Mackay market bounces back - REIQ
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F OR M E M B E R S O F T H E R E A L E S TAT E I N S T I T U T E O F Q U E E N S L A N D
Mackay market
bounces back
STRONGER ECONOMY UNDERPINS
MACKAY’S PROPERTY RECOVERY P30
ONLINE REFERRAL PLATFORMS SURVEY RESULTS: P6-7
ARE KPIs IMPORTANT?: P24
REIQ AUCTIONEER OF THE YEAR IN PICTURES: P38-39
IT’S TIME FOR AN AI CHAT: P44-45
Don't just like us,
Follow us on Facebook!
OCTOBE R 2018
Professional indemnity claims: A real risk for real estate professionals When you’re focused on racing to property inspections, managing tenants and negotiating contracts, professional indemnity risk is probably the last thing on your mind. But the reality is that these everyday real estate scenarios can expose you to risks that could lead to a compensation claim. Professional Indemnity insurance can act as a safety net to provide protection from the costs associated with any claims, including legal costs and any damages awarded. If you would like to find out more or discuss your insurance needs, please contact Aon today. 1300 734 274 au.realestate@aon.com aon.com.au/realestate * Conditions apply. For full policy wording please contact 1300 734 274. © 2018 Aon Risk Services Australia Limited | ABN 17 000 434 720 | AFSL 241141. This information is general in nature and should not be relied on as advice (personal or otherwise) because your personal needs, objectives and financial situation have not been considered. So before deciding whether a particular product is right for you, please consider the relevant Product Disclosure Statement or contact us to speak to an adviser. AFF0987 0618 PAGE 2 REIQ JOURNAL | OCTOBER 2018
CONTENTS
Regular:
In this edition: From the Chairman 3
Stronger economy underpins Mackay’s property recovery 30 From the CEO 5
Industry News 7
Chapter News 13
Events – Cyber Risk Session 15
Turner's Tips 17
Events - Western Suburbs Zone 23
Training 24
Agency Advice 28
Events 38
What's New What's Hot 41
REIQ Award Winner 42
Secret Life of a Real Estate Agent 43
Feature
REIQ looks to the future with new strategy 20 Tech Update 44
Social Snapshot 46
Research
Supplier Directory 47
What might happen to the Brisbane property market after
the next federal election? 32 Welcome to our new agencies! 48
Risk Management Who’s Who at the REIQ? 49
Disqualification of high profile agent for employing
unregistered salesperson 34
Lessor's obligations – when is a premises fit to live in and
in good repair 36 The REIQ Journal is proudly produced on
paper manufactured under an ISO14001
Tech Update Environmental Management Program, using
fibres from certified forests and audited sources.
It's time for an AI chat 44 The REIQ Journal is printed with soy based inks.
REIQ JOURNAL | OCTOBER 2018 PAGE 1
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Peter Brewer in the REIQ Journal do not necessarily
The Real Estate Institute of
reflect the views of the REIQ. All statements
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Antonia Mercorella ABN 49 009 661 287 cannot be guaranteed and no liability will
be accepted for any error or omission.
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W reiq.com We publish 3,500 copies each edition with ©Copyright REIQ 2018. ISSN; 1442-9683
an estimated readership of 10,000.
PAGE 2 REIQ JOURNAL | OCTOBER 2018
FROM THE CHAIR
Technically speaking …
A WORD FROM THE CHAIRMAN
It was inevitable that one of my early columns as your Chairman would have
a technology focus. I’m especially enthused, as we’re looking forward to our
upcoming RealTech event on October 10.
A lthough many of you may
have heard me wax lyrical
about this in person, I’m
here today to advocate not only your
attendance at RealTech but also your
acceptance of some of our upcoming
initiatives.
Recently, I had the opportunity to hear
a real estate leader from the United
States, Gary Keller, speak onstage
about the difference between agents
who are wisely using technology
in their business, and those who
are allowing technology to run
their business. He pointed out that
traditionally run real estate businesses
across the world are currently under
fire from new players, new models,
new consumer behaviours, and new
marketing methods. His conclusion? your clients’ experience…as well as That you learn about and use targeted
Unless real estate practitioners your own real estate business. Facebook ads on a regular basis. That
embrace technology in their business, you continue to fight the good fight in
You’ll also see something completely
they’re in trouble. the online war by providing content
unique from The REIQ - our own
that showcases your unique local
What does that mean for us here at Shark Tank. We’ve invited 3 startups
expertise. And, finally, that you still
the REIQ? in the PropTech space to pitch their
remember to pick up the phone and
product to members identifying the
Well, you may or may not have meet people face to face. We’re always
problem they’re trying to solve for
already noticed how we’ve started to going to be a people business. Use
you in the real estate world. Based
better use our CRM through targeted the tech to create and manage those
on your feedback, we’ll then choose
marketing and focussed more on our relationships.
which, if any, of those startups the
advertising via mediums like Facebook REIQ should consider partnering with Technology may not solve everything,
and Instagram. That in itself is a huge for mentoring or your benefit for the and it shouldn’t. However, if you
change from how we’ve done business future. learn the pain points it can solve to
even 5 years ago, and is a reflection make both your and your clients’
of what we see as the channels of Our feeling here is that if a 100-year-
experiences better in this industry, I
choice for the majority of our current old organisation can change and
know you will continue to be in this
members and all emerging members in benefit from those changes, our
business for another 100 years…just
the future. members should be able to too.
like the REIQ.
Our focus on emerging tech continues My personal mantra has always been
I look forward to seeing all of you at
with the second REIQ RealTech event. that technology is important in real
RealTech!
