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MIBOR REALTOR® ASSOCIATION

STRATEGIC PLAN 2016-2018

A professional trade organization, MIBOR exists for the following purpose, with a clear

vision toward a simple mission.

CORE PURPOSE: To provide a professional, supportive environment for MIBOR

members.

VISION: That REALTORS® work in an environment that enables prosperity.

MISSION: Foster a healthy and orderly marketplace for members.

ROLE: To provide benefits and services to and on behalf of its members

that they cannot reasonably do for/by themselves, nor can their

company, nor can their franchise.

PROLOGUE:

REALTORS® are professionals engaged in buying, selling, exchanging, renting, leasing,

counseling, advising, appraising, and developing real estate for others for

compensation. Individuals seeking to provide those services are first licensed by the

State of Indiana and then agree to a higher standard of practice when they join the

REALTOR® organization. Several entities: the agent, the company and in some cases,

the franchise, market those services to the consumer. Real estate transactions are

complex. The ideal real estate transaction involves the professionalism of a

REALTOR®. In the interest of an efficient, satisfying transaction, consumers should use a

REALTOR®. At this point in history that premise is being challenged from the standpoint of

the relevancy of a REALTOR®.

The REALTOR® organization is structured by way of a three-way agreement creating a

national, state and local association. The functions and value proposition of each of

those levels while initially distinct have become duplicative and in some cases blurred

more recently. In an effort to simply provide value, the associations have enabled

competition, either inadvertently or purposely. That competition now extends to the

listing services owned by associations.

A professional trade organization, MIBOR exists for the following purpose, with a clear

vision toward a simple mission.

CORE PURPOSE: To provide a professional, supportive environment for MIBOR

members.

VISION: That REALTORS® work in an environment that enables prosperity.

MISSION: To foster a healthy and orderly marketplace for members.

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MIBOR leadership has emphasized its intent to provide order and cooperation in the real

estate industry. The following set of assumptions developed in 2014 provides a background for how

leadership views the landscape of the industry in our market over the next three years –

2016-2018. The objectives and strategies will be undertaken based upon these

assumptions being presented in that timeframe. 1. REALTORS® add value to a real estate transaction although the historic value

proposition is shifting.

2. Adherence by REALTORS® to professional and ethical standards will continue to be

inconsistent and challenging. 3. Diversity and demographics of real estate ownership and the industry continues to

change. Therefore special focus needs to be placed on inclusion.

4. Economic development that results in the creation of new jobs will have a positive

impact on real estate.

5. Association, broker, and listing service consolidations and polarization will continue. 6. Successful REALTORS® will adjust to changing expectations of the consumer and

each other. .

7. Housing stock for median incomes will continue to be available within the greater

market area and a deficiency of workforce housing will continue to exist in some

pocket areas.

8. Real estate business models will continue to evolve and new models will emerge.

9. Traditional cooperation and compensation will be challenged and most likely

change.

10. Technology, and especially mobile applications, will continue to impact the industry.

11. The segment of consumers who choose not use a REALTOR® may grow.

12. First point of contact by consumers continues to be influenced and/or captured by

portal/technology-based companies.

13. Consumers, technology, and third party entities will exert downward pressure on

commissions.

14. Distressed properties, short sales, and foreclosures will continue and will impact the

market.

15. Quality of public education will continue to impact job creation, housing values, and

desirability of locations. .

16. There will be increased pressure on our industry through a variety of taxation

proposals.

17. The average age of new members will be lower than the average age of current

members.

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18. Energy costs, access to public transportation, property taxes, crime, commute time,

and job opportunities will affect where people decide to live.

19. Lending practices and guidelines will continue to have a major impact on the

market.

20. Legislative actions impact the real estate market.

21. Communication is becoming more impersonal, digital, and instantaneous.

22. Consumers will experience difficulty in lending, including tougher credit requirements.

23. Member turnover will continue to increase at a historical pace: 45% every three

years.

24. Percentage of agents doing mega business will continue to grow.

25. The agents who are selling today will continue to sell more; productive agents will

continue to be more efficient.

26. REALTORS® will struggle to keep up with technology.

27. REALTORS® are no longer the first or singular stop for info for the consumer.

28. Transactions will be more difficult, taking longer to close.

29. More government intervention will occur.

30. Home ownership rates will decline.

31. Future availability of mortgage money is uncertain

32. A higher barrier of entry into real estate industry will exist.

33. Generational differences will impact home buying practices.

34. Off market listings will continue.

35. Value propositions of associations and brokerages will be scrutinized.

36. Uncertainty of value of REALTOR® brand will increase.

37. Facing a shortage of lots in the region.

38. The widespread usage and analytics of “big data” will impact the industry players:

brokers, agents, consumers.

39. The presence of mega investors, REITS, Hedge Funds, etc., will continue to impact the

real estate market of the region.

