The rare breed of real estate

Grahame Cooke of LJ Hooker International talks frankly of the industry's past, present and future. By SHARON NEWEY.

When you have been in the real estate industry for nearly 40 years, you're not only a rare breed but someone who has seen a lot of sales.

Grahame Cooke steps down as managing director of LJ Hooker International after joining the company in 1968. He has left his mark in most sectors of the business but is credited with taking the company's franchising operation to maturity, for developing an integrated customer tracking system and for being the visionary behind LJ Hooker's website.

Based in Australia, Cooke has also been responsible for operations in New Zealand's 80-odd offices.

But during all those years, the past 10 have been the most dynamic, according to Cooke. The biggest changes to the industry, he believes, are the increasing sophistication of the general public in property matters, and the effect of globalisation on the local markets.

When it comes to the most exciting change he has seen, that's the growth of the internet as a research gathering tool for buyers. He praises the Real Estate Institute of New Zealand for its very user-friendly and in-depth site (www.realenz.co.nz).

Says Cooke: "People generally are more interested in property; it's now a dinner table conversation. Vendors and buyers are so much more educated. They know how to present a property best for sale, they know how to negotiate with the agent, they have a far greater understanding of what is needed to buy and sell property."

Along with that comes a raised expectation of agent performance, which Cooke believes is a good thing. "It means that good agents will work hard for their money but that there will also be a better appreciation of the work that agents do."

Cooke points to a wave of professionalism within the real estate industry, where agents are better trained and supported. LJ Hooker's own Future Champions programme is unmatched in the industry, he says, and has dramatically raised agent retention levels. He reports that a situation where 80 percent of agents were leaving the industry after their first year has been reversed at LJ Hooker to a retention rate of 70 percent of agents staying after their first year and who are earning reasonable incomes.

The Future Champions programme is an intense training and on-going coaching system which lasts for two years.

In regards to global influences, Cooke recalls that a decade ago Australia and New Zealand weren't affected at all by economic factors in other parts of the world. "We've seen an enormous change with that, but in a positive way. What happens around the world will only strengthen the values in New Zealand particularly, and Australia, and that's because we are seen as a safe haven. There's an incredible amount of overseas buyer interest in New Zealand."

LJ Hooker was the first service provider in Australasia to become a franchise when it adopted the system in 1968. Although Cooke admires the way Auckland's privately owned Barfoot & Thompson is run, he believes franchising of real estate agencies has huge benefits. "It leaves the accountability and responsibility at the local level. When you are in a people business dealing with people's most valued possession, there is a higher likelihood of things going off the rails. With a franchise, the owner is at hand to sort it out. That sort of responsibility and passion can only be delivered by someone with an investment in the business."

Although Cooke is stepping down as managing director, he will serve on LJ Hooker's board and look after overseas expansion - and that means China and India, which, with the growth of those countries' middle classes, he sees as having huge potential for the real estate industry. "In 20 years' time the operation in Australasia will be chicken feed compared to Asia."