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Merge Creates One of the Largest Real Estate Franchises in Northern America

Barely a year ago the real estate industry was stunned when Canadian-based Brookfield Residential Property Services (Brookfield RPS), a division of Brookfield Asset Management Inc. (Brookfield), and owner of Royal LePage, the largest Canadian residential real estate company, acquired GMAC Real Estate. With the departure of CEO John Bearden and a pending name change imminent, many labeled the GMAC franchise as yesterday’s news.

What a difference a year has made.

Announcing their second large acquisition today, Brookfield RPS has now also the owner of Real Living Network Services, a subsidiary of Real Living Inc. Combining the two companies creates one of America’s leading residential real estate franchises with more than $20 billion in annual home sales and an estimated 30,000 agents.

Although that in its own is huge news (and the largest real estate brokerage acquisition of the year) it is the merging of the two and the rebranding of the whole as Real Living that is electrifying. The reason is that Ohio-based Real Living is a national award-winning real estate brand known for its innovation, customer service and a culture of partnership and collaboration within its network. Last year I even named Real Living as the “Most Promising New National Brand” in my Swanepoel TRENDS Report while Entrepreneur Magazine listed them as one of the Top 50 New Franchises.

Exciting times for newly appointed President Harley E. Rouda, Jr.

What are your thoughts about this "new " move. Has yesterday’s news turned into tomorrow’s future?

Posted by Stefan Swanepoel on 11/11/2009 08:12 AM

Comments (162)

real estate franchises, real estate franchising, mergers and acquisitions, real estate brokers, real living, realliving, gmac

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162 Comments on Merge Creates One of the Largest Real Estate Franchises in Northern America

NOV

Thanks for sharing this. I really was not aware of it.

Stefan, GMAC is active in our markets, but Real Living is not.

Chain, maybe that's one of the benefits of the merge for them. Expect the GMAC office to be rebranded Real Living.

I've seen Real Living gaining in presence here!

I love being the owner of a Real Living and look forward to the merger.

I've been a part of the GMAC Real Estate group for a few years now, so it will be interesting to see what happens with the new merger.

Real Living is completely unknown in our market (Metro Detroit). I think there is just one office in the state of Michigan. Hope your assessment of Real Living proves to be correct.

lots of changes and I am sure more mergers to come

Never heard of Real Living in Coastal Georgia (Savannah). I hope that the merger works out great for both companies, sounds like a good strategic move.

Announcements like this back in 2000 would have been huge. Now I think the attitude will be to wait and see. Do we really need another large franchise operation? Will they do it better than previous mergers that failed? Are the other franchises so vunerable that people will flock to their banner? Sounds like a Variation on a Theme by Paganini.

It is exciting news here in Columbus Ohio even if it does not affect us. IMHO it is not just another big franchise based on "the same old, same old" way of doing business but then again I may be biased.

Neither names are big here in my area. GMAC closed it's local office and Real Living is yet to emerge. I do think however that the whole face of real estate is changing. Those big names are losing agents and we are seeing many new small boutique offices opening up, me included!

I'm confused , so GMAC is going to disappear accoss the USA and take on the name Real Living ???

Joe, I don't think this is just another local office or company merger. This transaction is really a once in a decade kind of event.

When was the last time you recall a national franchise network acquiring a very large regional franchise network and which one were you referring to that failed? Would love to share notes.

Stefan

GMAC will take on the name Real Living.

Michael, When Brookfield RPS acquired the GMAC franchise network one of the requirements was that the GMAC name had to be changed within a certain period of time. Brookfield RPS has been considering many different options and names for their national franchise network, and the acquistion of Real Living not only strengthens the network with extra offices and agents, as well as with excellent technoogy and leadership, but provides them with a great brand.

So in short, yes, I do believe that the GMAC will be phased out of real estate and replaced with the Real Living brand.

Stefan, I'll forward you the press release and FAQ.

Stefan - This is very interesting news. Although GMAC is obviously a well known brand, I have never heard of Real Living. It will be interesting to see how successful the acquisition is and how the two US firms will be managed by Brookfield.

Marc, I think you should not look at it as two firms, but rather as one.

Hi Stefan, I've been following the discussion on Inman. I am lurking interested in the reactions and comments.

You are handling it with grace, style and wisdom.

Thanks Missy. Thats means a lot. There are, as always, so many different opinions, some smart, some thought provoking, some interesting and some just plain dumb :-)

Realty One Real Living got sold here around Cleveland to Howard Hanna this past year. I think these companies are merging as they are getting squeezed with every transaction due to the proliferation of new business models and competition, albeit probably much less in these tough times.

I have absolutely no idea who either of these companies are. I have been in real estate for 17 years, and I have traveled extensively in 12 states during those years, and I have no idea about any of this branding.

Real Living is one of the most underrated Real Estate brands out there. They have a true a brand image that has been carefully crafted and focused with their target market in mind.

I was just talking with some real estate agents in Seattle last night about Real Living and how impressive I think they are....and then lighting strikes today.

I do think Harley will do great on leading this merger of brands and cultures, and Kaira is a pretty impressive also. Wondering what her new role will be in all this...

Kyle - are you serious? You've never heard of GMAC real estate? Seriously? Really? I know you're joking. You have to be.

As a student of economics I see this as bad news. Companies get too big, they influence laws, and before you know it they are pricing out the smaller independent companies out of the markets. I am pretty certain that most people will disagree with me here, but I hope that the DOJ continue to monitor the Real Estate industry, so that this does not get out of hand. I read somewhere that one of the models out there right now is classifying agents as employees instead of independent contractors. Can you imagine the implications?

NOV

We have a GMAC branch here in our town so I'll watch as they rebrand themselves. Thnaks.

So is Royal Lepage getting rebranded or is Real Living coming to Canada as a seperate brand?

I thought Coldwell Banker bought out GMAC. Maybe it was just our local Blue offices.

Thanks for sharing, all second tier players in the US markets. The news was hardly stunning, in fact in most sectors of the country it was not even considered news.

All this rebranding, what a waist of money, all that time, effort, money spent building brands, all down the toilet.

I guess I should ask, why does or would the average home buyer or seller care? They don't they just want to buy or sell and realy don't care about the brokerage, heck it is a wonder they care about the individual Realtor they work with.

Kyle, both the GMAC and Real Living are huge brands.

