It’s true — the VAST majority of independent brokerages can’t afford to write a 7 figure check to the Zillow’s of the world.
This could be the beginning of the end for small brokerages
I’m in the “not” camp.
That said, I have an idea about how “small” brokerages can get, well, a bit “bigger” — without actually physically getting any bigger.
I’ve long thought there is an opportunity for independent brokerages around the country to unite and build a “network” based upon a shared set of values. One brokerage in each market, and use that larger collective group to negotiate better deals on technology products, marketing spends, and admin items (like business cards) — and of course share SEO juice between members of the network. It likely wouldn’t get to be the size of ERA, Howard Hanna, Prudential, or any of the large franchises, but the network would certainly be able to get better deals by banding together than by negotiating separately. Of course, that’s only useful if everyone wants to use the same set of services (details, details).
This is actually somewhat similar to Leading Real Estate Companies of the World. The difference being that LeadingRE will let in anyone that wants to pay — versus the network I’m envisioning being entirely based on shared values and members would only be permitted into the group if they are vouched for by other members, or voted in somehow.
Just a hunch, but I’m guessing the likes of Thompson’s Realty, San Diego Castles, Heddings Property Group, and M Squared Real Estate would be interested if the shared values were consistent with their own. They can correct me if I’m wrong.
What do you think? Would it work? Would brokerages buy in?
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