What you’ll hear on that day is how estate, but that how you use that
to use technology like 360 degree technology is even more important
stills and video, what is Artificial for the continued success of your
Peter Brewer
Intelligence, how does Virtual Reality business. To that end, I still will
M. 0417 630 962
work in real estate, as well as hearing advocate that you use your CRM to
E. peter@thatpeterbrewer.com
the advancements from Google, all the utmost of its capability. That we
offered as ways to enhance and better all get over ourselves and use video as
one of your main marketing mediums.
REIQ JOURNAL | OCTOBER 2018 PAGE 3
renew. reposition.
industriemedia.tv
PAGE 4 REIQ JOURNAL | OCTOBER 2018
Advocacy, it’s what we do
FROM THE CEO
A WORD FROM THE CEO
The REIQ lobbies and advocates for the needs of the profession on behalf of all
real estate practitioners.
O ur goals in the advocacy space
include:
shows that not once has an REIQ
member been found guilty of breaching
the relevant legislation.
- Raising the standard of
professionalism across all real This is compelling evidence that speaks
estate sectors to the power of education.
- Introducing mandatory CPD Ongoing education teaches agents how
to ensure all practitioners are to operate professionally and within
educated and compliant the law and this is a win for consumers.
- Lobbying for legislative reforms This is a common sense measure that
to support the best interests of most can see will raise the standard
the real estate profession and the of professionalism and improve the
regulatory framework for real quality of service.
estate transactions. Currently, this
It will also bring Queensland into
includes the review of residential
We know the majority of responsible line with many other states that
tenancy laws and the Property Law
working real estate agents support have already, or are in the process of,
Review.
this. They are tired of labouring under introducing mandatory CPD.
We have spent three years working the poor reputation that consumers
We look forward to working closely
towards the introduction of mandatory have formed through interactions with
with all key stakeholders to usher in
CPD for all real estate professionals. the unprofessional few who fail to
a new era of professionalism for this
maintain their professional knowledge.
Mandatory CPD is an important sector.
consumer protection measure and will The REIQ’s position is that education
enhance consumer confidence. It will is crucial for compliant, professional
also help real estate practitioners to agents and requires all members to Best wishes,
develop and maintain the knowledge complete 100 points of CPD each year
and skills they need to keep up to date as a condition of membership.
and informed in an always changing
An examination of all disciplinary
landscape that spans over 40 pieces of
proceedings against real estate agents
legislation. Antonia
from January 2013 to August 2015
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REIQ JOURNAL | OCTOBER 2018 PAGE 5
Online referral platforms have
limited market impact: survey
Results of an exclusive REIQ
survey into online referral
platforms indicate that
these platforms have a low
market penetration rate, are
perceived to deliver unreliable
leads, and demand an unfair
fee amount, according to
more than 400 surveyed
Queensland real estate agents.
REIQ CEO Antonia Mercorella said Online Referral Platforms unfair and expensive.
the survey results were revealing.
Online referral platforms for real In about 70 per cent of the cases,
“We hear from our members about estate services in Queensland have property managers and sales agents
these online referral platforms and limited market penetration. The supporting online referral platforms
now our own research supports the survey results revealed that less perceived the referral commission as
anecdotal evidence. than 40 per cent of agents have used unfair and expensive.
“Our members tell us regularly that or use online referral platforms in
Real Estate Services via Tenders
these platforms don’t add value to Queensland.
their business and now we see that Real estate services tender
About 57 per cent of Queensland
experience is across the board,” she opportunities do not generally
agents surveyed do not support
said. seem to attract attention from the
online referral platforms. The main
Queensland real estate industry.
The survey results revealed that the reason for this is a lack of knowledge
The survey results revealed a
revenue added by online referral about how they operate and what
low level of awareness of tender
platforms to real estate agencies in value these sites could add to their
opportunities, with only about 2
Queensland may be “insignificant”. business.
out of 10 Queensland agents aware
Only about 7 per cent of agents using According to the survey, Queensland of tender opportunities offered by
online referral platforms derive agents see online referral platforms as the Queensland Government via
any significant income from these unreliable, with about 16 per cent of QTender.
platforms, achieving from 10 to 50 per respondents indicating that referrals
The survey results also revealed
cent of their revenue this way. are not reliable.
that only about 1 agent out of 10
“The survey reveals that these referral Survey results revealed that the value has secured a real estate service
platforms promise a great deal, may added by online referral platforms to opportunity via a tender process.
demand a significant cut of the the Queensland real estate industry Most of these opportunities were
agent’s commission, and appear to may be insignificant. About 7 per cent associated with mortgagee-in-
deliver to only a very small number of of agents supporting online referral possession and State Government
agents,” Ms Mercorella said. platforms derive between 10 and 50 tenders for sales or property
per cent of their revenue from this management services.
The survey, Tenders and Online means.
Referral Platforms, ran from In instances when agents have the
August to September 2018 and About 6 out of 10 Queensland agents knowledge of business opportunities
was conducted to help the REIQ supporting online referral platforms advertised via QTender, the verbal
understand two areas of the market are multiusers and have access to at feedback provided by survey
– online referral platforms, and the least two referral platforms. participants indicates that the tender
tender process for real estate services process may be too overwhelming
The survey results revealed that
and how much this process is used by and costly, discouraging participation.
Queensland agents generally find the
Queensland agents. rental and sale referral commission See infographic on facing page for a
charged by online referral platform summary of the results.
