44 | BUSINESS
having people and offi ces in each of the key places in each of the 100 or so countries around the world in which there is signifi cant international property activity. The way forward? We thought the best way of growing into a genuine multinational organisation with signifi cant reach was to set up local representatives in other countries, supported (at least initially) by a central administration but encouraged to grow
ROUND TABLE Despite these diffi culties, Sue
confi rmed that the AIPP view is: “Global is the way forward.” However, Mervyn, Jeremy and others stressed that a global presence through cooperation rather than competition is the way that they would like to move on. Ron (who joined us by conference call at this point) confi rmed that this was also the view of the NAR, which had been spending a lot of money on developing links with its ninety global partners.
“Establish a real global presence through cooperation rather than competition” - Mervyn Nugent
to full independence within a common regulatory framework. This was the route taken by OTE and it is the route that has been taken by FIABCI, which has ‘chapters’ in around 50 countries. Even setting up local groups is challenging and makes great call upon the resources of the central organisation. This is a particular problem when resources are limited, as they will inevitably be in diffi cult economic times when members cease to trade or try to pare their expenses to the minimum.
What are the challenges? According to Sue, reaching a size that will allow membership fees to be a modest cost and yet give a big enough budget to allow a comprehensive service to members is the most demanding problem, followed by fi nding members prepared to devote time to the association by serving on its board.
This is partly why she is enthused by the recent merger with the NAEA, as this will increase overall membership
numbers signifi cantly.
Ron, from his background as president of the NAR, felt much the same. To be effective you have to have resources and these are not just cash, though having cash helps! The NAR spent $40 million on lobbying against a background of national, state and local proposals all highly detrimental to the property business in the US. Sue feels that AIPP is currently at a “step-off point.” The merger and changes in management should help AIPP “show an effect on the bottom line for every member.” This is without changing the basic objectives of AIPP: making the process of buying a property secure, promoting best practise, education of the public and the profession and monitoring (and, where necessary, policing) members’ activities.
What do we want an association to do? After a long debate a consensus emerged:
• Informing and educating the public; The public is increasingly nervous about investing large sums of money. They have heard disaster stories. Money is in short supply. They need to be satisfi ed that the concept of buying makes sense and they need help in recognising reliable and reputable people with whom to do business. Ron explained that the thrust of the
NAR’s work with the public was to change their perception of the realtor.
www.opp.org.uk | JULY & AUGUST 2012
Instead of being seen as a salesman, he should be seen as a trusted advisor.
• Training of those involved in the industry; AIPP and other bodies have long advocated initial training in order to acquire a valuable entry level qualifi cation and ongoing professional training to keep members’ knowledge and skills up to date. They need to deliver this. OPP will be supplying some online training courses later in 2012 and AIPP is reviewing its courses and other training at the moment.
The NAR requires members to retake an ethics course every four years and makes sure that all of its courses are based on a combination of classroom work and learning through experience. We need to reach a position where taking the basic training course is recognised as providing a useful and commercially indispensable foundation for working within the industry and where taking additional training has a clear commercial value to the person concerned.
• Representations on behalf of the industry, through lobbying and in other ways;
Legislators and regulators need to understand the basics of this industry. They need to understand the contribution it makes to the economy and to employment. They need to understand what will work and what will be entirely counter-productive.
Globetrotting | there are more than a hundred countries around the world with signifi cant international property activity. Can one organisation really reach them all...?
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