The Inimitable Arthur Sterbcow
I’m not sure exactly how long I have known Arthur, but I think we met back in the days of RRI conferences. Back when we had more fun than actually learning anything at conferences. He’s one of those people who makes you feel like you have known him for years, even if you just met him. I had the pleasure of spending some time with Arthur and his awesome wife, Barabara, on a recent visit to New Orleans. We picked up as if we had seen each other last week. What always impressed me about Arthur was that even though he was the president of a giant real estate firm, relocation was really important to him. He made a point of understanding it and supporting the initiative. I wish more leaders in brokerages felt that way. There is not anyone quite like my friend Arthur, who is a tried and true New Orleans ambassador. But more importantly, he makes me laugh and tells it like it is. My daughter still references the ‘boyfriend’ advice she received from him regarding dumping the guy she was with at the time. “You're 10 stars, and he is a 2…do not go back.” You will all be happy to know she now has a 10 star boyfriend.
Q. As Hurricane Helene blew through the southeast, it made me think about Katrina. You were in charge of the largest real estate company in New Orleans during Hurricane Katrina. What are your memories of that experience, and what did you learn from it? How has New Orleans evolved since the hurricane?
A. It is hard to imagine Hurricane Katrina 19 years ago. As President of Latter and Blum Realtors, we had 28 offices along the Gulf Coast in Louisiana and Mississippi. On August 29, 2005, we had 28 offices, and on August 30, 2005, we only had 4! Within six months we were back up to 28 offices again. We learned just how valuable real estate agents were in times of crisis and human despair. Despite their own financial and emotional losses, our agents went into action counseling and helping everyone else find shelter. They found solace in helping others.
The lesson learned was people need people - not computers - to find emotional support and confidence when they have lost everything. Realtors are an integral part of the shelter industry since emotional support, concrete local knowledge, and facts are needed to instill confidence in the homes people select. Many of our agents spent hours just listening to their customers’ and clients’ horror stories. It took the New Orleans area about 15 years to get back to “normal.” However, some areas of New Orleans have changed dramatically and have not recovered. Insurance issues are serious in many areas that have been slow to recover.
Q. New Orleans is a really unique market. What was different about selling real estate and managing a company in that market?
A. New Orleans is called the “Big Easy” for a reason. “Laissez les bon temps rouler” is how the Cajuns say, “Let the good times roll.” Mardi Gras is the signature event that goes on for weeks with partying, music, parades, and, of course, outstanding food. People who are born and raised in New Orleans can’t find that atmosphere anywhere else in America. It is really a unique town and the closest to old European-type architecture and housing in the country. New Orleans, founded in 1718, has the oldest housing stock in the United States. Many houses have an intrinsic value due to the previous historic ownership of famous people and events. The French Quarter and surrounding areas have a rich history with French, Spanish, and Moorish-style European architecture. Managing those offices was always fun due to the unique character of each area's agents and the diverse housing styles in their regions. The best parts of managing those offices were the parties (and food) the agents in the offices regularly hosted for customers and clients. Diets were always something you would do tomorrow!
Q. You were a Leading RE broker network member for a long time. What are your memories of that network, and how did referrals and relocation contribute to the company’s growth?
A. Leading RE taught me how to run a real estate brokerage professionally instead of “by the seat of your pants,” guesswork, or ego. As one of the original real estate brokerages that formed Leading RE, the free exchange of valuable information was critical to our success. Brokers and staff at Leading RE were so unselfish with their time and knowledge that they were instrumental in our company's success and growth. Most of our great ideas were given to us by our peers, who took the arrows and successfully figured them out. To this day, the relationships I was fortunate to form nationally and internationally are still an integral part of my real estate network and a source of continuing knowledge. Besides being able to learn from the legends in the real estate brokerage industry, I was so fortunate to be trained in the intricacies of the relocation business side by Ruth Ann Pepple and Pam O’Connor. The continuity of leadership by Paul Boomsma ensures the highest level of professionalism in the Industry. I had no idea how little I knew until they so generously taught me so much.
Q. The NAR settlement and lawsuits have fundamentally changed how we do real estate and get paid. What are your recommendations for broker-owners or leadership to be focused on right now?
A. The Realtor side of the Industry will change dramatically primarily due to the complexity added to what used to be a pretty simple business model based upon required cooperation. Commission rates will come down gradually over the coming years as technology continues to streamline some parts of the sales process along with Artificial Intelligence. Many new business models are popping up, and it will take a year or two to work out the rough edges. In the short term, I don’t see much change between Realtors. I have heard from some Agents who have indicated they will not take a listing unless the seller offers compensation to the Agent representing the buyer. It makes the Listing Agent’s life easier and simpler to attract Buyer’s Agents and work as a team to get the deal done while still representing their parties’ interests.
Q. What about agents? What should they be doing to rise above all of the noise? How can they set themselves apart?
A. Agents must educate themselves about the changing industry and network with other agents to learn new techniques and marketing strategies. 100%, they should become highly proficient with the latest Artificial Intelligence tools that are coming out. Some agents are experimenting very successfully and will soon take business away from others. I always tell agents they are only as good as their manager or broker. That is who sets the educational, ethical, and professional bar in the office… high or low.
Q. You have seen a lot of market corrections throughout your career. Interest rates are finally coming down. What do you think 2025 holds for real estate?
Government regulations will continue to affect real estate. One thing I can guarantee is that the government NEVER gets smaller, and they need to do something. Support your Realtor organization locally and nationally to ensure that the public is protected by Realtors’ knowledge and input fueled by practical life experiences. Get involved. You will learn a lot and make more friends as a bonus.
Q. Do you have any parting advice for real estate and relocation professionals?
A. Real Estate has its ups and downs. You can’t hold it down long! Have fun and enjoy the journey. I would routinely network with knowledgeable and successful individuals in the business. Teresa Howe with TRH Consulting is a great place to start!
About Arthur Sterbcow:
Arthur is a licensed real estate broker and investor in Louisiana with over 45 years of experience in all aspects of residential and commercial real estate sales, leasing, and brokerage. He was awarded “Realtor Emeritus” status by the National Association of Realtors. He managed many diverse real estate offices throughout Louisiana and Mississippi. He has been a licensed instructor by the Louisiana Real Estate Commission. Awarded the “Chairman’s Service Award” for outstanding leadership and contributions to the real estate industry by Leading Real Estate Companies of the World®. Awarded the “Max Derbes Award” by the New Orleans Metropolitan Association of Realtors and Awarded the “Biff Breeding Award” from the St. Tammany Association of Realtors. Throughout his career, he has conducted numerous sales, educational, and training sessions for Realtor groups, Home Builders Associations, Mortgage Brokers, Universities, and Lenders. Arthur has been a regular speaker at the University of New Orleans Economic Forecast Symposiums over the years, as well as others. He has conducted many real estate training sessions for the Times Picayune’s annual “Money Watch” symposium and has spoken at national real estate organizations’ conferences such as The Realty Alliance. He has the unique distinction of being one of fewer than fifty Realtors (out of approx. 1.5 million Realtors nationwide) who has earned and achieved the unique designations from the National Association of Realtors of Accredited Buyer’s Representative (ABR), Accredited Buyer’s Representative Manager (ABRM), Certified Residential Broker (CRB), Certified Residential Specialist (CRS), Certified Commercial Investment Member (CCIM) and Graduate of the Realtor’s Institute (GRI).
From left to right, front row: Barbara Sterbcow, me, my daughter Bailey, Arthur Sterbcow, and Billy, our waiter at Galatoire’s Restaurant in New Orleans. Billy has worked there for 39 years. Arthur is like the mayor there; he knows everyone!