PAGE 6 REIQ JOURNAL | OCTOBER 2018
Tenders & Online Referral Platforms for Real
INDUSTRY NEWS
Estate Services Survey Results1
September 2018
Tenders
About 2 in of 10 Qld About 1 in of 10 Qld Most of the successful Complexity of
agents are aware of agents have secured tender opportunities Govt tenders
QTenders real estate a real estate service for Qld are associated may discourage
services opportunities opportunity via a to mortgagee in participation
tender possession and state
government tenders
Online Referral Platforms
Limited penetration of About 57 per cent of
online referral platforms Qld agents do not
in Qld. Only about 40 per support online referral
cent of Qld agents used platforms. The main
or have used online reason for this decision
referral platforms is the lack of knowledge
as to how they operate
and what value they add
to their business
Revenue added by online referral platforms appears to be insignificant.
About 56 per cent of About 28 per cent of
agents using referral agents using referral
platforms source less platforms source
than 1 per cent of between 1-10 per cent of
revenue revenue
In about 60 per cent of In about 70 per cent
60% instances, Qld agents
supporting the use
70% of the cases, property
managers and sales
of online referral are agents using online
multiusers, having referral platforms
access to at least two perceived the rental
different platforms referral commission as
unfair and expensive
1
With a total of 412 responses to the survey distributed to a REIQ membership population of about 8,300, the results of the survey are accurate at the 95 per cent
confidence level plus or minus a 5 percentage points margin error
REIQ JOURNAL | OCTOBER 2018 PAGE 7
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PAGE 8 REIQ JOURNAL | OCTOBER 2018INDUSTRY NEWS
Noosa the new leader for house
price growth
“This area would benefit from greater degree of resilience notwithstanding
supply levels, undoubtedly.” sensationalist commentary from
some quarters predicting drastic price
The rest of the Sunshine Coast region
falls,” Ms Mercorella said.
delivered similarly strong results for
the year to June 2018. The Sunshine “Overall, Queensland’s property
Coast LGA grew 6.5 per cent to a market continues to operate at
median house price of $575,000, from two speeds. The southeast corner
Noosa has delivered the 4381 sales. is performing well, with Sunshine
Coast, Gold Coast, Brisbane and
strongest growth in the state, The traditional state leader, the Gold
Toowoomba growing consistently,”
Coast, continues its strong growth
with the median house price trajectory, although it has slowed
Ms Mercorella said.
growing 6.9 per cent over somewhat. Growth of 4.5 per cent “We’re seeing some recovery in the
the 12 months to June, and delivered an annual median house major regional centres, limited to
price of $622,031 to Gold Coast house Bundaberg, Mackay, Fraser Coast,
units growing 10.2 per cent,
owners. while the centres of Gladstone,
according to the latest REIQ Rockhampton and Townsville
“This is not a completely unexpected
Queensland Market Monitor. result in the post-Games period as
are yet to really make meaningful
improvements,” Ms Mercorella said.
we see normal activity resume,” Ms
Noosa steals the title from Gold Mercorella said. “The REIQ has lobbied the
Coast, which has led the state for Government long and hard for
house growth for the past two The Gold Coast is the biggest
the first-home buyers grant to be
quarters. Noosa’s annual median apartment market in Queensland,
broadened to existing properties in
house price, from 862 sales in the selling more than 10,000 units in
regional Queensland,” she said.
year to June, is $695,000. The annual the 12 months to June 2018. It was
median unit price is $540,000. also one of the few unit markets “It is our strong conviction that this
in Queensland to deliver positive would give some of those house
Noosa is now Queensland’s most growth, adding a slender 0.9 per cent markets a much-needed boost as
prestigious market, eclipsing the to values to a median of $429,000. young people and first time buyers,
Brisbane LGA median house price of who are struggling to save a deposit,
$673,000 and the Gold Coast LGA of Brisbane LGA delivered consistent,
are given that important leg up to
$622,031. sustainable growth of 2.5 per cent
home ownership. Importantly, these
to an annual median house price of
REIQ CEO Antonia Mercorella said markets do not need additional
$673,000. This market has delivered
Noosa had all the ingredients for supply. You can already buy an
reliable growth in the region of 2 – 4
price growth. established house in these areas for
per cent, consistently, for a few years.
less than it costs to build,” she said.
“This is a highly desirable part of the The apartment market has not fared
world, with stunning natural features, “It’s outrageous that the Government
so well and median unit prices eased
world-class beaches, beautiful is funding additional housing supply
176 Bar&Grill
2.2 per cent over the year to June
climate year-round, outstanding in areas of the state that are already
2018, to $440,000. This trend has
shopping and dining precincts, and, oversupplied, through this grant,” Ms
been echoed statewide with most unit
crucially, exclusivity. Mercorella said.
20% Off the total bill
markets contracting in price.
“There is limited housing2 supply TURN TO PAGE 10 FOR REGIONAL
“We are seeing parts of Brisbane
being added to Noosa and QUEENSLAND DATA
still coping with some apartment
competition is obviously driving price oversupply. But we know that
growth. the population growth to the
“Looking forward, once the Bruce southeast corner is strong and as
Highway upgrades are completed major transformative projects such
and commuting to Brisbane becomes as Queen’s Wharf begin to take
more feasible, it’s likely we’ll see shape, we are confident excess
added demand for Sunshine Coast apartment supply will be absorbed.
living,” Ms Mercorella said. The apartment market is showing a
REIQ JOURNAL | OCTOBER 2018 PAGE 9QMM: Regional markets deliver
INDUSTRY NEWS
patchy news
words by Karina Salas Gladstone: The Gladstone house exceptional median house price
market is facing continued challenges. growth.