GMAC RE is in 46 states and Real Living in 20 states. Just shows how most opinions are usually shaped by the experience of local or regional markets and not necessarily a national or international events/players.

Should anyone be interested in the "bigger picture" do yourself a favor and read every year my Swanepoel TRENDS Report (165p RETrends.com) - one of its primamry functions to summarize and encapsulate the most important events, players, their strategies, the trends and changes that could potentially impact each broker and agent on a local level. It is really a good solid read.

Stefan....Mergers is the name of the game now...

Jerry Gray CRB,CRS,GRI / Prudential Carolinas Realty / Winston Salem, NC

GMAC are here in Ottawa, Ontario I wonder if they will do the name change in Canada.

Kyle, we think we will stick where we are. It is always hard to play catch up, even if you increase your numbers.

For those that have not experienced the Real Living Brand in your market, keep your eyes peeled. We have the most innovative tools, the most productive agents and the best support group to be found anywhere. Take a look when we get to your market and I am sure you will be impressed!

Given the recent travails of General Motors, It certainly won't hurt the GMAC franchises to remove the "GM" from the signs they stick in folks' front yards, will it?

Llyod, thanks for your observation. The majority of the perceived large companies are however franchisors and most of the individual offices are independently owned and operated. Secondly the franchises also fairly regularly change from one brand to another or return to no affiliation. Competition in this industry is alive and well and this industry is not heading for a monopoly any time soon.

I am one of the GMAC REALTOR's that is accepting the change gracefully. I'd never heard of Real Living until the announcement was made, but trust Brookfield in their decision. After all, they seem to be quite sucessful in Canada.

Chad, time will time, but I suspect that Brookfield RPS will operate their Royal Lepage brand in Canada and the Real Living in the US. I would be very surprised if either cross-over into the other country.

We've not heard of the brand in MN yet. Look forward to hearing more...

I certainly hope the firm brings on people who know how to keep their word. Remember, GMAC Metro broke off in Atlanta from them because they lied to them. I work with several GMAC offices as a consultant and I can tell you first hand, they need to clean up their act which has been filled with broken promises to many GMAC offices. GMAC Metro Atlanta was just a lot more public about how they were treated.

In my eyes, it's stupid for anyone to be part of a national franchise and willingly cough up 7% of your earnings so someone else can make their "boat payment."

Does any National Franchise get the frnachisee a 360, do it yourself camera system? NO.

Does any National Franchise build a hand-tooled, SEO friendly website for the broker, or give them help to get a #1 rank on Google? NO

Does any National Franchise teach the brokers/agents how to take advantage of the trends in Social Networking? NO

To add insult to injury, the poor broker has to find these services on their own, and all too often they cobble together services from five, sometimes TEN different companies which results in a revolving door of relationships and expensive mistakes.

-- bart

There was a GMAC in Berks County, but it went under and we have no Real Living here. Wonder what will happen here?

Long overdue. Why would any consumer in his right mind give his business to an agent with the letters "GM" on his business card? "GM" is synonymous with failure, gubmint bailout, entropy, waste and corruption.

It's not that surprising -- Real Living has done an excellent job keeping an eye on technology and uses in a practical way to benefit their agents and consumers. Congratulations Harley Rouda

My committement over 2 years ago to Real Living as based on the marketing vision, technology and committement to it's agents.

The Real Living community should be thrilled. I know I am.

I feel certain that GMAC offices that do not fit the culture will not be Real Living offices. Real Living delivers and every franchise owner I have met is committed to the success of the agent and not thier own bottom line.

Thanks Harley, Karia and the rest of the team...

Stefan has a nice mustache.

Just read through the rest of the comments. Had to make one more. Isn't amazing how some can make a sunny day cloudy. I am not a put my head in the sand kind of person but being negative before the first office even converts is pretty ridiculous.

I'm looking forward to learning more about Real Living. It will be interesting to see how they fair in our competitive market here in Atlanta.

Real Living is BIG in my market, but GMAC has no presence.

We will see.

It would interesting to see Real Living here in Minnesota. So far I am not aware of an office at all.I know GMAC independent office are in parts of Minnesota but not down in SE area. I use to be a correspondent for GMAC mortgage when I was with a small community bank, was good working with them, now that I am at Bank Of America, of course I don't know how they are doing as a lender.

Thinking locally, we do not have these companies in our market. I will take a wait and see attitude on the new merger and see if they make some noise. Good people with good systems can do big things.

Went to RealLiving.com and looks like they're expanding beyond just sales. They appear to be focusing on supporting services - financing, title/home warranty, home services (link not working) and relocation services.

As a GMAC real estate agent, I had been waiting for the rebranding since Brookfield Residential Property Services acquired GMAC a number of months ago. I had been hoping that any rebranding would work out well. I have really good feelings about this merger and the future.

I have not seen the Real Living brand in the Chicago market, anyone else see the brand?

Interesting. Our local office was called Metrobrokers GMAC. I knew GMAC sold off their share some time ago but was waiting to see who would pick up the pieces. I think of the Magazine when I think of Real Living, much like the Better Homes and Gardens brands. They have a nice clean look, interesting that they chose the Red color like Keller Williams. KW had been pretty unique in that color to date in the real estate market. KW has great market share in the Atlanta area. Real Living would have to have something really unique or a better value proposition for agents to pull them away from this brand, in my opinion.

Thanks Stefan,

I am a GMAC agent here in Columbus, Ga. We have been waiting all year to learn our destiny. The company has been working on our new branding since Brookfield acquired our company over a year ago. We just got the news yesterday. I am interested to see what changes will be made and how this will affect our agents. Our company, Shepherd Brokers.com GMAC Real Estate is among the largest and most productive agencies in Columbus. We are a household name here and we want to keep it that way. Personally, I have never heard of Real Living as some others have commented. I am excited however to see what Real Living will bring to our company. Change is scary sometimes but can be a good thing.

I think if you dig a little deeper, you will see that Warren Buffet is behind this somewhere if my memory serves me correctly, and that tells me he sees the future for the US Real Estate market being a little brighter. Or, perhaps, I am wishing a little too much.

Dave

As a current GMAC agent I look forward to the fresh new face.

Can't wait for pretty new signs and new ideas to lead my business into the future!

The future is looking brighter as more agents drop out in my area and my business is

having steady growth.

