Nick Roth

Any New Innovative Franchises in the Real Estate Industry?

Yes. Many new busines models have recently sprung, but one in particular has clear advantages for residential real estate brokers. The best innovative real estate franchise, in my opinion, is Area Pro Realty. You can find them at AreaProRealty.com/franchise. There are many real estate franchises available. When shopping around for franchises, be sure to find one that fits your needs. What matters to you? Technology, support, efficiency....all of the above? Everyone has different needs. Many companies pay for press releases to say that they are the best real estate franchise. However, there can NEVER be one that is the absolute best. Its the same as saying there is one hamburger that is the best.

A real estate franchise should support your neeeds and goals. Out of all the real estate franchises for sale, i would suggest having one company in mind, then, use that company to compare all others to. The best franchise for you will eventually shake free and stand out from the others.

Many independent brokers have contacted me lately telling me they have never thought about franchising before but are now having second thoughts. They want to research the most innovative real estate franchise available. Before I continue with the conversation, I always ask them why, why now? The response is always the same. Although owning an independent brokerage has a certain level of freedom, with this economy its best to be a part of a team, a team backed with the support and technology todays brokers need. I tell them, owning a real estate franchise is like hitting the ground running and an independent brokerage is like reinventing the wheel.

I have owned an independent brokerage and a franchise, so I know what its like on both sides of the coin. I will tell you that of all the real estate franchises available, I think Area Pro Realty is the best real estate franchise. The link to their franchise page is AreaProRealty/franchise. Area Pro Realty operates with a completely different business model taylored to the recent (and forever) changes in the real estate industry.

Before researching any one real estate franchise for sale, start with Area Pro Realty, and use them as a base when comparing other real estate franchises.

Good luck to you!

Since I have published my book, How To Evaluate A Real Estate Franchise, many people as me, "I am looking for an innovative real estate franchise, where do I start? My first answer is, what do you mean by innovative? Do you mean different, do you mean high-tech, what exactly do you mean. There is no one answer to this question. When looking for an innovative real estate franchise you should start with evaluating your needs first. What is most important to you? Maybe its technology, maybe its support, maybe its reputation. I would write all of these factors down and rank them.

There are many real estate franchises available. The best real estate franchise can only be determined by you. If your looking for a new up and coming company that truly has a different business model, I would look into Area Pro Realty. A real estate franchise should compliment what you are looking for. There is no one sized fits all glove for anyone.

In conclusion, before researching the many real estate franchises for sale, be sure to look within yourself first, becuase without a true understanding of what your looking for, you will not find the perfect glove that fits your hand

BROKERS, READY FOR GROWTH?

New Recession Proof Real Estate Franchise Promising Change

Concord, California (Nov 10, 2008) - In an effort to drastically change the residential real estate franchise industry, a bold new company has hit the ground running. Area Pro Realty aims at being "recession-proof" and allows brokers to flourish during a down market.

In today's economy, more independent real estate brokers across the country are looking toward franchising for the technology, support and growth opportunities. For most real estate brokers, this economic downturn translates to fewer agents per office, fewer closed transactions and inconsistent income. This market has left brokers throughout the country tasked with reducing overhead, consolidating staff and offices, and reducing agent support and benefits.

Area Pro Realty, the newest franchisor to explode into the industry is now offering franchisees the chance to own a franchise with truly unique benefits. Area Pro Realty President Michael Volkin exclaims "A broker can now enjoy running a franchise without all the hardships that other brokers must endure in a down market. Some of these hardships include inconsistent income, small territories, high agent turnover rates, etc."

Real Estate Technology expert Gene Ward states "Most brokers just don't have time to keep up with the technological demands of the real estate industry anymore. It's difficult and time consuming to maintain a lead generating website, create marketing material and learn how to blog, podcast and create effective online marketing campaigns. Area Pro Realty professionally manages the technology for the franchisee, freeing up countless hours of time and money for the broker to pursue growth options rather than consolidation options."

Area Pro Realty has retained Executive Franchise Consulting Company (EFC), ran by President and Founder George Barlow, to assist in identifying candidates that meet their qualifications. Mr. Barlow says, "The real estate industry is experiencing unprecedented times. Area Pro Realty fills a niche that brokers throughout the country should explore." Barlow claims, "EFC understands that every franchise offering will not meet the needs of every real estate business owner and not ever business owner will meet the qualifications of every franchisor. That's why EFC's main goal is to assist independent brokerages in matching the broker's needs with their goals."

