How to Run a Successful Real Estate Brokerage
Real estate companies are faced with a challenging time of change and uncertainty in today’s rough and tumble business climate.
The two main business models fee driven or commission driven are getting harder and harder to realize a profit at the end of the year. No matter who is paying the bills the individual agent in the fee driven business model or the company in the commission driven model. Both are struggling with reduced cash flow and ever increasing costs. Franchise fees are expensive and there are few solutions in sight. No one can squeeze more than 100 pennies out of a dollar. The big question for company owners, franchise’s and brokers is how do we adapt ? How are we all going to survive in this competitive industry ? The answer to that is all are not going to survive . Many are going to fail and leave the business. Agents and companies alike.
There is a desperate need for a new business model and the changes will be radical. You see most change comes from radical people not those that conform as most of those in society do. The real estate industry has been off the rails for a number of years. In the chaos of changes like agency, self regulation and the internet one key individual has been over looked. That individual is the customer or consumer. The industry has stopped giving the customer what they want which is value for their dollar and a simplified home buying and selling process. You see the consumer does not care about agency, our regulations or our industry. We have been forced to spend more and more time catering to industry requirements and been left with less time to help our customers solve their individual and unique real estate problems.
This article is not meant to be an attack on our industry but it is meant to be brutally honest and to call a spade a spade. It is also not meant to be an attack on any individual agent. Most good agents want to do a good job for their customers. Those agents want a business model and a system that enables not hinders them from doing that. That is the challenge facing our industry today. Every franchise advertises the notion that they have the best system. Many agents are brainwashed to believe in that system until they are broke and forced out of the business. Our industry is notorious for attacking those who try to do something different. I know because I have experienced it. Through 35 years I have overcome it and in spite of what others think have devised a system that works by placing my customers first. By doing what is best for my customer. By helping them navigate an ever confusing system that is designed to keep them poor. By helping them overcome all those problems in life they will never teach you how to overcome at your local real estate board. You see our customers are moving through this journey called life. They need someone who cares about their problems and helps them and supports them through difficult times. Someone who gives them advice and direction even though there maybe no money involved. Someone who understands that help may not be appreciated at the time but the return on that investment in time will come down the road. Down the road when they send you their son to you to help him find his first home. Or they call you when they buy a home with their new spouse.
That customer care is the foundation of my business. I have many other secrets with my system but that is my number one secret. Don’t focus on the money. Focus on what is best for your customer and the money will come.
This is my first article in How to Run a Successful Real Estate Brokerage. I hope you found it interesting and I thank you for taking the time to read it.
Larry Matthews AMP DAC
Hants Realty Limited