What Real Estate Company is the Most Searched For?

I'm finding that I like to do this blog thing about our industry. As I am searching for the best keyword to use, I decided to see who is searched for the most. The findings may surprise you.

Here's the list:

1. Century 21
2. Coldwell Banker
3. ERA (might have been the word "era")
4. Keller Williams
5. Distant C21
6. GMAC popped up next in Relevance

I do not see REMAX there anywhere. However, like REALTOR.com, the name is so recognizeable that they may be generating traffic DIRECTLY to them. I also found it interesting that CENTURY 21 popped up as number one. It backs up their claim, but upon further review, it's my hypothesis that users have a hard time finding them, so they are forced to search. In addtion, much like ERA, I believe they are getting a boost on the sheer fact that it has another meaning, ala 21st Century.

To me the clear cut winner would be Coldwell Banker.

REMAX GREATER ATLANTA TO ACQUIRE REMAX HORIZONS

RISMEDIA, May 2, 2007-RE/MAX® Greater Atlanta announces its agreement to acquire RE/MAX Horizons. Their three offices, located in Gainesville, Buford, and Braselton, all reside in Hall County and house approximately 120 RE/MAX® professionals.

"We are extremely delighted to enter one of Georgia's fastest growing counties," said Steve Graham, President and CEO of RE/MAX Greater Atlanta. "[RE/MAX] Horizons agents' dedication to real estate excellent is a perfect fit for our organization and I believe the transition will be quite seamless."

Hall county, with access to the popular Lake Lanier and the foothills of the Blue Ridge Mountains, has seen a near 25% increase in population since the year 2000. RE/MAX Greater Atlanta sold more than 16,700 homes in 2006 equating to nearly $4.4 billion dollars in sales. Honored as the nation's 18th largest real estate brokerage by RISMedia's 2007 Power Broker Report, RE/MAX® Greater Atlanta will comprise 15 offices and more than 1,300 agents once the acquisition is complete.

For more information, visit www.remax-greateratlantaga.com.

Why Remax?

Remax has a great little comparison chart that explains why they are still one of the better traditional companies out there. It barely scratches the surface, but is definitely a good start.

Check it out here:
http://www.remax.com/inside_remax/become_an_agent/why_remax.aspx

Is your company supporting your business…or are you supporting their business?

As I do more and more research on the different Brokerages it amazes me that no matter how much a company is more cutting edge in their methods, they still are doing business the traditional way. That is, they spend money, AGENT'S money, promoting THEIR brand and generating THEIR own leads ... which in turn are sold back to the agent or given to the top producers.

Let's examine their business model.

Recruit new agents - Take 50% from their sales and hopefully they will become good. If they get big, they will be rewarded with new business opportunities that were generated off of their split. They'll get perks, such as parking spaces, offices and key opportunities.

Worst case scenario, the prospect doesn't pan out and the company gets some free advertising while they were working.

Last time I checked, 100% of my clients wanted to work with me, not my Broker or my brand. When I switch companies, my clients come with me.

So who am I talking about? Let's call some of them out:

• Remax - Still on a traditional split - never caps, or if it does it's coupled with exorbinant "desk" fees. Recently they developed LEADSTREET where they generate leads and sell them back to the agents. They also came out with REMAX University. Sounds very familiar with another University.
• Coldwell Banker - This is a company that is owned by Cedant. In any case, the split is the same traditional one, 70/30 for most agents with no cap in site. All branding must be CB and not the SMITH TEAM.
• C-21 - Again, owned by Cedant. C-21 is becoming the red-headed step child of brokerages. On one page you'll see a recruting ad, proclaiming how successful people will be by joining. On the opposing page, there's an undermining ad of "SAVE OUR COMMISSION" explaing C-21 Flat Fee franchises. To me this is the bottom of the barrel for a company.
• Prudential - Works the traditional system as well. They would love for their agents to buy into their other products and sell them as well. Overall, they view agents as employees.
• ERA, Exit & GMAC - These companies are copying the KW model but getting it all wrong. Instead of actually sharing profits, they dip into agents pockets -- forever. At GMAC, people who recruit you will receive 1 to 2% of your total earning. This does not go levels deep and never caps out. ERA and Exit have similiar reward models.

In some cases, these brokerages will offer lockboxes, signs and other resources. The downside is that all of these items keep you dependent on them and, oh yeah, "would you like some JOHN SMITH with your Coldwell Banker sign?"

