Patty Scarafile, CEO and president of Charleston’s Carolina One, talks about steps her company is taking now to be well positioned and stronger when the market turns.

What areas are you still investing in despite the economic climate and why?

We are still investing in new initiatives. Although we have reduced our expenses by 45% in the last two years, we have tried to make each hard decision based on what is necessary to reduce expenses in today’s environment but with our five year vision clear. We believe it is necessary more than ever to continue to position ourselves so that when this market recovers we will be well positioned and stronger. Some examples:

  1. We have integrated the “Ninja Program” into our company. It teaches our agents a system to make people who know them, like them, and trust them the center of their business. We have had Larry Kendall speak at a company meeting, offered two Ninja CRS courses, and added a trainer to deliver weekly coaching in every office within the last year. It has kept our agents actively engaged in the business, held them accountable, increased their business both short term and long term and has brought energy to our company.

  2. We have closed five offices and merged them into other existing offices, using this opportunity to move toward our vision of the office of the future.

  3. We have added someone whose sole job is to solicit REOs, whose compensation is totally variable. We have added both a rental department and short term vacation rentals. Each of these has required some small capitalization, but the investment will quickly turn to additional revenue sources.

  4. We are investigating new options for our internet site to position us well technologically for the future.

In 2005 and 2006, our greatest challenge was complacency. In 2007, it was adjusting to the change in the market. In 2008, 2009, and 2010, we think our greatest opportunity is to move through these current challenges and still be able to move toward our long term vision.

What skills will the real estate agent of the future require? The real estate manager?

In order to succeed, we think the agent and the manager of the future must be smart, professional, business oriented, technologically adept, and very service oriented. Good verbal and written communication skills will be essential. Relationship and people skills will continue to be necessary, but alone will not be enough. We will need to be organized, knowledgeable, and proactive, and we need to be able to control our time and our environment (rather than being reactive, as many are today). We will assume the role of consultant and trusted advisor, whether it’s the manager with his agents or the sales associate with his clients.

What will the physical real estate office of the future look like?

We believe the ideal real estate office of the future will be on one floor and a combination of private/semi-private space (typically arranged around the perimeter of the office) with large open interactive areas for virtual agents and where agents can meet with clients in a more informal environment than a traditional conference room. Historically, we have worked on a model of 100 sq. ft. per agent (including common areas). We see that model shifting to approximately 60 sq. ft. per agent.

Interestingly, we have taken this time of expense reduction, which has necessitated merging some offices together, to move toward that model. It has added energy and excitement to these office mergers. We have removed workstations and created large open areas with high top tables and chairs, comfortable and intimate seating areas with sofas and chairs, and installed a large flat screen TV that runs current national news. This is the area where sales meetings are held (the TV is used for the Power Point meeting presentations) and office training. The agents seem to love it. It creates a high tech environment and facilitates interaction, energy, and enthusiasm.