Comments on: Ch-ch-ch-changes in Phoenix Real Estate http://agbeat.com/editorials/real-estate/ch-ch-ch-changes-in-phoenix-real-estate/ News, insights, tools, and inspiration for business owners and professionals Mon, 21 May 2012 04:53:16 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Greg Cremiahttp://agbeat.com/editorials/real-estate/ch-ch-ch-changes-in-phoenix-real-estate/#comment-6723 Greg Cremia Thu, 27 Mar 2008 11:12:15 +0000 http://agentgenius.com/?p=1505#comment-6723 Bill, I understand that part completely and agree with it. What I don't understand is why it is ok for those 3,300 agents under one umbrella in one city to talk about commissions or even follow the same office policy on commission. If those 3,300 agents are not forced to follow the same pricing schedule they are at the very least encouraged to follow the same commission schedule. It is a double standard when 2 little companies can't talk about commission until they are bought out by a big company. Bill,

I understand that part completely and agree with it. What I don’t understand is why it is ok for those 3,300 agents under one umbrella in one city to talk about commissions or even follow the same office policy on commission. If those 3,300 agents are not forced to follow the same pricing schedule they are at the very least encouraged to follow the same commission schedule.

It is a double standard when 2 little companies can’t talk about commission until they are bought out by a big company.

]]> By: Bill Lublinhttp://agbeat.com/editorials/real-estate/ch-ch-ch-changes-in-phoenix-real-estate/#comment-6719 Bill Lublin Thu, 27 Mar 2008 08:39:13 +0000 http://agentgenius.com/?p=1505#comment-6719 Joshua - I agree that the brokerage needs to bring something to th table - no matter what the business model - and I would even challenge the common assumption that its a split or a percentage - When the brokerage is a place that fosters the growth and business of its affiliates then it does well- and its not about your split- but about what you make and keep - in our market there are many business models where the agent is paid a higher split and then charged back for services etc - bottom line is that the brokerage needs to be a profitable strong company and the agent needs ot make a good living and be able to experience growth - In our company almost all of my partners were agents in the company at one time - when they were ready to grow - we helped them open offices and they became principals in the company- its worked for us well so far - and even in this market we've been moving forward because this is a growth opportunity- Joshua – I agree that the brokerage needs to bring something to th table – no matter what the business model – and I would even challenge the common assumption that its a split or a percentage – When the brokerage is a place that fosters the growth and business of its affiliates then it does well- and its not about your split- but about what you make and keep – in our market there are many business models where the agent is paid a higher split and then charged back for services etc – bottom line is that the brokerage needs to be a profitable strong company and the agent needs ot make a good living and be able to experience growth – In our company almost all of my partners were agents in the company at one time – when they were ready to grow – we helped them open offices and they became principals in the company- its worked for us well so far – and even in this market we’ve been moving forward because this is a growth opportunity-

]]> By: Bill Lublinhttp://agbeat.com/editorials/real-estate/ch-ch-ch-changes-in-phoenix-real-estate/#comment-6718 Bill Lublin Thu, 27 Mar 2008 08:35:00 +0000 http://agentgenius.com/?p=1505#comment-6718 Ines - I undertsand how you feel - we're hyper-sensitive to changes in our business becuase we're so involved in it (like you get sensitized when you buy a new car and start seeing it everywhere you go) but the consumer still sees the branding they're used too, so the names still seems the same to them - (but we know better :-) ) Ines – I undertsand how you feel – we’re hyper-sensitive to changes in our business becuase we’re so involved in it (like you get sensitized when you buy a new car and start seeing it everywhere you go) but the consumer still sees the branding they’re used too, so the names still seems the same to them – (but we know better :-) )

