Bug Realty founder says 'lose the Lexus'
Real Estate Connect Speaker Profile: Kevin Seney
By Inman News, Friday, June 20, 2008.Bookmarking Sites
Kevin SeneyKevin Seney, founder and CEO of Bug Realty, built his first spec home at age 18, instantly became a real estate investor and hasn't looked back.
He bills Bug Realty as a "nontraditional real estate franchise" where frills and hype are left at the curb.
Seney will speak at Real Estate Connect in San Francisco, July 23-25, 2008.
He answered a set of questions posed by Inman News:
What do you see happening in the real estate market in 2008?
The downturn will continue into 2009. A large percentage of sales will be short sales, REOs and foreclosures. Market pressure will continue to force change in the mortgage industry.
Technology will speed change and facilitate more consumer-driven solutions and alternatives for buying and selling homes.
Increased access to information via WiFi and cellular phone will continue to make the old model of the traditional real estate office obsolete, further leveling the playing field. (Think of the record industry and big media.)
What advice do you have to help real estate agents and brokers get through this market?
Rethink your approach to the consumer. Seek out technology. Work virtually (lose the office and cubicle). Work efficiently (lose the Lexus). Find new ways to create value to your clients. STOP advertising! Go back to the basics -- it works!
What was your first job?
I worked in our family-owned pharmacy.
What made you get into real estate?
I have been involved in real estate since I built my first spec home at age 18 and have been an investor ever since. I was in the mortgage industry for more than 15 years and was known for using unconventional means to market myself instead of advertising.
What sparked the idea to start your company?
I was beginning to see how technology would reshape the industry. Agents no longer need the "big company" and office to provide the infrastructure to do their work. Both agents and consumers are being empowered by technology and access to information.
There is a movement among consumers toward more individualized, grassroots ways of doing business. Working from home is becoming commonplace.
Consumer attitudes are changing. Consumers are also becoming very brand conscious, and traditional brands are being outmoded by trendy, new brands that reflect new consumer orientations.
What's been your biggest challenge in running the business?
Forming a new national franchise system is a long, complex legal process. We were relieved to have completed that process in 2007.
If you had one thing to do over again in your life, what would it be?
Attend college in another country. Learn music and languages. Travel more. Adventure more. Worry less.
What style of home do you live in and when did you buy it?
Traditional Spanish eclectic from 1940s in Coronado, Calif. Bought it in 1997.
What worries keep you awake at night?
Three teenagers and one 10-year-old.
What lesson did you learn in the last year?
Never take your health for granted.
What would your second career choice be?
Medicine.
What kind of music do you listen to?
Country.
Who is your hero?
My parents.
Hear Seney speak at Real Estate Connect in San Francisco, July 23-25, 2008. The conference program and registration are available online via the Connect Web site.
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Submitted by REALonomics .net on June 20, 2008 - 7:31pm.
Bug Realty's concept of consumer driven business modeling is certainly going to become the norm for real estate brokerage business. The value propositions of old are increasingly rejected by savvy, self-motivated consumers equipped with information systems that empower them to do much of what a broker/agent used to do.
Add to this the marketing concept Bug Realty is deploying via the VW that all Boomers recall with joy. Nostalgia mingled with new information technologies...now that's a possibility!
REALonomics
www.REALonomics.net
new real estate model math
Submitted by Jim Walberg on June 20, 2008 - 11:14pm.
What happened to the dinasors is that they turned into oil. Bug! Realty appears to be the next evolution of the real estate industry that both the consumers and the Brokerages has been wait for. Hats off to Kevin Seney, and the vision he has to create a "purple cow" that will sweep across the real estaet community. I will buying stock in VW on Monday because of the number of Bugs that will be painted silver with the lady bug decals on them.
Submitted by Kevin Seney on June 21, 2008 - 5:33am.
Thank you Jim Walberg!
Better yet, our Series A Preferred Shares are currently available to accredited investors via Prospectus. How many shares should I reserve for you?
Thanks,
Kevin Seney, Founder & CEO
Bug! Realty USA, Inc.
www.bugrealty.com
www.kevinseney.com
Submitted by Ralph M on June 21, 2008 - 7:16am.
Congratulations on finding your niche. It may not be for everyone, but if it works…great.
www.aarsteam.com
www.nosellercost.com
www.iuuzit.com
www.weuuzit.com
I dare ANY real estate professional to show me a better website with more technology than the 4 above.
Submitted by allen mckay on June 21, 2008 - 9:44am.
It's an interesting concept that should resonate with a certain type of agent & consumer. Perhaps not every agent but who knows?
I will give credit to Kevin for launching the concept in today's market but maybe he's smart like a fox- while everyone else is pulling back and dealing with "doom & gloom" in the press or with their clients here's a guy building a brand from the ground up; evangelical for sure but given the economics of most real estate companies (and agents) why not do something different?
