I took this shot the other day through the window of a local real estate office and immediately started calculating the rent. Empty cubicles covered in paper! They made no sense twelve years ago when Brad Inman started talking about paperless real estate and border on insane today.
Why, amid a brutal market, are brokers still paying for desks agents don’t (or shouldn’t) need? Why do they still run on paper, which, like cholesterol, slowly and imperceptibly accretes within the arteries of a brokerage business cutting off the flow of profits? Why, when tools and technologies for working entirely from the field (where both the product and the customer are found) are widely available, do so few avail themselves of them?
I ask these questions rhetorically; I know the whys. I heard them many times over back in the boom days. Agents expect a desk or office. It’s tough to recruit without one. Paper is familiar, even comforting. It justifies administrative support and makes one feel busy.
But that was then. Now, as the fixed costs sunk into traditional offices become major pain points on the P&L, necessity may give birth to some pretty disruptive inventions. I think a new model for the real estate office will emerge soon. One that’s slimmed down and managed as a vital brand touch point with the consumer in mind. And for an increasing number of pros, the office will go away entirely — and won’t be missed.
Through the glass, within the stillness of the empty office, I could almost hear the money burning.
Something’s got to give.
– Brian Boero
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I have felt that pain and am trying to reinvent this model as we speak – beginning with going thru the expenses of a traditional office line by line to determine whether they stay or go. The agents will embrace this model when they realize that when the company cuts fat – they benefit. This is what the process is like – http://www.youtube.com/watch?v=L2zqTYgcpfg I'll share the details and failures/successes as they become available – if nothing else, it will be a learning process.
I couldn't agree more. After agents' commissions, the two biggest expenses for most brokerage offices are rent and advertising. With advertising, headway has slowly been made with a shift from print to online. Brokers, agents, and, most of all, consumers are all finally seeing the light and collectively realizing the benefits from this shift. There’s a long way to go – there’s still an absurd amount of money spent on print media. While this shift continues, brokers have to simultaneously tackle their bricks and mortar. It’s another relic whose time has come and everyone (brokers, agents, and – again – consumers most of all) will benefit with a shift to a better model as it will free up money that can be reallocated to stronger service offerings. The office of today should be little more than a reception area, a couple conference/meeting rooms, and a high-tech media area.
No brokerage can rethink its model without taking physical space into account. Every expiring lease is a chance for real change.
The brokerage we just opened has no desks, no "brick & mortar" at all. Our office is "the street" — the seller's home, the buyer's soon-to-be home. Give me a local coffee shop with wireless access, or the front seat of my car if none are close.
An agent interested in working for us called the other day. I said, "We're a virtual office, is that a problem?" His response was, "Uh, I have to have an office."
I said, "Why, when was the last time you met a client at your current office?"
His response? "I don't think I've ever met a client at my office."
"Then why do you need one?"
"Well, I just do."
Needless to say, he was not hired.
@Jay … "I just do" … I love that. It pretty much sums up why many things in this business are the way they are.
@Nicolai … when do we start building the prototype?
I agree 100%, all you need is a few conference rooms to meet new clients, a place to store files, and documents, a front desk person to set up showings and that is it.
I know some agents like to have a office not in their home.( mostly men)
But,the waste of space is terrible, out of 160 agents in my office, probably 10 are there consistently.
The ones that are there, are pretty much old school, there I said it.
http://www.1000wattblog.com/2008/03/imagining-a-new.html
You guys need to talk more.
But, I do see a common ground. the cubicle farm is a waste, but a high tech office space that is primarily a spiffy conference room that is used for agent training, agent led seminars and community activities would be great. Meeting a client in an office that is cool would be much different that herding someone into the cubicle. Of course, I work from home and seldom even visit my office.
Brian: I would love to be behind the wave to build the new prototype. We won't have any direct responsibility for facilities as we'll stick to franchising but our model will have consultants that we truly believe are going to deliver a totally different advisory experience for brokers. This idea of an office of the future is definitely a part of what we'll support and build consultancy behind – we plan on populating our broker wiki with a number of best-practices that our brokers can voluntarily share with one another (including office blueprints and commission plans).
I gave my private RE/MAX office nearly three years ago and work from home, by appointment.
I can use a conference room at the office if I need to, but rarely do.
I run all of my calls through my home office so no human can screw them up, and use Call Forwarding to my Treo so I don't miss calls.
I push my e-mail to the Treo too.
Virtual office is the only way to go!
I haven't run a print ad in 7 years.
I gave my private RE/MAX office nearly three years ago and work from home, by appointment.
I can use a conference room at the office if I need to, but rarely do.
I run all of my calls through my home office so no human can screw them up, and use Call Forwarding to my Treo so I don't miss calls.
I push my e-mail to the Treo too.
Virtual office is the only way to go!
I haven't run a print ad in 7 years.
I gave my private RE/MAX office nearly three years ago and work from home, by appointment.
I can use a conference room at the office if I need to, but rarely do.
I run all of my calls through my home office so no human can screw them up, and use Call Forwarding to my Treo so I don't miss calls.
I push my e-mail to the Treo too.
Virtual office is the only way to go!
I haven't run a print ad in 7 years.
ummm, you guys are describing the Keller Williams business model
When we started Bug! Realty USA 4 years ago, the market was still good enough, that people did not quite understand our model. But, reading the comments above, I guess we were 4 years ahead of our time. I followed the same thought process, as stated above by Nicolai Kolding. I looked at the P&L's of several brokerages, and they all broke even at best. So, when we started our franchise model, I set out to solve several major problems with broker profitability, by starting with a clean slate, and including only items absolutely required to operate. From this place, we eliminated the two largest profit killers, RENT and ADVERTISING. We also developed a new brand and culture, which suggests to the consumer, that we are working for THEM and not ourselves. We already have the model you are describing. Nicolai Kolding, come join our team! We are looking for pioneers in all 50 states as Regional Directors.