ADDITIONAL ASSUMPTIONS (mostly in agreement with the NAR Danger Report):

Marginal agents destroy reputation

Regulatory tsunami hits Decision-making structure is a hindrance

Leaders not in unison with fast-paced world

Entry by a new player Unclear end result

The three-tier structure is a liability

Too many uninformed decisions are made

CHARACTERISTICS OF A DIVERSE MEMBERSHIP:

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The importance of relationships between REALTORS® and clients will continue to

be in demand.

New members enter MIBOR with a higher level of technical competence.

In general, REALTORS® (members) want to meet or exceed consumer

expectations.

Not all REALTORS® are as professional, meaning qualified, skilled, proficient,

character, as consumers and their contemporaries expect them to be.

GOAL # 1: A healthy, vibrant real estate market exists

throughout the central Indiana region.

Objectives:

A. Maximize the effectiveness of those organizations whose mission it is to attract

and retain jobs, promote capital investment, increase wages and develop the

labor force. (Economic Development)

B. Maximize the level of support from elected and appointed officials for the

components required for economic vitality and community wealth.

(Government)

C. Maximize the effectiveness of those organizations whose mission it is to develop

healthy communities. (Community Development)

D. Maximize awareness about the issues that impact the quality of life in

communities, and property values. (Consumers)

Long term Vision: Regional prominence and prosperity and connectivity, with

individuality of communities that should focus on

Education Jobs

Mass Transit Crime

Land Use

Demographics

Key Obstacles:

Lack of diverse industry Weak educational systems

Ineffective public sector leadership (including emerging but still

inadequate regional cooperation)

Inadequate transportation systems and planning

Shortage of skilled educated workforce Tax Structure

Anti-development actions

Shortage of workforce housing

REALTOR® lack of knowledge and apathy

Regional cooperation and planning

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Measurements: Focus will be on: return on investment, including a

definition of healthy market.

A. Job changes employment by sector B. Wage base and household income

C. Growth in labor market D. Housing Starts

E. Housing sales

F. Assessed value of property

G. Commuting Patters

H. Housing Stocks and Price Points

a. Value and appreciation of property I. Donations to REALTOR® Foundation

J. Capital Investment

K. Unemployment rate L. ED Stakeholder Survey

M. Media exposure

N. REALTOR® Foundation publication readership rates and social media

engagement

Environmental Factors

1. Consumer Confidence 2. School Performance

a. Graduation Rates

b. Attainment ratio: US Census data by county, 2000,

http://www.hoosierdata.in.gov/nav.asp?id=116

3. Change in the number of real estate transactions in Indiana

4. Foreclosures

Prelude to the Strategies:

MIBOR’s involvement in the legislative issues impacting housing and communities’ quality

of life dates to the early beginnings 100 years ago. In the early ‘90s, MIBOR initiated a

concentrated political affairs effort to be proactive in understanding and influencing the

impact that local regulations were having on the real estate industry.

The effort included its first full-time lobbyist who focused on monitoring issues, apprising

members of regulations, fundraising for RPAC, and influencing local legislation in the

Indianapolis MSA. During this time MIBOR began to realize the impact that economic

development has on the real estate industry as well. From an early project in the

nineties, we learned about commuting patterns of workers in central Indiana. Those

patterns support the need for strong regional efforts in attracting and retaining

businesses. Over the years, MIBOR and its government affairs department have grown. Today,

MIBOR membership encompasses 13 counties with approximately 6,600 members and

provides BLC® listing service to 15 counties. The member and issues advocacy

department today has a full time lobbyist, two full time political/community specialists,

and is preparing to evolve a position into a research, statistician to gather and provide

fuller level of business intelligence planning. Local government in MIBOR’s jurisdiction now

includes: 13 county governments, 134 township governments, and over 70 municipal

governments (17 cities and50+ towns). These units of government consist of over 950

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local elected and appointed officials. Each initiates legislation, regulation, and policy

that influence real estate transactions and property rights. With the possibility of two

additional counties becoming part of the MIBOR family, positioning the department for

impacting those communities will be critical.

Helping members understand the significance of the potential impact and

consequences of unfavorable public policy is critical. Historical survey results show that

we convince less than 50% of membership of the value of the political and community

advocacy efforts. Staff and volunteers need to strengthen the communication of issues.

That communication needs to also enlist additional advocates for sensible regulation,

including growth initiatives that have taken center stage recently. . Members recognize

the importance of economic development to the success of their business but less so do

they recognize how restrictive legislation impacts their business success. MIBOR has

evolved into a recognized leader in regional economic development as evidenced by

its most recent survey. Like the layers of government, there are layers of individual players

in the economic development arena. MIBOR focuses on ensuring that these entities

work toward the same goal jobs in central Indiana. MIBOR will continue to focus on its

ability to influence areas defined in a recent Community Preference Survey. MIBOR will

also continue its support of the highly successful regional effort of elected officials

discussing important mutual issues.