Wow! Surprising news. Realty One used to dominate the Cleveland market, then they branched out under the Real Living umbrella. Every year they were on NAR's who's who issue of Realtor magazine. From what I understand, the Cleveland franchises of the old Realty One were sold to Howard Hannah out of Pittsburgh. I never understood why this happened. Could you shed some light on that?

I had a hard time finding anything other than a few paragraphs on the story on Columbus and Cleveland news sites. The one story I found said that the Columbus, Cincinnati, and Louisville Offices are not part of the transaction. If that's the case, where are they going to be headquartered?

Is there any question whether Real Living has a strong presence in the Columbus, Ohio region? Nope. Is it just because this is the company's hometown where this now apparent mega-real estate franchise giant heretofore originated? Neh.

How will this merger end up? The same way Real Living has grown all along. By constantly building - merging and changing - all the meanwhile focusing on solidly creating a recognizable brand name. Every step taken one step at a time...

Now comes this huge leap. Watch and see…the doubtful ask whether the merger will work? Who is kidding whom? I am happy to be part of the bandwagon wagging its tail today! Real Living is made up of real people who are not stoppable when it comes to trying harder and earning respect comes always when good efforts continue. Progressive thinkers keep thinking. Positive marketing promotes good news. These folks focus on proper positioning. Real people who are real optimistic are not just opportunistic.

What is critical about this move is that it represents wise thinkers running the Real Living engine. This should be seen as a solid gold business decision; I.e.; prudent ramping up right in time for a turnaround! Real Living is growing instead of being gun shy; expanding, despite all the doom & gloom and despite the lackluster performances the majority of all its active realtors have experienced because of the worst housing industry downturn most of them ever worked through.

This move is good for a struggling agent's morale if nothing else! But my guess is the good will spin and keep unfolding many years from now.

For many reasons it is ok to reserve a little from too much immediate boasting at least until validating the dollars and sense of it. However, eventually claiming the leading name in real estate in the whole Nation is a sure bet as a result of these two major teams consolidating?

I dare venture this prediction, because I believe in Real Living. This is a smart growth business engaging very forward thinking. Real people who put really good ideas to real use are destined to be the leaders in every industry!

Real Living had a total of 2000 agents nationwide prior to the GMAC merger. I really don't see how this qualifies as 'creating one of the largest real estate franchises in North America'. This was simply a matter of dumping an unpopular name with bad connotations to the auto and finance industries and replacing it by buying a new name. Best wishes to all involved, but this isn't really that big a deal.

I have been with GMAC for nearly four years now, and I am extremely excited to see where we go from here. In my local area there are several GMAC offices, and I don't think we will have a problem re-branding. My clients use me because of the service I offer, which is supported by the GMAC Premiere Service Program, and Brookfield will be carrying that forward.

I am looking forward to all the changes to come.

Hello, Dawn.

Coldwell Banker only acquired Blue Realty GMAC offices in New Jersey. They did not acquire the entire GMAC brand.

Stefan,

I appreciate your approach to market research!

"What are your thoughts about this "new " move. Has yesterday's news turned into tomorrow's future."

It is very interesting to see how agents across the country are processing the merger. Looking at the NOW....How real estate in the 21st century is done.... HAS to change... bottom lines have to increase and expenses have to be decrease. Incorporating important changes into an entire branding process makes sense. Out with the old and in with the new.

The Internet is going to make an agents job so much easier but adapting to the change will be the real challenge for each individual agent.

I read all 58 comments and I did not see any reference to GMAC and the auto maker or else I missed it.... seems to me like getting rid of that name and moving on makes HUGE sense! New century marketing, new name, new ways of doing real estate.

We will be watching "Real Living" as they emerge on the forefront of new century real estate.

We have a GMAC branch in my area. I'll be interested in seeing the changes here as well.

I am definitely pysched about the news!

The Real Living rebranding Brookfield has undertaken applies only to the US based offices. Royal LePage will remain RLP in Canada

Neither brand is well known here. Our industry is ever changing and this merger will probably spur others.

Hope this giant merger can help stabilize consumer confidence, market valuations and the mass destruction of valuations in the Housing Market that FSBOs and other non professionals have created which in turn lead to more foreclosures based a false notion that commissions are all that matters.

This is such a fun thread!

Dave Woodson wrote:

"I think if you dig a little deeper, you will see that Warren Buffet is behind this somewhere if my memory serves me correctly, and that tells me he sees the future for the US Real Estate market being a little brighter. Or, perhaps, I am wishing a little too much."

Warren Buffet is connected to the Florida company that is letters? EVM? EHM? EVH? They've been in the news in the last few years for being innovative.... but there is no connection.

I follow Real Living pretty close. Yes there is an office in Chicago. If there are GMAC offices in Chicago they may become Real Living.

I am going to go dig deeper for Warren Buffet anyway...

Here I thought United Country Real Estate was the biggest...can't say I have heard of either of these companies...best to you..

I hope the branding goes better than it did when GMAC changed the name from Better Homes and Gardens Real Estate, at least here in Northern Colorado.

I'm sure this will mean job losses for some full timers at both of these companies and stressful days ahead for many others....including agents, to be sure. Good luck to one and all!

Stefan, branding and offering customer service? Give me a break! All sales representatives say they give customer service, some better than others. Regardless of what brokerage one works for, small or large, the individul who works hard, researchs the market and offers superior service can succeed with any company.

IT IS NOT THE COMPANY, IT IS THE INDIVIDUAL!

PS: I wish the new company well!

I like the name and I wonder about the glowing terms of their partnership culture, customer service etc. What does that mean in terms of a difference between that company and any others? I agree with the gentlemnan in comment #74, it's the individual that makes the customer satisfaction. Having said that, I am in a Real Estate 3.0 company (eXp Realty) whose model is changing the face of real estate. Every critic I have heard speak after taking a look at it says "this is the future of real estate". We have high tech melded with customer service... that's why I'm interested when a model claims to be different!

Stephan, in reading through the comments I find an interesting contrast between the new and old schools of Real Estate.

Carra Riley has a very important point:

"The Internet is going to make an agents job so much easier but adapting to the change will be the real challenge for each individual agent."

The changes in the market in client retention and the methods in use are a moving target! The major players in the marketplace will have to turn to consistent training, results based practices and show financial gains to retain Realtors.

And have the Owner/Brokers be profitable!

Stability in our Industry is the operative word attached to a resurgence in strong self management by every Realtor to be the best that we can be! Our leadership needs to step up to the task of making the Realtor brand number 1 followed by professional organizations that support the Realtor.

