Companies to Watch: Old South Realty

Why eye it: Old South Realty took some calculated gambles two years ago to attract business from the oil industry, which had recently returned to south Louisiana. Sales and customer satisfaction shot through the roof.

What they did: Owner Carol Hebert targeted the relocation needs of the oil companies and their growing support services in the community while still continuing to expand her established residential sales company. Hebert (pronounced ay-bear), who started Old South in 1978 with a partner and took it over entirely in 1983, had ridden out the worst of the oil crisis of the ’80s. “I saw that the returning oil companies had different needs that couldn't be handled in the same old ways and that offered a chance of getting into a niche market,” says Hebert. “The oil companies were now handling their own relocation needs instead of going through third parties.” So Hebert expanded Old South's relocation arm, started a residential and commercial property management company, then expanded it through acquisitions, bringing together investors and renters. The company also positioned itself to handle the changing medical personnel needs at the large training hospital in Lafayette.

Results: Old South boosted its overall home sales by 23 percent last year and increased its sales staff by 25 percent. Its property management business shot up by 67 percent from 1997 to 1998, so it acquired two separate property management companies to accommodate the business growth and constructed a 2,500-square-foot building to handle the physical expansion. Hebert's husband, Chuck, now runs the property management division.

Customer satisfaction: Hebert has been surveying this for 12 years. Last year, in the midst of the company expansion, customer satisfaction hit 100 percent. Hebert makes sure every client and customer—including cooperating salespeople—is surveyed after every transaction. And she sends flowers to those salespeople with 100 percent customer satisfaction after a deal closes.

What’s next: A complete upgrade of all technology and continued expansion. Hebert believes in keeping ahead of the competition in a market growing in computer sophistication, so all Old South property listings and transactions are already online, including REALTOR.COM.

Advice to brokers: “Real estate is not for the faint of heart,” says Hebert. “But for the entrepreneur, it’s lots of fun. Real estate is full of opportunities for those who stay on the edge.”