Comparison of Top Ten Real Estate Brands Reveals an Industry in Evolution
Celebrating their fifth anniversary, executives at Realogics Sotheby’s International Realty(“RSIR”) report a 32-percent increase in gross commission income in 2015 on more than 1,000 transactions with home sales that exceeded $800 million, according to Trendgraphix research. The firm’s growth rate has earned it several acknowledgements by the Puget Sound Business Journal for being among the fastest-growing private companies and thelargest real estate brands in the region – four years in a row.
“We are excited to join our peer companies as one of the top ten largest real estate firms in the area,” said Dean Jones, President & CEO of RSIR. “Our brand is creating a positive disruption in the industry and our brokers are increasingly change agents in their respective markets. We observe a unique added-value, full-service business model that’s being endorsed by our brokers and consumers alike.”
RSIR distinguishes itself from the competition by offering a truly international reach, providing extraordinary property marketing and fostering a corporate culture that is as collaborative as it effective. The results tell the story. Among the top ten largest real estate brands in the region, RSIR is consistently the fastest-growing and maintains the highest average sales prices – generally twice that of its peers. Its brokers also typically represent properties with the highest average values and achieve the greatest listing sales volume on a per broker basis. While the global brand is known for representing extraordinary real estate worldwide, RSIR actually sells twice as many homes priced below $500,000 as it does homes valued over $1 million. The firm also specializes in both resale properties and new construction.
Jones observes the companies experiencing the most growth today are those challenging the status-quo. Some companies are promoting team building platforms and others are offering aggressive commission rebates as the value proposition. The RSIR program takes is decidedly broker-centric approach that is designed to grow broker production following the firm’s “better together” motto. At the same time, an award-winning marketing department and strategic media partners combine to provide exclusive exposure opportunities that help RSIR brokers win listings and sell them.
“There are two primary trends playing out in our industry – a flight to quality with concierge-like broker support, exclusive marketing and added-value resources; and a flight to quantity, which is either desk rental (little or no service), tech-based and either discount or rebate commission models focused on higher unit volume,” adds Jones. “Everyone else is somewhere in the middle. We are less commoditized in our thinking – we want to amplify the resources available to our brokers, which are then extended to their client.”
Andrea Savage, Vice President of Marketing says RSIR approaches the business from a unique perspective versus traditional platforms that have been in place for 40 years or longer.
“We are world-class marketing and communications firm that’s also a licensed, full-service real estate brokerage,” said Savage. “While important, the Department of Licensing is not going to sell a home or help a buyer negotiate their deal. Sales are the successful conclusion of doing other things well, including market research, product development, marketing and promotions, in addition to networking within our industry.”
RSIR executives approach building their broker’s brand and business similar to how they’ve engineered new construction communities to industry acclaim – in fact the team has been recognized with 130 regional and national awards by their peers. In addition to an extensive broker care team, Savage says she is assisted by in-house event managers, graphic designers, social media experts, video producers, web programmers, copywriters, editors and publicists – all facets fully integrated and immediately accessible to her brokers.
Jones targets additional growth in 2016 with new branch offices and broker engagements to be announced soon. He recently appointed real estate veteran Jennifer Johnsen to Vice President of Brand Development to help steer the expansion of the company.
Today the Sotheby’s International Real Estate global network is comprised of nearly 18,000 brokers and 768 branch offices in 61 countries and territories representing more than 42,000 of the world’s most extraordinary properties. In 2015 the Brand generated in excess of $80 billion in sales in the US. Looking ahead, the 2016 media plan is anticipated to produce more than 1 billion consumer impressions helping to support an industry-leading website that garners 1.25 million unique visitors per month (45-percent originate from outside the US).
Note: RSIR is an independently owned and operated brand and does not report aggregated statistics from other affiliates in Washington State. The data is according to Trendgraphix research as derived from NWMLS data (actual sales were greater given a volume of off-market properties and an increasing number of interstate and international referrals to the global network).