Home > Blogs > Alisha Alway Braatz > Alisha Alway Braatz's (highendoregon) Blog

Bye-Bye to the Brokerage Model?

By Alisha Alway Braatz

Real Estate Agent with Remax Integrity

December 05, 2008 05:29 AM

In today's INMAN NEWS REPORT there is an article entitled "Roadmap to Recovery". I suggest all Realtors go online today and go to: http://www.inman.com/reinventing

After reading the article, answer the questions that follow, for yourself. Here is my response to the second question:

2. How will the business model or business practices of the title, brokerage or lending industries change in the future?

This past month the unthinkable happened in our resort town of Bend, OR: two long-standing name brand brokerages constricted out of the Bend marketplace. I was one of the unlucky agents to find myself interviewing with new Principal Brokers...and highly questioning the validity of the Brokerage business model. To survive in today's market you must be nimble and sure-footed, with a firm grasp on where your market is coming from, and what your sellers are expecting from you in the new media generation. The Brokerage model fails because its focus is "THE BROKERAGE" not the individual agents that must create their own momentum, separate from that of the larger corporation. I believe the New Model to emerge will be a grand throw-back to the ages of true network marketing, paired with the new generation of media capitalization as my generation lives on the web. Monthly desk fees, coupled with the enormous "nut" to crack at Brokerages, simply doesn't jive with capable, entrepreneurial, well-adjusted business Brokers of 2009. What would happen if the crème-de-la-crème in each city formed their own network and readjusted their business to revolve around a collaboration of product, clients, and marketing aimed at specific target markets? That, my friends, would be a revolution.

I'd love to hear what other Brokers have to say on this subject.

Re-Blog

Comments(8)

Comment

Show All Comments

Sort:

Bill Ladewig

LoanOfficerSchool.com - Escondido, CA

Experience Is Your Advantage

Hi Alisha,

I think new agents need the "Brokerage" model to get started in the business and there are others who just need the commonaderie of an office environment.

But, for many experienced agents, working from home is the ultimate way to do business.

I think there will be places for both models in the future.

Dec 05, 2008 05:41 AM

David Wang

Prudential California Realty - Millbrae, CA

Prudential | 650.504.8190

Alisha, great blog. I really agree with you and then I don't. I am fortunate that I found the Prudential office that I am at now. To me it is home. I have always thought that I would one day be my own broker and call my own shots or form a group of like minded agents and take over the real estate world. Now after 3 years I find it riduclous that I would leave what I have. This is not fear of losing what I have or not being sure of what I can gain but rather being able to build my business my own way and still bounce it off brokers who can give me input.

but what ever you choose the best of luck.

Dec 05, 2008 05:47 AM

Eunice Waller

Berkshire Hathaway HomeServices Simpson Realtors - Locust Grove, VA

Working Together, We Can Do Great Things

I agree with Bill. Most of the experienced / seasoned agents work from home in my area.

Robert Havana

Park and Protect- Alberta Real Estate License Parking - Calgary, AB

Alberta Real Estate License Parking

the current brokerage models have been under pressure for years now as the public is given more and more MLS data for free and the FSBO companies are allowed full cooperation without participation in MLS.

Dec 05, 2008 05:54 AM

Alisha Alway Braatz

Remax Integrity - Eugene, OR

That's the rub...I agree with all of you, too! The office model provides what those working from home, and in the new "virtual offices" don't have: Comraderie, and the opportunity to see deals happening in real time. That can spur on MORE action than the temptation of finding out what Oprah might be talking about today..etc...

In Bend, some brokers from different offices have created our own "Luxury Property Network". It is something that has legs, I think, by bringing like-minded individuals all focused on a particular market together to create a synergy.

I, of course, want the best of both worlds: Comraderie in an organized environment with other professionals, and the ability to have low-overhead, and quick momentum carrying projects forward.

I still need a Brokerage--- I am just surmising that the Brokerage of the Future will look slightly different than many do today.

Frank & Jodi Orlando

Frank & Jodi Orlando Get Us A Home Realty Atlanta Homes Sale - Cumming, GA

Alisha, I think the trend will be for smaller companies with agents as independant contractors. That is how our company works. Would not be surprised if many associate brokers head out on their own, walk in traffic is a thing of the past...

Dec 05, 2008 05:56 AM

Anonymous

Kathy Judy

Hi from a fellow Oregonian. We've all been going through catharsis. I had heard about the Bend upheaval. I am a 1/4 owner of a small (shrunk by half of our 2006 numbers) Remax office across the river in Fruitland Idaho. I think what people think of as camraderie is more synergy. There is a value to the in-office "deals in the air" impromptu hallway brainstorming etc. There is also the value of getting to know each other as humans. I like the idea of a mix of both the in office and the home office models. Believe me right now it is tough to be a brokerage owner or part owner. Any outfit you interview with should be upfront with you about what their costs are right from the start.

Dec 05, 2008 06:21 AM

Eileen Tefft

My coach, Michael Stefonick sent me this blog, thinking I migtht have something to add.I do..

Here's another solution:

WHAT IF there was a MacDonald's type 'franchise' system for agents? NOT AT ALL like an existing real estate franchise which is oriented for the broker, but specifically for the agents to have programs available with all the proven marketing systems, transaction systems, referral marketing, internet marketing, first time home buyers, short sale buyers and sellers, List Every Time listing systems, Sell in one day Buyer systems, team building, etc etc. every thing you would ever need to grow your business into the 7 digits? All in webinars, all virtual. already developed.

What if it was available in your office? Shouldn't it be? What if it was available to an individual agent? Then when you sell your business, you're basically selling a franchise which means PROVEN SYSTEMS.

This shouldn't be a new concept but it appears to be. I wish I'd had it 15 years ago instead of having to actually invent the real estate wheel.

I don't blame you all for wanting to strike out on your own. It's amazing how much we've paid our brokers and how little we've gotten in return.

A new platform for a new millenium.

Do you agree?

Dec 14, 2008 03:58 AM

Bye-Bye to the Brokerage Model?

Comments(8)

Alisha Alway Braatz

Real Estate Resources

Recent Posts