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Time to Change the Way We have Always Done the Real Estate Business???

By Debra Hodges

Real Estate Broker/Owner with The Hodges Group Real Estate

December 02, 2008 08:01 AM

As the market has changed, it might just be time to think about doing business a different way. After 20 years in real estate as an agent, trainer, broker and owner, with the major companies I've found the big fancy offices with the big names and the high agent costs, may becoming a thing of the past. They had their appeal when none of us could afford all the technology they offered, but now we all can afford everything we need. I've owned my own small company for almost 3 years now and I haven't missed the 'big guys' and I have been able to offer better service to my agents and our clients without the all the unreasonable costs.

I am able to share my small office (reception area, conference room and agent work room) with other real estate teams - each operating as their own entity but sharing the cost of the facility and the staff. It works beautifully to cut expenses even more for us all.

I also have a referral division where agents, who are basically out of the business, can 'hang' their licenses and just make referrals to my active agents. That way the referral agents can legally be paid for referrals from friends, family and past clients and my active agents have a steady flow of referrals to work.

My primary duties are training and mentoring --- for free! I spend a lot of time with each agent one on one. They know they can reach me 24/7.....even when I'm on vacation.

I see a trend, agents seem to be going to the smaller offices because of the increased support and the decreased expense.

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Marty Remo

RE/MAX Benchmark- Marty Remo-CDPE, E-Pro - Monroe, NY

HV Home Team

Thanks for the post. I agree with you completely with regard to being able to provide better service as a smaller company. I find that clients are more comfortable with more one on one interaction. As for the trend that more and more agents are going to smaller offices, I hope it continues.

Dec 02, 2008 08:09 AM

Highland Beach Condos David Serle

RE/MAX Services - Highland Beach, FL

Boca Raton Agent David Serle

Debra, I am very glad you are doing well, and I am a big believer in if you work hard the payoff will come. I am with RE/MAX, and yes we do have the fancy office and some larger expenses, but we are extremely customer oriented. In Washington I am not sure if it is a very seasonal place, but in Florida it is. It is very important to pick the right realtor, but it is also important depending on whether you are a seller or buyer to pick someone who has the knowledge and resources to help you through the transaction. In most cases it makes a lot more sense to go with a larger company for the simple exposure theory. The international and national exposure you may receive through RE/MAX is pretty huge. It is much harder to be a smaller office these days, but those that succeed is indicative of the dilligent and professional worker you are. I am sure you do very well, and I wish you the very best of success in 2009!!!

Dec 02, 2008 08:12 AM

Martin E. Kalisker, Esq.

Natick, MA

Real Estate Law From A Practical Perspective

Au contraire, mon amie! Each year, fewer and fewer independents are around to ring in the New Year. Why? Real estate is about the consumer, not the agent. It's great to have a "homey" feel to your office, but agents and clients alike want to do business with a company that is nationally recognized, stable, profitable and has the tools, systems and support to create a "one stop" shop for both the consumer and the agent.

I bet that you also compete with your agents for business and leads. That is a BIG "no no" in today's markets. Agents need leaders. They need to be managed and trained. How can an agent with a huge listing come to his broker for guidance if the broker may be working with buyers for that same property?

I wish you luck, but unless you are extremely fortunate, you won't be able to compete in Real Estate 2.0 and in the years ahead.

Dec 02, 2008 08:24 AM

Goodbye Active Rain

Out of Real Estate

The only thing constant in the world is change. You must adapt to it or fall behind.

Thank you for the post.

Dec 02, 2008 08:34 AM

Debra Hodges

The Hodges Group Real Estate - Graham, WA

That's exactly what we are doing - adapting to change. I've been around quite awhile and I too used to think it was necessary to have the corporate structure. What I found as a manager though, was that my hands were tied in dealing with my agents. I couldn't serve them the way I wanted to, which was the way I had wanted to be served when I was an agent. I was no longer in the real estate business, but was charged with making everything about the business a 'profit center'.

I do not compete with my agents, but they do have the benefit of a broker who understands the current market. I know what they are going through. I worked for brokers in the passed who had no idea what was going on out there, because they hadn't worked with buyers or sellers or written a deal in years.

Rural Western Washington must be way different the Florida and New York.

Dec 02, 2008 08:43 AM

I find that it's beneficial to be out in the field as a Broker. I never compete with my agents. That's just poor business. Being in the field, keeps you current and on top of you game with regard to the changing market place. I understand the way that many large companies operate. However, I believe that most of these are more concerned with the company's bottom line than the agent's bottom line. It's a conflict of interest from a management perspective. Adaptability is the key to longevity as an agent and as a brokerage.

Dec 02, 2008 09:14 AM

I do not believe it is the size of the organization that matters it is the personel inside, the resources and the energy of the office. I am the broker for RE/MAX Services and I do list and sell real estate. I do not compete with my brokers, and I believe they respect that I shy away even if there is a question.

I will say this the smaller companies are at a big disadvantage for the mere fact that their network is smaller, and their brand awareness is smaller. The beauty of a RE/MAX is that each individual is its own business, and they get huge support at least in my office from our on staff legal department, website and internet training, title company and mortgage company. They can have hands on and have unlimited access to all of our 11 employees. We are run like a small company, but with the backing of a huge company. I wish you the best of success in 2009.

Dec 03, 2008 08:00 AM

Fred Griffin Florida Real Estate

Fred Griffin Real Estate - Tallahassee, FL

Licensed Florida Real Estate Broker

We invite you back to ActiveRain in 2017.

Much has changed since your last blog post.

Best to you!

Jun 05, 2017 03:45 PM