? What else can we do
for that client over that 20 years, with the end
game potentially being the sale of their home?”
Shannan Whitney, Director at BresicWhitney,
agreed. “We have to reset what we’re doing
now – and also what we’re not doing,’ he said.
“We need to do more. We need to add value.”
Providing value – but to who?
Shannan Whitney feels that many agents
– and indeed many real estate businesses –
misunderstand where much of their value lies.
“We’re holding on to the belief that the seller
is the person we need to provide value to,” he said.
“But what we’re not understanding is that if we can’t
deliver value to the buyer and really recognise what
the buyer’s needs are, then it’s indirectly affecting
the value we’re delivering to the seller.
“We’ve completely forgotten about the buyer,
yet they’re the most important person in the
transaction. We can provide real value to the seller
through our ability to connect with the buyer – but
we don’t do it very well at all.”
For Shannan, the fact that agents continue
to remove the buyer from their thinking, strategy
and behaviour lies at the core of consumer
discontent with agents. “We aren’t acting in line
with their expectations of what the role of a real
estate agent is in this day and age – and that
directly impacts the service we provide.
“If we change that thinking and understand
the opportunity we have because of the role
we play in the transaction, then a whole new level
of service opens up – one that has real value.”
To provide value, Head of Real Estate at
LJ Hooker Chris Mourd believes agents need to
stop treating every sale merely as a transaction.
“As an industry, for the most part, our
interactions with clients are all transaction
based,” he said. “We’ve forgotten that we’re
dealing with people’s assets. We’re also dealing
with their potential wealth and their hopes and
dreams. Whether they’re selling or buying, it’s
not just a transaction to them.
“Understanding our clients and their journey –
and making the most of them – is critical. If we
do this, we’re in a better position to add value.”
What does value look like?
The lifetime value of a client is the key concept
in the equation, according to Laing+Simmons
Managing Director Leanne Pilkington.
“Society has changed. Expectations have
changed. Everything has changed, except
the way we deal with the transaction,” Leanne said.
“We need to look at the services we’re providing
and the value those services afford to our clients
– not just in the short term, but over a much longer
period. We need to look beyond the immediate
transaction and focus on lifetime value.”
Understanding
our clients and
their journey –
and making the
most of them –
is critical. If we
do this, we’re in
a better position
to add value.
CHRIS MOURD
Head of Real Estate
at LJ Hooker
REAL ESTATE JOURNAL / Jan–Feb 2017 / 27