Tag missing on #76 above...

Mark C Munro with RE/MAX Allaince Westminster, CO

I am a Real Living agent in Columbus, OH have been impressed with the vision & innovation our company offers. The training they offer new agents is the best in our market, and Harley & Kaira are inspired leaders. I am excited about future opportunities this merger will create & pleased to see the positive response by our industry!

Bigger in not necessarily better. The larger the organization, the greater distance between the client and the ultimate decision makers. Profit can easily become the prime basis for decisions, compared to servicing the client. As a realtor, are the costs of paying this great heirarchy of administrators worth it. It would be nice to find a compromise between "Mom and Pops" and mega real estate companies. Just my opinion after experiencing 30 years of change in this business.

On the West Coast Coldwell Banker rules the roost.

Stefan:

All these comments are certainly thought provoking. It will be interesting watching what will occurr as a result of the name change. The real living leadership team are certainly charismatic! All the best to all those involved!

Stefan, don't recall a Real Living franchise in my area. We do have GMAC.

Boulder City Steve

Interesting that I did not see anything in the news with regard to this in Canada. Strange way to find out what a Canadian company has just acquired.

I have been an Agent with Real Living HER even before it was born in 2002. I came aboard years ago when it was just HER Realtors, owned and started by Harley E Rouda Sr in 1956 in his basement. Sr is a past NAR President, well-known and respected throughout the industry and certainly by his Realtor family here in Columbus, OH. His ideals of family and being an 'agent centric' company have gone above and beyond his philosophy with the birth of Real Living. Harley Jr is and has always been a visionary, looking into the future of our industry and somehow getting there before anyone else knows it's coming. If you haven't heard of Real Living, you should get to know it....just an amazing place to work and technology tools beyond your wildest dreams!! We have had our core services in place for many years and the addition of GMAC should expand these even more. I can't wait to see what happens next.

Stefen, Thanks for the update. We have a GMAC in our market, but no Real Living. Competition is all about having options, so I certainly do not see a monopoly to be concerned about as long as we keep banks out of our business.

We left the GMAC brand this year and decided to go Independant and join the Leading Real Estate Companies of the World network. Our market share has increased since the change. Sellers are more interested in local branding than national branding. Buyers don't care one way or the other.

Hi Stefan ~ always enjoy your writings. Thanks.

From a GMAC agent - YES, this is very big news!

I love this....It is so very interesting to see the reaction from across the country to this merger. I am currently an agent with Koenig & Strey GMAC Real Estate, a Chicagoland brokerage with about 20 offices and 900 agents and a leader in sales of luxury homes since 1961. Though we are now a GMAC/Brookfield/Real Living franchisee owned by HomeServices of America, (a Berkshire Hathway Affiliate), from 1999-2009 we were part of the Company-Owned portion of the GMAC real estate.

Here at Koenig & Strey GMAC we have been waiting with much anticipation and excitement for all the changes to take place. The Brookfield purchase of GMAC Home Services back in fall 2008 marked the beginning of a new era for this network, and we knew that re-branding was coming to replace the GMAC name. With so many options available to Brookfield for creating a new nationwide real estate brand, I am very happy to see the partnership with a progressive company like Real Living.

I personally feel this is a tremendous step forward for those companies who have carried the GMAC name, and I believe that the rewards from being with a company such as ours will be plentiful.

I have been a GMAC Broker/Owner here in Columbus, Ohio-the home of Real Living- since day 1 when they bought Better Homes & Gardens, and I am excited. In Columbus they have a strong image, and I am looking forward to being part of that. We have been a small fish in a big pond for many years, and it seems as though we have grown a bunch this week!

Stefan,

I am like some of the other readers, and not aware of the merger. In our local market I don't believe it will have any effect.

Since opening a Real Living office in Asheville, NC two years ago, I can say that the brand itself is an instant easy sell to my longtime clients, and they are all more than happy with the innovative tools and marketing that I can provide to them with the click of a mouse. This brand has allowed us to be a small boutique while providing big agency service to our agents and clients. Real Living is consumer focused and agent centric, they have done the homework for their agents and owners, understanding better than anyone what today's real estate consumer is looking for in a company. GMAC agents, you will be thrilled with and proud of your new brand.

I am in Placerville California, this is so exciting. We are a small town in a large county. Yes, the GMAC brand had some not so good stigma but for years it was very strong, I will never say I was not proud to give my card out and represent our company. I am just as excited about the new brand and a new beginning. How exciting to be the new kid on the block.

I work with Pacific Union International, in San Francisco. Brookfield bought us, but now we are held under a smaller company called Morgan Lane. The Pacific Unioin brand will remain, but I'm happy to be affiliated with Brookfield vs. GMAC. The latter didn't really get in my way much, but in The Bay Area, large corporations are usually not viewed as favorably as smaller, more grassroots ones. :)

To Maureen McCabe (comment #70)'s question about where and whether Warren Buffet somehow fit into the mix: YES, he does, at least in the Chicago market. Kimberley Thurm (#87) gives a good overview of how Koenig & Strey, a local luxury broker in the Chicago area, was a GMAC corporate-owned firm, became a Brookfield franchise (in 2008), and was purchased this year by Home Services, a Berkshire Hathaway affiliate (hence the Warren Buffet link).

As an associate with Koenig & Strey, we have been awaiting the re-branding (personally, not sad to lose "GMAC" tag!) Contractually, the use of "GMAC" had to disappear before the end of 2009.

I understand that the Koenig & Strey name will remain our firm's primary name, as it's a long-established, highly-regarded Chicago brand.

I am also happy that our firm is now owned by Home Services, for all the stability that comes with being part of a Berkshire Hathaway affiliate. And, I look forward to what added value Brookfield's Real Living franchise will bring to the mix, as well!

Stefan,

As a GMAC Strategic Partner (Franchisee), I was really surprised to read your post...before the franchise holders were even officially notified of the latest acquisition and name change. Hmmm...not a very encouraging sign to those of us "out of the loop" that are supposed to be "inside" the loop. Hopefully, all of the positive comments from Real Living associates/agents are an indicator of our future...and the new business model will be structured to actually help the local offices grow financially as well as in name recognition.

