MI: Dave, you have
excelled in the specialization of your real estate
business – something I really promote to my coaching
students and any real estate professionals I speak
to. Why and how did you end up with your specialty?
DJ: Many are firmly
convinced that the way to survive in today’s world
is to have a niche – historic properties is my
niche. At my company, Antique Properties, Inc., some
of the agents in the office do other things, and
three of them do nothing but historic properties.
One agent specializes in waterfront properties; he
lives this niche and knows it well, and he earned
over $425,000 in commissions last year.
I started out with Sotheby’s in
the eastern panhandle of West Virginia. That agency
did some historic things. I moved back to Virginia,
and bought an old plantation house on the Northern
Neck. I started doing general real estate, then
began surveying the area and realized that there
were an awful lot of old houses for sale. I thought
“I bet I could do nothing but old houses.” This was
before we had MLS, and I called the brokers to find
out what was for sale, who was selling and what they
were selling for. I started focusing on those
houses. After a few months, when I would make a call
to an agent, I started hearing “You’re the guy they
call ’The Old House Man®’” and I thought – “Hey,
that’s great.” I had the phrase service marked in
Virginia, and later obtained the federal mark on it.
That was September of 1990, and this has been my
specialty ever since.
So I was kind of launched into
it by will – looking at an area of the business I
was drawn to. The specialty was confirmed by the
recognition of my expertise in old homes and my
focus on this area as everyone began to recognize me
as the ‘Old House Man.'
Everything became Dave Johnston
‘The Old House Man®,’ and when it was appropriate I
began introducing myself to people that way. In many
ways it took on a life of its own.
In 1994 I left the company I
was with and started my own company, Antique
Properties, Inc., which focuses on Historic
Properties, Estates and Waterfront. After three
years I was approached by Glen Cockrell about
joining me and over the years I’ve added and
subtracted various agents who shared interests in
these areas.
MI: Just what
criteria does a property have to meet to be
considered a “historic home?”
DJ: The national trust
states that anything more than 50 years old is
historic. We consider anything built prior to 1940
to be historic. The construction of houses built
after World War II changed considerably. We do a
great deal of antebellum and Victorian era homes.
Victorian is not actually a style although houses
built during that era are often thought of in that
way.
MI: What has
motivated you to choose this niche and stick with
it? Even though the first company you worked with
had some focus in this area, obviously something
more has carried you forward with this specialty.
DJ: I decided when I went
into real estate that I would do it my way, even if
I made less money. I had been living in a historic
property since 1978 and had become pretty well
educated about them because of my love for this type
of property. Having had the first hand experience of
restoring a couple of houses, I did a lot of reading
up on the subject. At some point I recognized that
not only can I have this as an avocation, but I can
make it my vocation. I’ve been a history nut since I
was eight years old, which helps fuel my love of the
historic homes.
I was in the restaurant
business for 24 years, and tried to find ways to
combine that business with my love of history, but I
never could come up with a way to do this.
MI: Other than your
love of these old houses, what makes you qualified
to work in this niche market?
DJ: Selling historic
properties is quite unique because most people don’t
have the necessary knowledge to do it. Those of us
in the company that specialize in historic
properties all live in, and have restored historic
houses. As we walk through a home we’re able to tell
you a great deal about it – the age, condition, what
it will cost to restore it. Most people can’t do
that. We’re all also pretty knowledgeable about
history, so we can make the house and the era it was
built in come alive. We are capable of putting more
to the experience of either purchasing or selling a
home like this than anyone else can.
Most REALTORS® don’t understand
the value of historic property, nor does the
property appraiser – they don’t pay attention to the
historic value of the home and instead just consider
comparable square footage and similar factors. In
fact, there’s a completely different cost structure
for historic properties. Since we understand the
real value, we can present the home in the best
light and help the seller get a price that reflects
the true value of the home.
MI: Let’s look for a
minute at the clients you’re working with. Could you
give us a profile of a typical client?
DJ: These clients are
typically between 45-65 years of age, well-to-do,
well-educated, and they don’t have to move on a time
schedule or sell on a time schedule. I have people
call me from all over the country who have heard
about me and what I do, and I’m recommended by
brokers who know what I do. One recent client was
referred to me by their son who is in real estate in
Tennessee.
MI: How are you
reaching people in such a widespread area? How do
you market your business?
DJ: I’ve advertised in
every single Preservation Magazine since early 1989,
in Early American Life, and in Old House Journal for
15 years. Recently I had a call from a man who saw
an interesting property while reading a magazine in
his doctor’s office, and called to ask me about it.
I was pretty sure the magazine was very old, since I
had listed the house about three years ago. He was
under the impression it was a new issue, but took a
look and it was from 2002. These are the kind of
magazines that people hang onto, and they are read
and re-read.
MI: This kind of
national marketing is not typical of most real
estate businesses. What kind of local marketing do
you do?
DJ: I do very little
local advertising. I was brought up in Virginia and
lived here almost my entire life, and I’ve come to
realize that most local Virginians don’t buy
historic properties. If they’re interested in
historic properties they’re probably already living
in one or have one in the family they can obtain.
These homes are passed down through generations.
Some locals might buy one for a second or third home
in another area, but they don’t need another one
where they live.
MI: Your marketing
is a bit different with this specialty. Are there
other aspects of your niche that differ from typical
real estate practices?
DJ: One thing that makes
the business attractive is that we’re able to charge
higher commission rates because of the
specialization. Average commission rates are around
6% and sometimes 5%. Our rates are 7-10%, and we
frequently sell our own properties and get both
sides of the deal. We’re in 7 MLS systems in
Virginia – outside of the larger regional MLS in the
Virginia/Washington area, we’re the top 2-3 in
average in both sales and commissions.
We also serve a larger area
than many companies because of the specialty. We
cover 85 of 135 jurisdictions in Virginia. Some of
our listings may be as distant as seven hours from
each other. We can often set our own commission rate
because if you can get the price the seller wants,
they will list with you in spite of the higher
commission rate. We know this specialty and can sell
the home much closer to the true value than someone
who doesn’t have the expertise.
MI: Dave, it’s clear
that your focus on a very specific market is an
integral part of your tremendous success. Do you
have any parting words for agents who are sitting on
the fence trying to decide whether to take the
plunge into a specialty market?
DJ: If you know the
market well and are willing to establish and promote
yourself as the expert in that field, you will find
specializing very rewarding in both satisfaction and
income.
Dave, thank you for sharing the
secrets to your success and so powerfully illustrating
the huge advantages of focusing on a target market!
As our success story of the
month, Dave will receive his choice of the three
valuable tools below:
Remember, even if your story isn't chosen you
still win because you get to see how other top
performers do it. Besides, you can always try
again!
