Hoby Hanna and Dermot Buffini. Photo by AJ Canaria.
RISMedia’s 36th Annual CEO & Leadership Exchange kicked off Wed., Sept. 4 with two powerful keynote addresses that set the stage for an action-packed two-and-a-half-day event at the Mayflower Hotel in Washington, D.C., that brought together 400-plus brokerage leaders and industry executives intent on exchanging ideas and best practices for the betterment of the industry.
Headlining the iconic event, Buffini & Company CEO Dermot Buffini encouraged attendees to focus on the opportunities rather than the challenges during his opening keynote address, “Leading Above the Line to Grow Your Bottom Line,” while Howard Hanna Real Estate Services’ CEO Hoby Hanna shared strategies for navigating market challenges—emphasizing core values, innovation and strong leadership—during his speech on “The State of Real Estate: Insights for Navigating Today’s Market.”
Underscoring the need for adaptability, innovation and a focus on the customer experience, Buffini and Hanna agreed that opportunities abound for those who are serious about successfully leading their companies through today’s complex market.
Optimizing your business, life, gifts and strengths
Encouraging attendees to adopt an above-the-line mindset, Buffini explained that if you’re not leading above the line, you’re not impacting the bottom line.
But how do you know which side of the line you’re on?
According to Buffini, below the line represents the things that prevent you from achieving your goals or playing to your strengths—whether you’re an agent, a broker or even a brand.
“Below the line, to me, is where the chaos is. It’s where the toxicity is, where the drama is. But it’s part of the deal, right? And as leaders, it comes with the territory,” said Buffini, pointing to the plethora of below-the-line headlines related to high mortgage rates, low inventory and the NAR lawsuit that have inundated the industry this past year.
Drilling down further, Buffini noted that 47% of agents (or 700,000) sold zero homes last year, highlighting the fact that real estate is also dealing with some below-the-line agents, productivity and results throughout the industry due to a large number of agents being recruited when the market was hot.
“We’ve got an issue with folks in this business who aren’t prepared for these seasons,” said Buffini—and added that this has to change. “We have to fire them up, we have to train them, and we have to get them in the game.”
In fact, that’s the ultimate goal for the team at Buffini & Company as they say they will double down on their commitment to helping real estate professionals get above the line so that they can optimize their business, their life, their gifts and their strengths.
And while the industry has knocked real estate practitioners down recently, Buffini is encouraged by the window of opportunity he believes exists.
“I think there’s a window of opportunity right now that’s going to close, and we have an opportunity to raise the bar and raise the standards,” said Buffini. “The opportunity right now is to raise the bar and change the game, because what’s going to happen as soon as those rates start dropping again? Are (agents) going to be prepared? Are they going to be ready, or are they just going to be blown along by the winds of the market?
“The pros always stay the pros,” added Buffini. “As we change the game, I hope we get the amateurs either into the game or out of the game—that we rally around those 700,000 people and say, ‘Are you in or are you out? And if you’re in, what are you willing to do? What are you going to commit to?’”
Bringing in the winners and helping people win is the name of the game today, according to Buffini, which all comes down to raising the bar to professionalism.
Stepping up to the plate in a big way, insisting that the people they coach and train make a bigger commitment to professionalism, Buffini & Company recently launched its Certified Full-Service Professional (CFSP) designation—an online training and certification program where agents can learn how to articulate their value—created in large part due to the erosion of skills among today’s agents.
“We’ve got to raise the bar,” said Buffini, referencing the 5,000 agents who have already jumped in because they want to be more professional. “We want them to go beyond the customer expectations and deliver an industry leading experience that really wows their clients.
“The goal is to get that professional mindset, to get them out and about thinking, talking, working and communicating like professionals.”
While doing everything you can to remain above the line is the only way to ensure you don’t get left behind, Buffini cautioned that the below-the-line stuff is always there waiting for you.
“It’s always going to try and knock you down to below the line because that’s where all the problems are,” concluded Buffini. “We’ve coached over 3 million people in our 27 years, and this is the No. 1 thing we dig into when we coach somebody. What are you trying to do? And it’s not just business. It’s what you want the business to do for you and your life and your loved ones and your kids.”
A blueprint for success
The positivity continued as Hanna took the stage with an important overview of the state of today’s residential real estate market, offering a brokerage executive’s perspective on both the challenges and opportunities that lie ahead.
“While it’s been a challenging couple of years for a lot of different reasons, there are some tailwinds coming our way,” explained Hanna, who pointed to the company’s longevity in the industry as a unique benefit given the firm has experienced its fair share of market cycles since its inception in 1957.
Like any family-owned and -operated company, the stories continue to get handed down from generation to generation—providing a blueprint for success, no matter the market, he said.
In fact, Hanna highlighted a number of unique programs the company has utilized throughout the years to differentiate the firm within the market, including a 100% money-back guarantee and a buy-before-you-sell mortgage.
“We have some of these pillars that we’ve created, these concepts that have been handed down, and we’ve been able to grow significantly when markets are challenged,” said Hanna. “This is a market where we took our whole team and said, ‘Hey, how do we take this event coupled with our response and have a great outcome and a great opportunity?’”
While there’s a robust demand in the marketplace, according to Hanna, lack of inventory is the biggest challenge at the moment.
But it’s also an opportunity.
“Part of this change with how we have to be better disclosed and transparent (with) where the fee and commission is, I think listing companies will grow because of it,” said Hanna. “The consumer is going to challenge us to say, ‘What is our true value proposition? What are you going to do for that 5%, 6%, 10% commission? What are you doing to market it?’
“And I think a lot of good companies, the education, the training, the amount of work they put in with their agents to really list the buyer and demonstrate value (which we never did before), is going to be a big change.”
Hanna continued by explaining to the audience the importance of looking internally to determine the best and most effective strategies to guide agents through the current environment—with knowing and staying true to your core values topping the list.
“The core values of our company might be different than yours, but that doesn’t make mine better,” stated Hanna, who cautioned attendees against constantly reinventing themselves based upon the newest entry to the field or the latest competition. “That’s not holding onto your core values,” he added.
“Do you have core values, and does everybody in your organization understand them? Are they reinforced? We think that’s important.”
Hanna also stressed the importance of training, technology and strategic partnerships in driving growth and profitability—raising the bar within the industry.
“So many of you in this room (are) hearing (that) there’s a flight to quality of consumers, where buyers are going to look for the people that have the value proposition, that embracing this change—whether we like it or not—is going to allow the best companies to grow and improve, and the agents to grow and improve,” said Hanna, who added that he believes that the good companies are going to become stronger.
“I challenge our industry,” he said. “Do we really have leaders, or do we have daycare sitters, babysitters in our branches, in our offices? Are they motivated to be entrepreneurs and grow their business and inspire and communicate and lead?
“Sometimes leaders are born, and sometimes we have to develop them, and we have to make a commitment financially and with time to make people better leaders in the organization.”
Looking forward, Hanna is excited about what lies ahead.
“If you look at the pros coming in the market, I think 2024 is going to finish strong,” concluded Hanna. “And I think it’s about time we have a nice little run again in 2025/26 and get the industry back to where it needs to be.”
