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"The Eight New Rules of Real Estate"

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John Tuccillo Photo
4/6/01 Interview with John Tuccillo

PO Box 7487
Arlington, VA 22207

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The New Rules of Real Estate

  1. Technology has broken the barriers that isolated real estate from mainstream business; outside competition is sharper, and consumers are more demanding, so Realtors must play by the rules of general business.
  2. The most important new rule is that consumers drive the market; technology-savvy consumers can make better decisions because they have easy, free, unlimited information.
  3. The Realtor's role has shifted from providing information to creating knowledge‹making otherwise available information actionable for the consumer by putting together the pieces of the transaction puzzle.
  4. To be competitive in the new market, Realtors must meet the consumer's demand for value by saving the consumer time and taking away stress; all the changes in doing real estate business flow from that proposition.
Where Realtors Add Value

  1. The expertise and experience of the Realtor are required for preliminary counseling of the consumer (setting a sale price or determining the kind of property to buy); contract negotiation; management of the transaction.
  2. To be successful in the new market, Realtors must emphasize these value-added services, which historically have been overshadowed by the role of dispensing information.
How to Improve Your Real Estate Business

  1. Advertise the benefits you provide to consumers counseling, negotiating, managing; e.g., say, I can get you the best solution to your housing questions instead of, I can show you houses.
  2. Attempt to lock the consumer in for life; approach clients after the transaction to debrief them on what was good and bad about their experience; use what you learn to mold your practice.
  3. Apply branding techniques to your practice; aim to be consistent in what you do (adopt a transaction management system); develop a look that you use in all your advertising and service materials.
  4. Attain professional designations, including the RECS from the Society, to signify that you meet recognized standards; designations are an assurance of quality provided the public is familiar with them.
Using Strategic Alliances

  1. Collaborating with knowledgeable people in other fields allows you to accomplish tasks beyond your own capabilities.
  2. A professor or graduate student from a local college might be able to help you create effective marketing presentations that integrate your own sales data with public data.
  3. You must have a basic understanding of technology before you can approach anyone about an alliance; familiarity with the capability of the Internet is required to recognize potential areas of collaboration.
Key Competencies for Realtors

  1. Excellence in counseling, negotiating and managing is necessary for success as a Realtor today and in the future.
  2. Competencies should be developed also in modern marketing information, in creating a brand and in developing strategic alliances.
  3. Your understanding of how to gather information and network via the Internet permeates all six areas.
Favorite Web Sites

  1. You must understand employment in your area; the sites of the Dept. of Commerce and the Dept. of Labor contain invaluable information.
  2. The U.S. Census Bureau site is extensive but outdated at present; 2000 census information won't be complete until 2002; some preliminary information is up now; county employment statistics are the most useful.
  3. As a traveler, Tuccillo appreciates the web site of the Federal Aviation Administration.
Predicting the Future for Your Area

  1. Look at the way employment is moving in your market area, i.e., the net change in jobs; the Dept. of Labor announces national employment statistics on the first Friday of every month‹stats are available on the web site down to the county level.
  2. Read page A2 of the Wall Street Journal every day to follow the economy in general.
A Look Ahead

  1. The real estate market is in the midst of a long stretch of good times‹out to 2008 or 2009.
  2. Real estate businesses will continue to consolidate over the next three years; mainstream reliance on technology to process transactions (transaction management platforms) will cause a slight swing to broker control vs. agent control‹a win/win in the end.
  3. Over three years, there will be a drop of marginal agents; the good agents will be much more productive. Check out The Eight New Rules of Real Estate at the bookstore.
Contact Information for John Tuccillo:

(v) 703-629-0770

Real Estate Sites & Tools in this Briefing:

US Dept. of Commerce
US Dept. of Labor
US Census Bureau
Federal Aviation Administration