Making real estate portable
Realtor Notebook
By Teresa Boardman, Thursday, April 16, 2009.
Flickr image by geishaboy500.My business is very portable. Last Friday, while I was in my car headed to a local coffee shop to write an offer for a buyer, I moved my business from Keller Williams, a national franchise with independently owned and operated offices all over the country, to a tiny boutique brokerage in my hometown.
As my new broker transferred my license, his tiny company grew by 33 percent with a couple of keystrokes and the $20 he had to pay the state. He got his broker's license the same year that I got mine. While mine got dusty, he started a real estate company.
My move to his company consisted of changing numerous online profiles and changing the logos on four Web sites, which I did Friday evening -- much less work and expense than moving to a big real estate company or than starting my own company. Even my business cards will remain the same, except for the logo.
I own everything that I use for my business, including all the domain names, and I self-host all but one Web site (I own that one, too). I started my business at open houses and through mailings, but I have been growing my client base for the last several years, with repeat business, referrals and clients who find me on the Internet.
My office has been in my home for the last three years and for the past two years I have paid for all of the services that brokerages used to provide for free, or in some cases I get them for free through the Internet. Our multiple listing service currently offers more than real estate companies used to offer a few years ago, and the new services are at no additional cost. My business continues to run uninterrupted.
My clients are very supportive. They all told me the same thing. They said that they wanted to work with me. They know that I will do the same great job for them, no matter which logo I put on my Web sites.
That isn't to say that I am not thrilled to be working with the new company. I have been telling my clients that real estate is local and so are we. I love the idea of a small specialty boutique brokerage, with St. Paul in the name, because that is where I live and work and so do my clients. Real estate really is local. ...CONTINUED
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Submitted by Brett Lieberman on April 16, 2009 - 1:05pm.
Teresa,
I believe that you have the right idea. Because of the technology that is available today, we are able to operate a business much more efficiently. From marketing, to transactions, to file management,etc... its so much easier and more efficient.
We have built our business model around today's technologies and applications.
Real Innovate Realty
The "Real" 100% Commission
www.realinnovate.com
Submitted by RK Ruthman on April 16, 2009 - 1:12pm.
I agree with you Theresa many of the smaller real estate companies are giving agents big value for joining.
I am pretty much agent-centric. If an agent has more control of their business, they are more likely to control their own commisisons and costs, and give better service to customers.
I have a professionally equipped office with a great view and extra desks, but I am looking to recruit licensed Connecticut Real Estate Agents with home-offices. These truly independent contractors can keep what they make. Absolutely 100% of their commission. No transaction fees. No monthly desk fees. Their brand. Their name. Their phone number.
Teams are welcomed, too!
If not completed satisfied with 100% of their commission, they can take their listings with them to another company. No hassles.
Submitted by Robert A. Hulme on April 16, 2009 - 1:30pm.
It has become very difficult for larger national companies to compete in today's marketplace, their models are basically obsolete. The Internet has made all of us very mobile and has decreased our dependency on what our broker makes available to us.
Last year I made myself totally independent and able to conduct my business without the help of Prudential and my broker, granted the Prudential name offers a tremendous amount of credibility, but like you mentioned, real estate is local and my client is more interested in what I have to offer them than what my Company has to offer.
Recently, I have been questioning whether I should continue to pay franchise fees along with various transaction costs, when I can join a smaller broker and eliminate these fees and pass the savings on to my clients. I believe it is all about what is best for my client and will continue to evolve based on that premise.
Robert A. Hulme
Realtor, GRI, e-PRO
Prudential Utah Real Estate
Loan Officer
Mortgage Xpress
www.UtahCountyHomes.ws
www.UtahCountyRealEstate.us
Submitted by Larry Whited Sr. on April 16, 2009 - 1:35pm.
We took this to the next level and have no office, not even a main office.
We have over 100 agents spread out all over Ohio. No offices, no support staff, no overhead. Each agent runs their personal business and only pays $400 per closing broker fee.
It is great to hear from others who get this century’s real estate model.
I feel sorry for the agents & brokers still trying to pump life into last century model.
They are dinosaurs who don’t realize that the internet is their ice age. They will be forever frozen in time unless the embrace the future.
Larry A. Whited, Sr., CRB, CRS, GRI
President & Founder
www.maxUnet.com & www.WebMLS.net
A Virtual Real Estate Franchise System
** Virtual Is the Future **
P.O. Box 757
West Chester Ohio 45071
Direct - (513) 543-2727 Fax - (513) 297-7497
Submitted by Teresa Boardman on April 16, 2009 - 2:04pm.
Larry - Bud rented a small office because he has two little ones at home and needs an office. I have worked from home for years and right now I am thinking I might just enjoy using "the office" it is in the heart of the area where we do business and oh so close to home. Might be nice to keep some forms in it and have a place ti chill between appointments. You are right though for many years I have not had a need for an office. I know there are people who can not work at home. I have ideas for them . . maybe my next post. I do know for sure that in today's economy I don't want to pay extra for an office and Bud doesn't tack on a fee for using it.
Submitted by Matthew Hardy on April 16, 2009 - 2:29pm.
You are archetypical of the perfect real estate practitioner mindset. It is good to hear some basic understanding on the value of digital assets.
