Scott Hayes of Austin Real Estate Agency in Austin, Texas wrote a wonderful post about the closure of RE/MAX Partners in Ft Lauderdale Florida.
He asks some important questions:
"The questions begin, as to how it will change our industry.
Are large brokerages as vulnerable as car dealerships and newspapers? Does the real estate consumer identify between a national name a local brokerage. Is that a factor or relocation as opposed to someone who currently lives in the town where they are looking? Does the real estate professional need a traditional office. What is the new normal? How much of consumerism still boils down to who you know- the referral system?"
Seen here:
I happen to see many successful REMAX franchises in Tampa Bay and in Hawai'i. It depends on so many factors and will not bash them simply because one out of many ReMax offices closed down. In the Sentinel the owner was quoted as saying,
"Five years of declining sales after Hurricane Wilma coupled with a 29 percent drop in business after the expiration of the federal tax credit for first-time and other qualified homebuyers has "made it financially impossible to continue in business.""We have exhausted all our resources and have found no one including RE/MAX who is interested in lending or buying the business."
It may very well be partly due to the stricter lending practices of banks.
I have worked with some great professionals at ReMax and was asked to join one of their offices. However I do not have to cut ReMax down to make Coldwell Banker stand tall or any brokerage stand tall. Both are great names and have great reputations. The closing of one office may be due to a multitude of reasons. We can only speculate but ReMax is still a good company. They have been in the business for a long time. They will continue to stand despite the Haterade for large brokerages :) There is enough for EVERYONE.
This closure epitomizes how banks have growing power and control which affects lending for businesses. If they do this to a larger brokerage then chances are they will not extend credit to smaller ones so I am not happy that a large brokerage closed.
It is actually quite disturbing on so many levels especially lending for smaller brokerages to expand and grow. ReMax was once a small brokerage and slowly grew. This is not good news for those aspiring smaller brokerages who want to grow too.
A hui hou!
~ Lana
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