In 2017, there were highs in housing, and hurdles. For the Power Brokers in RISMedia’s 30th Anniversary Power Broker Report & Survey, assessing both—what was good, and what was not-so-good—is an annual exercise, indispensable to their longevity and paramount to their success.
When asked what factors impacted them the most in the past year, Power Brokers said:
[The biggest impact on business was] new technology. It’s improving the way we do business by increasing time management and allowing for better conversion rates and leads. The biggest struggle we faced was training our agent base to embrace and adopt technology. My fear is if they don’t get on board, they’ll be out of business. – Tipper Williams, Operating Principal, Keller Williams Virginia Realty Alliance Group, Richmond, Va.
This past year was the most intense market I’ve ever seen in my 41-year career. It was the sixth straight year of a frenzy market in Seattle. – Lennox Scott, Chairman & CEO, John L. Scott Real Estate, Seattle, Wash.
Business was strong in 2017. Inventory is low all over, which finally drove up prices in the Northeast. – Joe Rand, Managing Partner, Better Homes and Gardens Real Estate Rand Realty, Nanuet, N.Y.
We acquired Private Label Realty and grew our brokerage by about 200 new agents in 30 days. While it was a great move, we felt the impact of the growth. It bogged down our back-end office for a month or so, but it forced us to revisit our processes and improve our systems. – JP Piccinini, Founder & CEO, JP and Associates REALTORS®, Frisco, Texas
We had a significant lack of inventory in the entry and move-up price points. In the luxury market ($2 million and over), growing inventory and demand is definitely there, but there’s a disconnect between sellers’ and buyers’ expectations on value. – Rei Mesa, President, Berkshire Hathaway HomeServices Florida Realty, Sunrise, Fla.
Our vibrant economy and employment market in California has resulted in record-setting job creation that’s outperforming new housing units by a factor of four to one, so demand is driving the equation. With interest rates near all-time lows throughout 2017 and [strong] consumer confidence, we’ve seen a positive impact on the state’s economy and housing market. – Mark McLaughlin, CEO, Pacific Union International, San Francisco, Calif.
In 2017, there was (and continues to be this year) recruiting pressure from virtually every model of real estate: traditional, flat-fee, technology-based, salaried agent, tiered commission, cap commission, etc. That downward pressure on commissions, along with the degradation of broker profitability, continues to challenge even the healthiest of brokerages. It’s uncertain if some of those models can sustain and thrive in a down market. – Todd Hetherington, Founder, Co-Owner & CEO, NM Management, Inc./CENTURY 21 New Millennium, Washington, D.C.
The very aggressive market we’re in has had a positive impact on business. We’re still seeing shortages in inventory, favorable interest rates and consumer engagement. – Felicia Hengle, Director of Ohio Operations, Coldwell Banker Schmidt Family of Companies, Strongsville, Ohio
Reduced levels of inventory. – Marti Hampton, Broker/Owner, RE/MAX One Realty, Raleigh, N.C.
RISMedia’s 2018 Power Broker Report & Survey is sponsored by American Home Shield, Homes.com, HSA Home Warranty, Leading Real Estate Companies of the World® and Pillar To Post Home Inspectors. The Power Broker Survey ranks brokerages by residential sales volume and transactions in 2017. The complete ranking of the Top 1,000 will be released shortly.