Will Brokerage Franchises Remain in Our Future?

By
Real Estate Agent with Bill Cherry, Realtor 0124242

It's interesting for old timers like me to reflect on how the residential brokerage business has begun to become fractured over the recent years.

A good deal of that is the direct result of the creation and proliferation of real estate franchises.

They were significantly helped in accomplishing this growth by their investment in computer and internet programs that most traditional mom and pop firms couldn't afford.

Meanwhile, Associations of Reators have made it a point to invest in similar, and often better, programs that help members manage and boost client representation and sales.

The Metrotex Association of Realtors which serves the Dallas-Ft. Worth area is, perhaps, a good example.

The Metrotex budget committee of which I am a member, recently agreed to annually set aside a serious amount of money for the developmental growth of technical services for its members.

And it put no cap on how to determine when enough was enough or not enough.

Agents are finding less and less reason to spend time in the brokerage's office, yet they are paying their share of the office rent and administrative help.

Home computers can access anything that the office computers provide. Cell phones make it all but totally unnecessary to have someone standing by to answer inquiry calls, then forwarding them on to the appropriate agent.

These days, more deals are made in homes, coffee shops, and clients' offices than are made around a table in a conference room at the brokerage office.

In most cases, quite frankly, that's more convenient and less stressful for the parties.

In fact, in the last few years, I've only closed a couple of transactions in a title company office.  I've done them myself on the premises of a nearby bank.  (Texas requires closings outside of a title company to be done either in a bank or law office.)

This allows the client and me to do the closing at our convenience, and I've had no trouble finding a bank that wasn't delighted to accomodate us.  They are also able to provide the notary service.

So continuing this scenario without serious modification to direct it otherwise, it appears to me that the appeal to agents of franchises will soon begin to spiral downwards.

Perhaps there will even come a time when franchise brokerage firms will be passé.

What do you think?

BILL CHERRY
Realtor-Broker
Since 1966
Keller Williams Dallas Premier
Direct: 214 503-8563
On the web: 

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Rainmaker
2,558,350
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Interesting as I met up with someone to do business at a local Landmark and it worked out just fine too.

Oct 27, 2015 11:38 PM #1
Rainmaker
719,227
Bill Roberts
Brooks and Dunphy Real Estate - Oceanside, CA
"Baby Boomer" Retirement Planner

Well BILL CHERRY You have opened a can of worms. I don't think that agents join a company that is associated with a franchise to get "tech" but rather because clients feel more comfortable with a "name" company.

Also, the websites are an attraction to clients.

Actually, I think that "old time" offices need to make a come-back. Too many agents are now working as part of a "team" trying to mimic the benefits and value of the former broker-controlled office.

Bill Roberts

Oct 27, 2015 11:42 PM #2
Rainmaker
393,606
BILL CHERRY
Bill Cherry, Realtor - Dallas, TX
Broker & Wealth Coach

That is certainly true for newbies.  But with all of these teams of seasoned agents spending bucks marketing themselves at some point they may decide that spending their "office fee" would be more beneficial for them if they used it to increase their own marketing budget.  The last thing a franchise office needs is to be overloaded with newbies and few seasoned "well-known" agents.

Oct 28, 2015 12:08 AM #3
Rainmaker
719,227
Bill Roberts
Brooks and Dunphy Real Estate - Oceanside, CA
"Baby Boomer" Retirement Planner

BILL CHERRY It is that old saying "Old things are New again." Maybe they should open their own office and get all the benefits without the franchise fee if their brand is better known than the office name.

Bill Roberts

Oct 28, 2015 12:17 AM #4
Rainmaker
1,832,571
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

The more things change the more they remain the same. I think some clients gravitate to the agent/team while others gravitate to the name of the brokerage. I feel like it is worth it to me to not worry about compliance and record retention so I will continue to remain a part of a brokerage even though I could go out on my own. 

Nov 20, 2015 07:30 PM #5
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Rainmaker
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BILL CHERRY

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