The June quarter of the The median price fell 6.8 per cent,
Cairns: The outlier in the regional
however, local agents are certain there
Queensland Market Monitor is a sense of confidence returning to
markets over recent years, Cairns has,
at times, been one of the only regional
delivered a mixed bag of the market and they say that July and
markets to deliver positive median
results throughout the August have been very busy months,
house price growth. This diverse
so we look forward to the September
regional centres of the state. economy has proven itself to be
quarter data. The Gladstone median
resilient, withstanding the economic
unit price fell a disappointing 33.3 per
Some areas, such as Bundaberg and headwinds that have felled other
cent, to $170,000.
Mackay, delivered good median regional economies. In the 12 months
house price growth while the market Rockhampton: This market eased to June 2018, this market delivered
contracted in other areas, such as 2.7 per cent over 12 months to June 1.2 per cent growth, to a new median
Townsville, where more positive news 2018, to an annual median house house price of $410,000. The unit
was expected. price of $266,000. The unit market fell market eased by 2.1 per cent, like many
6.5 per cent to $286,000. Rents have unit markets around the state, to a
Toowoomba: This market has been generally trended upwards for the past median of $230,000.
a consistent performer and over the year despite a weak rental vacancy
year to June delivered 1.1 per cent rate of 4%. The vacancy rate has
growth to houses, to a new median been tightening for five consecutive
house price of $355,000. There are quarters, which is some good news.
significant infrastructure projects
scheduled for this region over the Mackay: Demonstrating the second-
coming years and this will drive jobs strongest regional growth, Mackay
and property growth. The REIQ is added 2.5 per cent to its median house
confident this market will continue on price, which grew to $335,000. This
its steady path. The unit market held market is benefiting from a jobs boom
steady, with no growth or contraction in the region and currently has the
and maintaining its median price of lowest unemployment rate in the
$305,000. state. Jobs are bringing people back
to Mackay and as a result, the rental
Fraser Coast: Another steady market is also tight, at just 1.9 per
performer, Fraser Coast grew 1.1 per cent. The unit market was the only
cent to an annual median house price dark spot in an otherwise blue-sky
of $318,600. This market has grown result for this former sugar-cane town,
more than 10 per cent over the past contracting 2.5 per cent to an annual
five years and confidence is returning. median unit price of $218,000.
The unit market is a standout for
growing 2 per cent over the past 12 Townsville: Townsville house market
months, one of only a few markets to fell 3.3 per cent, to an annual median
do so, to a new median of $255,000. of $324,000. However, local agents
report that sales are busy and there is
Bundaberg: This is the leader in considerable activity with transfers
regional markets, showing the coming into town. We will wait
strongest growth and adding 2.7 per and see how the data over the next
cent to its annual median house price, couple of quarters goes. A surprising
to $287,500. This is a solid foundation result was definitely the growth in
for this market which is finally edging the unit prices, which added 7.7 per
ahead of where it was five years ago. cent to a median of $280,000. Parts
The State Government is spending of Townsville’s property market are
almost $600 million in the Wide Bay performing well. In addition to units
region over 2018-19 which will drive delivering good growth, Thuringowa
further confidence into the market. Central (28%), Idalia (21.3%),
The unit market held steady, with no Rasmussen (19.9%), North Ward (15%)
contraction and no growth to maintain and Railway Estate (10.1%) delivered
its annual median price of $255,000.
PAGE 10 REIQ JOURNAL | OCTOBER 2018INDUSRTY NEWS Nominations are open! REIQ.awardsplatform.com REIQ JOURNAL | OCTOBER 2018 PAGE 11
Trust accounts - expectations, pitfalls
INDUSTRY NEWS
and how the Guide can help you
BY BRIAN BAUER, EXECUTIVE DIRECTOR,
OFFICE OF FAIR TRADING
Continuing our coverage The principal agent of the business records and record the required
on the important issue of is the only one who may operate a details. You should have trust-specific
trust account. If the principal enters policies and procedures in place to
trust accounts, this month’s into a partnership or if there are any ensure consistency and minimise any
article will focus on general changes to a partnership, or if they chance of error.
expectations we have of trust sell or dispose of the business, an
Any breaches of the Act are taken
account holders, some pitfalls auditor must audit the trust account
seriously and the OFT can inspect an
and how our Trust Accounts before any associated trust money
agent’s trust account records at any
Guide can become your ‘go can be transferred.
time.
to’ handbook for all trust Our trust account guide outlines
Trust money that may be unclaimed
account issues. a list of financial institutions in
or unidentified may fall under the
Queensland that have been approved
Public Trustee Act 1978, visit www.
Expectations by the OFT. No payments should
pt.qld.gov.au for more information.
be made from a general business
Trust accounts are governed by account to trust accounts and the The Guide
legislation and when an agent trust money must remain untouched
The trust account guide provides a
receives a client’s money, they are until the transaction is finalised.
summary of agents’ obligations when
required to immediately deposit the
An agent should contact their auditor operating a trust account and vital
amount into a trust account they
if they have found a discrepancy in information for auditors. The guide
operate.
the trust account and advise the OFT does not cover all the provisions. For
Trust accounts exist to protect how it has been rectified. copies of Acts and Regulations visit
everyone involved in the real www.legislation.qld.gov.au.
estate transaction. They are heavily Pitfalls
Agents who are unsure of how the
governed and failure to comply can Imagine receiving cash for a rental
law applies are encouraged to obtain
result in hefty penalties and even payment then rushing off to an open
independent legal advice.
loss of licence. For example, in for inspection. Later, you find cash in
Queensland, misuse of trust monies your pocket…but who is it from? And Visit our website www.qld.gov.au/
can lead to a fine of up to $130,550 what is it for? fairtrading for a digital copy of the
(individual), $652,750 (corporation) or trust account guide, alternatively
To prevent the above scenario, be
up to 5 years imprisonment. email OFT.Comms@justice.qld.gov.
sure to keep accurate accounting
au to obtain a hard copy.
