Broker/Owner Relevance in the New Real Estate Economy
Posted in Real Estate Brokerage of the Future By REALonomics .net, Thursday, November 20, 2008.Owners are in the economic vice. They personally guarantee most of the economics behind local real estate companies that service consumers and provide services for agents.
In the current climate and with the changes taking place in the industry, can traditional Broker/Owners maintain their relevance in the New Real Estate Economy or, will they be squeezed out in favor of electronic supervision of agents and their transactions?
Can Broker/Owners create the necessary margins to sustain the ROI and long term profit that is necessary to re-engineer their models?
What is the relevance of the Broker/Owner? What is the actual value he/she delivers to the local and national industry? Is there a place for "contracted" Broker/Owners who do not own brands or office but merely execute practices in accordance with market and business needs?
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Submitted by Fred Doleac on November 27, 2008 - 6:41pm.
For most B/O's they must have a minimum of 40 agents producing at average levels to be profitable. Otherwise, if they can be a top producer, they are better off being an agent. If you offer remote agent services, provide lead generation, technology, training and support then agents can be attracted to your brokerage. The key is the integration of technology into your business model so agent want and need to work for you.
What "Contracted" broker services could an entity provide that offers value to an agent/Broker considering their own botique firm?
Fred Doleac, VirtualHomes and RE/MAX Innovations
Submitted by Bruce Hiatt on November 27, 2008 - 8:20pm.
I respectfuly disagree. We'd never have 40 agents in our boutique real estate firm. Just 1 of our agents in 2005 did $110 million in real estate sales volume via the Internet. I am told we broke ecommerce records in the US in 2005 for real estate with our internet business transactions. Our highly innovative brokerage business model shows a high ROI with under 10 agents. We are strong survivors in this challenging economy, not failures by any means. We gave also proven that being part of a franchise is not a requirement for success.
Regards,
Bruce Hiatt - Broker/Owner
Luxury Realty Group LLC
Las Vegas, NV
www.LuxuryRealtyGroup.com