Steve and Kris Berg Join the Broker Blogger Ranks
We have a new entry to the broker blogger space — as of today, Steve and Kris Berg are now operating as San Diego Castles Realty. They were formerly agents for Prudential California Realty and have built a great brand in the San Diego area for themselves through their San Diego Homes Blog and other online efforts (Kris contributes to Inman News and Agent Genius), which I would guess made the decision a bit easier for them. I had a chance to ask Kris a few questions regarding what the drivers were behind their decision to go independent. My answers and her responses are below:
Q: What made you want to start your own brokerage?
A: It’s really an idea Steve and I have been kicking around for awhile now. We all recognize that the dynamics of our industry have been rapidly changing, and the larger companies natural have more difficulties adapting swiftly. We saw the changes happening several years ago, and then we chalked it up to technology. The old model of floor time, cold calls and calendar magnets during the holidays was on the verge of being supplanted by a consumer-centric (versus agent-centric) approach; yet the brokers continued to focus on the old ways of doing business.
Today, we have the added dynamic of a challenged market. You can pick your term du jour: Correction; recession; or depression. Whatever the name, this arguably unprecedented environment has created the perfect storm for the retooling of our familiar ways of doing business. Our clients don’t care if we work in the Sears Tower or out of the back of our car. They no longer respond to push marketing, and they don’t shop in the places we have been taught to market. Our customers, like it or not, are empowered. We have let the inventory (MLS) horse out of the barn, and I think that is a good thing. It presents unique opportunities for us to redefine our value proposition and reestablish our worth, but only so long as we adapt.
My buyer clients now have access to the same information on homes for sale that I have. I could see this as career ending, or I could see it as I do – a chance to actually provide service in a service industry, to provide counsel in a consulting field, and to act as an “agent.” My seller clients can advertise their homes for sale in the same places I would. So why hire me as that “agent?” That’s the funny thing about our business.
Somewhere along the line, we forgot the meaning of our title. It’s not about an MLS, about a lockbox key, or about standardized forms. The classical definition of an agent is “one who exerts power and influence” or “one who is authorized to act for or in place of another.” I think it’s time we all get back to doing that, to caring for our work and for our clients.
But this is not to imply that the big brokerages don’t care. The great ones do, but at the same time they are not non-profit ventures. Over the years, they have become bigger than big, and with big comes big offices and expensive infrastructure and overhead. With big comes the necessary evil of recruiting time and costs, of training time and costs, and costs associated with keeping the revolving door, well, revolving. Sometimes I get the feeling that they can’t see the forest through the bottom line.
So, to answer the question (finally), we made the decision to go solo because we saw that as the only way to achieve the control and flexibility that we needed to best serve our clients. On a personal level, it was the only way we could ensure that our world would have order. Now, I am entirely in control of the life expectancy of the address on my business cards and the number attached to my voicemail box. The caveat is that I now have all of the liability yet, ironically, I also see this as a positive. It tends to elevate the significance of what I do and how I do it.
Q: What aspirations do you have for your brokerage? Do you see yourself staying small or slowly branching out (similar to the way Jay Thompson has)?
A: The honest answer is that I can’t see beyond the end of my nose right now. What I do know is that I am a real estate agent, and my intent is to continue representing people in their purchases and sales. In life, Steve has taught me the wisdom of the “24 hour rule.” We never make rash decisions until we have given it a day. In this case, we are giving ourselves six months. In the short-term, it is just the same license hung in a different way to acknowledge a changing dynamic.
Q: Do you think we’ll continue to see the rise of broker bloggers with the decreased cost of online publishing?
A: I honestly don’t think that the two have any relationship, at least not in the cost sense. The online media have changed our business, but those same online media are available to every brokerage and agent, big or small. I think the issue is more that the online forum is the great equalizer; we all, agents and brokers, have the same unique opportunity to broadcast our message and to find our audience. It will come down to how committed we are to listening, yes listening, to what our customers want and need, and delivering.
Q: What do you think should be the biggest factor in the decision-making process for agents who are thinking about branching out on their own?
A: The considerations are not unlike the considerations that the full-time, committed agent is faced with when choosing a real estate career. Have a plan, understand that success is a process and not an event, and plan on being a debt center for a year or so. You will incur costs, even if your model is of the “virtual” type. You need to have some basic business skills, advanced Googling capabilities, or a combination of the two. If it is instant gratification or a winning lotto ticket that you are after, don’t bother. Further, your liability logarithmically increases when you are Broker of Record. That is the bad news. On the other hand, you will be investing in yourself and personally, I can’t think of a better place to put my money.
You can also read more from Kris on this subject over at Inman. Congratulations for making the plunge — and best of luck going forward!
Jay Thompson
Posted at 06:59h, 22 OctoberCongrats to the Bergs!! They are going to rock it. At times they will ask themselves, “What were we thinking?” but more often they’ll be saying, “Why did we wait so long?”
rob aubrey
Posted at 07:18h, 22 OctoberCongratulation Guys.
We all love going to a local businesses operated by local owners.
I would much rather go to Tony’s Deli then a 7-11
Kris Berg
Posted at 07:35h, 22 OctoberDrew (and Jay and Rob) – Thanks for the well-wishes. I have a very long day ahead searching for all of the on-line rocks I have buried my old affiliation under. It’s definitely not like the old days where you just moved your stapler and you were done!
Steve Jagger - Ubertor
Posted at 07:52h, 22 OctoberCongrats Kris and Steve!
Great news.
Steve
This time I had an excuse for not writing. — The San Diego Home Blog
Posted at 07:52h, 22 October[…] I explained it to Zillow’s Drew Meyers in my typical 40,000 words or less style. I also touched on the thing that has been keeping me a little busy lately on Inman News this morning. […]
Jay Thompson
Posted at 08:06h, 22 October“I have a very long day ahead searching for all of the on-line rocks I have buried my old affiliation under.”
It’s been over six months for me Kris, and I still stumble across an old C21 every now and then….
David G
Posted at 08:43h, 22 OctoberCongratulations! Finally you guys are masters of your own listings again. I’m certain this brokerage will be a huge success – Best wishes and have fun with it.
Kris Berg
Posted at 13:21h, 22 OctoberDavid, I am sure this comes as a huge relief to the Zillow Help Desk (that would be Drew). 🙂
Drew Meyers
Posted at 13:27h, 22 OctoberKris-
Of course I don’t mind helping you 🙂
Mike Price
Posted at 12:12h, 25 OctoberKris & Steve,
Your big announcement came on a day where I was little preoccupied, so my congratulations are bit delayed. I’m happy for you and wish you the best in your new endeavors.
Cheers,
MP
Acmeous
Posted at 06:38h, 22 DecemberCongrats Kris & Steve. It’s a way to new journey for you and its just the mere beginning.