Investing in the future of our communities to enable members five to ten years from now

to work in an environment that has good paying jobs is a priority as we look forward.

With an initial commitment in 2004, MIBOR has taken a more direct method of growing

companies and jobs by making an investment in an Indiana venture capital fund.

Twelve years later, that investment will continue to be examined as to what presents the

best opportunity for the next 3-5 years. MIBOR also has invested in a similar fund whose

focus is solely on minority businesses. Internally, we will continue investing a portion of

MIBOR’s reserves in central Indiana community projects, such as, public expenditure

bonds.

The focus of the MIBOR Advocacy Department over the next three years and beyond will

be to ensure a healthy real estate market exists throughout the central Indiana region

that is free of undue restrictions, regulations, and/or legislation. While the association

remains committed to its original focus on property rights and growth related issues there

is an ever increasing emphasis placed on quality of life issues that in the past have not

always been considered “REALTOR® issues”. In fact, quality of place is now one of the

most important factors driving the outcomes of economic development efforts as it is key

towards attracting and keeping a talented workforce. It used to be that people moved

to where the job was. Today, people – especially millennials, are moving first to where

they want to live. Those quality of life traits were quantified in our 2012 Community

Preference Survey. We will explore new efforts addressing how we can influence the

three top deterrents to location selection: affordability, crime, and schools. Mobility was

the fourth most cited need and reason to select an area to live. Supporting mass transit is

another example of key quality of life indicators and an area where we currently rank

very weak. Expanding mass transit options in central Indiana is key not only to our

continued quality of life, but it will become more and more essential to the economic

success of our region. A major opportunity to pass a referendum in multiple counties

looms in the coming year. As these issues impact the desirability of living in an area and

the value of owning property in an area, there is an indirect impact on our members. In

2016 we anticipate a funding referendum for a regional transit system. MIBOR along with

several key partners, including the Indy Chamber, will work to champion this issue.

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Also significant in 2016, will be the release of a first-time regional economic development

strategic plan (Comprehensive Economic Development Strategy – CEDS) for central

Indiana. This plan will drive the economic and community development efforts in central

Indiana with a major focus on putting human capital first, prioritizing “people and place”.

This plan and the many partners who have been part of the plan will work to create a

quality of life that appeals to educated and talented workers, with pro-growth strategies

for transportation, land use, and infrastructure.

Two key ingredients to our future success are technology and data. Examining how we

gather information and what information is necessary to help understand and interpret

issues is a high priority. We will need to examine all alliances and partnerships, including

the NAR and IAR. While we want to minimize any duplication, it is necessary to

understand what is needed locally/regionally. Having quality information is also key to

shaping outcomes and the initiatives that MIBOR has undertaken in the past with

academic institutions and others needs to be streamlined. That effort includes the data

mining and research service currently in place. MIBOR is positioned to gather and share

invaluable information with public officials, other political interests and the general

public. This investment has produced timely and targeted information and will showcase

MIBOR on behalf of its members as a more recognized leader in key issues impacting

central Indiana. It will be expanded to include adding some in-house capabilities.

Beginning in 2016, we will be repositioning our staff to take on a more direct role in data

analysis in order to increase our business intelligence and the value of our housing data.

Over the years, we have built a number of great relationships and invested in all of our

communities. A full review of those investments is necessary to ensure that we are

maximizing our resources. Questions such as: do we need to be more focused on the

broadest of issues or do we stay committed to a more general approach? And, which

approach offers the best return on our member’s investments are top of mind and need

to be answered.

Strategies:

1. Gain direct input into the direction setting and governance of local and regional

economic development organizations

Make a direct investment in every economic development

organization in our jurisdiction to ensure a seat on the LEDO’s Board of

Directors

o REALTOR® representatives to push for accountability strategic plans and budgets

metrics/measures - ROI regional cooperation

clearly defined funding mechanisms

clearly defined role of board and executive committee

2. Provide resources that assist local and regional economic development

organizations

Make a direct investment in every economic development

organization in our jurisdiction Provide housing data to LEDOs

Expand the measurements for economic growth

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o Continue to work with groups like the Center for Urban Policy and the Environment, IBRC, the Polis Center, 10K Research and others

o Add in-house capabilities for data analysis

3. Enhance the image of the central Indiana market

Participate in the implementation of a Comprehensive Economic

Development Strategy (CEDS) in conjunction with Indy Partnership and

Regional Council of Elected Officials.

