Michael Hickman, President & General Manager at Seven Gables Real Estate in Tustin, CA shares his knowledge on the future of real estate and how the realtor of the future must focus on data, negotiating, customer relationships and more.

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

Our business, both internally and externally, has been redefined for us by the consumer and we as an industry are just now in the midst of adjusting. Some will adjust by listening and implementing and others will try to adjust but it will be too difficult to modify their current business model. That's when consolidation will occur. We operate and endorse the principal of "Shift Happens" and through this perspective, we believe we have and we will continue to shift our model through well planned and timed strategies to a place on the "value line" where the consumer will clearly differentiate us from the past generations of real estate professionals. The realtor of the future must be knowledge based with an emphasis on data, trained negotiating skills, financial analysis, E-Commerce and Customer Relationship Management. People skills are critical but no longer at the top of the list. Techniques such as swarm marketing through social networking and blogging must be implemented. The broker of the future is challenged to build a brand that the consumer will identify with as well as the agent. Consumers typically follow the agent and agents as whole, do not manage their past customer base well. Therefore, the challenge of building a brand that both agents and consumers will identify with is part of the "shift". Looking forward, brokers will certainly embrace (gladly) the reduction of brick and mortar models of the past. Yes, technology allows for smaller, high tech knowledge centers, but at the core of our beliefs should and will be the relationship with the consumer and the enhancement of the relationship through technology. We face the enormous task of reinventing an aged business while retaining the core belief of relationship first. It is our belief that at the consumer will embrace a knowledge based, full time agent with the skills commensurate with their level of income. The mood of the consumer is clearly accountability and we will have to be transparent and accountable at every turn. Additionally, most firms provide little or no management training. At the core and fundamental levels is the need to coach managers with a certain 'holistic' approach to their approach and implementation. This will involve changing for the long haul, the manner in which our managers manage and their effectiveness on the agents they touch.

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

In our view, the office will be a regional office with small, high tech offices attached to the "hub" or regional office. Each location will be equipped with high tech communications, including video connectivity with clients, agents and all management. Additionally, the move to smaller offices can not reduce the amount of energy/synergy that is needed and required in a sales oriented organization. While the offices will decrease in square footage, communications must be enhanced and 'face time' with agents/management can not be reduced.

What gaps do you see between your current sales agents' technology capabilities and the typical customers you will be working with this year?

This can only be measured by lost revenue or market share decrease if we are not current with technology. Perhaps the easiest way to begin this process of assessing and measuring the technology gap is to implement a Customer Relationship Management program and measure the success of the program from implementation. This may certainly be met with hesitation from the agents, but it will define the "shift" that has or needs to happen in our organizations. I personally don't believe the technology gap is that great. The fact is the consumer has virtually the same information we as agents and brokers have at a click of a mouse. What we have not done effectively is to illustrate to the consumer what else we provide as real estate professionals.

If you could re-invent your company in any way possible, what would it look like?

As a 32 year old company, I would retain the flagship operations, focus on highly effective branding of new operations for the consumer benefit and knowledge, reduced office space, and establish separate companies to meet the needs of the consumer. Internally, I would maintain the Independent Contractor status, have high entry level barriers/standards, hire the new agents to meet the demographics of the market they serve using a matrix of generational information for the radius surrounding the office. The agents would have stock option opportunities, required to brand effectively and be part of a collaborative effort to manage.

Where is your housing market in terms of “the bottom,” what do you forecast for 2009 and why? How are you preparing for it?

We have used the "funnel effect" and first looked at national information, state information, regional information and finally local information. As a firm in Orange County , California , the national market according to Fannie Mae looks promising for 2010 with an increase in sales in the forecast. On the state level, according to the California Association of Realtors (CAR), numbers of sales were up 84.9% in December of 2008 over December of 2007. County wide, values are declining with the million dollar plus market now being affected. However, there are "pockets" within communities starting to show signs of stability based on absorption rate, sales prices, sale prices per square foot and list price to sales price difference. We are looking forward to 2010 with an eye on the volatility of 2009. We began preparing in 2007 and 2008 by reviewing all departments, companies and personnel for effectiveness and efficiencies that we could set into immediate action. We view the current markets as the golden opportunity to grow, place efficiencies in place, expand our markets and implement new technology that was so sorely needed. In other words, we are countercyclical and now is the time to invest in our future."