PAGE 12 REIQ JOURNAL | OCTOBER 2018CHAPTER NEWS
Commercial Chapter Chair Rauhena Chase,
Amy Hamilton, and Committee member
Tony Hope.
Members tell us they want more!
The Commercial chapter Presenters were drawn from five local We also received interest from agents
government areas across southeast wanting to join the Chapter and add
had such a good response for Queensland and they shared a their expertise to the group. Needless
our inaugural event, Race breathtaking array of insights and to say our Commercial and Industrial
To The Top – Councils in information. Chapter is heading in a positive
the Commercial Space. You upward direction and no one can stop
Special credit to Chapter committee
us now.
should have been there, is all member Tony Hope from LJ Hooker
Springwood for tapping his network I have also had feedback from my
I can say! to bring together these amazing last article in the July Journal which
speakers. you may remember was addressing
Not only did we manage to fill the the Crossover Agent. Many have
room in the Cannon Hill building but Good news! The event has been such
come out of the woodwork! Thank
we also created a new buzz around a resounding success we are planning
you to those who have reached out,
commercial and councils, and the to make it an annual event!
asked questions and come to the
REIQ! Who would have thought! Members have shared with us that understanding that training is helping
Conversations flowed before and they want to be informed about in the commercial world.
after the presentations. Networking council plans. When we get feedback
galore! We attracted both residential Once again – my email is always
like that we’re happy to coordinate
and commercial agents from near and open so drop me a line as I would
more events to meet our members’
far (Cairns was our furthest). enjoy hearing from you:
needs. That’s what this chapter is all
rauhena@RnHcommercial.com.au
I am very proud of our team for about.
seeing a niche in the market and Rauhena Chase
Next year we may mix and match
creating this event to fill it. Goes Commercial chapter chair
the councils but that will be decided
to show that our chapter can cater closer to the day. It will be interesting
for local agents who may miss to see how their plans have come to
opportunities to take in content fruition.
which was shared on the day.
REIQ JOURNAL | OCTOBER 2018 PAGE 13PAGE 14 REIQ JOURNAL | OCTOBER 2018
EVENTS
Cyber Risk session,
presented by Aon
The risk of a cyber attack is so high that today the experts
say it’s not a matter of if, but when, you will be under attack
from someone with malicious intent. The destruction can
be devastating, shutting down your business and costing
you a hard-won reputation for reliability. Aon presented a
sensational session on cyber risks, with leading online-safety
experts sharing tips and information on how serious the
threat is and how to keep yourself and your business safe.
This session is now available online as a free CPD webinar in
the Member Resources section of REIQ.com. Go to CPD and
hit the “2018 CPD free options” button to access it.
REIQ JOURNAL | OCTOBER 2018 PAGE 15Book tickets now at REIQ.com/REALTECH
$250 members | $300 non-members
Exhibitor opportunities selling fast! Showcase your product to hundreds of
potential customers! Email: Events@reiq.com.au for information on how to be front
and centre at REIQ RealTech 2018.
PAGE 16 REIQ JOURNAL | OCTOBER 2018Turner's Tips!
TURNER'S TIPS
The one skill that has to be natural
words by kevin turner us talking. Observe and listen. as being confrontational and
They don’t care how much you certainly are not helpful if they are
know until they know how much used during negotiation.
Great agents excel as you care.
7 If you ask a question, shut up and
negotiators. The greatest skill 2 Understand where you are taking wait for the answer. Sometimes,
you can develop is the art of the conversation. Plan what you after asking a question,
negotiation. Doing the deal. are going to say and don’t shoot inexperienced negotiators will
from the hip. want to keep talking and in so
That is what will separate doing may talk themselves out of
a good agent from a great 3 Check the environment. By this I
the deal.
mean make sure the person you
agent. are talking to is in a comfortable 8 Silence is golden. As we said
position and relaxed so they can earlier, if you ask a question -
So, if being a first-class negotiator is hear your message. shut up and wait for the answer.
the goal, then good communication Sometimes an answer won’t come
4 Speak slowly so you can be
is essential. That could be what quickly because the person needs
understood and most importantly
people refer to when they say to think about the response. Be
don’t deliver too much information
someone is a ‘born salesperson’. Put patient and as hard as it is with no
at one time. It’s important, as you
simply they have learned the art of one speaking, just say to yourself
deliver your message, that you
communication and they like people, “the first person to speak loses”.
check to make sure the person
they like helping them and if that
you’re talking to is both hearing Many people forget that good
is genuine it will put people at ease
you and understanding. Ask: communication involves listening
and they will enjoy the experience of
”Does that make sense?” ”Do as well as talking. It could even be
working with you.
you agree?” “Do you have any argued that listening is the more
I recently had the pleasure of questions?”. important of the two: how can you
interviewing Daniel Gonzales from know what to say unless you first
5 Do not lecture. If you find you are
Realty Lane in Perth. After only a know what your audience wants or
starting sentences with ”you”, you
few years in real estate he has just needs to hear?
could be coming across accusingly.
taken the REIWA award as the top
Use inclusive words like ”we” “us” Kevin Turner hosts a free daily
producer in the state, just edging out
“our” and in doing this, you’ll be podcast for real estate agents,
Vivien Yap. That is no mean feat! In
creating a team environment. business owners and property
the interview he puts it down to those
managers – Real Estate UNCUT.
skills of communication mentioned 6 Other words not to use are "never",
Subscribe at www.reuncut.com.au
earlier. You can hear it in his voice. "always", "should" and "shouldn’t".