Having been with GMAC only 4 years, I still have many years left in my franchise agreement. Although I've made numerous friends within the organizatin, and loved the leadership of John Bearden, I have found the fees we are required to pay certainly have not gone towards helping branding and name recognition in the Houston area. The consumer simply does not know who GMAC Real Estate is...nor do they recognize Real Living as a player in the real estate game. Currently, there is only one RL office and three GMAC RE offices in the Houston/Galveston area.

It is my hope the new organization takes a stronger approach in supporting their franchise holders by providing something for our money:

1. Brookfield Relocation Services should actually provide relocation leads to its franchisees. GRS (in Houston) usually gave those leads to competitors. Very counterproductive, and disheartening to our agents, and the company as a whole. Why not keep it in the family? Houston has numerous relocations that could be handled by agents within our own network. No wonder the local GMAC RE offices struggle when their own relocation company farms those relo leads to offices that aren't even associated with the parent company.

2. Keep up with technology! Don't claim to be something you're not. Why are Prudential, KW, and RE/MAX leading the way in technology...and a company our size, with our resources, cannot compete in that arena?

3. Offer great trainining opportunities...and, don't charge the agents! We already pay enough franchise fees to have educational opportunities offered at no additional cost. After all, an educated agent generally produces more.

4. Brand, brand, brand...that includes ADVERTISING! How can a parent company expect the public to have awareness simply from a "grass roots" approach to advertising? The local franchisees pay their fees to get the national exposure. We can't afford the spread the word, too. Please use our fees to advertise...not just line the pockets of those on the corporate level.

5. Give back. Do something to help others. After Hurricane Ike, other franchises in our area were assisted greatly by their corporate offices, as well as their fellow agents. Many of the "big guys" have established divisions to help those in need. Come up with some way to "pay it forward" and the consumer will remember you...and, so will your agents.

I'm eager to see what the future holds...and look forward to a new beginning!

All the berst ti the new vcenture. If they can run their auction business as it should be, they will be most successful

Our company is currently GMAC so we will be taking on the new name. I personally am excited. Can't wait to see what is coming up. Everything I have read about them sounds like they are really on top of the internet marketing so we shall see.

Sorry I can't see any market gain or office openings in my area.

Interesting, Stefan:
It seems like only yesterday, Brookfield was purchasing Trizec [formerly Trizechan] Office Properties. I don't think they ever finished changing the names on their buildings from Trizechan before the Brookfield purchase closed. Makes me think of a lot of old friends I've lost contact with...

Off to FB to re-connect!

The Stage Coach Austin Home Stager

btw - Lyn #97

(Sorry I can't see any market gain or office openings in my area.)

You already have an office in your area - Koenig & Strey GMAC Schaumburg, located at the northeast corner of Barrington and Schaumburg Roads. My post #87. ~ Kim

That is news to me. I have heard of Real Living. I did not know it was so large.

I hadn’t heard much about Real Living other than what I saw on this Eye on America piece. They appear to be an exciting and innovative brand, far more than a logo and a clever positioning statement.

Phil Soper, President of Royal LePage in Canada says Brookfield’s Canadian operation (Royal LePage) will not be rebranded. Royal LePage has a near 100-year history of operations in Canada, is continuing to grow, and enjoys excellent brand recognition across the country.

Stefan, I am a GMAC agent, and am guardedly optimistic about the merger and rebranding of GMAC. I have heard everyone comment on Real Living's agent-centric culture, use of new technology, innovative marketing, and uncommon commitment to professional development and teamwork. I have searched the Real Living website and stuff, but I haven't seen any concrete, tangible examples of these 4 items. Could you share some examples of Real Living's commitment to 1) agent-centric culture, 2) new technology, 3) innovative marketing, and 4) uncommon commitment to professional development and teamwork?

For example, our agency here in Eureka, CA has a local, dedicated agent trainer in our office; we are using 3-D floorplans, hot-spot links on virtual tours, panoramic photos, and property-specific websites to enhance our marketing; use of docu-sign for electronic transfers and texting/twittering to communicate instant showing requests; our broker regularly has us, his agents, in his home for celebrations and relationship building. I've seen and appreciate Real Living's unique marketing toward women, but other than that, what is the biggest example of the aforementioned virtues you can cite?

Stefan,

I am a GMAC agent her in Bowling Green, Ky and have benn for several years i have an open mind

will wait and see what happens.

I am a GMAC agent in Ohio in a town that also has a Real Living. I have been impressed with Real Living as well as GMAC since they bought out the mom and pop I worked for. I am looking forward to the merger. Real Living is huge in Ohio

Real Living does not have a presence at all in Colorado. GMAC a very small presence. Doesn't effect me.

NOV

Neither brand has much of a presence here in the Triangle, although Real Living tried in 2008. I foresee the "big franchises" getting smaller and smaller. Small independent companies are what are growing in presence here. Agents are realizing that they don't have to pay a big franchise 30-50% of their commission for every transaction, especially when the company doesn't provide the leads.

As agents for GMAC we knew that it was just a matter of time befoe Brookfield changed the name. Glad for the new merger and looking forward to having new partners out there.

Never heard of them. Are they on the East Coast at all. I guess that's good news for us. Do they buy Offices or start new ones? With the internet and data sharing IDX and MLS all the listings are on each others websites anyway, so if your big or small it doesn't really matter.
IT"S ABOUT YOU.

What is their business plan - 100% ?

Having been a broker for GMAC Real Estate since 2002 in the Minneapolis/St.Paul market, I believe this latest merger to be of benefit to those involved. Stefan, I find that with this surprise announcement, your TRENDS REPORT about the Brookfield/GMAC Merger will prove as accurate as predicated. GMAC Real Estate under the past leadership of John Bearden created a unique differentiation in the market place by adding Premier Service to its brand.

The difficulty we had with GMAC was within the empire itself. (auto finance, insurance, banking, mortgage, real estate and many more). The focus can now be placed where Brookfield intended it to be on Real Estate. We are encouraged by that.

We are also encouraged that Real Living while not as widely known, appears by the accolades received to be headed in the right direction with it's already tested WEB 2.0 successess in their business model.

Also, the combination of Brookfield's Relocation with GMAC's Global Relocation to Brookfield Global Relocation and now Real Living will create an even larger impact in this part of market as well.

GMAC Real Estate already had phenomenal agent tools at our disposal, now with the addition of the technology platform of Real Living, we are looking forward to a "new beginning"!