So who's not doing this?

• Keller Williams - Doesn't spend a dime on brand building or recruiting. Each agent caps out at a predetermined number, in Atlanta it's 18K. After that it's strictly 100%. This renews itself every year. This also creates equality and quality control. No agent is worth more than the 18K so unethical agents will be "dehired." That's unimaginable when brokerages would hire monkeys if allowed. It's more about YOU the agent. KW spends their money on training agents how to do the business. If you've ever met a KW agent, then you know it's about being professional and having a career worth having.
• Solid Source (Local) - A Per Transaction based company. Their "Christian" foundation makes them an interesting study.
• Flat Fee/100% Companies - They offer no training or support but you keep everything. Typically you can do what you want as well, even as far as creating a sub brand.

This was pretty down and dirty but it should give you some insight. What has your Broker done for you lately? My guess if they aren't teaching you how to fish, their causing you to be dependent on them. If that's the case, ask yourself this, "what happens when the market shifts and it's no long profitable for them to provide these things at this price?" Prices go up, ethics go down and you'll be looking elsewhere.

At the end of the day, when you look at your business, are you supporting YOUR brand of Real Estate or your BROKERS?

LOCAL: Remax/ CENTER

I got this in the mail and thought I would post it.

You get REMAX name in return for:

Plan A: $725 / MO 95/5 Split
Plan B: $258 / MO 70/30 Capped at $9000
Plan C: $67 / MO 70/30 Capped at $15,000

Includes MLS, E&O and Website.

Re/Max Center seems to want to compete with the more progressive models such as Keller Williams, ERA and Exit have moved to. This IS the model for Real Estate now, maintain some of the good elements of a traditional brokerage but also giving licenscees the oppportunity to choose.

Professonals?

Another flat fee company out there is known as Realty Professionals. Very much like Chapman Hall and other flat fee type companies. It's a no service, no support, all the commission company. This is a great business model overall and really assists in the helping agents lower their commissions and pass the savings along the consumer. The difference between Realty Professionals and Chapman Hall or any rather, the difference between Chapman Hall and all other flat fee companies is that Realty Professionals charges a transaction fee. So in exchange for less of a monthly burden you only have to pay when you perform.

With many of these types of brokerages out there, it's no wonder why they are not doing anything in the market overall. One of the reasons why Remax, Coldwell and others have experienced agents is because they simply can afford it. If you can't pay the bills you'll likely end up at one of these flat fee companies. Now whether you get what you pay for is up to you. I could make a case against it at Remax. So the question still remains, are the agents at Realty Professionals, professionals? If you take professional to mean, competent, then YES. However, if you take professional to imply that an agent is taking the business seriously and sees it as a career, then I would have to say, No. There are exceptions to every rule, there are top agents world over that are in unheard of brokerages, so don't take that as a hard and fast rule.

In any case, Realty Professionals offers a nice, relaxed enviroment. The big draw of this particular company is the laid back broker, Jim Burchette. Every agent I've encountered has had nothing but nice things to say.

Again, as with Chapman Hall, you get a low risk, relaxed enviroment with no training, no support or leads or anything. In comparison, RP has more offices than CH, but at a higher cost.

Summary:

What you get with Realty Professionals

• $200 A month / $250 a transaction
• more office locations than most flat fee companies
• no training
• no frills

What's In A Name?

What would be an article about the different brokers without covering the biggest one of all. Re/Max. Remax has been around forever and their business model has not changed much in all these years. The basic model is to acquire new agents into franchisee offices and give them the option of paying office/desk fees that amount to about $12,000 or so a year or a split on commissions that potentially could be much more than that. This is in addition to maintaining the regular monthly fees of E/O insurance, MLS membership ect.

With Remax you are getting a name, much like if you opened a resturaunt and signed up for McDonalds you would get instant name recognition. Remax isn't known for training their agents or having high standards. By default, the cost of joining Remax is what keeps younger and/or newbie agents from joining.

In my market area, Atlanta, Remax has a few major players, such as Kay Kim, Mark Spain and the Zac Team but their market share is giving way to agents with a more flexible business model.

Summary:

What You Get with Remax

• Instant Name Recognition
• High Desk Fees
• Not much effort in Teamwork
• Training is dependent on individual franchises