RISMedia's Real Estate Magazine

AUG 2019

Real Estate magazine is the industry's leading source for real estate news and information since 1980. Published monthly by RISMedia, Real Estate magazine offers timely and relevant real estate news to the industry's top brokers and agents.

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14 August 2019 RISMedia's REAL ESTATE {The NAR Power Broker Roundtable} Jim Imho: Industry-wide, over the past few decades, brokers who've seen net revenues drop have been meeting the challenge in diverse ways, developing innovative revenue streams that may stray a bit from their core business but remain closely aligned. More important, perhaps, is that these ancillary enterprises are meeting the needs of buyers and sellers, and benefitting their agents to boot. I think, Joan, that Fox & Roach's Trident af- filiate was among the earliest forays into the one-stop shop. Joan Docktor: Well, we've been at it for a long time, Jim, provid- ing mortgage, title and insurance services for our customers since the late '80s. We recognized early on the win-win value of the one-stop shopping experience. It's a captive business, used by more and more of our agents because we don't charge them a fee, and it's at a point now where we can meet or beat the terms for even those customers who were pre-qualified with another company— and we give them a $100 gift card as a bonus for using our services. Robert Bailey: What's important, I think, is that the revenue source you choose is a natural fit for your business. We segued into property management back in 1982, focus- ing initially on vacation rentals in our beach-close communities. But as my partner and I looked ahead at hous- ing trends and affordability, we began to expand, over the last 10 years especially, into the value of rentals to small investors. Our agents have a touch point, they have a place to park investors, and investors become sellers. It's a value-add for our as- sociates, a source of direct revenue, and it is brand reinforcement for our company. Ma Deuitch: The brand umbrella is important. Another option is a real estate school for pre-licensing, continuing education, or both, where you can write and license materials and/or collect attendance fees. You can also operate official pay-to-join coaching programs run by associate brokers. The brokerage takes a per- centage of program production and the program gets in-house marketing assistance. Lennox Sco: Most recently, we initiated a franchise network that currently has 77 offices and 1,600 broker associates—about half of our total agent count. We started fran- chising in our core states of Wash- ington, Idaho and Oregon, and we're expanding now into California. It's controlled growth, and we take care to be sure our new affiliates, many of them teams, are a good fit with our culture and core values. We see this as a natural way to produce revenue and expand our market presence. Je Detwiler: The best new revenue streams come directly from asking, "What do our customers need and want, and how can we do it better?" In May of this year, we rolled out a moving services company, which I'm pleased to report already has a 35 percent capture rate. As always, our goal is excellent service, with options not available from traditional sources, and the moves that have so far been completed are getting exceptional reviews. In today's competitive arena, providing a portfolio of innovative ser- vices is the only way to distinguish yourself and to meet and exceed the expectations of both your customers and your agents. JI: Whatever path you choose, I sense a consensus from what we've heard here today: It starts with a passion for doing what you do better than anyone else on the planet. RE 8For an expanded version of this article and other NAR Power Broker Roundtable topics, please visit www.rismedia.com. Innovating New Revenue "The best new revenue streams come directly from asking, 'What do our customers need and want, and how can we do it better?'" – Jeff Detwiler President & CEO, The Long & Foster Companies MODERATOR: Jim Imho Chairman, First Weber, Madison, Wis., Liaison for Large Firms & Industry Relations, the National Association of REALTORS® (NAR) PARTICIPANTS: Joan Docktor President, Berkshire Hathaway HomeServices Fox & Roach, REALTORS®, Devon, Pa. Robert Bailey Broker/Owner, Bailey Properties, Santa Cruz, Calif. Ma Deuitch Designated Broker, DPR Realty, Scottsdale, Ariz. Lennox Sco Chairman & CEO, John L. Scott Real Estate, Seattle, Wash. Je Detwiler President & CEO, The Long & Foster Companies, Chantilly, Va. The Power Broker Roundtable is brought to you by the National Association of REALTORS® (NAR) and Jim Imhoff, NAR's Liaison for Large Firms & Industry Relations. Watch for this column each month, where we address broker issues, concerns and milestones.

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