Our thanks to the partners whom we worked with in the past and our optimistic wishes for Harley Rouda on this new venture into the future.

Interesting Post. I'm not a big fan of real estate franchises because of the expense the agents have to pay them just "to belong". ....and all the meetings you have to attend... And still, agents must spend hard earned $$$$$ for all the other services that are never included in real estate franchises...

Thanks for the news, through.

NOV

No one has ever hired me as their realtor because of my national brand and GMAC has never provided me with anything of value. The new company can't do any worse but frankly as my broker's top producer I will lobby for him to take our office independant.

GMAC comes and goes with frequent regularity in my market. I guess I should thank my lucky stars I am affiliated with the brokerage I am. No big fees and lots of office perks not to mention huge name recognition. It will be interesting to see if the merge moves to the midwest.

NOV

Rainers, so for my delay in respondng to some of the comments left. I have been at the NAR convention the last 5 days and was so busy that I just could not get to everything. Following my responses to a bunch of questions and comments.

@Dave, #57

Warren Buffet is not behind this deal. Through Berkshire Hathaway he is involved in HomeServices of America. They own and operate companies such as:

Carol Jones Realtors
CBSHOME Real Estate
Champion Realty
Edina Realty Home Services
Esslinger-Wooten-Maxwell REALTORS
Harry Norman, Realtors
HOME Real Estate
Huff Realty
Iowa Realty
Jenny Pruitt & Associates REALTORS
Long Realty
Prudential California Realty
Prudential Carolinas Realty
Prudential First Realty
Prudential York
Simpson Underwood Realty
RealtySouth
Rector-Hayden REALTORS
Reece & Nichols
Roberts Brothers REALTORS
Semonin REALTORS
Woods Bros. Realty

HomeServices also recently acquired Koenig & Strey from GMAC in a recent transaction.

@Roby,

Well said. I agree.

@Sherry, #55

GMAC did not sell of Metrobrokers GMAC. Metrobrokers GMAC was a franchise of GMAC and terminated its franchise agreement with GMAC due to disagreement.

Stefan

PS: Red is a popular color amongst real estate franchises as is blue and KW is not the only franchise using red.

@Terri, #56

Change can be scary, but we will live very dynamic times and change is going to be a very integral part of the real estate landscape for a long while. Read the Swanepoel Trends Report every year for detail information about all the changes.

@Aaron, #59

Viist the RealLiving website for details on their history and how RealtyOne fits in. Furthermore the 2007 and 2008 Swanepoel Trends Reports (few copies still available at Realty Online Bookstore) details a lot of the acquisitions and name changes that have taken place over the lats few years.

@Joe, #61

You are not seeing all the pieces. Brookfields is today the parent company of Royal LePage, GMAC Real Estate and Real Living. This is the third largest amassing of real estate companies and brands in North America behind Realogy and HomeServices of America. It is significant is many regards and creates a new major force in residential real estate brokerage.

@Carra, #64

Yes the name change is important but understand that it was a condition of the sale of GMAC a year ago and we were fully aware that a name change was in the works. Brookfields has just been researching all its options in creating a new brand or acquiring and existing brand. Their decission fell on acquiring the Real Living brand. I think it was a wise move.

@Maureen, #70

The company you are refering to is Esslinger-Wooten-Maxwell REALTORS. See more details at my comment at post #115.

@Lori, #71

United Country Real Estate is a large franchise with about 700 offices but is by no means the largest. As a matter of fact depending on what criteria you use they are generally not regarded as one of the Top 10 in North America. They are however probably the leader in small towns and rural cities.

@Ty, #74

Where the rubber meets the road, it is of course it is the agent that provides the customer service to the consumer and is the representation of the brand.

That however does not mean that some companies as a whole are more consumer-centric or are better known for their technology, or innovation or customer services, etc.

You can therefore not discount the fact that Real Living has received third party recognition.

@Edy, #75

Many companies claim to be different. Many claims are not necessarily valid.

Many companies have claimed that they will change the face of real estate, as yours does, and very few did.

That said, many companies, including eXp Realty, have unique of different features, products or services that they use to try differentiate them from their competitors.

Thanks to everyone for the lively discussion. I going to take a break now and will return later to continue responding to the balance of the comments.

I would however like to leave you with a thought to ponder as I was surprised at the large amount of unfriendly type of comments against another company/brand. We are all part of one industry and if we sincerely would like to see ourselves as professionals, then our antagonism is misdirected.

I saw this through you Twitter. Thanks for letting us know. I had never heard of Real Living. I'm in Washington State. I did not read all the 124 comments yet.

NOV

Thank you Stefan for the info. I've never heard of Real Living. There is at least 1 GMAC brokerage in my area, so it is going to be interesting to see the results of the merger.

Thanks for posting this, I too came in through Twitter. Our company just recently bought several GMAC offices in the Metro Milwaukee area, so this generates a little bit of interest for me. As far as I know we do not have any Real Living Offices in Metro Milwaukee and I will be interested in seeing if it remains that way. The discussion was great to read - and you responses too! You certainly modeled getting your point across without being antagonistic or just plain not nice. Hope you're enjoying the convention!

Stefan, Wow great discussion and outstanding comments. I have been in real estate for 17 years and companies come and go. Things change and in this case I hope for the better. Companies that are making forward movies also need to be responsible for building a new way of doing business. Social Media has changed the playing field. This is a good company and I am sure they will set the bar high.

I think the important thing is that our values and mission stay the same. " to promote safe and fair housing for all and to protect private property rights" With these values firms can come and go but the agents will always stay strong!!

Thank you Stefan for leading the conversation. Great seeing you in San Diego #Nar09,

Alex Chaparro

Wish I was smart enough to offer something relevant to this conversation. ;-) There are so many things going on in RE right now that I have not developed a firm feeling about what, ultimately, will be the 'great' new business model. As someone who has never gotten business from the brokerages I have been affiliated with, but for 1 walk-in, I for the life of me can't figure out why/who I should be affiliated with since my business comes from my own website(s). So I am my own brokerage right now, until it makes sense to do something else. Maybe your new Trends Report for 2010 will help me! ;-) Your fantastic Social Media Report 2010 is getting dog ears from use.

I've said this time and time again...The company that wins is the company that provides the agents with THE BEST toolkit of services to bring to today's consumer...GMAC Real Estate was already headed in that direction...It seems that Real Living is even more "X & Y"-centric!!!