Matthew Hardy
CEO/President
Real Estate Success Tools
480-626-4461
mhardy@realestatesuccesstools.com
www.realestatesuccesstools.com
Submitted by Sam DiBello on April 16, 2009 - 2:35pm.
Teresa,
I think that you just prefer a boutique.
I had the same ease moving to a big national brokerage firm. All real estate is indeed local, regardless of the size or business model of the brokerage firm.
I found that staying on the cutting edge of technology was far easier with a larger company blazing the trail, along with dozens of peers willing to share their knowledge. The synergy is very motivating.
As far as expenses, there are many big firms that charge very modest fees that rival and even beat the boutiques in the Seattle area.
Respectfully, you can work with a big brokerage and still never see an office, never attend a meeting...and continue to exploit technology all you want.
Best wishes,
Sam DiBello
www.TheDiBelloGroup.com
1-877-890-4663
Submitted by Mark Brian on April 16, 2009 - 2:57pm.
It is no surprise that since I also work at a small agency that I see the advantages. Your success is dependent on your effort and not the name on the door.
Mark Brian
VIEW SOUTH CAROLINA REAL ESTATE
Submitted by Teresa Boardman on April 16, 2009 - 3:21pm.
Sam - I know what you mean I only went into my old office every few months. So far I have not seen any technology that has wowed me from any real estate company. As for the synergy I get that every day from my peers. We are on the internet and we share new ideas and explore new technology and boldly go where no Realtor has gone before . . almost every day.
Submitted by Ed and Cindy Knight on April 16, 2009 - 3:26pm.
Teresa last year we opened our own brokerage too, just a small office but very quaint, not all the fluff of the 1990's. We use it just for meetings clients since we work out of the house.
While some of the big brokers in our area are dying on the vine we are doing just fine in our little space with very little overhead and like you our clients don't mind a bit.
For us real estate used to be 80% repeat and referral but last year we found ourselves doing almost 50% from the web with brand new clients. Times they are a changing. Just glad I followed some of the web leaders like you.
Congrats on your move.
Submitted by Don Fabrizio-Garcia on April 16, 2009 - 4:23pm.
Teresa - Last month, I made the same move, from KW to a small, independent local firm. No more fees. No more silly splits. No more paying the corporate offices for what I was already doing on my own...
It's been a great move for me.
Good luck to you!
Don Fabrizio-Garcia
Real Estate & Appraisals
Greater Danbury/Candlewood Lake area
Connecticut
Submitted by Larry Whited Sr. on April 16, 2009 - 4:29pm.
So Sam, If as you say
“you can work with a big brokerage and still never see an office, never attend a meeting...and continue to exploit technology all you want.”
why would you continue to pay for it in your higher agent split?
Larry A. Whited, Sr., CRB, CRS, GRI
President & Founder
www.maxUnet.com & www.WebMLS.net
A Virtual Real Estate Franchise System
** Virtual Is the Future **
P.O. Box 757
West Chester Ohio 45071
Direct - (513) 543-2727 Fax - (513) 297-7497
Submitted by Rick Belben on April 16, 2009 - 4:52pm.
The internet has definitely leveled the playing field. What has also made switchng easier is the ability for past clients to always be able to find you as long as they had your cell number.
Rick Belben
Amerivest Realty of Central Florida
Orlando Real Estate
Orlando MLS
Submitted by Bruce Hahn on April 16, 2009 - 5:28pm.
American Homeowners Grassroots Alliance
Good for you! Consumers can get all the listing information they want on the Internet for free, so the real value of a broker or agent lies in their own skills and reputation.
In our opinion the large brokerage brands no longer have any inherent branding value. There is little or nothing that they can provide consumers that a small independant can't. Their advertising programs may help convince their own agents that there is some benefit to their association with large firms, but those ad programs are a yawner to consumers.
In the current environment its either the broker and agents reputation and relationships in the local community, which travels by word of mouth, or their own personality and skills, that make the difference to consumers.
Submitted by Laura Higgins on April 16, 2009 - 5:53pm.
Teresa,
I have had a home office for the past several years and my customers enjoy that I am accessible to them at anytime. I continue with my real esate education and hold several designations. Therefore, I am able to better serve my customers with the additional knowledge that I obtain. I enjoy exploring the new real estate marketing technology that continues to develop and grow. Working from home allows me the luxury to research new ideas and learn from others. I note even with the "internet craze," in the real estate market, customers truly appreciate when they see me turn my cell phone off and devote my full attention to them.
My hats off to you Teresa...
Laura Higgins
Realtor
Submitted by John Rakoci on April 16, 2009 - 6:14pm.
I recently left a large franchise for many reasons and am much happier at the new company. For some time 90% of my business has been conducted from my home office. It is nice to have access to a conference room for writing contracts in person, but not required.
As mentioned above, clients can find you if they have your cell number. I have been preaching to new agents to not use their company provided email address but to get the domain of their name. As long as clients know my name they can find me by 1stName@LastName.com no matter what company I work for or if I go it on my own one day.
Submitted by Bruce Wagg on April 16, 2009 - 6:35pm.
Sometimes I still need to go into the office just to get away from the distractions of the home office! The Family sometimes can't remember that you are 'working'.
Bruce Wagg
Oakland Real Estate | Berkeley Real Estate