Feb
25
A Quick Note on the State of the Industry
Posted by Danny Charbel under For Buyers, For Sellers, For Realty Professionals, General Information
So it turns out we’ve got imminent failure on our hands folks. What’s that? Oh don’t worry, it’s not the country (hopefully), or even the economy, we’ll have to trust that our new President will help minimize the negative effects of all of this. No, what I’m talking about is U.S. News’ article titled 15 Companies That Might Not Survive 2009.
Have you read it yet? You should, it’s very interesting, indeed. I’m sure you’ve already figured out the entry (#5) I’m going to write about: Realogy Corp. The largest real estate brokerage company in the country. Sure, Keller Williams just made it to the #3 spot, but we’ll brag later. Let’s talk about what’s at stake when Realogy’s debt comes due.
You see, they’ve already received an extension on the money they owe debtors, but according to their website Realogy is the parent company of Better Homes and Gardens® Real Estate, CENTURY 21®, Coldwell Banker®, Coldwell Banker Commercial®, The Corcoran Group®, ERA®, Sotheby’s International Realty®, NRT LLC, Cartus and Title Resource Group.
No wonder they’re the biggest huh? Now, if my college-educated logic serves me I’m thinking that when, I mean if, Realogy goes under we’re going to see a major change in the real estate industry.
Meanwhile, back in Texas DSNews.com has a very different story to tell about Keller Williams. Our business model and company philosophy make a great combination, even with this interesting economic situation.
CEO Mark Willis has a right to be proud when saying “Our strategy is no secret. We faithfully follow the sound financial model of leading with revenue – the same model our market centers follow. As we watch companies throughout the country take on billions of dollars of debt, we are proud to say that our company has not one dollar of financing debt and we remain strong and financially sound. It is our joy to be able to give back to our agents during these times.”
Is it surprising then that we’re painting the town (Keller Williams) red? The number 3 largest real estate brokerage company in the United States is operating with ZERO debt and leading with REVENUE even in the face of a slower market.
Makes me proud to be a KW agent.
Questions? Comments? Concerns? Are you a Century 21, Coldwell Banker, or ERA agent ready to make a move? Email me at dcharbel [at] kw [dot] com. You’ll thank me later.
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COMMENTS (2)
Keller Williams has grown by focusing on recruiting as many people as possible - NOT QUALITY REALTORS. All one needs to do is to look at the per-person productivity of a KW office to see that it is basically a franchise for less professional types. February 25, 2009 at 1:50 pm
First of all, I want to encourage healthy dialogue, so thanks for posting. I'm interested in hearing your thoughts on Coldwell Banker and Century 21. The reason I bring it up is because compared to Keller Williams' ±650 offices nationally, each other the other two have offices that number in the 7 THOUSANDS. Each. And they're going bankrupt. Meanwhile the meager ±650 KW offices just moved up in real estate rankings (we're now #3 and still debt-free) and are doing more production than any other franchise in the city. Oh, and you're right. Keller Williams does not play favorites, nor do we prejudge real estate agents before they have a chance to prove themselves, so we definitely like to give up-and-coming agents a chance. But unlike other companies we train our agents (for free) and encourage teamwork between agents and offices. So we take low quality Realtors and make them top notch members of the real estate industry. February 27, 2009 at 7:37 am