]]> By: Bill Lublinhttp://agbeat.com/editorials/real-estate/ch-ch-ch-changes-in-phoenix-real-estate/#comment-6717 Bill Lublin Thu, 27 Mar 2008 08:33:07 +0000 http://agentgenius.com/?p=1505#comment-6717 @Greg; When people from more then one company talk about their commissions it is considered price fixing (since a number of companies may be agreeing to "fix" a price to charge the consumer) - when agents within one company follow a single policy it is a business practice (since all of their competitors set their own commission schedules) It goes back to business practices in the late 19th century when railroad companies and energy suppliers would conspire to create pricing through artificial methods outside of the marketplace demands - (leading to things like the Sherman Anti-Trust Act) Hope that helps explain it @Greg; When people from more then one company talk about their commissions it is considered price fixing (since a number of companies may be agreeing to “fix” a price to charge the consumer) – when agents within one company follow a single policy it is a business practice (since all of their competitors set their own commission schedules) It goes back to business practices in the late 19th century when railroad companies and energy suppliers would conspire to create pricing through artificial methods outside of the marketplace demands – (leading to things like the Sherman Anti-Trust Act) Hope that helps explain it

]]> By: Bill Lublinhttp://agbeat.com/editorials/real-estate/ch-ch-ch-changes-in-phoenix-real-estate/#comment-6716 Bill Lublin Thu, 27 Mar 2008 08:30:02 +0000 http://agentgenius.com/?p=1505#comment-6716 Teresa; There is a cycle that the business follows - as markets are good new people come into the business and over time some portion of them decide that they are the source of all good things and they go to open - some are business people and grow their companies, some struggle and don't grow because they are better salespeople then they are businesspeople, and some (like Joshua find that they are better suited to be agents then owner operators- After a period of time some of the new independent companies find a place where they need to grow further and the next stage happens - a wave of franchisees or an expansion (I openend my second office 5 years after the first and didn;t buy a franchise for another 6 years when it seemed to be the next groweth step) after a period, there is a consolidation of many of the smaller offices as the market contracts - and then when the market expands again the cycle starts all over again - its really fascinating to watch - So many people open brokerage firms that never grow to be businesses, but are just opportunities to create a job (like Joshua relates) - A great book about that is call the E-Myth - it helps put into perspective the whole process (from purely a business overview - not real estate specific) The nice thing is that its almost a sort of economic darwinsim - new things arise, old things grow and change - some things prosper and others don't - but the agents and companies that make it through seem to be stronger when the next expansion cycle starts - Teresa;
There is a cycle that the business follows – as markets are good new people come into the business and over time some portion of them decide that they are the source of all good things and they go to open – some are business people and grow their companies, some struggle and don’t grow because they are better salespeople then they are businesspeople, and some (like Joshua find that they are better suited to be agents then owner operators- After a period of time some of the new independent companies find a place where they need to grow further and the next stage happens – a wave of franchisees or an expansion (I openend my second office 5 years after the first and didn;t buy a franchise for another 6 years when it seemed to be the next groweth step) after a period, there is a consolidation of many of the smaller offices as the market contracts – and then when the market expands again the cycle starts all over again – its really fascinating to watch – So many people open brokerage firms that never grow to be businesses, but are just opportunities to create a job (like Joshua relates) – A great book about that is call the E-Myth – it helps put into perspective the whole process (from purely a business overview – not real estate specific)
The nice thing is that its almost a sort of economic darwinsim – new things arise, old things grow and change – some things prosper and others don’t – but the agents and companies that make it through seem to be stronger when the next expansion cycle starts -

]]> By: Joshua Ferrishttp://agbeat.com/editorials/real-estate/ch-ch-ch-changes-in-phoenix-real-estate/#comment-6714 Joshua Ferris Thu, 27 Mar 2008 05:38:57 +0000 http://agentgenius.com/?p=1505#comment-6714 I think the value of a broker has been challenged dramatically over the past year or two. I worked at a certain black and yellow company when I first started and it was an absolutely awful experience all the way around. I then switched to a work-from-home-we'll-give-you-the-leads operation for about 4 years. It wasn't a bad model really but I had to pay for all office expenses, meet potential clients at Starbucks because we had no office and work with buyers exclusively. To top it off, I was on a 60/40 split. Over the summer I started my own brokerage to shoot for the 100% commission and I still hated working from home and not having an office. Plus when the calls came in for listings I was the only one to answer them so I had no time to myself. Now I'm with Keller Williams and I couldn't be happier. Not only do we have beautiful offices and a great front desk staff that everything but I also have a fantastic broker who helped me seal the deal on a 200+ home community marketing contract. Oh, and the split is higher than the 60/40 place! Overall I couldn't be happier. I share all this because brokers will always have a place in real estate but the ones who bring nothing new to the table and don't help agents flourish are soon to be dead in the water. I think the value of a broker has been challenged dramatically over the past year or two. I worked at a certain black and yellow company when I first started and it was an absolutely awful experience all the way around. I then switched to a work-from-home-we’ll-give-you-the-leads operation for about 4 years. It wasn’t a bad model really but I had to pay for all office expenses, meet potential clients at Starbucks because we had no office and work with buyers exclusively. To top it off, I was on a 60/40 split.