He practices what he preaches. These words can also be taken
Communication should always be
two-way. One-sided communication
(that is, you doing all the talking)
simply becomes a lecture.
Here is a great test you can apply
Opening Soon
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Here are some golden rules to
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1 We have two eyes, two ears and
one mouth. That means only 20%
of our communication should be
REIQ JOURNAL | OCTOBER 2018 PAGE 17REIQ calls on
Government: “Honour
your CPD promise”
WORDS BY FELICITY MOORE
“But educated real The REIQ is calling on the Queensland Government to deliver
on its commitment to introduce mandatory CPD for the real
estate professionals estate profession in Queensland.
are compliant
and adhere to REIQ CEO Antonia Mercorella said
the promise was made – in writing –
The introduction of mandatory CPD
is designed to improve the standard
best-practice in November last year and since then
we have been waiting to for the all-
of professionalism in all real estate
agents, throughout Queensland.
processes, which important detail – a commencement
date and the specifics of CPD model
Whereas at present, it is only
REIQ members that are required to
gives consumers a that will be introduced.
“We were thrilled when we received
undertake 100 points of professional
development training per annum.
good experience written confirmation of the Labor
Government’s commitment to
“Mandatory CPD means all real estate
professionals must maintain their
and improves our introduce mandatory CPD after
countless years of fighting for this.
level of education and professional
development. This, in turn, better
image,” But since this written commitment
given in November last year, we have
ensures they are compliant in
all areas of their profession,” Ms
received no further information about Mercorella said.
the specific details of the new scheme
The campaign to introduce
which is disappointing to say the
mandatory CPD has been ongoing for
least.
more than three years and is designed
PAGE 18 REIQ JOURNAL | OCTOBER 2018FEATURE
to give consumers greater confidence the poor reputation that consumers introduced for licensees in 2007 and
in all real estate professionals. have formed through interactions for sales representatives in 2009," Mr
with the unprofessional few who Bushby said.
“Our remit, as the peak body for real
fail to maintain their professional
estate professionals, is to improve the "For the five years up until and
knowledge,” she said.
reputation of real estate agents with including 2009, the average number
consumers. The REIQ’s position is that education of written concerns raised by the
is crucial for compliant, professional public to the Real Estate Institute of
“We know that when consumers
agents and the membership body Western Australia (REIWA) was 143
have a bad experience they share
requires all members to complete 100 per year with a high of 196 in 2009,"
it with family and friends. This
points of CPD each year. he said.
contributes to the ongoing low regard
consumers have for our profession,” Throughout 2017 Ms Mercorella and "In 2010, the year immediately after
Ms Mercorella said. REIQ Chairman Rob Honeycombe mandatory CPD was introduced for
met with all independent MPs and sales representatives, the number of
“But educated real estate
garnered unanimous support for written concerns dropped to 58 – a
professionals are compliant and
mandatory CPD. 70% reduction over the previous year.
adhere to best-practice processes,
The average for the three years to
which gives consumers a good “This is a common sense measure
2012 has been 55 – or a 61% reduction
experience and improves our image,” that most can see will raise the
from the five years 2005 to 2009," he
she said. standard of professionalism and
said.
improve the quality of service,” Ms
Numerous Legislative Requirements
Mercorella said. CPD in Queensland
“Mandatory CPD is an important
“It will also bring Queensland into Last year, the REIQ investigated all
consumer protection measure and
line with many other states that disciplinary proceedings against real
will help ensure that all real estate
have already, or are in the process of, estate agents since 2013 and found
practitioners are educated about
introducing mandatory CPD.” that not once has an REIQ member
recent legislative developments, risk
been found guilty of breaching the
management and compliance and The case for mandatory CPD in real
relevant legislation.
best practice. Real estate is complex estate - REIWA
and there are more than 40 pieces of “This is compelling evidence that
In 2013, then-President of REIA
legislation that govern the profession speaks to the power of education,” Ms
Peter Bushby laid out the case for
and impact real estate transactions. Mercorella said. “Ongoing education
mandatory CPD in real estate.
teaches agents how to operate
“We know the majority of responsible
"Western Australia provides a good professionally and within the law and
working real estate agents support
case study of the impact of mandated this is a win for consumers.”
this. They are tired of labouring under
CPD. In WA, mandatory CPD was
REIQ JOURNAL | OCTOBER 2018 PAGE 19REIQ looks to the future
with new strategy
WORDS BY ANNA GREEN
The REIQ has embarked on a three-year strategic plan to
change the direction of the organisation, with a strong focus on
modernisation and improved functionality of all our operations.
Change might be ahead, but the functionality which gives them greater
strategic plan will honour the original control over the way they interact with
objectives of the REIQ, of raising the their member body.”
standard of professionalism among
A process of thorough consultation
real estate professionals, improving
with staff and the zone chairs was
the public’s opinion of real estate and the navigation experience
followed to determine the essential
agents and influencing and shaping for users and members will be
goals and implementation of the
legislation that affects the real estate streamlined.
strategic plan.
sector.