This should be very interesting...No other large company has "stepped up to the plate" to buy other real estate companies...This is opportunity time to invest!!! I give Brookfield kudos for that, This is a good sign for all of us, that a company like this has faith the future of real estate in the U.S.!

I say that all the others should keep their eyes wide open!!!

I firmly believe it's about the AGENT and up to the agent to make their own business successful not the franchise. I think these days the sign on the yard is less important than ever--it's the agent behind the sign and what he/she does.

@Mark, #76

"I find an interesting contrast between the new and old schools of Real Estate."

Well said Mark!

@Kelly, #78

Good luck!!

@Warren, #79

"Your comment "Bigger in not necessarily better" does necessarily apply to real estate brokerage companies as most large real estate companies have franchises that are independently owned and operated and with the independent nature of real estate professionals in our industry, the specific service is still rendered at the local level where the rubber meets the road.

The "so-called bigger and/or franchise companies" however offer additional value such as national or regional brand recognition, often trust and piece of mind, often technology or internet value add, sometimes additional training, etc. These value added services that can improve the knowledge and services of the individual real estate professional is able to offer to his or her customer.

John, #86

Your statement that "Sellers are more interested in local branding than national branding" is not accurate, although I think you are trying to say something that we both basically agree with.

Let me see if I may rephrase it so that we both feel comfortable with the statement.

"Sellers are interested in the real estate professional and brand, whether local or national, that will enable them to sell their home the quickest, at an acceptable price, with the least amount of hassle and the most amount of quality service."

Just cobbled that together….how does that sound?

@Kimberly, #87

Koenig & Strey - a Real Living franchisee owned by HomeServices of America, (a Berkshire Hathway Affiliate).

One of the most powerful combinations in our industry with just awesome opportunities.

The future is yours!

@Eugene, #89

You are partially correct. Real Living has none and GMAC only a few offices in San Diego. I however suspect that within the next 1-2 years you will not only see the GMAC brand change to Real Living but you will most likely see the number of Real Living offices increase.

@Glenn, #90

Positive example. Thanks for commenting.

@Michelle, #94

I am sure that Brookfields released the acquisition information to both the "inside" group and "key outsiders" in a coordinated manner and most likely at almost the same time.

The speed however with which Social Media allows information to be dissembled cause it more to be a factor of who has the largest following and awareness in the industry. My specialty is trends and change so feel free to visit www.RETrends.com and enjoy any of hundreds of books, reports, whitepapers, articles and posts on our dynamically changing industry.

Stefan Swanepoel
Author: Swanepoel TRENDS Report
Author: Swanepoel SOCIAL MEDIA Report

@Jeff, #102

I have invited Real Living exec's to post an example for you on this thread.

A name change can't help but be a positive for GMAC. That always reminded me of a car lot.

@Linda, #107

National statistics do not support your statement that big franchises will get smaller and smaller. As a matter of fact most indications, at least for now, reflect exactly the opposite.

That said, I am researching franchising in real estate extensively and the top 20 plus other various other new franchises will be detailed and discussed in my 2010 Swanepoel TRENDS Report due for release February 2010. You can reserve your copy of this 165 pages report at the Realty Bookstore at www.RealEstateBooks.org

@Dan, #109

Big or small per say doesn’t equate to being successful. Big however does have many advantages that introduce things such as economies of scale, brand awareness, etc. that are beneficial to the consumer/agent/transaction.

If you have not yet heard of either brand, I suspect that will change within a year or so.

@Jerry, #110 & Susie, #131

Thank you. Yes the Swanepoel TRENDS Report is very accurate in its assessment and forecasting of the real estate industry as we pride ourselves in providing quality publications based on extensive research. Brokers and agents alike can save time and money by using this objective research every year to their benefit before creating business plans or taking key decisions. Some are wise and do, some don't.

@John, #132

There are actually numerous large acquistions that have taken place in recent times /years, but this is clearly one of the very noteworthy. I agree that, if you can, it is now a great time to pick up undervalued companies and properties.

I am with Kinlin Grover GMAC and we were part of the GMAC company owned real estate offices. I welcome the news of Real Living. Thank you Stefan for getting the conversation going. I am very surprised at how many respondees were not familiar with the Real Living brand. Keep your eye on it now - with the union of Real Living and GMAC, the future is bright.

Stefan,

Thank you for all the information about Real Living. I first learned about the company in your Trends Report 2008. As a GMAC Franchise Owner, I am very excited about our new family. I'm looking forward to seeing how our Premier Service merges with Real Living. It seems like a perfect fit to me. Thanks for posting a picture of the Real Living sign. I think the color Red is a great color for real estate. The KW agents in our area use their name on 90% of their signs so I don't think it is going to affect us.

Stefan,

Wow! 145 Comments and I'm just now getting a chance to write. With NAR, and this exciting announcement, well, you can imagine. So yes, GMAC Real Estate + Real Living = an amazing, bigger Real Living and an incredibly bright future for all of us. To all of you who have been supportive of this great bit of news for our industry as a whole - thank you!

Stefan, thank you for starting this discussion and for doing an amazing job as a moderator on this discussion and for keeping it real.

And I agree with what many of you have said. In times of change, we should be sticking together and keeping an open mind. To those of you who are currently GMAC Real Estate brokers and agents, all I can ask is that you give us a chance. At Real Living, we are so excited about the future and anxious to share with you the brand that Stefan named the most promising new national brand. Oh, and I agree with many of you who write that business is local. It is. And small is the new big. Our job at Real Living is to provide the marketing technology tools, professional training and services to make your job easier and to bring you closer to your customer. To make it easier to be the best locally, because you have amazing support nationally.

As several of our Real Living agents and brokers wrote, much more eloquently than I can, we began as a brokerage in Columbus, Ohio in 1956. It's an American success story. My amazing father in law, Harley Rouda Sr. started the company in the basement of his first home. And now, we're a part of Brookfield - a global powerhouse making an amazing commitment to real estate across the globe and here, in the U.S.

There is nothing to be skeptical about with Real Living. We are who we are. We are red, round and real. And, as Stefan promised to post #102, we have so much to offer. We will be posting more specifics on my blog and Chris Svec's, to answer more questions and keep the dialog flowing. My favorite answer is launching the real estate industry's first consumer driven web 2.0 portal, MyRealLiving. But that's just part of the story.

