As a professional standard, Real Estate associates are not supposed to ‘diminish’ the reputation of others. However, we can set the record straight and offer a rebuttal with our first amendment rights to free speech.
Case in point, there is a British based company started earlier this decade in the UK, which expanded to Australia, and is now investing millions of dollars to buy market share in the United States. During my 37-year career I have never seen a house built of purple bricks. I’ve seen red, white and grey brick, among other shades in the spectrum.
A fair question to ask, is when a company invests 10’s of millions of dollars, is their model actually working? Each person can decide for themselves.
The time old phrase holds true, that “If it’s too good to be true it probably is”. The reality is there is nothing new about the ‘discount’ brokerage real estate business model. Companies like Help U Sell and Assist-2-Sell have succeeded at varying degrees.
When a company invests millions of dollars to establish its reputation, it is presumably expected by its investors to get a rate of return. The profits generally come from one place, the operations of the real estate model.
There is nothing wrong in a capitalistic based society with the word profits. While you can go too far in the pursuit of profits, this article is based on the ideals that the real estate industry is often a misunderstood profession.
The reality is that most real estate brokers and agents get paid at the close of escrow. That has been a foundational part of the real estate industry’s economic model. The broker assumes certain responsibilities like marketing the home as an example and takes a substantial risk in exchange for potential future return.
Accordingly, it appears from on-line articles that Purple Bricks charges fees whether they sell the house or not. In 37 years of serving the public, no company I’ve ever worked with charged a client for failing to get the job done.
While we each establish our own financial models, it is inherent in the process to understand the value you get in return for your investment. You can buy Haagen-Dazs ice cream or you can buy the store brand at a much cheaper price. Do they taste the same? No. Do you get the same amount of cream in the store-bought ice cream vs. say Cold Stone? Probably not. Nor do you get the experience at the counter, and environment that goes with it when you buy ice cream from the freezer case. It’s all fine one would guess, just depends on what YOU want.
You can decide for yourself. For us at Realty Pro 100, we will continue to do what we do best…sell real estate as our grandparents and parents did. It worked well for them, and it still works well today. We wish all our competitors and colleagues’ success. My only question, if a company isn’t confident enough in its own model to take the traditional risk of earning its fee solely from the closing table, why would you believe in them by investing whether they get the results or not?
When it comes to real estate, not all companies are created equal. As Chairman of Hospitality Realty Corp. dba Realty Pro 100, Blake Vartanian has been very fortunate in his 37 yearlong real estate profession to have built two number “ 1 “ franchised locations for two separate global franchise companies.
Blake Vartanian, along with his wife, Joanne Vartanian (CEO and President), and their Executive Team; Mary Walters (Vice President/General Manager), Barbara Wayne (Broker of Record), and Zantine Greenwood (Chief Information Officer), Realty Pro 100 has the foundation to support your “hospitality focused” real estate experience through our dynamic sales team.