Work with various organizations and officials to address the challenges

facing central Indiana such as foreclosures, distressed and

abandoned housing, public education, and infrastructure

Foster the collaboration of existing and new organizations

Utilize media relations and sponsorship opportunities to position

REALTORS® as market and community experts

Capitalize on housing data, both monthly market indicators and

quarterly foreclosure reports to proactively address housing market

issues. Utilize letters to the editor and other methods to create

discussion and expand influence

Utilize research/polling findings such as the Community Preference

Survey to identify and advocate on issues impacting the image of the

central Indiana market

4. Help elect individuals who understand and support efforts to increase economic

vitality and community wealth

MPAC Support

o Endorsements

o Financial support

o Direct mail

o Data mine resources Mailing lists

Walk lists Phone lists

o Polling

o Strategic campaign assistance

o Independent Expenditure Campaigns

o Partner with IAR to increase financial resources

5. Provide opportunities to increase the knowledge of elected and appointed

officials of the components required for economic vitality and community wealth

Distribute Home Base newsletter to local officials

Strategically share various research/polling findings such as the

Community Preference Survey

Host regular meetings with key elected officials and members to

discuss community issues

6. Advocate our position on federal, state, and local issues that impact economic

vitality and community quality of life

Coordinate with NAR on federal issues

Coordinate with IAR on state issues

Work with IEDC regional staff

Lobby local officials

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Work with other organizations to advocate our positions

o Chambers of Commerce

o IEDA

o Others Raise the consciousness of the MIBOR Membership

7. Gain direct input into the direction setting and governance of organizations who

work to enhance community quality of life

Work to get members and staff on boards of directors and committees

Make direct investments in organizations and projects working to

enhance community quality of life

8. Provide resources that assist organizations who work to enhance community

quality of life

Make direct contributions/investments/membership

Work with community foundations to direct resources to organizations

that enhance quality of place

9. Increase member buy-in and participation

Craft the message that economic development is an investment and

not an expense

Improve member perception of value provided by MIBOR regarding

economic development

Provide regular information to members about economic and

community development initiatives, opportunities and successes

Visit brokerage offices

10. Maximize the impact of the REALTOR® Foundation

GOAL # 2: The real estate industry is free of undue local

restrictions, regulations and/or legislation.

Objectives:

A. Prevent/reduce burdensome and/or costly restrictions, regulations and

unnecessary legislation that impacts the real estate industry and/or property

rights.

B. Introduce and/or promote legislation and regulation that benefits the real

estate industry and/or property rights.

Long term Vision:

Local officials will consult MIBOR prior to proposing or passing new

legislation on real estate industry matters.

Improved regional awareness and cooperation will lessen restrictions

in real estate and development.

Key Obstacles:

Bigger, more invasive government

Personal or politically motivated actions of elected or appointed officials

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Member apathy and lack of knowledge of the political process

Evolving dependence on federal monies

Flow of dues dollars to NAR Increase in vast sums of monies spent on single issues/candidates

Measurements:

A. Media engagement

B. Legislative Scorecard C. Membership participation in RPAC

D. Success of MPAC

E. Measure agent participation in grassroots activities including Voter Voice

F. Membership survey and focus group responses

G. REALTOR® Weekly readership rates and social media engagement

H. Data mine usage I. Member engagement measured by Just Ask Dona inquiries

MIBOR Adjustments:

Concentrate efforts on education of members on the connection

between government actions and REALTOR® profitability and success

Lobbying own national association for local advocacy dollars

Prelude from Goal #1 also applies to Goal #2

Strategies:

1. Help elect individuals who are supportive of REALTOR® and homeowner issues

Increase RPAC fundraising MPAC Support

o Endorsements

o Financial support

o Direct mail

o Data mine resources Mailing lists

Walk lists

Phone lists

o Polling o Strategic campaign assistance

o Independent Expenditure Campaigns

2. Provide opportunities to increase the knowledge of elected and appointed

officials of the issues that are important to REALTORS® and homeowners Distribute Home Base newsletter to local officials

Distribute On Common Ground magazine to local officials

Share research and polling findings, such as Community Preference

Survey

Establish key contact program and regular meetings with key local

elected officials and members (ex. Quarterly meetings with mayors,

town managers, council presidents, and commissioners)

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Communicate with elected officials on the contributions made by

MIBOR and REALTORS® towards economic and community

development, housing, and quality of life initiatives

3. Advocate our position on federal, state, and local issues that impact the real

estate industry and homeownership Coordinate with NAR on federal issues

Coordinate with IAR on state issues

Lobby local officials Work with other organizations to advocate our positions

o Chambers of Commerce

o BAGI

o Others Raise the consciousness, support, and participation of the MIBOR

membership

Engage consumers in advocating by informing them on important

issues through mibor.com and other resources

Sponsor the ULI – Central Indiana Regional Council of Elected Officials

4. Continuously educate the membership about the political process

Focus more on issues, less on candidate wins and losses

GOAL # 3: Members’ transactions are efficient.

Objectives:

A. Minimize time and effort to enter listing data, search for and identify

properties.