We all are an important part of the future of real estate. If you are directly affected by the merger - please give us a chance to showcase the Real Living brand to you. We, too, believe in Premier Service, and many other common foundations of our two brands. If you aren't a part of either of our companies, thank you for the good wishes. The feeling is mutual. Skeptics, well, I'll take the high ground here.

And Stefan: wow! Thank you for this chance to talk and share. Social media and open communication is the way of the world today - in business and life. In fact, this merger came about through Twitter. More on that later, too! Thank you for reading this post - and keep talking!

All the best,

Kaira Rouda

Real Living

NOV

@Kaira,

Thanks for your comprehensive contribution. Yes this has been a most interesting discussion and a lively one at that. This transaction clearly illustrates us many things including: Confusion, criticism, frustration, illiteracy, disinformation, lack of information, antipathy, admiration and above all hope.

What a wonderful industry we have.

NOV

Has anyone found a Real Living agent anywhere that doesn't have a templated Real Living website? I haven't found one. Does that mean we will all have to ditch our own websites and replace them with templeted Real Living sites?

And...I just pretended that I was looking for a Real Living agent in Texas, and found 48 agents. However, all of their sites looked almost identical, with almost identical content. The links were different, but all the stuff about the agent was almost exactly the same. And I thought, "I have no way, other than gender or race or age or look of the photo, to base a decision on which agent I choose." This is scary... So I'm begging one of you guys, check my research and tell me I'm wrong. Especially some of you Real Living higher-ups listening in, please, tell me I'm wrong.

Jeff (#154) I noticed the same thing. I'm hoping it's a similar set up to what my office currently uses in that the website is template but each agent can customize with whatever content, headers, and verbage they want. Alot of the sites from my office look identical because the agent hasn't taken the time to update and personalize.

It all depends on the effort the agent puts into customizing their site. There are many tools and workshops available from Real Living that help even the most technologically challenged agent create a unique website. But, as all other successes, it has to start with the individual agent.

NOV

Hi Stefan,

I work for Royal LePage Atlantic and they are a Great company to work for... Hopefully, this merger will be beneficial for all included. Nice Blog. THANKS!!!

;>))

NOV

interesting times indeed..hats off to Harley Rouda Jr., a man who has invested time and money in being a highly educated business man. He sets a great example for all Real Estate professionals to follow. He raises the standards within the Real state business model and we should too.

NOV

Hi Stefan, It was great seeing you this past week. Real estate is continually re-inventing itself and I expect that it will continue to look somewhat different in the next decade. Transformation, remade older business models and whole new approcahes to the industry can and should be expected. There are many new issues arising and these issues have yet to fully manifest themselves . What we once thought was impossible is now reality and I suspect what we think won't happen in the future will be the new trend. GMAC and Real Living may be just the begining of what's to come.

DEC

#154 Jeff Ragan wrote:

"Has anyone found a Real Living agent anywhere that doesn't have a templated Real Living website? I haven't found one"

Let me help you with that, a few of the Real Living agents in my market who have a different site or a site in addition to the template site include Sandy Raines, Jill Rudler, Karen Gorski, Elaine Reese.

Here are some non RL template sites, if I may add these to the conversation for Jeff:

http://www.allaboutcolumbusohio.com/

http://www.elainereese.com/

http://www.karengorski.com/

http://www.therainesgroup.com/

I am sure Sam Cooper has a non template site...

http://www.columbus-ohio-realty.com/

Julie Morgan in Upper Arlington has a killer website.

http://www.columbus-home-search.com/

Both are ActiveRain members and I was able to find their non template sites easy squezy, righ here on ActiveRain. Sam's got his RL template site as his main site on AR though, not the link here. He may have other sites too.

I am guessing Jeff is Jeff Ragan with Ming GMAC who has the website: http://www.realtorjeff.net/

Me...I just use the company template site... and a Real Living E-Team site....

Thanks, Maureen, for the links! It is I, Jeff Ragan, from Ming Tree GMAC Real Estate and www.RealtorJeff.net. I was getting nervous, as it seemed that perhaps Real Living limited an agent's use of personally prepared websites. I am relieved that is not their company policy, as the examples you site show. Thank you, thank you, thank you!

There is a Real Living group here on ActiveRain and of course all the GMAC agents are welcome, in fact we've got the Welcome Mat out for you.

Kaira wrote: "We will be posting more specifics on my blog and Chris Svec's, to answer more questions and keep the dialog flowing." I know ActiveRain is not Kaira's only blog but I am hoping she means she'll be posting that content here on ActiveRain.

DEC

WOW. The comments and opinion offered here are as far and wide as the Grand Canyon. I also don't see how this move qualifies this company as being one of the 'largest real estate franchises in North America'. This was simply a rescue mission and when it is all said and done, the future of this 'new' brand will rest in soley in the hands of its leaders and top agents. Mergers are not anything new nor is this virgin territory for a company wanting to be bigger than they really are. Want to get big, just raise the cash and buy another fledgling company. Along with any merger comes cost and absorbing that cost is the key to any growth success today. Company branding of course takes on it's own local responsibilities and costs, which I don't believe will be on the corporate expense sheet, unless Mr. Buffett (I believe that someone mentioned his name as a player) decides to dish it out for a national ad campaign. He may have to buy up a cable company and an advertising company first to be effective. I think the bottom line here is: The more things change, the more they stay the same!

I"m sorry, I don't understand the reason behind the cynicism so I have to ask...The assumption that this was a "rescue mission" for a "fledgling company" comes from where? And why the pessimism regarding the future of the company? GMAC Home Services wasn't exactly bought out by a no-name company. Brookfield is a highly respected name with great success in Canada. They are simply taking two companies with valuable ideals & strategies and combining them to create even better customer service (GMAC currently has a 95% customer satisfaction rating nationwide).

In my humble opinion...the bottom line here is: Change creates opportunity for great improvement.

JAN

I got tired of waiting and waiting and waiting, once a GMAC Agent but no more!

I was told how wonderful the future was going to be, no details of how, what, when and where...just how wonderful is was going to be all the while office franchise fees was coming out of my pocket/check/commissions and going where? going to whom?

Happy to be a independent agent working with a great team and taking quality care of our clients and giving back to our community! Karol

Realty Five of Defiance

"We choose to give"

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Stefan Swanepoel

Ladera Ranch, CA

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Address: PO Box 7259, Laguna Niguel, CA, 92656

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