Broker Spotlight: In the Breadbasket of the Country

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George Murphy

Broker

Coldwell Banker Dan Blough & Associates

Fresno, California

Years in real estate: 32

Originally from: Dallas

Career path: After military service in Vietnam, Murphy moved to Lawton, Oklahoma and started school. He purchased a home from an agent who suggested he enter the business. He later partnered with that agent, but split with him in 1988. He acquired another leading company in Lawton and later affiliated with the Coldwell Banker? organization. While Murphy was attending a Coldwell Banker network conference in Nashville, he met Dan Blough, the owner of his current company in Fresno, California, and decided to join his company.

Number of offices: 8

Number of agents: 164

2004 sales volume: In excess of $600 million and on track for $700 million this year

In-house mortgage brokerage: Premier Lending Services.

Family: Wife Linda and four children and seven grandchildren. One of his sons just retired from 11 years? active duty in the Army Special Forces to join his father?s company. He is a sales manager at the company?s Fresno office.

Charitable activities: Murphy is on the board of directors of the Fresno Children?s Hospital, one of the largest children?s hospitals in the country, serving the central California area. Coldwell Banker Dan Blough is currently building a home with sale proceeds being donated to the hospital. ?It?s a great effort and very rewarding to work with the hospital,? he says.

What are the average home prices in the markets your company serves?

The Fresno area and Central Valley and Central Coast were always much less expensive than other areas of California near L.A. and San Francisco, but in the last four years I have seen a significant increase in average prices. In Fresno, the average price is now $373,000; the average in Santa Maria is $445,000, and in Pismo Beach the average is $623,000. In our Fresno Mountain Oakhurst office (foothills area between Fresno and Yosemite), the average price is $348,000, with just 18 people in that office.

As a broker, how do you maintain profitability?

A long time ago, we lost the desire to recruit-recruit-recruit and just get as many bodies as we can in the company. We focus on per-person productivity, so for example in our Fresno office, each agent there averages $120,000 GCI. We?ll do $18 million in GCI over a year, and we maintain a level of profitability because we?re not driving up overhead costs by keeping our numbers under control.

What is your take on price appreciation in California?

We can?t have the 30 percent appreciation year after year that has been happening. We won?t continue to see that appreciation, but we will still see people coming here. The dynamics are good here?limited inventory, low interest rates, good demand and more reasonable prices than other parts of the state. We are also in a good area with moderate climate and four seasons.

What is the leading home-buying demographic in the regions you serve?

That?s the interesting thing about our company. Our offices serve five separate marketplaces. For example, Pismo Beach is considered a resort area, near the coast, while Oakhurst has a much higher retirement population with more spacious properties. If you talk about Fresno, that?s a metropolitan center with a lot of agriculture too.

What are the growth trends happening in Fresno?

National home builders have been attracted to Fresno for some time. The downside is that at some point we could end up with an excess of inventory. It?s not a situation right now, but at the rate the subdivisions are coming up, it could be a challenge in the future. Most builders here have their own sales force, so we don?t represent them to a great degree, but the good news for us is we will have more resale business down the road.

What is something people don?t know about your area?

We are in the breadbasket of the country. Eighty percent of the country?s produce grapes come from the Central Valley.


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