What intrigues me the most is that everyone has been talking about bricks & mortar-less offices for years and certainly with the technology available today it's a slam-dunk (go Celtics!). Most firms have been moving slowly in that direction but are still straddling the fence because of past investments in locations and leases. None of that is going to change overnight and that's where most people get hung up with Kevin's concept. I think the beauty in his idea is that it gives an agent a way to break thru the clutter without having to spends gobs of money. Now what's so wrong with that?
Submitted by rod collins on June 21, 2008 - 4:15pm.
Correct Allen. The old firms do have overhead that they will have to burden for some time. We at Bug can go out and get business without having that large worry of meeting my desk fees! Additionally I know that when I do get a commission check I will not have a large chunk taken out for past fees. I can still focus on doing Real Estate instead of having to look for employment in another field because of meeting those monthly fees.
Submitted by Patti Barrett on June 22, 2008 - 8:57am.
With the slump in sales affecting all of the Realtors in our area, may are opting to drop out...losing their customers and market...the high cost of desk fees being the final blow. The home office, the billboard advertising on their BUG and no office fees simply makes sense...hanging around the office doesn't. BUG! cars are the warm call that introduces customers to Realtors...lack of desk fees puts more money into the Realtor's pocket...what more could you ask for? Cutting the cost and increasing the bottom line is the game...and BUG! has it.
Submitted by Kevin Seney on June 22, 2008 - 10:26am.
Thank you Rod...
Rod & Maryanne Collins were our first franchisee's in Santa Cruz, CA.
They are true pioneers.
What we have discovered, is that the more difficult the market gets, the better our system and our model performs.
Patti Barrett, in Grand Junction, CO, was our first "outside CA" franchisee. Patti is too modest, when you know her career track record. 20+ years with the nationals, and just could not take any more of the same ole routine. It just was not working for her anymore.
Patti's business and career have been revived. She & Shawna, have demonstrated that this is not just a cute, trendy model. Their business is growing and they are having fun. In this market, that is amazing.
Thank you to all of our Bug! Agents and team members!
See you in San Francisco... KS
Kevin Seney, Founder & CEO
Bug! Realty USA, Inc.
www.bugrealty.com
www.kevinseney.com
Submitted by Kevin Seney on June 22, 2008 - 10:31am.
Thank you for the post, Donald Teel...
We are facing a new syndrome. BBS. Busted Broker Syndrome. Exactly what is BBS, what are its symptoms, what creates it and how is it treated?
You have to read Don's latest blog post on Realonomics!
www.realonomics.net
Thanks, KS
Submitted by Christi Borden, CIPS, ABR, GRI on June 22, 2008 - 11:38am.
Check out my web site and you will see that I am a true believer in niche marketing and know there is an audience for your particlar business model. However I think it is perhaps premature to say that agents no longer need the services provided by the large, traditional models. Yes, these brokerages must make changes (some of them painful) to keep up with the market.
Having sold over 40 homes last year ($12 mil. in production) in a moderately priced area, I can work literally anywhere and have chosen a very traditional brokerage and the largest firm in Houston for services that are currently not offered by any other business model: superior and ongoing training programs, highly trained and dedicated management/staff, extensive worldwide marketing reach, large relocation connections and contracts... just to name a few. Also, most of my consumers are Baby Boomers and are very brand conscious - another reason I have aligned my personal brand with Prudential. There is a reason that McDonald's sells more burgers than the local burger joint or that Nordstrom's can charge more than Sears. Consumer perception of quality is yet another aspect when working with a well-known and highly respected brokerage.
Yes, I anticipate seeing your "bugs" around town and welcome you but I am not quite ready to give up the Lexus or Lexus level of service just yet.
Your Katy, TX and West Houston Realtor,
Christi Borden, CIPS, GRI, ABR
Prudential Gary Greene, Realtors
Email: Christi@ChristiBorden.com
Web: www.ChristiBorden.com
Cell: 832-372-7470
Submitted by Kevin Seney on June 22, 2008 - 11:50am.
Thank you for you post, Christi
The value of the big brands is surely not finished yet, especially with the boomers.
But, the coming boom in real estate will be drive by Gen X & Gen Y.
Can't be everything to everyone, but the big opportunity for a new brand, is focussing on the next wave. When it hits, we will already be there.
Thanks again.
Congrats on your success!
Kevin Seney, Founder & CEO
Bug! Realty USA, Inc.
www.bugrealty.com
www.kevinseney.com
Submitted by Mike Gifford on June 22, 2008 - 1:48pm.
I agree!!! I feel like the Realtors who drive a Lexus are less approachable by the public.
Submitted by Michael Lange, e-Pro, GRI & Cheron Lange on June 23, 2008 - 8:58am.
Congratulations to Bug Realty on finding there niche and being the new brand. I love my Nissan Armada...it's not a Lexus but it sure does the job. Even at these gas prices. :)
Cheron Lange
www.letourfamilyhelpyours.com
Submitted by Christi Borden, CIPS, ABR, GRI on June 23, 2008 - 9:07am.
