Real Talk!

My mother recently told me that some of her friends were really excited that “so-and-so” had been accepted at ReMax. She asked me if that was some kind of a big deal. She didn’t think so. I think she was right.

I find it difficult to deal with the term “accepted”, for most real estate companies, as recruiting new sales representatives is one of the main activities in most franchise operations. Most companies are happy to have a licensed body come “aboard”. The more the merrier...

I won't tell you which offices some refer to as "Rack 'Em, Stack 'Em Realty"... because the owner(s) completely load the building with sales representatives- because every rep pays the owner(s) a significant monthly rental for their desk and the real business the company is successful with- is supplying office space.

The “Executive Officer” (who shall go unnamed) of one real estate board, has often told newly licensed Realtors ® that they are a “commodity” and that they should interview brokerages and look for the best contract deal.

You see, as a Realtor ®, in most cases, you are an “Independent Contractor”… basically self-employed- although bound by rules, regulations, laws and legislations. The company you work for, the brokerage, provides you with a contract that outlines what it will cost THE SALES REP. to work there.

While there are different variations of the breakdown, essentially, the brokerage will charge an average of around $20,000 per year, plus a small percentage of the sales representative’s gross commission. In some of the companies, there is a large portion of the corporate advertising costs that are shared by the sales representatives, as well.

Looking at the BIG Corporate picture, gives us a different perspective of each organization. All of the companies have main corporate websites that give a history and brag about their systems and numbers.

Here's what I found online:

Since 1875, Prudential Financial has helped people achieve financial security and peace of mind. With a long history of social responsibility, strong leadership, sound investments, and innovative products and services- the company entered the residential real estate brokerage business in 1987. Prudential Real Estate Affiliates, Inc. reports a network of about 68,000 sales professionals in some 2,100 franchise offices in all 50 states, nine Canadian provinces and Mexico.

Royal LePage started off in 1913 when Eddie LePage opened AE LePage and made a full-time business of selling homes. In 1984, the company merged with the real estate arm of Royal Trust to form Royal LePage. Today. 90 years later, Royal LePage states they have over 8000 sales representatives and staff in more than 550 offices from coast-to-coast.

Bowes and Cocks marks its beginnings in 1956. Over the past 40 years, BOWES & COCKS LIMITED has grown from one office in downtown Peterborough, to eighteen offices across Ontario and about 103 sales representatives.

In 1972, Century 21 formed and their website states that they are now in 45 countries with some 8,000 offices and 147,000 representatives.
In 1973, a real estate salesman from Denver, Colorado created RE/MAX - an acronym for "real estate maximums". The Re/Max system was, at the time, a unique concept created to benefit company OWNERS. It was designed for company owners to control overhead costs in that the Re/Max associates (sales reps) would share in the monthly overhead and operating expenses of the office. When operating costs escalate or new equipment is needed, the burden of the expense is to be carried by the “sales associates”, not the broker/owner. In addition, Re/Max offers training programs to educate broker/owners “how to run a profitable business”. In other words, Re/Max is a system of operating a profitable real estate OFFICE. Statistics on the ReMax corporate website indicate they now have about 48000 Sales Associates in 2900 offices.

Wow, huh?

Don't get me wrong. I have a number of professional colleagues who I respect that are working with companies other than Prudential.

In this area, the larger offices are Bowes and Cocks, Century21, Prudential and Royal LePage. It would be hard to say which is number one, although many sales representatives would like to say that their office is the number one office.

Is the number one office the one with the most Realtors ®?

As of today, on the Bancroft District Real Estate Board, the local Century 21 has 10 sales reps on their roster. The local ReMax has about 18 sales reps. The local Bowes and Cocks office has 14 sales reps. Our Prudential office has 4 sales reps and the local Royal LePage office has 2. There are also a couple of independent offices, operated by a sole broker.

Is #1 the office with the highest number of sales?

Well, that statistic would obviously be skewed by the number of sales representatives working under the umbrella of a particular brokerage, so I don’t think so!

Perhaps, if we looked at the average gross sales per Realtor ® in each office?

The numbers might surprise you! The Bancroft District Real Estate Association report of Sales by agency (as of this morning) reports the following gross sales, per capita:

Bowes & Cocks Limited, brokerage: $638,837
Century 21 All Seasons Realty Ltd., brokerage: $588,835
Prudential Lorimer Realty, brokerage: $864,375
ReMax Country Classics Ltd, brokerage:
Main office Bancroft- $639,380
Coe Hill office- $667,450
Royal LePage Frank Real Estate, brokerage: $378,725

I have my own reasons for being affiliated with Prudential. I am confident that it is an international company known for stability and stamina. Rock Solid, as they say.

I believe that the corporate identity is more important to the Realtor ® than it may be to the consumer. As I have said, many times, it is important that Buyers and Sellers interview a number of Realtors ® and select a representative with whom they feel a good working connection and is knowledgeable and professional in the business of Real Estate.

Some of us really don’t worry about being #1. Some of us simply want to do a good job and make an honest living. And, to tell you the truth, when I think about the meaning of #1, it conjures images of potty training and I don’t want to be associated in that way, myself.