In an atypical move for the real estate franchise world, a Southern California HomeSmart International franchisee has purchased a handful of Realty One Group brokerages and now will operate both brands.
The acquisition will see Randy Rector take the reins at seven Realty One Group offices in California’s Orange County and Inland Empire. The offices had been among Realty One Group’s corporate-owned brokerages, but will now function as franchises of that brand.
Meanwhile, Rector will continue operating his existing franchise, HomeSmart Evergreen Realty, where he serves as CEO. HomeSmart Evergreen Realty operates in California’s Orange County area.
Matt Widdows, CEO of HomeSmart International, told Inman that the arrangement Rector is embarking on — in which he’ll run franchises of two different brands — is unusual and “outside the box.”
However, Widdows also praised Rector as a “good operator” who is well-suited for his new role.
“He’s just done a really good job with his brokerage,” Widdows added. “We’re excited for him and the opportunity he has.”
In a statement, Realty One Group founder and CEO Kuba Jewgieniew said that “the best way to reach scale is to partner with ambitious leaders like Randy.”
Rector added in the statement that heading up the seven Realty One Group offices is “an exciting opportunity for me to invest in a brand that continually generates innovative ideas, systems and processes.”
“Our Realty One Group professionals can expect the same great experience from their offices and more as the company continues to push boundaries and create new opportunities for them to be successful in their business,” he added.
A fact sheet explaining the new franchise arrangement, reviewed last week by Inman, states both the Realty One Group and the HomeSmart offices will continue operating independently of each other.
“They will not merge now or in the future,” the fact sheet explains.
The fact sheet also states that “both franchisors view Randy as a strong leader, key partner, and influencer in the Southern California marketplace.”
“The synergy he will create between the brands will catapult the ancillary businesses that support the brokerage operations,” the fact sheet adds.
Arizona-based HomeSmart International boasts almost 16,000 agents in about 166 offices. The company, which was founded in 2000, has recently been expanding into new markets, and previously set a goal of hitting 100,000 agents by 2021.
Jewgieniew founded Realty One Group in 2005. The firm is based in Southern California and uses a somewhat atypical 100 percent commission model. Today, it has more than 12,000 real estate professionals spread across 200 offices in the U.S. and Canada.
In his statement on Realty One Group’s new relationship with Rector, Jewgieniew added that “the change in our industry is fast and furious.”
“We take it seriously,” he continued, “and we’ll continue to do everything we can to give our real estate professionals the advantage in a competitive marketplace.”