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Help me build the most powerful brokerage in the Northern Shenandoah Valley of Virginia

By
Real Estate Broker/Owner with Cornerstone Business Group Inc 0225086119

Alright, time has come to switch offices.  You're fed up with your current location, and you feel like it's time for a change.  If you were in this position, what would you look for in a new brokerage?

In 2010, the brokerage I worked with merged with a sister office 60 miles away.  I wasn't about to drive that distance everyday, but I didn't want to just change and find another office that was limping along either.  So, I decided to start my own brokerage.  That took most of 2010, and in the early days of 2011 I started the Cornerstone Business Group, Inc.

At first, I wondered about all of the agents in our office that were left rudderless, and I thought I should gather them up into my new office.  The more I thought about it, the more I realized that only two or three of us were actually carrying that office.  So, I decided not to invite any of them to join me.  Actually, I decided not to have anyone join me the first year.

I realized that the biggest need I had was learning the ins and outs of web-based marketing and SEO.  I wanted to create a web-presence in the early days of my new brokerage.  So, I set aside the first six months to do those things.  What I learned right away was that it was going to take more than a year.  So, I set aside hiring in order to acquire more training and to secure a deeper understanding of the use of the Internet in my business model.

Now, nearly a year later, I'm starting to think about hiring.  I hesitate because I don't want to hire a stable of agents who just want a place to hang a license.  Offices like that are a dime a dozen.  I would prefer to hire those who have vision and want a place that will ultimately dominate the local market because of the high caliber of service delivered. 

So, I go back to my question.  If you were an agent with a proven track record, and you were looking for a new office, what would it look like?  You can help me build the most successful real estate brokerage in the Shenandoah Valley.  Please throw out any and all ideas and lets see what happens.

Comments (16)

Brian Rugg
Rugg Realty LLC Sun City Texas 512-818-6700 - Georgetown, TX
Sun City TX Real Estate - Georgetown, TX Real Est

Hello Mike:

I am in exactly in the same position.  Please let me plagiarize your post so I can re-post for Rugg Realty.  Actually, I switched markets (from Boston MA to Georgetown TX) and wanted to prove the business plan before I added agents into the mix.

 

Good Luck with finding the best of the best for Cornerstone.

Nov 17, 2011 11:35 AM
Anna "Banana" Kruchten
HomeSmart Real Estate - Phoenix, AZ
602-380-4886

Mike I've been down this road and I can speak from both sides.  As an experienced agent when I changed brokerages it was because I wanted to be a 100% agent and keep the cash in my pocket instead of gving so much to a top notch broker. It worked for over 10 years really well.  Rarely worked in the office but did go in for office meetings and lunch at times with fellow agents.  For new agents - they need intense training and guidance and it's got to be a split fee until they're carrying their own weight. Very expensive on many levels (not just money) to train new agents as a small broker.  Agents that aren't reaching a reasonable level of production should really find another job or another office that is fine with part-time agents. There are firms here in Phx that have 4000+ agents that charge $25 a month. Good place for those type of agents. I too was the rainmaker and it took me awhile to work out the right mix for me.

Nov 17, 2011 11:41 AM
Mike Cooper, Broker VA,WV
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Good luck, Brian.  That's a big market shift from MA to TX.  They even talk different.  8-)  Please feel free to share your experience.

Thanks, for your input Anna.  I do appreciate your experience and wisdom.  I've been pacing myself kind of slow so I can make any major changes that need to be made before I have too many people around me to make major shifts.  It might be another year before I go down this path, but I like hearing from the experience of others before I set anything in stone. 

Nov 17, 2011 11:52 AM
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

I have some ideas I would like to share. First let me say, that I have been in this business almost 4.5 years. I'm on my fourth office. One went out of business ( and I liked that office ), one was abusive, one lied to me and tried to steal my identity and now I'm happy at my fourth office. So you can see I have some experience shopping around. I now work for Cedaredge Land Company. Yes I have issues with the name, because we do a lot more than land. I just did my first commerical deal a few weeks ago. But this company has been in business almost 30 years, so there is staying power. I like that. My broker is trying to attract new agents and has asked me for ideas. Here are some of the ideas I gave to him... and I like thinking outside the box.

Considering profit sharing. Right now agents seem to have a difficult time making ends meet...consider two different models. One where there is a desk fee, but less of a split and one where there is no desk fee, but a larger split. Offer something other offices don't...like health insurance. Maybe the cost of this could be considered part of a desk fee, or you can get a reduced monthly premium because you are a group and everyone pays the office their share of the premium. Just an idea.

Keller Williams has some great incentives. There is an incentive for recruiting and a cap on the desk fees paid after an agent earns so much for the office.

I look for an office that can do something for me also. I hope these ideas got you to thinking and were helpful.

Nov 17, 2011 12:08 PM
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

PS...I've been at my current office for almost 2 years. I'm really not flakey. I just want to be treated fairly. My anniversary will be in the middle of January.