(Actually I drive a 5 year old Sequoia). I was simply quoting Kevin and referring to the Lexus level of service. My area is fairly affluent so driving a Lexus level automobile should not detract from our business. In fact, a Bug most likely would not go over very well with the many oil executives that we service through relocation moves, both buyers and sellers. They expect the Lexus or better as an indication that they have been assigned to a successful, i.e. competent professional. Again, it all depends on the audience.
Kevin, I thank you for your direct response and agree that the X and Y generation are completely different and should be approached as such. I recently attended an excellent course by The Gonzales Group (Dr. Oscar Gonzales is a regular contributor to Inman News) and he addressed this very issue before the TAR/HAR Leadership Group. If you have not met Oscar, you owe it to yourself to do so as he is on the forefront of generational diversity training in our field. Go to www.thegonzalesgroup.com .
As long as your agents are ethical, professional and truly know what they are doing, I look forward to cooperating with them in the future.
Good luck to you.
Your Katy, TX Realtor,
Christi Borden, CIPS, GRI, ABR
Prudential Gary Greene, Realtors
Email: Christi@ChristiBorden.com
Web: www.ChristiBorden.com
Cell: 832-372-7470
Submitted by Kevin Seney on June 23, 2008 - 1:45pm.
Thanks for your comments, Christi.
There is more to our model, than just the VW, but it definitely allows us to stand alone as a company who is determined to do something different. That alone is significant.
It is not about the car, it is about operating efficiently, and in a way that is more consumer friendly. No Hype. No Frills. We work in a very high end market in San Francisco, and in Coronado, CA. In both areas, even our most high end clients, appreciate the idea of operating efficiently and that we are not all falling all over each other trying to impress them.
Thanks for the lead on the Gonzales Group. I will definitely take a look.
I appreciate your perspective and your contribution to our conversation!
Thanks, and we wish you success.
Kevin Seney, Founder & CEO
Bug! Realty USA, Inc.
www.bugrealty.com
www.kevinseney.com
Submitted by Eric Zapf on June 23, 2008 - 3:42pm.
I have to say Christi:
I think you are behind the times a bit. I am a new agent with Bug and the response has been very favorable from a wide variety of demographics.
I think the potential clients in your affluent area are probably a lot like the affluent people we have here in La Jolla and Coronado who I see shopping at my local Costco loading up on high quality wine and other luxury goods sold at a reasonable profit margin from an efficient warehouse environment. I think affluent people especially appreciate value but not excess (like excessive costs and fees). They want their Mercedes but want their contractors to be efficient and streamline so they do not feel like they are paying for a lot of pomp and circumstance. Get a Bug and walk the walk. It’s fun too. People actually come up to me and want to talk about real estate, imagine that.
Hey, people go to Mc Donald’s because they have an efficient system that meets their expectations every time consistently, that’s Bug.
Eric Zapf
Submitted by Chris Siow on June 23, 2008 - 4:12pm.
When I moved to San Francisco years ago, the first thing that struck me about this great city was its personality. And I think that’s what it really comes down to with Bug! Realty: it has personality. That’s what drew me to this company in the first place and that’s what inspired me to buy into the entire San Francisco region.
I’m thrilled to be part of Team Bug and I’m excited to be launching our first region next month at Real Estate Connect. San Francisco needs this infusion of personality, trust and stability into its real estate market, and I think much of the rest of the country would benefit from it as well.
It’s great to be a part of something positive when all we keep reading about in this industry is so negative. Thank you, Kevin, for your contributions and your vision. I’m already enjoying the ride.
Submitted by Kevin Seney on June 23, 2008 - 8:45pm.
It is amazing what has happened as we grow.
We have created a "people magnet" as each and every person who joins our team, brings so much energy and excitement to our group.
Our first "Retreat" which we held in Napa in March, was the beginning of us realizing that the most important part of our model, was what our brand represented to our people as a choice to be different and make their business fun.
See notes here: www.bugrealtyblog.com
We have created a new real estate culture. Our focus is not based on impressing each other, but rather on helping each other by working in teams of like minded people who value relationships and people, more than some sort of fancy "image of success"
It is a powerful trend.
Come join us...
Kevin Seney, Founder & CEO
Bug! Realty USA, Inc.
www.bugrealty.com
www.kevinseney.com
Submitted by Kory Kavanewsky on June 23, 2008 - 10:10pm.
Kevin Seney (Founder and CEO of Bug Realty) was kind enough to join us today on my live radio program, Biz Fit. He shared the innovative platform that Bug Realty is built upon and I must say that his approach is not only refreshing, but also very timely. Finally...a Real Estate company that has turned its focus back on the customer!
Download the show by searching "Biz Fit" in iTunes, or visit www.bizfit1700.com.
Go Bug!
Kory Kavanewsky
General Mortgage Corp.
Branch Mgr. - Coronado
(619) 554-1327 Office
kory@fgrouponline.com
Submitted by Kevin Seney on June 24, 2008 - 6:59am.
Thank you again Kory!
Your show is so timely and informative.
We are lucky to have this kind of resource for the consumers in our market.
Good job for making your vision a reality.
Her is a direct link to our interview...
http://bizfit1700.com/podcast/bugrealty.mp3
Thanks!
KS