“We are always striving for innovative
The strategic plan includes plans to
“This year we celebrate the centenary ways to enhance the online experience
outsource non-core business services
of the REIQ, and it is a perfect for our current and potential
and partnering with specialists to
opportunity to do some stocktaking members,” Ms Mercorella said.
continue to deliver those products and
of our successes and to make sure we
services. This approach of strategically E-learning training platform
are fit for growth as we propel into the
partnering with experts enables the
future,” REIQ CEO Antonia Mercorella The REIQ has launched a new
REIQ to achieve greater operational
said. e-learning platform that offers an
efficiencies.
enhanced e-learning experience for
Ms Mercorella said a key factor
“Automation and the flexibility students. The new market-leading,
that has allowed the organisation to
of online offerings has enabled mobile-responsive platform offers
flourish for a century has been its
us to consolidate some roles interactive enrolments, interactive
ability to continually self-evaluate its
and responsibilities. The new learning modules and interactive
role and operations and to adapt to
organisational structure delivers assessments as standard features.
changing times and circumstances.
products and services that are more
The student portal enables peer-to-
The essential focus of the strategic responsive and have a greater online
peer connections as well as student-
plan is to make the most of presence,” she said.
to-trainer connections in a seamless
opportunities offered by new
“We have a responsibility to our and engaging digital environment.
technology and automation to deliver
members and stakeholders to
greater efficiencies over the next three The new platform makes it easier
ensure we are running a sustainable
years. Processes will be streamlined for students to engage with the
and viable enterprise. We are a
and the delivery of products and REIQ. Students are able to complete
membership organisation, owned
services will be modernised. assessments online and save to the
by our members, so we have a
cloud. They are able to log out and
“We are always advising our members responsibility to be continuously
return to the same place multiple
to remain on top of their game by striving to ensure every dollar is spent
times before submitting their final
reviewing the way they do business wisely.”
work and they no longer need to
and by making the most of available
Digital footprint download the assessment work,
technologies. It’s time to put our
complete it offline and then upload
money where our mouth is,” Ms The REIQ will be improving its
the assessment.
Mercorella said. digital footprint over the next couple
of months by reviewing the official “The new platform allows students
“Digital technology has advanced the
website and members’ portals. The a virtually frictionless e-learning
way membership organisations are
various landing pages and portals will experience and vastly improves their
structured and resourced. Customers
all be getting a makeover to improve engagement experience with the REIQ
now expect high levels of self-service
their appearance and functionality, training,” Ms Mercorella said.
PAGE 20 REIQ JOURNAL | OCTOBER 2018FEATURE
Customer Service Centre Looking forward
The establishment of the One Call One As the REIQ celebrates a centenary
Solution customer service centre will of representing real estate agents
be another tangible outcome of the and the needs of the profession to
strategic plan that will significantly Government, it is fitting that we
improve members’ interaction with spend equal time looking forward and
the REIQ. The centre will be staffed planning for the next 100 years.
by people who are trained across the
The new strategic plan involves
entire breadth of the business and will
a range of pillars that deliver
be empowered to deliver a solution,
innovative growth opportunities to
no matter what area of the business a
the organisation and will ensure that
customer is calling about.
it remains a dynamic and successful
“Our new customer service centre organisation long into the future.
will deliver all the answers from one
person without the need to transfer
calls to different departments,” Ms
Mercorella said. “This will result in a
better customer service experience.”
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REIQ JOURNAL | OCTOBER 2018 PAGE 21100 POINTS
2018 REIQ BUSINESS
BROKERS FORUM
The REIQ Business Brokers Forum –
a comprehensive program to help build your business.
Date: Thursday, 8 November
Time: 9.30am – 2.00pm
Venue: REIQ, Level 1, 50 Southgate Ave, Cannon Hill
Cost: $120 individual members | $150 non-members
Registration opens at 8.30am with tea and coffee available. Morning tea & a light lunch included.
Business sales - what could go (legally) wrong Australian’s attitudes to business ownership
Matt Couper & Kelly Pain | Carter Newell Lawyers Dennis Midgley | Seek Business
Getting to deal settlement faster and easier A properly listed business is 80% sold
Greg O’Reilly | thedocyard Matthew Hunter & Stephen Gibson | McCarthy Durie Lawyers
Book your tickets at reiq.com/businessbrokers
PAGE 22 REIQ JOURNAL | OCTOBER 2018EVENTS
Western Suburbs
Zone Event:
The expertise and insights from a panel of three
leading REIQ members were the topics of the day
at the REIQ Western Suburbs Zone Event in the
beautiful surrounds of the Indooroopilly Golf Club.
Panelists were former REIQ Salesperson of the Year
2017 Anne Fidler (Belle Property Wilston), Thanh Ngo
(Ray White Forest Lake), Stewart McLeod (Ray White
Indooroopilly).
Lively discussion and some curly questions from
panel moderator John Knight (The Business Depot)
entertained the attendees, who shared feedback with
the REIQ that this was one of the most entertaining
zone events yet!
Upcoming REIQ Zone Events & CPD
Date Zone Breakfast/Lunch CPD Venue
19 September Sunshine Coast 12:00 noon start 2.00 - 3.30PM Noosa Springs Golf Club
20 September Redcliffe/Caboolture 12:00 noon start 2.00 - 3.30PM North Lakes Golf Club
11 October Northern 12:00 noon start 2.00 - 3.30PM Kedron Wavell Services Club
24 October Gold Coast 12:00 noon start 2.00 - 3.30PM Parkwood International
18 October Western 12:00 noon start 2.00 - 3.30PM Indooroopilly Golf Club
24 October Gold Coast 12:00 noon start 2.00 - 3.30PM Parkwood International
25 October Southern 12:00 noon start 2.00 - 3.30PM The Glen Hotel
7 November Gladstone 9:00 am start The Oaks - Gladstone
14 November Mackay 12.00 noon start 2.00 - 3.30PM Harrup Park Country Club
16 November Yeppoon 9:00 am start The Strand Hotel
21 November Eastern 12:00 noon start 2.00 - 3.30PM Redlands RSL
22 November Ipswich 12:00 noon start 2.00 - 3.30PM Brookwater Golf Club
28 November Toowoomba 12:00 noon start 2.00 - 3.30PM Picnic Point Events Centre
5 December Fraser Coast 9:00am start Hervey Bay Boat Club
6 December Bundaberg 9:00am start The Waves
REIQ JOURNAL | OCTOBER 2018 PAGE 23Are KPIs important?