Nov 17, 2011 12:13 PM
Mike Cooper, Broker VA,WV
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Thanks, Debbie.  All ideas are welcome, and I don't think you're flakey.  8-)

Nov 17, 2011 12:20 PM
Gayle Rich-Boxman Fishhawk Lake Real Estate
John L Scott Market Center - Birkenfeld, OR
"Your Local Expert!" 503-739-3843

As a brand new realtor, I actually came and "interviewed" the principal broker and he in turn interviewed me. He really liked my questions and I think it threw him a little that I had that kind of spunk. I was looking for an excellent mentor and someone who was honest and ethical. I LOVED my principal broker, who'd been in the biz for 40 years or so. He now physically can't be in the office and had to hang up his licensure, and after 5 years, I feel quite comfy with my owners/ new principal broker, because we are small, we support each other and are like a family.

I also wanted an office that I could actually DRIVE to no matter what the weather since I live "on a lake in the country".

Nov 17, 2011 12:46 PM
Mike Cooper, Broker VA,WV
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Thanks for the info, Gayle.  I'm not sure I want a big office.  I'd rather have an effective office.  So, small might be a good fit for me.  Thanks for sharing!!

Nov 17, 2011 12:50 PM
Joe Kenny
Realty Executive Midwest - Darien, IL
Better Than Your Average Joe

Mike, I wish well in your search for idea's.  I think you will be in fine shape no matter what path you choose.  It's a good life.

 

Nov 17, 2011 01:24 PM
Mike Cooper, Broker VA,WV
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Thanks, Joe.  I do have a lot of ideas, but I love hearing from others. 

Nov 17, 2011 01:33 PM
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

Mike..I also like a small office...although ours has gotten much smaller in the laat year. One agent died, and another left. We are very rural and small offices are common. We now have only have 3 active agents. I personally like the small office. My broker comes in every morning and askes me what is going on. I get personal time, although because of the distressed property arena I work in, he's usually asking me for advice. It's a whole new market out there.

Nov 17, 2011 06:53 PM
Mike Cooper, Broker VA,WV
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

That sounds good, Debbie.  My previous office was small by local standards (25), but you rarely saw anybody.  Especially the broker. 

Nov 17, 2011 08:30 PM
Barbara Tattersall
Keller Williams Realty Metropolitan (Keene,NH) - Keene, NH
GRI

Good Morning, Mike,

If you want to stay in control and yet still have the ability to grow your business-Gary Keller, Keller Williams- has a nifty book that advocates having assistants to manage the busy work so you can get out there to meet the people.  There are really good agents that are anxious about trusting the details to others or paying them-but it seems to work.  Also the Keller Williams model of being responsible for you business, having the potential of profit sharing and a larger share of the pie-even 100%- is a great incentive.  After 33 yrs in the business and 22 as a franchise owner-I stepped back to be an agent with KW.  I feel like I can spread my wings and just work without the demands of ownership. I'm a happy camper. Best of luck to you.

Nov 17, 2011 09:59 PM
Marcia Kramarz
Re/Max Executive Realty - Medway, MA
CDPE,LMC,CBR

Hey Mike - If only I was in your area - I'd jump - However I'm quite happy where I am - If I were looking, I would look for a broker manager who is passionate about what they do - AS you ARE!  I'd look for a company which would challenge me to be the best I could be - as I try to challenge myself -  I would look for a company (as I always do) that can keep me technically savvy - Our office is clearly the lead in the area for people who use technology - SEO - Blogging etc to succeeed (Just take a look at who is at the top of ActiveRain in our area) -  I would look for someone I could emulate - and clearly you're a person who many would like to emulate !  

GOOD LUCK - Choose carefully as I know you will - You'll have many look to join your group!   

Nov 18, 2011 12:11 AM
Conrad Allen
Re/Max Professional Associates - Webster, MA
Webster, Ma, Realtor

Hi Mike - I had my own real estate agency for 31 years.  Prior to that I interviewed brokers to see who would offer me what I wanted.  I wanted the opportunity to learn and grow.  I did not want to sit in front of a TV and watch a tape.  The  broker I went with had weekly meetings with lots of role playing.  That knowledge allowed me to be very successful in sales.  I opened my own agency 4 years later.  I sold my business (another story). My goal for my new broker was to be able to keep most of my commission.  I had no problem spending money to make money.  I wanted to keep the lion's share.  My point is you need to qualify the agent and find out their wants and needs.  Don't become a baby sitter.  Remember if they were as good as you they would have their own agency.  Smaller can be more profitable than bigger.

Nov 18, 2011 12:57 AM
Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

Hi Mike - If I were building a brokerage, I would take a hard look at a partnership concept. Giving others a real stake in the business will ensure a much higher level of commitment, even though it will mean giving up some control. This form of ownership is a bit unusual, but I have seen a hugely successful example at work (until it lost its way by trying to get much larger).

Nov 18, 2011 03:45 AM