Key Realty A New Cost A New Value A New Business Model A New Concept
Real Estate Business Model History PHASE 1 MODEL - Traditional “Business as Usual” • Agent Listed and Sold • Broker did EVERYTHING else • Advertising, Image impact, processing of listing and sales, physical facilities, closing department, legal adherence, errors and omissions • Control of the Market - Broker • Commissions - 50%/50% • Control Mechanisms - Floor time Company signage and advertising Centralized administration Expensive technology • Current Model Status - declining rapidly locally and nationwide • Inefficient, low-productivity model with tours & floor time
Real Estate Business Model History PHASE 2 MODEL - “Now hold on here…” • Agent Listed and Sold, but started to do more administration • Broker administrative functions started to decline • Advertising, Image impact, processing of listing and sales, physical facilities, closing department, legal adherence, errors and omissions - some shifting to agent • Control of the Market - Broker, but starting to move toward the agent • Commissions - 60%/40%, 70%/30%, 80%/20%, • Control Mechanisms - Shifting towards agent • Company signage and advertising - Agent-based Marketing • Agent numbers on signs and ads • Agent Administration and computer systems • Current Model Status - shifting towards Phase 3, locally and nationwide
Real Estate Business Model History PHASE 3 MODEL - “It’s been fun…” • Agent-based marketing and personal marketing functions • Image impact, processing of listing and sales, physical facilities, closing department, legal adherence - shifted to agent • Commissions - 100% commission with monthly expense • Control Mechanisms - Shifting towards agent Phone numbers on signs and ads shifted to listing agent Agent administration and computer Development of Buyer’s agents, administrative assistants and personal agent-based marketing Agent-based websites • Current Model Status - moving back Phase 2, marginal lead generation, costs are rising - 5%, rising fees, 100% companies are starting to look like a large traditional company • Costs are rising, average sales price is down, sales are down and more gross income is devoted to paying the broker
The Next Business Model…It’s about TIME! • Physical Facilities - High-vacancy, underutilized, common areas • Physical Facilities - At home, virtual office, private office - no waste • Personnel - in many cases, duplication or unnecessary • Personnel - if you need it, if not, no expense and no duplicity • Closing and Adminstration - outdated, old-fashioned and unnecessary • Closing and Administration - all files faxed, electronic disbursement • Meetings and Tours - Unnecessary and company-oriented • Meetings and Tours - E-mail, our website MyKeyrealty.com, memos • Money - 15% to 50% of your income (plus franchise and other fees) • Money - $300/month, agent keeps 100% of the commissions, transaction fees, home warranty fees, or 50%/50% to $3,600/year • Production or recruiting requirements - ??? • Your business is your business, $25/month-profit-sharing • Training - Company makes an attempt • Training - Howard Brinton and Mike Ferry • Continuing Education - Some free, patchwork • Continuing Education - 4ICE.com - $149 - 30 hours • Broker role -Educator, trainer, motivator • Broker role - Compliance and disbursement
What is the Company about? The Agents Reduced Cost - to $300.00 a month Showing appointments - agent/office Reduced Expenses for Broker: Closing Department Phone Numbers Physical Facilities - Minimal Virtual Document Handling External Training Management New Agents Franchise Fees Profit sharing Virtual office Schedule - 50%/50%, or $3,600.00 ATM or Debit deductions only Website as base for information & events Fax/scanning base for processing Fairness - 100 listings = 100 listings Mykeyrealty.com
Welcometo thefutureof real estate Everythingyou needA LA CARTE! What is the Value? - We like to say WOW! There is: Reduced cost Profit-sharing - $25.00 per month per agent referral Full-service Independence A cost-effective home for self-motivated agents The future of the business Great website A lot of fun and freedom $300.00 a month It’s about time….. Maybe it’s time for you!