B. Maximize ability to show properties.

C. Maximize the accuracy of data.

D. Enable efficient flow of the transaction process.

E. Maximize the geographic area available to MIBOR members.

Long term Vision:

Transactions will be timely, profitable and seamless

Accessibility to technology resources will increase productivity and

efficiency

Major Challenges/Uncertainties:

Broker/agents needs and balance

NAR direction on REALTOR® property records Consolidation of Listing Services

Third party data aggregators and their public portals

Key Obstacles:

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Lack of transactional competency

Inconsistent use of uniform forms

Deficiency of business etiquette and courtesy in real estate practice Cost of technology

Current mortgage environment

Inaccurate information including member inattention to detail Government regulations

Lack of cooperation between members in a transaction with the

varying business models operating in the marketplace

Measurements:

A. Length of time from pended to close B. System availability and performance

C. Availability, timeliness and accuracy of public records

D. Ease of access and reliability of the BLC® listing service and lockbox

systems through membership survey

E. Number of calls verifying information regarding listings

F. Searches on the Internet site

G. Offices subscribing to IDX H. Number of members attending BLC® listing service training courses

I. Number of office/division meeting presentations

J. Number of Offices/agents participating from expanded geographic area

Increases

K. Ratio of number of withdrawn versus closed transactions

L. Receipt of closed transactions M. Fines levied

N. Track number of lockbox sales

O. Membership survey responses P. Track number of true days on market

MIBOR Adjustments:

o Standardize forms o Offer practical training for agents

o Lobby for increased licensing requirements

Prelude to the Strategies:

The services provided that meet the objective of efficient transactions are core and the

most visible services to the membership. They are used on a daily basis and have a

direct relationship with our mission: “To provide a professional, supportive environment for

MIBOR members.”

The Broker Listing Cooperative® listing service, the primary tool for efficient searching and

communicating aspects of the transaction, is the center of member’s connectivity to

MIBOR. It also can be the center of some controversy and challenge. The listing service

has evolved into more than a simple agreement to help sell each other’s listed

properties. While services will continue to expand as value added tools for members are

demanded, the listing service will continue to promote and encourage the use of the

Broker Listing Cooperative ® brand. Although the concept is understood locally and

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nationally, listing services have been reluctant to embrace the concept, and give up on

the long standing tradition and culture that the terms MLS and Multiple Listing Service has

stood for. With increased attack on MLS, there may be an opportunity within the next 24

months that the branded BLC® may have some legs around the country. Efforts to assist

brokerages in meeting the needs of layers of information and lead generation are

gaining major attention amongst the listing services around the country. And, they need

a fresh, broker friendly moniker.

Implementation of products such as Corelogic Matrix, Realist and MIBOR Mobile have

allowed brokers to have a variety of both public and listing data quickly available

wherever they may be. Strategies for 2016 will focus on the future of the core listing

service product.

With the change in the primary platform to the Corelogic Matrix product, staff energies

will focus on field service, taking needed training to the user based and encouraging

users to attend advanced training course and making use of the wide variety of record

short topic videos.

As part of this and to assist brokers in staying ahead in a competitive marketplace and

expand their marketplace. It will be necessary to review shared data alternatives or

systems with other key listing services in the state and beyond, the REALTOR® Property

Resource or minimally an expanded central Indiana region. The BLC® service area will

likely expand during this three year period. Plans are included to manage that

expansion.

The 2015survey again showed both the Business Solutions and Call Center Staff with

“best-in-class” evaluations with Excellent/Very good scores in the high 70% ratings. Over

all though, the BLC® listing service rating dropped significantly to an Excellent / Very

Good rating of 55%. Key components of the survey showed low scores in the areas of

ease of use, technology Available, uninterrupted services and system speed, all areas

that the Matrix implementation will address. Previous survey comments have typically

indicated that strategies such as field training and promotion of available services are

essential components to the rise in overall member satisfaction. Ongoing, dedicated

field resources will be an essential strategy to meet member’s expectation to raise both

competency and satisfaction levels. Helping members find efficient solutions to their

business needs continues to take on added significance.

Strategies:

1. Generate and/or distribute market and demographic materials and data to

members

Maximize member understanding of consumer expectations through

expanded use of the research reports and meaningful analysis.

Expand #betheexpert efforts

Continue snapshot tool to communicate relevant industry, association,

and economic data

2. Increase member satisfaction of the BLC® listing service

Provide timely and caring Customer Service

Install Matrix system and make it fully functional in the first quarter and

the sole system available to subscribers

Increase Accuracy of BLC® listing service information

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Communicate the need for member participation in accurate data

through BLC® compliance campaign

Utilizing value proposition as a base, develop subscriber service

promise

Further develop internal communications loop so outages or changes

are more evident to members via the Welcome Screen and social

media

Formalize the internal and member-facing communications process to

increase response times to system issues

Develop and focus a message that MIBOR is a business partner to its

members

Increase Accuracy in Technical Customer Services through training

and interdepartmental sharing of information

Increase the ease of use of the BLC® listing service system through

refresher and advance training classes and onsite visits

Implement a Member Technology and Service seminar that will focus

on New Technologies and will promote the services available to

REALTORS®

Expand availability and promotion of industry products available to

MIBOR members

Expand quality and access to statistical data of the BLC®

Maximize the communications value of the new welcome screen and

dashboard within Matrix™

3. Enable the connectivity through MIBOR’s Internet based BLC® listing

service\data with a broker’s tools such as call desk, IDX and e-transaction

Management products

Maintain the use of Internet Data Exchange policy that conforms to

state regulations and a gives the brokerage the flexibility needed to

compete with national web sites for consumer visibility

4. Promote availability of online services and membership access in BLC®

listing service training classes, orientation and office meetings

Web based online bill payment

Web based online store

Web based online registration Email billing.

