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Old 03-08-2011, 04:36 PM
 
2 posts, read 12,179 times
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I have been lurking for awhile. First post. I am a small independent firm presently considering a Realty Executives Franchise. Any comments, feedback, or opinions (good, bad or ugly) would be appreciated. Thanks in advance.
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Old 03-08-2011, 07:35 PM
 
Location: Dana Point
143 posts, read 414,058 times
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I am assuming that you will be buying the franchise rights for your own office(s)?

They have their own model which is hiring good agents who know what they are doing and need little guidance and give their agents a high % of the split. Desk fees, E&O fees and a good split but they offer nothing beyond that. Which is not necessarily a bad thing if you have done this for a long time.

If you have your own clients and don't need their brand name, international marketing or brand name recognition, they might be a good fit. If you are intending to own a franchise office, realize that you will have nothing to offer beyond a great split. Kind of 2 or 3 steps above being a Broker on your own.

My experience with local agents is that they are good and competent. Nothing bad at all.
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Old 03-09-2011, 03:00 PM
 
Location: Columbia, SC
10,514 posts, read 20,358,849 times
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They are not in my market so I can't comment on them either way through simple lack of knowledge. The ones that seem to have a strong base for franchises are in no particular order ERA, Coldwell Banker, Exit, KW, Re/Max. The Re/Max and KW have both struggled in my market though but I don't think it's related to the strength of the franchises as a whole. I'd say your decision should be based on your long term goals. Do you envision growing your office or do you want to stay small?
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Old 03-10-2011, 08:22 PM
 
2 posts, read 12,179 times
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Thanks Lisa and Brandon. They are not in my market either. I am concerned about brand name recognition versus that of more high profile franchises. I envision remaining a small office of 10 agents or less. Thanks.
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Old 03-11-2011, 05:43 AM
 
Location: Louisville KY Metro area
4,825 posts, read 13,682,442 times
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I am a RE/MAX Broker-Owner just northeast of Louisville KY. I will simply share that I will leave the business when I leave RE/MAX. As I write this, I am in Las Vegas following the annual convention. The news coming from there may simple change the game again.

My advice: do not do anything unless you seriously take a look at RE/MAX. I will gladly share my story with anyone, even on my dime. Send me a private message and I will send you my contact info including my toll-free number.

I'll be traveling a lot this weekend (March 11-13, 2011) so be patient, but I will get the numbers to ya.
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Old 03-11-2011, 06:48 AM
 
Location: Boston
75 posts, read 116,725 times
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I am a Broker with KW. We are now the 2nd largest Realty in the US, and growing. Realty Executives does not have a presence in my market.
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Old 03-11-2011, 08:23 AM
 
Location: Anderson, SC
181 posts, read 387,306 times
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I would suggest weighing the benefits versus costs of a franchise. How will being a franchisee help your company, help your clients and make the company more money?

If your company has been making money and is successful, then why change or spend the $ to become part of a franchise?

Could the money spent to become a part of a franchise be better spent on something else?

If you have been in business for any length of time, what about all the work you have done as far as branding and name recognition?

If it ain't broke, don't fix it IMHO.
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Old 03-11-2011, 09:03 AM
 
11,115 posts, read 17,945,595 times
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A few of the franchises here in WNC have gone bye bye or merged with others. That yearly francise fee can be an albatross. Realty Execs is gone. One of the CB offices is gone from 75 agents down to about 4 and merged with a private guy who was losing his shirt, they probably made him an offer he couldn't refuse just to keep a presence in town, but he has to use the CB name now. Re/Max had 10 agents, all independent contractors except for the co-owners BIC. Now they are down to 4 agents who are all co-owners, go figure. At least with Re/Max there is a ton of incentive to get out there and produce, and manage your own expenses -- it's well worth it, and you know most everyone in your office is professional, experienced, and puts in the same effort. (I'm prejudice of course.)

The other franchises have taken in the leftover agents who have some experience. KW has a huge office here, something like 92 agents (how they can all be successful is not gonna' happen). There are maybe 10 agents out of the 92 that have listings and work at it. Only one there has had 3 years of top listings and sales, the other all lag behind a great distance. C-21 is still top heavy with agents, but most of them are "part-time" which is a joke. C-21 has a rep for allowing part timers; may be one agent in there worth listing with, the others are there because they need a desk to sit at and a place to go in the morning to feel like they are working. lol! Prudential is about to go down the tubes here, they overprice most everything; they advertise once a week, but it doesn't help if they have no "sold" banners.

Before I would even consider a franchise in any area, I'd beef up my sales force to only top producers or those who have the fire in their belly, want name recognition (their own), and use the money to reward them with better commission splits and percs, and bite the bullet with some awesome advertising with your own branded presence. Be different .... if you have the rep, use it ! and have a drop dead awesome website to drive buyers and sellers to you.
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Old 03-11-2011, 09:35 AM
 
11,473 posts, read 49,626,665 times
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If you've spent the time/effort to establish yourself independently and are now making a living in your marketplace, I'd seriously question what this franchise ... or any other ... will bring to your benefit?

Will their name recognition bring you that much of an incremental increase in sales volume to justify the additional burden upon your time/cash flow?

I have seen several REMAX agencies tank in my region over the last few years. One was owned by a friend who had a highly successful career on his own, but wanted to build up a big agency. He figured he needed to have 75 productive agents to make it work, and his target was to have around 100. He got very close to his 75 agents ... and lost over $1.5 mil in the 4 years he was in business. He survived financially only because he personally closed enough sales volume to meet his personal expenses, and now has gone to a C-B agency owned by a former associate. But after hearing his numbers on the project after he closed his place ... I had to ask myself would it ever have been worth it? His projected upside with 75 agents wasn't ever going to equal what he'd been making on his own before he took on the franchise ... which to me didn't justify the time/effort/expense just to have his own big agency. He'd had to have reached that 100 productive agent level to have made an improvement in his finances, which I don't believe was a realistic goal in the area market. I've seen similar issues with other RE franchise operations ... the increased cost to the owner(s) wasn't justified over what they were capable of and earning without the affiliation. Some would have done just fine staying as a 2-3-4 partnership broker/owner business with a few associates.

Last edited by sunsprit; 03-11-2011 at 09:46 AM..
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Old 03-11-2011, 05:07 PM
 
1 posts, read 5,995 times
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Quote:
Originally Posted by wjh1959 View Post
I have been lurking for awhile. First post. I am a small independent firm presently considering a Realty Executives Franchise. Any comments, feedback, or opinions (good, bad or ugly) would be appreciated. Thanks in advance.
My partner and I were had an unaffiliated brokerage for 8 years and made the decision to affiliate with REI. Best decision we have ever made. Great tools, great systems and great people! Everything you need to attract productive realtors. I would recommend Realty Executives highly. They have exceeded our expectations every step of the way and continue to do so. If you would like to talk, call me any time, Doug Radford, Realty Executives Exceptional Realtors, New Jersey 973-214-9314
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