Understanding Risk Management

Managing business risk means managing the protection of your employees, customers, property, information and the environment. Formal business risk management is a policy or program that works to prevent all types of problems arising from risk and uncertainty.

Although the actual risk management processes may be different in small and large companies, the problems that arise as a result of poor risk management are the same. Unmanaged risk creates inadequate security and safety measures, which can cause financial loss, erode profits and create unnecessary liabilities. Inadequate risk management can even scare away venture capital funding and lower your bank rating status.

Benefits of Risk Management

Risk management programs require companies to carefully review their personnel, administrative, accounting, management, financial and insurance policies. Carefully evaluated risk management policies produce both tangible and intangible benefits:

• Good risk management can reduce business and liability insurance premiums (in the same way that a security system can reduce your homeowner´s insurance).
• Formal risk management programs are frequently accepted by major insurance underwriters for the purpose of lowering premiums.
• Risk management reduces your chances of being sued and increases your chances of prevailing in a lawsuit if you are taken to court.
  

Finding a Consultant for my Real Estate Business

The option to employ a business consulting service is not always an easy one, numerous factors demand consideration.  Whenever you're uncertain whether or not to use the services of a business consulting company here are a few questions to ask yourself to make the determination more effortless.

Have you considered using a consultant?

If you are considering that you might need help from a business consulting company, you in all probability will profit by their services. Business advisors can be helpful irrespective where your business is positioned; whether you are barely taking off, or you're a seasoned company that has bumped into some obstacles. Even if your business is doing well a consultant can help you to expand and diversify to reach new or additional profitable clients. If you need help starting your business, have run into problems that necessitate mastering; or just want some fresh ideas helping your successful business grow and prosper you could reap benefits from the ideas of a business consultant.

Salary Guide - Property & Real Estate in Australia

Australia Property and Real Estate (for the year ended 2009)

Source: MyCareer job listings inclusive of wage from the last 90 days and updated weekly. Figures may incorporate total pkg. If there is insufficient data to show reliable max, min, avg then none are shown. 

For more information on staffing structures and remuneration packages, visit us at http://www.rema.net.au/services. 

Is Your Website Working

If you're as familiar with your website as I am with mine, then you may be blind to certain weaknesses. It's only natural. When you see something on a regular basis, you begin to not see it after a while.
 
Just the other day somebody pointed out a spelling error on my home page (in a bolded sentence no less). I had probably looked at the sentence a thousand times. But because I knew what it was supposed to say, I was blind to the mistake.

What does this have to do with real estate Internet marketing? Everything. From a marketing standpoint, we all have flaws with our websites. That's okay, as long as you work to identify them and improve them. But identifying them is the hard part!

Internet Marketing Exercise
This little exercise will help you "step outside" of yourself and see your website with fresh eyes. Pretend for a moment that your website belongs to a stranger, and you're being paid to evaluate it honestly. Now print out the following questions and visit your home page:

• Is the navigation logical? Can you immediately find your way around?
• Within the first ten seconds, do you see anything of value to you?
• Do you see anything worth digging deeper for?
• Does this website give you confidence in the owner?
• Does the website suggest professionalism and attention to detail?
• Does the website make you want to learn more? Why or why not?

I hope this exercise helps you find areas you might improve. Once you've done it with your home page,  you might even want to visit your other important pages and ask the same questions.

Better yet, ask a friend to do it for you ... somebody known for their brutal honesty.

Victoria Real Estate Figures - First Five Months 2010

The first five months of 2010 are now completed and the auction market has delivered some remarkable outcomes.

In February and March, the first two months in which a substantial number of auctions are held, the market exhibited record results. In February there were 2286 auctions, of which 85.6 per cent sold. In March there were 2931 auctions and the same clearance rate was recorded. This makes it the equal-fourth-strongest month for auctions in the city’s history, exceeded only by September 1999 (86 per cent), May 2007 (85.7 per cent) and July 2007 (86.5 per cent).

