Special offer

Agent Offices, which way should a broker go?

By
Real Estate Agent with Realty World Wichita

I'm looking for VERY serious input.  I've been a broker for about 10 years.  The first 8 years of my being BROKEr was easy.  New homes only, very little office space needed.  2 years ago, decided we needed to expand to resale.  Helps to train agents before I put them in subdivisions.  Looked at the competition, and modeled my self after them.  Most people want desks, they want a prestigious place to call the office.  So I set up 3000 feet, cubicles, training rooms, networked everything.  Great.  I didn't set up the glass view over the lake, but nice any way.  And the big companies in town all built New, Glass, great location super offices, but offer little services.  I've gone out of my way to provide services, competitive splts, and no extra fees.  I've had problems recruiting.  The big and pretty win out all the time.

Now my dilema (besides not having enough agents).  I look around the office.  I'd say agents spend 3, maybe 4 hours a week at a desk.  Oh, some are here more, some come in once a week to pick up papers, use the "bull pen" computers, and leave.  Bull pen, training room, printing.  Can't say the desks are used more than 2 hours a week/desk/agent average.

I realize I'd be fighting the local model, but with all the high speed, our company intranet, all the services I provide that are easily accessible, Is my model really wrong?  Do other parts of the country have a more remote model?  Some companies are 100%, but charge for everything, some are 70%, but make you pay for office space + everything else.  And they attract all the agents.  Based on prestige.  Help me figure out a better model.  I'm spend way too much on empty space...

Comments (7)

Rich Jacobson
Fathom Realty West Sound - Poulsbo, WA
Your Kitsap County WA Real Estate Broker
I think the obvious trend is that agents don't want or need an office/desk, per se. They are becoming so wired, they don't need the connectivity at the office. I would pare down your office space. I would simply provide desk space to those who consistenly utilize it, and then have small work stations for those who need to pop in for a quick stopover. Have a couple conference rooms to meet with clients. Find creative ways to support the 'wired' agents.
Jun 08, 2007 02:42 AM
June Piper-Brandon
Coldwell Banker Realty - Columbia, MD
Creating Generational Wealth Through Homeownership

I am the owner of an Advance Realty franchise in Glen Burnie, MD.  Advance has realized exactly what you have found, that agents don't really use the desks, when they do come into the office it's to use the meeting rooms, the computers, copiers, printers, fax (maybe) and to hand in transactions.  We have set up transitional office space.  Yes, we have a bull pen area with cubicles and phones but not many, we have a computer bar area with access to the internet and our office is wireless so if the agent chooses to they can bring their laptop in.  Our agents are paid a 70/30 split to start, figuring we don't have the high overhead of having huge offices and once they reach $100,000 in sales they go to a 90/10 split.  If our agents recruit agents from other companies and they come to work  here we do have a residual income program.  It is working very well for us, we have 8 offices in Maryland and more opening all the time, we also have offices in NC, FL and PA.  It works for us and I think it is the way of the future.  A wise man once told me that I'd never be a successful agent sitting at a desk in the office.

Jun 08, 2007 02:51 AM
Jim Little
Ken Meade Realty - Sun City, AZ
Your Sun City Arizona Realtor
I am an agent in a large office. We have individual desks in the bullpen, each with a phone. With rare exception these desks are used for storage and a place to sit during weekly meetings. If I were the broker today, I would use smaller carrels for each agent, Have large filing cabinets, and probably several more decent sized conference rooms. (I didn't go to work for a local broker because he didn't have conference rooms for private meetings with clients) A utility room for copiers, paste up tables etc would be a must, as would a kitchen/break room. In our climate I would install an ice maker here.
Jun 08, 2007 03:06 AM
Mark Cole
Realty World Executive Group - Orange Park, FL
CRS

Hi Greg,

I opened my Realty World office in February and I already have 21 agents,  I have less than 700 square feet of office space but am going to expand to twice that in the next month or so.  I use a bull pen with two computers, have wireless for agents laptops and an office for myself and one for my office manager.  Most agents work from home and only use the office to meet customers, drop off paperwork, check their mail and so on.  The office model here in Jacksonville is to have agents work from home.  Some companies do charge for individual office space but I personally think the offices of old are history.  I believe the perfect office is two conference rooms, broker office, administrators office, an office large enough for two transaction assistants and a bull pen.  Perhaps a kitchen/break area and of course the restrooms and reception area.  Anything more is a waste.  The only exception is if you have high producers that you want to recruit then perhaps office space for them.  Say 1400 to 2000 square feet is all you need.

As far as recruiting agents, I would say that if your company provides support, honesty and a good reputation then there is nothing more an agent needs or desires. 

Jun 10, 2007 01:56 AM
Kim Bragg
Bragg & Associates Real Estate, LLC - Augusta, GA
Broker/Owner, ABR, CRS, GRI, ePro

My current office is 1250 sqft with a conference room, reception area 3 offices (1 for assoc. broker/recruiter, 1 for property manager, and 1 for me) and one large room that currently has 3 work stations and supply cabinet.  The work stations are used about 30% of the time so I'm not a fan of private offices for agents.  It just increases the overhead and I think most producing agents don't have the time nor the desire to sit around in an office.

 As we recruit we're looking for those agents that prefer to work from home.  Our phone system is a voice over IP so we've got the capability of using desk sets off site if an agent wanted that technology.  Most prefer everything forwarded directly to their cell phones. 

 

Sep 09, 2007 01:19 PM
MAUREEN STACCATO
Springfield, MA
Well have you given any thought to offering sign on bonuses or even profit sharing as an attractive offer?
Sep 09, 2007 02:03 PM
Matt Clark
RE/MAX Results - Cincinnati, OH
Cincinnati Real Estate

I met with four different brokers when I came into the business recently.  Some around here start you off with "shared workspace" and once you do a few deals you can move into your own desk.  Then as you progress, you more to larger, and larger desks.  Personally I didn't like that idea.  The brokerage I went to gave me a desk from the start and boy do I need it.  I try to be in the office like this is a traditional job (while I'm starting my business) and I've learned lots of things and picked up random business just from being there. 

But I see how the business is very "remote."  I encounter the same ten people everyday in the office (with a staff of around 50).  Half of those are the top performers, half are just there to chat all day. 

Sep 09, 2007 02:41 PM