Support Portal

5. Expand and maintain a comprehensive database system that includes a

Geographical Information System (GIS) tied to regional expansion

Expand use of RETS Standard field names

Adopt the latest RESO standards and data dictionary Add RETS Green Standard fields to the BLC® database

Execute a conversion and implementation plan to replace the

primary BLC® listing service product platform with the Matrix System

6. Improve member perception of value provided by MIBOR regarding efficient

transactions

Implementation of a login portal for seamless login to MIBOR’s

services. Maintain a friendly enforcement process

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Communicate ongoing system and public property record updates to

the user base

Inform and educate members of services available through the entire

REALTOR® organization/family

Promote available industry applications and business tools

Communicate the monthly listing performance dashboard report

Following the implementation of Matrix™, create webinar and

individual office-level trainings of Matrix™ listing performance

capabilities

Promote lead generation capabilities of MIBOR.com public search

Reinstitute the monthly listing performance dashboard

Continue Matrix™ the tech tip video series

Periodically engage with new members and brokers following

orientation via an automated postcard generated by

Communications Liaison. Focus on overall membership value including

value of the BLC®

7. Promote availability of products and services that would enable flow of

transaction data

Zipforms listing auto pop features/service

Mobile/Wireless products Affiliate Services (Inspection, Title, Mortgage)

REALTOR® Property Resource

8. Maximize the geographic area available to MIBOR members

Present opportunities for efficiency, data consistency, cost

preservation or reduction

Expand/Update Sentrilock reciprocity agreements to full reciprocity

for seamless use

Form alliances/partnerships with other listing services

GOAL # 4: Members’ transactions are ethical and conflict

free.

Objectives:

A. Improve the level of professionalism in the industry

B. Increase member awareness, accountability, reporting, and adherence to laws,

policies, regulations and standards including the Code of Ethics. Promptly initiate

standards and rules changes to adjust to changing market dynamics

C. Increase cooperation in transactions involving members

D. Minimize unauthorized use of BLC® listing service cooperative content

E. Increase level of sanctions for standards violations F. Improve consumer awareness of the grievance process

Long term Vision:

Increased participation in the standards enforcement process

Raise the competency level of practitioners in the real estate profession,

thereby increasing relevancy of REALTORS® to the transaction

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Key Obstacles:

Member reluctance in engaging in Professional Standards process. Evolution and adaptation of new business models.

Competency in basics of the real estate transaction.

Perceived lack of professionalism in some of the membership Antiquated and complex Professional Standards procedures.

o Self-policing and confidential nature of the professional

standards processes.

o Inadequate broker support.

o REALTOR® engagement in enforcing the Code of Ethics. Perception of lack of stiff penalties for unethical behavior

Measurements:

A. The number of filings versus packets requested

B. The number of filings per sold transaction C. Member opinion of cooperation with other agents in a transaction

D. Number of years when members are found in violation of the Code of Ethics

E. Severity of the disciplines F. Track number of office, division, and broker visits

I. Track number of times members engage in any of the professional

standards enforcement process

J. Track website activity concerning accessing information on the Code of

Ethics and enforcement process

L. Track website activity including education site, hits to ethics complaint form N. Membership survey and focus group responses

O. After baseline of Professionalism has been created, chart and track its

increase or decrease

P. Number of citations issued

MIBOR Adjustments:

Take the lead in improving the processes locally, while working to make NAR

policies less cumbersome and minimize barriers

Utilize quicker forms of dispute resolution e.g. ombudsman, problem prevention

reports, mediation Invoke stiffer penalties and fines

Improve member awareness of the process of enforcement

Make the process easier to access

Prelude to the Strategies

Members look to MIBOR to answer questions and provide information on all types of

industry related issues from business models to housing issues such as the impact of ‘pocket

listings’ and of the mega investor in the region, and to every type of statute, rule and

regulation that affects the real estate industry. Consequences of the mortgage crisis of

2008 are still being felt with the increased regulatory requirements of the Dodd-Frank

legislation as it rolls out over the next few years. As the layers of this legislation unfold,

MIBOR will serve as a conduit for information on these regulations to be passed to the

membership.

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Increasingly, the membership looks to MIBOR to help solve the professionalism issues that

impact the relevancy of REALTORS®. For years, there has been much conversation about

the decline in the level of professionalism in the REALTOR® membership. The relevance of

REALTORS® in the transaction goes hand in hand with the level of professionalism.