Kevin Seney, Founder & CEO
Bug! Realty USA, Inc.
http://www.bugrealty.com
http://www.bugrealtyblog.com
I am very concerned for agents who need to feel a part of a "cubicle farm" because as you rightly said, this is a "proit eater".
And this need to shift away from B & M is not particular to Real Estate only. All industris are optimizing with customer convenience in mind.
I recently scaled down from 3,000 sq. feet to 500 and replace the other 2,500 sq. ft. by becoming a part of a marketing website http://www.ourcommercialspace.com
I am meeting realtors, investors and just "regular Joe"(with deep pockets) from all over the world. I am writing contracts and doing well with referral fees for out of State deals because I am licensed only in Florida.
And the best part; I am in my PJ's at the kitchen counter.
It has taken a complete shake-out of the industry for people to start recogizing the plight of broker/owners in sustaining these ridiculous, expensive and wholly unnecessary "ego" environments. Company's like e-Partner (see http://www.ePartnerUSA.com) have been saying it for more than a decade. The question was once asked, "Why do keep doing what we do when we really don't have to?" See the article here: http://www.donaldteel.com/docs/ijustdontunderstand.pdf. Owners no longer have to maintain static offices in vertical markets where they continue to through more money and personal guarantees at agents in order to compete. Through the strategic us of new technologies and fluid business models owners can go horizontal within multiple markets, having agents anywhere and anywhere. See this owner presentation (http://www.ePartnerUSA.com/presentation.htm.)
I came close to the virtual office, but wanted the support of a national franchise, so when I found BUG! Real Estate, I realized they fulfilled all the needs. My primary problem with recruiting is that most agents still want the pacifier of their "office". After six months of a slowing market and watching the REMAX agents pay huge desk fees, I know I made the right choice, but the question is, will they? There are always the agents that feel if they dont pay a lot out that they are not working for "the" company…hmmm.
Recently, I launched my own home-based enterprise with quite a high degree of trepidation as I am trying to do everything myself. I would have to say that this is one of the most positive and inspiring discussions I have come across in reaffirming my own view of the real estate industry in this country. It is hard to break away from "this is how we've always done it", the large franchise operations and absolutely huge print media participation. But, after reading this "forum" I can see I am not on my own and it is most reassuring!
Like Nicolai I want to use a combination of my home office, the customer's property, and, the appropriate coffee shop to conduct my "sit-down business"
Many thanks for sharing your perspectives….
I've had my office in my home for 29 years. As we added staff – it was just a little less privacy with each new hire – until we didn't have much house left. We moved into a "real" office 15 months ago. I doubt we would ever go back to having it in our home. We are not only more productive individually and as a group but little details like parking for staff and never having to worry about some neighbor calling the city to complain are things that make it a huge benefit to us.
I'm not saying it is for everybody but I don't agree that physical offices for Realtors need to be slain. Maybe just spoken to harshly?
I could'nt agree more, Most businesses these days can follow this rule not just real estate. It's great for the environment as well !
http://www.youtube.com/watch?v=ZmfXksLir1g&feature=related
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http://www.shredderwarehouse.com
I think a lot of organizations are exploring new ways to become more cost efficient these days. Many big companies often use large amounts of paper in their everyday environments.So they need a paper shredders because Paper shredders are a simple solution to destroying many of the documents and materials that hold private information.Taking simple steps, such as purchasing a paper shredder, can help you avoid a lot of pain and suffering in the future. That seems well worth the small investment.Wanted to compliment on your site, it looks really good.
Working for government department where each and every word is confidential. Knowing that your shredded documents cannot be reassembled and that your confidential information is safe is worth every cent of the cost of a paper shredder
Working and maintaining security throughout the office. I Placed shredder next to the copier or printer, these shredder models will stop information leak before it starts.
The saleman told me from whom I bought the shredder. All office shredders roll on casters for convenient sharing among offices. Every shredder model has a 10-year warranty on cutting heads and can take staples and paper clips which saves office stationary too.
Living in Florida there was an urgent need of shredder in the office so I called up the saleman who told me there was No sales tax on purchases delivered out of California! 10 year warranty on cutting heads & 1 year warranty on mechanical parts (parts only)!
The average office shredder does nothing to alter the computers where the vast majority of those paper documents originated.
According to the investigations Andersen partner David Duncan allegedly headed an effort to destroy documents related to Enron after learning the Securities and Exchange Commission had requested financial records from the company.
In a civil case, a judge can allow the jury to question a document-destroying party’s intentions. For example, judges in certain cases will tell jurors they should assume missing documents are harmful simply because they were destroyed–even if they never see the contents.
Home shredders are very helpful as well as cheap there are usually old documents and records related to banking and saving sheets.
lane estate agents…
Just bored, you know how it is on a Monday , so I thought I would see if my site came up in the search engine, I typed in lane estate agents and instead of mine I got vFlyer delivers your classified ad everywhere ” VentureBeat. I guess your site has…
Excellent post. Just found an excellent site with UK government documents on it – http://www.officialdocumentwatch.com is a really well built site and them seem to be very up to date – always posting the latest UK government documents released to the public. Worth a look.
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