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July 22, 2013 Commentary

The time has come for a Maine Real Estate Agency Owners network

By John Burgess

As owner of Camden Hills Realty, I have begun to develop the Real Estate Agency Owner’s Network, called REAzON. The idea is to develop an agency owner’s network region by region throughout Maine.

I believe real estate agency owners are a neglected group — unwittingly fragmented by failing to exercise the full potential of our influence and the power of our investments. We might otherwise leverage our positions by being better organized to the benefit of our agencies, agents, industry and clients.

The idea of an owners network is not new. Previous attempts have not gained traction. But in today’s business environment such a network might be timely and worthwhile. It’s an ever-changing world of real estate and a changing business and regulatory climate as well.

The new age of real estate is based on technology, social networking, home offices, virtual meetings, clouds and the like. Additionally, within Maine, business attraction, jobs, relocation, career mobility and population all weigh on the agency owner’s decisions.

Agency owners collectively need to set and communicate our top priorities, which is REAzON enough to start the conversation. The goal is not to manipulate the business or the competitive forces, but to communicate the issues.

The Real Estate Agency Owners Network can bring ownership interests to bear by making the existing bureaucracies more accountable to the multiple layers of clients they serve. The organization’s success will be based on changes in practices and our culture.

Where are the opportunities? Below are some I think are worth considering:

  • Costs: The cost of a real estate transaction is too high. The reason is that the typical real estate service model accepts built-in inefficiencies. The impact of technology and new business modeling should bring costs down.

  • Training: A higher level of owner/management training (separate from agent training) is a must. The required continuing education credit training speaks to the status quo without consideration of overall operational needs. CE credit courses need to be broadened and refreshed.

  • Membership: Association membership is bloated. In Maine, there are roughly 4,187 member agents selling about 11,500 single-family homes. It works out to about three sales per agent. The high volume of membership is great for association income, but does little for a member’s individual income. Income opportunities are diluted by a saturation of agents and agencies.

  • Regulation: Agency owners and regulatory groups need to step up communication. Rules often go beyond reason and are often unchallenged by agency owners, who are sometimes complacent and speak with muted voices. Our message is fragmented, which goes back to failing to exercise the full potential of our collective influence and the power of our investments.

  • Marketing: Maine’s real estate marketing should take on the flavor of tourism and reach well beyond traditional marketing. Growing Maine’s population and opportunities for its residents are industry and owners’ issues. Real estate marketing needs to communicate to a broader outside audience. Owners need to help define the message.

  • Careers: Attracting youth to the industry is an overlooked responsibility. There needs to be collaboration to attract and nurture fresh faces to the business. It’s a tough business in which to get financial traction. The return on effort does not always pay the bills, especially with an average of three sales per agent. Entry-level turnover runs high as do the costs associated with it.

    • That’s why I believe the time is now for the Real Estate Agency Owners Network and welcome the opportunity to speak with agency owners to build support for it.

    John Burgess, owner of Camden Hills Realty, can be reached at 338-0009 or burgess@camdenhillsrealty.com

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