Having been with several of the big franchises over the years we also wondered whether moving to a smaller (in our opinion better) business model would result in a negative impact to our business. In fact business has continued to increase at an even faster pace - so we conclude that the franchise banner has little to do with the success of the individual agent.
Scott Peterson's blog titled, "The Death of the Franchise???" got me thinking.
I suspect all real estate is local even when it comes to this issue. I've been on both sides having owned and operated a small independent brokerage and now part of a larger franchise office.
In the Dallas market, the franchises and a large independent dominate the listing side of the market. While I don't have time to develop the data from the MLS, I base that on signs in the ground as I drive the area.
We're seeing a few of our less productive agents transfer to other brokerages where their monthly costs are less. I suspect that will be the trend for the next couple of years as we get the economy turned.
I see all the blogs about the greedy brokers, but for the most part the brokers are not getting rich running a brokerage. I sold my brokerage and went back to selling real estate when the market began to turn in 2008. It is less of a headache and more profitable.
The major problem facing broker-owners is how to generate a profit. Agents want everything including a large support staff, phones, printers, copiers, a nice place to meet clients, leads, etc. They want it all for $79 per month and they get 100% of the commission. Small and independent operations can often offer reduced costs to its agents. In the end, a brokerage (like any other business) has to generate a profit for the owners or it will cease to exist.
Those of us who have done it know that starting and sustaining a brokerage is not as easy as it sounds.
Have you "hugged" your broker lately?
Tom Branch and Gina Branch, The Branch Team with RE/MAX Dallas Suburbs, service the greater North Dallas suburbs including Dallas, Plano, Allen, McKinney, Frisco, Lewisville, and Carrollton. While Gina concentrates on traditional listings and buyer/tenant representation, Tom specializes in assisting distressed homeowners to avoid foreclosure. Tom and Gina have published two books (Achieving Rock Star Status and The Field Guide to Short Sales) and are available for speaking engagements in the greater Dallas - Fort Worth Metroplex. Subscribe to The Branch Team Blog.
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The Branch Team - Texas Real Estate Broker 0547597 | Team Members are Texas Licensed Real Estate Professionals
Tom Branch - National Mortgage Licensing System 0341963
Tom Branch, Broker Associate, RE/MAX Dallas Suburbs, http://www.thebranchteam.com
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