Comments on: An Independence Day update. Our brokerage model is a good fit.

By: The writing on the wall and the end of an era for Rocky Mountain News — The San Diego Home Blog

Sun, 01 Mar 2009 17:20:26 +0000

[...] made the decision to seek emancipation and open our own independent brokerage last October. It was a decision which was met with raised eyebrows and looks of befuddlement by [...]

By: Katy Saunders

Katy Saunders — Wed, 03 Dec 2008 05:40:30 +0000

Welcome to the dark side!

By: FBS Blog » Blog Archive » Thanksgiving Thoughts On The Cluetrain

FBS Blog » Blog Archive » Thanksgiving Thoughts On The Cluetrain — Wed, 26 Nov 2008 22:59:18 +0000

[...] same struggle exists in the real estate space. Kris Berg recently wrote about her and her husband’s decisions to go independent from their big brokerage, quoting [...]

By: Kris Berg

Kris Berg — Tue, 25 Nov 2008 15:00:33 +0000

Michael,

I too am a huge Seth fan, and I had in fact read that article. He is always the first stop in my feed reeder.

Best of luck on your blog, and thanks for stopping by!

By: michael | talkcharlotte

michael | talkcharlotte — Mon, 24 Nov 2008 14:47:21 +0000

Kris great post much better than Steve’s haha. Curiously I did not see aenyone pick up on the Seth Godin quote (a good one) – I am an unabashedly BIG fan of Seth and glad to see you applying his ideas to the real estate market — fertile ground for his ideas and your chutzpa! Not sure how long you followed Seth but here is another awesome post http://tiny.cc/QuitNow Advice for real estate agents (quit now!)

I write and edit for a tomato blog too (we are newbies) still finding our voice –hope to get to know you better and congrats on the Inman rankings!

By: Keith

Keith — Mon, 24 Nov 2008 03:33:06 +0000

I sure appreciate the support and am encouraged by your comments. We have seen two major offices within the Realogy company shut down here in Tucson. Up in Phoenix the franchise fee just went from 6% to 7%.

Opening the brokerage seems to be a no-brainer when comparing the costs. Big brokerages would have you think the overhead is just too much to run your own business, however, I think being lean will allow easier ebb and flow with market changes. It is true that Big Brokerages just charge too much. I beleive this is because they have too much bureacracy to pay for and therefore are not able or willing to put their dollars in the right places.

Even at 100% we still pay 6% franchise fees, $250 transaction fees, higher E&O insurance, and a annual check. That’s 108k for me so far this year…..ouch.

Prime office space runs about $23 p/sq ft/annually. Can’t wait to see if we can make more and spend less while truly putting our clients and friends first! Should be a win-win.

By: Linsey

Linsey — Sun, 23 Nov 2008 06:06:20 +0000

After years with the ‘big boys’ of the business, I began to see how broker-centric the model had become. Advertising was meant to promote agents and the offices – not the listings. I really believe the industry is reaching a technology ‘tipping point’ and the big brokerages aren’t nimble enough to respond effectively.

At the beginning of the year, I really assessed my client profile, my personal history in the business and the day-to-day operation of my business. I realized that there was more to gain than loose in making the change. I’ve had a broker’s license since 2004 but I finally felt like the time was right to make the leap. Haven’t looked back since.

I think you are right on the money about the trends. I’m seeing it in the OC too. Big agents are making the leap. Congrats on your new venture.

By: David Lorti

David Lorti — Sun, 23 Nov 2008 03:12:44 +0000

Provocative and interesting post. One thing that we haven’t seen in the whole downturn/bubble so far is a real settling out of brokerage houses. In my local market (Phoenix real estate market), though I know some shops have closed up, there hasn’t been a real sea change in the brokerages (the big names, that is) like I would expect to happen. I imagine the higher cost ones are slowly being squeezed by a loss of agents and diminished sales commissions. At what point do some of these see a wholesale slide of their offices?
In my opinion, the large brokerages largely spend money on marketing from a corporate brand standpoint when they should be more focused on tools and capabilities that really do arm their realtors and clearly give them a competitive advantage. And their fees have to come down.
As for your comment on a lot of new brokers popping up, I agree. It seems I do see a lot more of these out there.
Thanks for the post here.

By: Michael Oliver

Michael Oliver — Sat, 22 Nov 2008 03:29:19 +0000

I agree the big name is getting no one any further down the road these days. The big names have “some” features but realistically they just are big “number themed” businesses. The more agents the better regardless of anything. I think if one of these big names truly decided to take quality of people into consideration and start some serious training and make a commitment to the agents they would survive otherwise I just don’t see agents paying 50% to hang a license with the big names. The agents doing any sort of business aren’t paying 50% (even though the big names will make you believe otherwise until you start producing big numbers and want to walk…) anyway there models are not going to make it 10 years from now.

By: Keith

Keith — Sat, 22 Nov 2008 01:10:00 +0000

Kris,
Thanks so much for your reply!
Yes, we are very fortunate to have built a family relationship with the team and they do plan to follow. Havn’t quite figured the whole team transition yet but do hope to leave one behind to clean up the escrows.

Good think I don’t sleep much…..:)