BY SAMARA BEDWELL, PROPERTY MANAGEMENT SUPPORT SERVICE
Yes! tough economic times, it may suffice As property manager we are all time
to focus on landlord retention as a poor but that doesn’t mean that KPIs
Regardless if you are the team leader,
goal. However, during flourishing shouldn’t be time bound.
principal or property manager, it is
times, you might expect a greater
important to set goals and targets The most effective KPIs are measured
amount of new business.
and to monitor the performace of key against a time factor, such as targets
specific areas. Setting these KPI”s One way of measuring a KPI could be to be met per day, per month, per
will enhance your performance, the to take the average figures for each quarter and annually. Each KPI will
business performance and drive the month and use that as a barometer be different and should reflect all
bottom line up. for the norm. Every six to 12 months, time phases.
you could increase KPI targets by
A principle to follow with setting When setting up your KPIs follow
how much your business has grown.
KPIs for yourself or your business is the smart principle and you’ll be the
called SMART and I will explain it KPIs need to be Attainable and master of your domain in no time.
below: should be a motivator. Ensure the
Here is a few quick tips:
KPIs are not set too high to be
Specific KPIs mean being able to ask
demoralising, but also not too easy • Ensure KPIs are regularly
questions like “What has to be done?”
that they cruise along. monitored through meetings. Don’t
and “What outcomes will there be?”
set and forget them.
For example, you could set specific Relevant KPIs are a must. It’s
minimum arrears rate such as 1% . important to set KPIs that work • Reward yourself or your team
towards growing your business and when KPIs are met
Specific KPIs are much easier to track
align with your goals. This will mean • Encourage each other.
than, simply saying “you must have
having a clear idea of how you want • Ensure there is a clear
low arrears at all times”, and there
your business to develop over the understanding.
will be less room for confusion, as the
short, medium and long term. For • Be mindful that KPIs may change
expectations are more clearly defined.
example, do you wish to reduce over the course of your business’s
Measurable KPIs are next. You may complaints, increase the return on life, so ensure you regularly review
wish to measure performance; how profit or expand your market reach? KPIs.
many applications are processed per Setting & tracking KPIs that have
day or how many new landlords are no relevance to what you set out SMART KPIs can help drive your
brought in. to achieve is a waste of time and business towards greater success.
resources. Implementing them properly will
Also be mindful that KPIs may
ensure your business goals are met.
change over the course of your
business’s life. For example, during
PAGE 24 REIQ JOURNAL | OCTOBER 2018TRAINING
New managements and
the “other agent”
BY KIM COFFEY, PROPERTY MANAGEMENT SUPPORT SERVICE
A property owner can change agents agent) to provide the same services However, this would be a general
when they choose to, regardless of that the client is now appointing the warning only. The new agent would
whether the property is vacant or new agency to provide. This would not attempt to go so far as providing
tenanted. They do however have to of course include checking to ensure legal advice to the clients about the
give the current managing agent the that the new agent’s appointment will specific impacts or costs of breaching
correct notice, which for an existing not commence before the end of the their contractual agreement with
PO Form 6 would be 30 days notice. notice given to the current managing another agent. The client should
The agency losing the management agent. discuss that with the other agent,
is not obliged to agree to shortening and/or seek their own legal advice
Agents are not to solicit or accept
that 30 days, but can reach an about their position.
appointments from clients if they
agreement with the client if they wish
know (or should have known) that the When signing up a new management
to do so. The current agent continues
client does already have an existing using the REIQ Schedule with the
to provide management services as
appointment with another agent for PO Form 6 (from Realworks), in part
usual, until the end date of the notice
the same services. The exception to A, the first and second boxes would
period. Beyond that date, the agent is
this is if the agent has first given the be ticked to show that the client
no longer the appointed agent.
client a written statement, warning acknowledges that:
When gaining a management, care them that if they do appoint a second
1. The agent has checked if the client
must be taken to ensure compliance agent to commence whilst the first
has another agent appointed, and
with PO Regulation 21. Because of is still appointed, that they might
this regulation, agents gaining a have to pay commission under both 2. The client does not have
management are required to take existing appointments, or may have another agent appointed (as at
reasonable steps to find out if the to pay damages to the other agency the commencement of this new
client has already appointed any for breaching the terms of their appointment).
other agency (including an onsite appointment contract with them.
REIQ JOURNAL | OCTOBER 2018 PAGE 25Business
Development
Day for Property
Managers
REIQ’s popular annual event. At the Business Development
Day for Property Managers you’ll learn from some of the
best in the business about:
• Valuing and financing rentrolls
• Rentroll acquisition: The pros and cons and taking your
rentroll to the next level
• Zero to Hero - Starting at zero from home and growing
the business to a shopfront
• PO Form 6 - Get it right and know what’s a commission,
a fee and reimbursement of expenses
• Build your digital profile
• Creating a culture for success and service across a
property management business
• Scripts and dialogues to win the management
• and lots more....
BRISBANE 50 Southgate Ave Cannon Hill
FRIDAY 16 NOVEMBER 9am- 3.30pm
Members $200 | Non-member $250 (inc GST)
For more information P. 3249 7347
E. courses@reiq.com.au
100 POINTS
PAGE 26 REIQ JOURNAL | OCTOBER 2018You can also read