How to Start your Real Estate Newsletter

A regular newsletter is an effective marketing tool for real estate agents.  Newsletters can establish you as a market expert, give you ongoing communication with potential clients and give you an advertising edge with a targeted audience. 

         Identify your Audience

This is a golden rule of any marketing project, and a real estate newsletter is no difference.  Write down a list of the kind of people you want to reach: retirees or people getting ready to retire, first home buyers or investors.

         Decide on Information your Audience Will be Interested in

People getting ready to retire will want to know if market prices are going up or down, as it could affect their decision on when to buy.  First home buyers will want to know information about new schools or shopping areas.

3.       List your Ideas on Topics that Fit the Audience you are Targeting

Keep adding to the list as you think of ideas.  A regular newsletter needs content, search through local newspapers, publications from local bodies, people you talk to and other sources for ideas.

4.       Schedule Regular Delivery

Once your audience gets used to seeing the newsletter, they will come to expect it.  If you decide distribution takes place on the first of the month then stick to that date.

5.       Determine Your Delivery Channels

Email newsletters are good for buyers while direct mail is better for sellers.  Mailing addresses can be bought from list brokers, but know the spam rules.  Also, always clearly identify yourself with full contact information.

6.       Get Interactive

Establish a dialogue with your prospective customers.  Use a self-addressed, stamped reply card that asks a few easy questions for mail-back or a link to an email in an electronic newsletter.

7.       Do the Design

There are plenty of websites that offer templates and newsletter ideas for a reasonable fee, or use a local design company and get a template made.  Brand your agency with a logo, slogan and pictures.

Contact us at REMA to discuss how we can help you to increase your business.

Team Development in Real Estate

A well developed team has the potential to contribute in a huge way to the success of your business. When a team knows its strengths and weaknesses, is aware of it's expectations and has the resources and knowledge to achieve these, then this team can be your greatest asset.  Like houses though, good teams need the foundations and maintenance to maintain your investment. 

How to acheive this?

Give your team clear expectations

A team, just like an individual, needs to know what it is expected to deliver. Communicate expected outcomes with your team, be clear and informative.  By relating this information to your team you are delivering their most powerful resource - knowledge.

Talent Recruitment is Key in the Property Market

During an economic downturn, companies often overlook the importance of a solid talent recruitment strategy. This is not the time to become complacent. An effective team will be your important weapon in your fight for survival.

As a result of the downsizing that's going on, a growing pool of qualified, talented people is available on the market. Organizations have the opportunity to thoroughly screen and assess candidates to ensure appropriate skill level and corporate culture fit. Pinpoint the key competencies that you require in your management team. Clearly define your requirements. Incorporate behaviour based interviews, rigorous reference checks and work samples into your talent recruitment strategy.

First Home Buyers a Dying Breed

Australian Bureau of Statistics (ABS) Housing Finance figures for March show that, in trend terms, the number of commitments for owner occupied homes fell by 4.1 per cent, compared to the previous month.

“This is the ninth consecutive month of falls in housing finance. We are now down to the levels of the global financial crisis in 2008”, said REIA President, Mr David Airey.

“The decreases in lending were across the whole spectrum of established and new dwellings and across all states and territories”, added Mr Airey.

The number of first home buyers, as a percentage of total owner occupied housing commitments, decreased to 16.1 per cent in March 2010, compared to 18.1 per cent in February. This is the lowest for some five years, and compares to the long-run average of 20.1 per cent.

“The rapid decline in the number of first home buyers is a major driver in the decline in overall finance commitments. Each month it looks more and more like first home buyers are a dying breed,” continued Mr Airey.

“It is time for the Reserve Bank to stop the spiral of continuing interest rate increases”, concluded Mr Airey.

Source: The Real Estate Institute of Australia (REIA) 

 

For information on Growth Strategies to strengthen your Real Estate Business, visit Rema at www.rema.net.au.