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100 Comments on Are Brick & Mortar Real Estate Offices becoming a Dinosaur?
Justin: I would agree that whatever environment breeds the greatest productivity is a good measuring stick. However, I don't think that working out of an office necessarily guarantees or breeds Top Producing agents...
Our state requires a physical address for a Brokerage, but makes no distinction as to whether it's someone's home address or an actual 'office'. Even the larger offices in our area have cut back on space and just have a couple of work areas and a conference or meeting room to accommodate clients. I know i could easily get by without a brick and mortar presence as long as there are coffee shops that will allow me to have a meet.
Well, you certainly got a variety of comments up there. having been in the biz for nearly 33 years now, I have been with all the "big franchises" and paid my dues for all their advertising. However, with the internet presence we now have, paying big franchisees 6 to 8 percent for their name and advertising seems silly. I left brick and mortar about two and a half years ago, and made the right choice. i not only geet to keep 100% of my commission, but I also have a local broker, who oversees my transactions, and has that "physical address" to comply with the state real estate laws.
As we always hear, real estate is LOCAL. In my area, without a physical space a brokerage would be at a tremendous disadvantage. We deal with many people who don't even use much technology- they want to come to the office and/or use mail.
Rich:
I love my office. It is close to downtown so we get a lot of people coming into the office. I feel it is essential that there is a conference room to meet with my clients. I don't have an assigned desk because I am not in the office all the time. It works for me. I also enjoy the comaraderie of my colleagues. We have frequent pot luck luncheons, do things together and generally enjoy one and other. I don't think we would have that camaraderie with a virtual office.
Hi Rich, Interesting post and comment thread. Ours is a destination market and the office is located on the main drag. Visitors to the island will travel past ouir office and see the branding ! Have a terrific weekend !
Trying to impress? Other than my own husband, I could care less what other agents think about me without a real office. In the end, I feel it's about being able to close the deal for each and every client.
Just like this comment section, if you ask 100 person, you'll get 100 answers. In the end, it's all a matter of the broker - ie. the person who's paying for it decides. There's no all-inclusive, best for everyone business model.
My dad taught me, it's not how much you earn, it's how much you keep. As a broker, that statement still very well rings true.
If having a B&M brings more $$$, then it should be considered. If it's used to impress people we dont care for, that's just sad.
Loreena: I completely agree with you. I'm not in this business to impress anyone, except my clients maybe. Unfortunately, there are those who get caught up in such window dressings and image. And you're right, there is no right answer here. No one solution fits every situation. In some markets, a stand-alone office that exudes opulence is very appropriate. For others, a small space with workstations. I think one of the keys though is to ask two questions as it relates to space: 1) What do the majority of your agents/brokers need in order to succeed? 2) What do consumers/clients need? That should dictate what is the best solution...
The state of Florida requires that the Real Estate Brokerage have and maintain a physical address.
As a broker myself, I find myself spending less and less time inside the office.
At Hawkins-Poe in Gig Harbor we have a business center where we can bring clients to and have meetings at, but I rarely go there but for those reasons. My office is my home and car. What attracted to me work with Frank Hawkins at Hawkins-Poe was just that! Plus we have an online vault system where I can access our files from anywhere! Great place to work! Because of this techy age we are divulging apon who needs brick and mortar! It really isn't necessary. Plus we now have electronic signatures through the MLS, who needs anything else! :)
You still need at least some brick and mortar presence. Try taking a client to a Burger King, and hooking up your printer. Or sitting next to a family of little tots while going over paperwork. Where's your copy machine? Your scanner? Your assistant?
And it's not to impress people, folks. It's to make the client comfortable and at ease. It's what they are used to, and want, NOT YOU.
Certainly not for your benefit.
......... always maintained that service professional are no more or less talented because of bricks and mortar.
Brian
There are all kinds of evolving business models in our industry and some will continue to include an office. Personally I'm keeping my overhead as low as I can which includes no office. I own the brokerage too so I don't have to give up any of my commission and I'm free to negotiate with clients any way I want for my services. I'm sure I lose some clients who aren't comfortable with a one person operation but I'm actually surprised how most have no expectations and really don't care as long as I provide them with a high level of service. I have a conference room I can borrow whenever I need it but I probably don't use it more than twice a year. No office just means one less big check to cut every month and my home office tax deduction is totally legit.
Hi Rich, most folks just want to view houses, or get their houses sold. In my experience, brick and mortar has become obsolete for most real estate agents and consumers, for several years now. The exception may be those agents who do significant volume like REO and need a staff in one central location to operate efficiently. If I could put a conference room in my car, I'd be all set. That's probably the only reason why most of us need a physical office.
Rich, I think it depends on the business. For instance, many of the brokerages here don't get much walk in traffic. Because they aren't in walkable locations. Consumers have to get into their cars and drive there. But one firm recently opened an office on Main St. in historic downtown Franklin. Why? Because it is the only place in town where you get walk-in traffic. Not to mention, lots of tourists who may be considering a move here. It is a great location.
I primarily work from home. I usually handle everything over the phone with buyers and then meet them at the listings. When it comes to contract time, we write that at the local Starbucks over a cup of coffee. I meet sellers in their home. I don't miss really have a need for a brick and mortar office even though my brokerage offers space if I need it.
It depends on the area and the type of business. Large brokerages cannot afford offices for every agent on their roster, so an agent usually has to pay additional $ for an office, and that's if there is space available. When I started real estate just over 4 years ago, the brokerage I was at had what was called the "bull pen." Try making calls to prospects with 10 other people in the room doing the same at the same time. No thanks.
Now I do all my work from my home office as this is more efficient use of my time. Besides I have everything I need and am not competing with other agents for the printer, fax/copier, or silence so that I can make phone calls. I meet my clients at their homes, as I am mostly a listing agent.
I only go to my brokerage office to drop off paperwork, attend office meetings, pickup my mail and checks. That's it. Unless I am my own broker/owner I don't see a need for a brick & mortar office.
Great topic Rich. I've kept track and a full 85% of all of my past clients have never stepped foot inside of our "office". That being said I think that having an office is probably of more value to us than to our clients...office meetings and such.
Cheers
Riccardo
My Place
Rich: Here in California quite a few offices have gone "virtual". Meaning the agents "hang their license" with a broker but work from home and with today's technology, they just do everything online. Scanning docs is fantastic! So with that, some offices have two commission structures. One for Virtual and one for coming in and using all the offices ammenities like copying and phones.
Linda: Brokerage owners are hard-pressed to keep expenses down, and one tough pill to swallow is all of the trimmings of a traditional office space. I think the smart owners (the ones that survive) are going to be the ones who understand what's most important to consumers/clients, and what do agents/brokers truly need to function efficiently/effectively....
When I first started in Real Estate I was fortunate to land in a brokerage where I had an office with a great Bay view, it was hard to give up for a virtual office but I did. The virtual/home office has much better benifits than a good view. Access to training anytime I want to take class, live classes all day Thursday's, meeting and learning from agents all across the contry in a 3D virtual office, having access to my broker from my home office, using paperless technology. My clients don't care where my office is, they are just as happy meeting me at a coffee shop, a home we're viewing or their home if we're listing it. I also now get a much better split with my broker, access to leads from a company with 3 full time IT guys that knows how to generate leads in every market we're in, and teach agents how to get their own. And instead of spending big bucks on big offices that don't get used we have a great revenue sharing plan for agents who help the company grow.