Monday, January 29, 2007

Is big beautiful..... Does size count!

The landscape of real estate agency is changing. International players are flexing their muscles and intimidating local brands and real estate names we have grown up with are disappearing.

So what is happening?

The reality of real estate is that despite the brave front of flashy European cars and beautifully dressed sales people, there is the pain and uncertainty of a changing industry.

Only a decade ago the CEO of a real estate company was a sales person who worked the hard yards to own their business and run it successfully. Today real estate is transitioning to professional business, run by professional managers with sophisticated support and marketing systems. Budgets, targets, KPI’s and stakeholders. If the United States provides us any clues you will see the picture continue to polarize. First there will be the tiny operators defying change, carving a niche out of personal relationships and hard earned sales skills, but with limited support. The next category is the try hard transitional medium sized operators. These operators will “have a go” then duck under the umbrella of a franchise brand as the going gets too much to bare. The next will be the emergence of one or two exceptional independent agents with deep pockets, lots of passion and plenty of market clout. Finally the super sized franchise brands. Running to a proven business formula these will have a hard edge and provide formula driven product to a mass market.

So how do you choose who is right for you?

Easy. The tiny operators wont let you choose or you’ll loose your friendship.
The franchise groups will dominate the main market, the super independent will cater for the upper end and thou accustomed to getting the best resources but in a personalized environment.

Anthony Toop

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