Brad Inman wrote earlier this week about the breakup of an “empire" -- the sale of Better Homes and Gardens Real Estate | Mason-McDuffie, a company with a 100-plus-year history, upon the retirement of my friend and colleague Ed Krafchow. Brad traces the growth and evolution of Mason-McDuffie over the years and uses the recent news to draw conclusions about the challenges facing real estate brokers in the modern environment. And those challenges are real. What are the challenges? Agents want higher splits. Consumers want to pay less. Industry outsiders want to change (or eliminate!) the whole brokerage dynamic. And even if you get past all that, you have to hope that the market cooperates and doesn’t go into a nose-dive. It’s not a business for the faint of heart. Now, I don’t now anything specific about what happened to Mason-McDuffie, so I can’t speak to the particular conclusions Brad makes about what prompted the recent sales. But I can say that all b...
- Brokers should think about a pie with three slices: agent income, expenses and profit.
- Different brokerage models spend different proportions on each piece of the pie.
- Knowing what your agents value, and picking a model and sticking to it, are the keys to success.
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