A word from Emile Misiraca, Managing Broker, Independence Realty.
For me, Independence Realty's approach is the confirmation of what I believe to be the future of the real estate industry—Internet-based real estate. The virtual business model, like ours, is an internet-based Real Estate Brokerage, where the Realtors work out of their home offices, and as a result, the broker has no brick and mortar expense. In return, the Realtor keeps his or her commission and just pays the broker a small fee each time a transaction closes, thereby eliminating on-going expenses such as office rent and creating a profit for the agent, rather than an expense. At Independence Realty, our nominal per-transaction fee is only 5% of the commission or $595, whichever is greater. Our agents have no monthly fees or minimum dues to pay.
In 1991, when we first rolled out our business model in the San Diego area, the word “virtual” was absolute poison. Brokers, Realtors and even some friends of mine scoffed at the idea when they heard the word virtual. What a change just a few years have made!
Nowadays, the word virtual is the most exciting idea being discussed. Brokers want to learn how to create a virtual environment for the Realtors and brokers successfully. I suspect in the coming years we will see hundreds of brokerages recreating themselves under a virtual banner. It is already happening as we speak!
Realtors are jumping all over the virtual business model. We encounter Realtors on a daily basis who realize that they can now take full control of their commissions, and that is now the accepted standard.
We also hear from Realtors that the reason they don’t go to an office, and the reason they don’t care about an office environment anymore is boiled down to one word: distraction.
The top producers think that when they go into an office environment, they become distracted from being productive. We heard this comment universally from almost every Realtor. Realtors’ insight into their most fruitful working conditions has been an unanticipated end result of this business model.
So, after years of trail-blazing, I feel that Internet-based real estate is not only accepted by both the brokers and Realtors, but that brokers, such as myself, are no longer the strange broker that lived out there in some mysterious virtual never-land.
The virtual culture is the future of the industry and a positive factor for the brokers who are struggling to keep their doors open, now that Realtors expect to keep most of their commissions.
This new business model has legs, and it will continue to expand and grow. It will, in the process, make our industry financially healthy once again. It will also allow the Realtors to truly be independent contractors who can keep all the commissions they have earned.
The virtual culture is a win-win-win for the broker, the Realtor and the consumer.
Please browse this website to learn more about Independence Realty.
- Have a great day!
Emile