Marston Myers, broker owner of Area Pro Realty Peoples Choice claims "I see brokers being forced to stretch every dollar; it shouldn't be that way. That is why Area Pro Realty is so appealing to me. Regardless of market conditions I can focus on business growth every day and not consolidation or cost cutting."

From the technology aspect, Area Pro Realty uses the latest software language for their websites. Their websites are extremely interactive and very search engine friendly. From the growth aspect, the unique business model of Area Pro Realty provides brokers with drastically reduced overhead expenses, empowering them to save money and recruit top agents in any economic market.

If you would like more information about franchising opportunities, or would like to participate in an online discovery day, please contact Michael Volkin at 925-798-2732 MVolkin@AreaProRealty.com

There is no doubt about it, as real estate professionals we are experiencing a perfect storm. A collission of a credit crisis, falling housing prices, financial bailouts, and a housing market with no foundational support. America is literally reinventing iteself. Unfortunately, given the magnitude of these events and the policies that must be instituted to reshape them, we are reinventing ourselves re-actively rather than pro-actively. Future generations will reference the events that have shaped the real estate community during these recent years as the worst in decades. As a result, the business model that is still adopted by todays real estate brokerage will have to be reinvented as well.

The old real estate brokerage model is still dominant in todays society. The brokers business model of today is simple:

Step 1: Open an office

Step 2: Design a company brand (logo, slogan, etc)

Step 3: Hire as many agents as possible

Step 4: Have those agents close as many transactions as possible

Step 5: Take a percentage of the commissions

Step 6: Reinvest a portion of profits into promoting the company brand

A 2007 NAR Technology Survey named referrals, repeat business, and the Internet as the top three lead generators.(1) Among the least important were open houses and floor time,(2) two pillars of the "old way." Traditional brokerages are laboring under increasing expenses that include keeping up with technological advances, maintaining an office, and brand-recognition advertising.(3)

In spite of brokers' attempts to keep up with technology, well over half of the agents and associate brokers responding to the NAR Survey indicated they wanted their broker to expand the amount of technology offered.(4) Add to this, for all the dollars spent on promoting a brokerage brand, it is usually individual agents who are sought out, not the broker's brand.

I invite all brokers across the country to break free from this common business model and reinvent yourselves. Here are the items brokers need to address to update their business model:

Item 1: Recognize that clients follow agents, not brands

Item 2: Become an Internet presence

Item 3: Embrace technology

Item 4: A virtual office is not a benefit, it's a requirement

Item 5: Understand the following logic: The more benefits and training you give agents, the more professional they become, the more professional they become, the better their image is to the general public.

The brokerage model of the future should forget the mentality that a broker is only there to take commissions. The real estate agent of today needs to feel value for the commission you take from their hard earned check. Brokers should exist to harbor and foster the development of a real estate agent. The image of the real estate agent in the eyes of the general public needs to improve, and that starts with the broker.

Given these needed advancements, it is my opinion that many of the independent brokers will conglomerate to franchisors who have the capital and technology in place to foster the development of todays agents. Brokers will enjoy the same or greater profit margins and be able to provide much more support and technology at a fraction of the cost if they pursue these benefits independently.

References Cited:

1 2007 REALTOR® TECHNOLOGY SURVEY. National Association of REALTORS®. Accessed 11 Jan. 2008 <http://www.realtor.org/CRTWeb.nsf files/2007technology_survey2.pdf/$FILE/2007technology_survey2.pdf>.

2 Ibid.

3 Christie, Les. "Real Estate Commissions Rise." CNNMoney.com. 31 Oct. 2007. Accesses 11 Jan. 2008 <http://money.cnn.com/2007/10/30/real_estate/commissions_ rise/?postversion=2007103113>.

4 2007 REALTOR® TECHNOLOGY SURVEY. National Association of REALTORS®. Accessed 11 Jan. 2008 <http://www.realtor.org/CRTWeb.nsf/ files/2007technology_survey2.pdf/$FILE/2007technology_survey2.pdf>.