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Is the Traditional Real Estate Brokerage Model finally truly dead?

By Jaret Ghent

Real Estate Broker/Owner with Vision Real Estate

December 04, 2010 09:58 AM

So the last time I wrote on this subject (Virtual vs Brick & Mortar) I got a lot of feedback, varying opinions and even a little criticism. Of course, that was almost 4 years ago... and boy have we seen a lot of change in the market (dugh) and even the real estate industry (sigh).

I own a small Brokerage in little "ole" Boise Idaho and I have been referring to us as a "HYBRID" model.

Sounds catchy... I could explain but dinner is almost ready and the wonderful wife of almost 23 years has been preparing her infamous white chili. Please do not take that the wrong way due to our Boise Idaho address. As my wife grew up just outside of San Francisco were we lived in Northern California for many years.

Back to the point... is the Tradiional Brokerage Model - BROKE? What is the new business model for real estate professionals now and in the future?

As always your feedback and opinions are truly appreciated! And your criticism is welcome, especially if it creates more intrigue to the discussion. I'm looking for insight to better our brokerage so that my Team Members can benefit, as I understand they are Vision Real Estate!

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Laura Strunk

Keller Williams Realty Centre - Ellicott City, MD

Howard County Maryland Realtor

So how does your Hybrid Model work? Need more information in order to make an opion.

Dec 04, 2010 10:00 AM

Homes for Heroes

Coldwell Banker First Realty - Cedar Point, NC

Homes for Heroes Realtor, Relocation Expert

Three LARGE firms in my market have recently DROPPED their NATIONAL BRAND, probably due to weak sales, costs associated with that BRAND, agents NOT wanting to pay HIGHER franchise 'fees'...

They all have went independent...That may be a National Trend to watch for...

Dec 04, 2010 10:03 AM

Robin Dampier REALTOR®

Coldwell Banker King - Hendersonville, NC

Hendersonville & Western NC Real Estate Source

I agree with Laura. More info needed re "broker hybrid model" to spark and get a conversation going. Do you mean changes for how the big franchises do business in this new market, or perhaps brick and mortar places of business offices dissapearing with agents working from home, etc, etc?

Enjoy that chili.

Sue of Robin and Sue

Dec 04, 2010 10:08 AM

Jaret Ghent

Vision Real Estate - Roseville, CA

Expert Real Estate Advice

Good point... the smell of the chili was damaging my thought pattern.. LOL!

My brokerage is "HYBRID"... meaning we have exclusive technology that allows our Team Members to do business "virtually" from anywhere, anytime online. They can access the MLS with our own MLS Mobile Search Application, all transactions are handled through our Vision Virtual Office.

Now the cool thing is and where the HYBRID come is is we used to provide an office location for our Team Members to meet clients, get private office space if they so choose or utilize or FREE co-work space. And the majority of our business practices are GREEN and sustainable...

Any thoughts???

Dec 04, 2010 10:22 AM

Dennis Duvernay Broker/Owner

Hillview Realty - Northbridge, MA

All business's are cutting cost.....traditional offices are no different as they must cut cost too...therefore I believe you will see many more small town (or big town) mom and pop offices doing quite well by being a virtual office.

Dec 04, 2010 11:04 AM

Just to add to my last comment....their is a Remax franchise now offering 50/50 splits along with all kinds of different splits that they never offered before because they cant keep agents at the large fees they were asking for desk costs.....so even the large franchises understand they need to offer agents more or they to will be going the way of the dinosaur....just my thoughts

Dec 04, 2010 11:10 AM

@ Dennis, I could not agree more... and I was a RE/MAX lifer Realtor for many years. I was a part of the #1 office in California and Hawaii. I left for two primary reasons, the model changes they kept making (this was 4 years ago) and the ridiculous fees.

I believe agents are tired of poor splits, junk fees and receiving little of anything for it. All of us Broker /Owners have to be a lean, mean fighting machine right now. We also have to put our people (agents) in our company first and support them during these difficult times.

Funny you say Dinosaur... Have you seen this article written I believe in 2007? Great insight into the needed change in our industry. Also, great advice for any Broker - Owner.

DEMISE OF THE TRADITIONAL REAL ESTATE BROKERAGE DESK FEE DINOSAURS

Thanks for your great feedback!

Dec 04, 2010 11:28 AM

Adrian Willanger

206 909-7536 AdrianWillanger-broker.com - Seattle, WA

Profit from my two decades of experience

Jared~thanks for the post. i'm very interested in the business model concepts, I started with a national firm, left and went to a well respected brokerage with offices in 5 states, left and went to a Internet start-up in 2000. Too make a long story short the company went through $30m in investor money before they closed the doors. They had some really good ideas but were extremely arrogant to thinking that the technology would totally replace the agents role. My new thought process is about building relationships but using allot more firepower bring in many elements of SM. Best.

Feb 08, 2011 12:58 PM

Is the Traditional Real Estate Brokerage Model finally truly dead?

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DEMISE OF THE TRADITIONAL REAL ESTATE BROKERAGE DESK FEE DINOSAURS

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