Relevancy is compromised by unprofessional behavior. While attempts to define

professionalism have had limited success, everyone agrees that it has declined. License

Laws and Real Estate Commission rules have been raised to a higher level in order to

ensure that competency improves and the public is protected. However, loopholes in

those laws have allowed brokers with no training or experience to open brokerages. A

baseline measurement of Professionalism must be developed and then charted to

determine its decline or improvement. Thoughtful consideration should be made

regarding lobbying for a transaction based requirement, or some other competency

based measurement, for managing brokers to meet before they can open a brokerage.

The message of the importance of professionalism must permeate throughout MIBOR and

its activities and programs. New Member Orientation and New Managing Broker

Orientation must be revised to reflect that this characteristic is directly tied to the relevance

of REALTORS®. Treatment of fellow REALTORS® in feedback and in transactions must

improve.

The ongoing relationship between REALTORS® and Builders continues to aid the efficiency

of a transaction when both are involved. Maximizing the REALTORS®’ access to new

construction information increases the value proposition of REALTORS®. Maximizing the

number of brokerages who are signatories to the REALTOR/Builder Pact is essential in

improving relationships.

While the Professional Standards enforcement processes are cumbersome and lengthy,

they must continue to be utilized to provide discipline and accountability and to ensure

that the Code of Ethics continues to be the standard that sets REALTORS® apart from

licensees. However, significant changes in the processes must happen, and barriers must

be minimized in order to ensure that REALTORS® report violations, and that those violations

have consequences. MIBOR must aggressively pursue those forms of dispute resolution

which provide the quickest, most effective discipline and resolution. While MIBOR has

traditionally been a “low fining” organization, fines have been increased across the board

as violations increase. Note that the trend is now downward. This adjustment in culture

was expected to be challenged through appeals or even legally; to date that has not

occurred. Cooperation and professionalism remain important to the culture of MIBOR

brokerages. And, it will ultimately prevail if it is applied consistently. A “citation” program

has been implemented to assess fines in a quicker manner; the first filings have just

occurred in the third quarter. Professional Standards staff must be trailblazers rather than

waiting for the National Association of REALTORS® to lead the way.

With the increase in fraud and cyber-crime affecting members, MIBOR serves an important

role as the central point of contact for dissemination of this information to the membership.

Keeping members educated in these crimes certainly increases their relevancy and then

value in the perception of their clients. In addition, MIBOR’s relationship with local

government and policing agencies can have an impact on effective reporting of these

crimes.

Strategies:

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1. Improve the level of Professionalism in the industry

Form a task force to define professionalism and to create a baseline of

measurement in order to determine whether it has declined or improved

Re-vamp New Member Orientation to send a clear message regarding

professionalism and cooperation between members

Evolve the Pathways to Professionalism content into a CE class.

Lobby for a license law requirement that mandates a minimum number of

transactions for managing broker licenses

Develop a measurement of whether there has been long term improvement

in professionalism as a result of the implementation of revisions to Indiana

License Law which included the transition to all broker licenses

Explore implementing a tool for Managing Brokers related to consumer

feedback of agent interaction

2. Increase member awareness, accountability, reporting, and adherence to laws,

policies, regulations and standards including the Code of Ethics. Promptly initiate

standards and rules changes to adjust to changing market dynamics

Attempt to plug into the recently formed NAR PAG to analyze the complaint

process and its relevance to today’s REALTOR®. Assemble a coalition of like-

minded REALTOR® Associations to maximize influence with NAR to get this

done. Starting with a “blank sheet of paper”, re-invent the ethics complaint

process from start to finish. Explore the addition of the Preamble to the

enforceable portion of the Code of Ethics.

Research the NAR policy of publishing the names of ethics violators. Research

the California Association’s program of publishing names and bring a

recommendation back to the Board.

Develop a pilot program of localized grievance case studies similar to NAR-

provided code of ethic case studies. Create localized grievance case studies

similar to NAR-provided code of ethic case studies.

Create a more streamlined grievance and code of ethics complaint

submission process with fillable forms.

Continue office and broker visits, promote the Code of Ethics and Professional

Standards Processes, provide or partner to provide NAR Quadrennial Code of

Ethics training for membership.

Engage members in the “quicker” forms of dispute resolution, e.g. Citation,

Ombudsman and Problem Prevention Reports, to overcome the barrier that

filing a formal grievance takes too much effort and too much time to

complete. Utilizing the current group of MIBOR mediators, implement a

program of mediation of ethics complaints.

Change perception that “nothing happens” to respondents. As discipline

and fines increase, this will be reported in the Ethics Violation Report. A

Citation report will be developed and published to the membership.