Over the summer I started my own brokerage to shoot for the 100% commission and I still hated working from home and not having an office. Plus when the calls came in for listings I was the only one to answer them so I had no time to myself.

Now I’m with Keller Williams and I couldn’t be happier. Not only do we have beautiful offices and a great front desk staff that everything but I also have a fantastic broker who helped me seal the deal on a 200+ home community marketing contract. Oh, and the split is higher than the 60/40 place!

Overall I couldn’t be happier. I share all this because brokers will always have a place in real estate but the ones who bring nothing new to the table and don’t help agents flourish are soon to be dead in the water.

]]> By: ineshttp://agbeat.com/editorials/real-estate/ch-ch-ch-changes-in-phoenix-real-estate/#comment-6702 ines Thu, 27 Mar 2008 03:46:51 +0000 http://agentgenius.com/?p=1505#comment-6702 Something similar happened to us last year - our local Coldwell Banker office closed its doors saying they were "consolidating offices" and we had to move to one further off. CB lost their local presence and I still think it was a mistake, but Rick and I work from home and it really didn't affect us. Interesting times for sure. I still like the big name behind us......somehow that name does not seem as big anymore. Something similar happened to us last year – our local Coldwell Banker office closed its doors saying they were “consolidating offices” and we had to move to one further off. CB lost their local presence and I still think it was a mistake, but Rick and I work from home and it really didn’t affect us. Interesting times for sure. I still like the big name behind us……somehow that name does not seem as big anymore.

]]> By: Jonathan Daltonhttp://agbeat.com/editorials/real-estate/ch-ch-ch-changes-in-phoenix-real-estate/#comment-6685 Jonathan Dalton Wed, 26 Mar 2008 20:15:07 +0000 http://agentgenius.com/?p=1505#comment-6685 Greg - a company can set whatever commission structure it chooses. I honestly don't know if this is the case at Homesmart. I know at my prior office I never charged what the company's set rate was for a variety of reasons. Teresa - It's something I've contemplated myself but I still like having the big franchise behind me, even if I don't trade on their name all that often. Greg – a company can set whatever commission structure it chooses. I honestly don’t know if this is the case at Homesmart. I know at my prior office I never charged what the company’s set rate was for a variety of reasons.

Teresa – It’s something I’ve contemplated myself but I still like having the big franchise behind me, even if I don’t trade on their name all that often.

]]> By: Greg Cremiahttp://agbeat.com/editorials/real-estate/ch-ch-ch-changes-in-phoenix-real-estate/#comment-6667 Greg Cremia Wed, 26 Mar 2008 12:31:40 +0000 http://agentgenius.com/?p=1505#comment-6667 What I don't understand is how it is illegal for me to talk about commission structure with another agent but it is ok for 3,300 agents to follow the same commission structure in one city. What I don’t understand is how it is illegal for me to talk about commission structure with another agent but it is ok for 3,300 agents to follow the same commission structure in one city.

]]> By: Teresa Boardmanhttp://agbeat.com/editorials/real-estate/ch-ch-ch-changes-in-phoenix-real-estate/#comment-6658 Teresa Boardman Wed, 26 Mar 2008 10:44:30 +0000 http://agentgenius.com/?p=1505#comment-6658 We have a growing trend here in MN where more and more of us have brokers licenses and agents are going out on there own in larger numbers than ever before. One of the major companies in town seems to be shrinking but the largest company looks like it is growing. It will be interesting to see if this is just an anomaly or if agents will continue to go out on their own. We have a growing trend here in MN where more and more of us have brokers licenses and agents are going out on there own in larger numbers than ever before. One of the major companies in town seems to be shrinking but the largest company looks like it is growing. It will be interesting to see if this is just an anomaly or if agents will continue to go out on their own.

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