Revise the Problem Prevention Letter process to include consequences if

behavior continues after notification. Code of Ethics violations should be

forwarded to the Grievance Committee, and License Law violations should

be sent to the Indiana Attorney General.

o Alleviate some of the mystery surrounding the outcome of professional

standards filings by continuing to publish a summary of ethics decisions and the associated disciplines.

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Provide quality committee training to the Grievance and Professional

Standards Committees to ensure that complaints are reviewed properly and

disciplines are raised to a higher level to give credibility to the process.

Encourage member participation in Grievance Committee and Professional

Standards Committees. Recruit committed members for service on these

committees, ensuring that there is diversity and good representation from the

broad membership.

Offer to conduct the Professional Standards processes for other Boards

around the State, particularly those who have not opted in to the IAR

Professional Standards program.

Research and report to Board of Directors on Agents Ratings including a

component for agents to rate each other.

3. Increase cooperation in transactions involving members

Re-survey the membership on cooperation, professionalism and ethics

violations. Develop strategies to address concerns and issues raised in the

comments in the survey.

Develop a mindset and culture of mediation by developing and training a

pool of credible mediators, offering and providing the service in an efficient

manner. Provide ongoing training to the mediators.

Examine BLC® listing service Rules & Regs to ensure that they address the spirit

of cooperation upon which the listing service was originally founded and

redefined.

Revise new managing broker orientation so it is geared toward the

responsibility and commitment needed to ensure that order, professionalism,

and cooperation continues. In addition, it should provide a big picture

overview of the governance and administration of the association, combined

with local and national market information and trends.

Incorporate messages of professionalism into all of the avenues of

communication that touch a member. Increase promotion of Pathways to

Professionalism through continuation of the PPPRO campaign or educational

offerings.

Eliminate cultural barriers to transaction efficiency.

Establish connection with minority members, for example, focus groups or a

forum for diversity or inclusion, or simply inform of opportunities

Be an intermediary link with minority member communities

4. Minimize unauthorized use of BLC® listing service cooperative content

5. Increase level of sanctions for standards violations

Maximize MIBOR’s role in the enforcement of Indiana license law. Step up the

practice of MIBOR serving as a complainant in cases of allegations of license

law violations.

Enhance the level of assistance that MIBOR can provide its members in

reporting license law violations to the Indiana Real Estate Commission.

F. Improve consumer awareness of the grievance process

GOAL # 5: Members’ relevancy remains essential in the real

estate transaction. Objectives:

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A. Minimally maintain the current level of member involvement in transactions.

B. Maximize consumer awareness of the value of a REALTOR®.

C. Maximize consumer awareness about local housing issues.

D. Maximize consumer awareness of the expertise and professionalism of REALTORS®.

Long term Vision:

The value of REALTORS® in a real estate transaction is undeniable

Key Obstacles:

Cost and scope of consumer research for accurate measurement of

perception changes

Lack of available data related to investor or off-listing service sales

Difficulty in measuring REALTOR® knowledge

Perceived competition between MIBOR and Managing Brokers; fear of

“leveling the playing field”

Measurements:

A. Engagement in consumer calls to action promoted in consumer advertising

B. REALTOR® market share in the region

C. Level of non-REALTOR® investor purchases

D. Track investor purchases w/o Rs, e.g. off-market Sheriff sales

Strategies:

1. Continue messaging of the brand rollout to communicate the relevancy of

REALTORS® to the public

2. Measure the market share of REALTORS® in local real estate transactions

Foster a meaningful, long term relationship between REALTORS® and

consumers by creating a consumer campaign to promote the relevancy of a

REALTOR®, paid and earned media included

Encourage NAR to create a program similar to issues mobilization which

returns money to local and state associations for use in consumer-facing

messaging.

Focus the message on the value proposition of using a REALTOR® (everything

the REALTOR® does in and out of the transaction), tie this message to the

market condition messaging

Further develop #betheexpert messaging to members to compliment

consumer campaign

Tie in professionalism measures to communicate that poor professionalism

damages the relevancy of all REALTORS®

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Create quarterly or periodic “Raise the Bar” sessions about industry hot topics,

focusing on raising the bar not on the CE itself e.g. business planning and tech

tools

Maximize use of video, infographics, social media, e-publications and Just Ask

Dona program

3. Utilize mibor.com as a consumer-facing communications tool

4. Enhance consumer-facing content on mibor.com via My4Walls blog; continue to

coordinate media pitch ideas with written blog in all content areas, include more

“pull” content in member-facing communications to balance the “push” content.

Utilize poll questions and mini surveys as feedback mechanisms

5. Enhance member understanding of consumer expectations

6. Utilize communications mediums: eg video, infographics, e-publications, social

media, Just Ask Dona and “Best Practices” blog

7. Utilize current research tools, eg: Community Preference Survey, B&S profile, NAR

Pulse

8. Create a consumer facing social media strategy to promote and gain consumer

feedback

9. Enhance MIBOR Snapshot with multiple screens clustering the content into market

pulse, membership data