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technology has threatened the real property agent, but individuals nonetheless hate the domestic-purchasing manner. Can Century 21 fix it?
September 19, 2018 14 min examine
This story seems in the October 2018 Entrepreneur. Subscribe »
walk into Century 21’s headquarters in Madison, N.J., and it’s clear the company is in transition.
a couple of things seem to be off and a bit of out of vicinity. The partitions. The furniture. And most chiefly, the Ping-Pong desk -- that clichéd image of a Silicon Valley startup, which sits awkwardly deserted in a nook.
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The desk arrived in 2017, a corporate gift to welcome Century 21’s then-new CEO, Nick Bailey, who took over that summer. He’d arrived from Zillow, some of the very tech agencies placing pressure on Century 21, and carried with him no allegiance to his new company’s past -- together with its office design. His mission, really, became to mostly tear the vicinity up: to overtake what many have come to peer as a drained manufacturer, a former real estate enormous that misplaced its method as know-how grew to become the industry on its head.
“earlier than i was employed, the region looked like a morgue,” he says. “An lousy region to work.”
To birth, he did what’s develop into average amongst tech leaders. He opted out of the corner office, moved into a cubicle a number of rows away and grew to become his predecessor’s work area into an organization war room of sorts. Desks have been cleared out to make way for the Ping-Pong desk. “We desired to create a shock element,” he says. “leadership has to prove that issues are different.”
but here's a 47-12 months-historical business, and, as Bailey is learning, even shock waves tend now not to ripple outward very quick. It simplest takes a brief commute down the hall to look that. Cubicles nonetheless rise from carpet-lined flooring, and the noise stage can ultimate be described as “appropriate.” a party held one summer season afternoon for a lately wed employee featured a sheet cake and ice cream, like on an episode of The office.
Bailey says the renovation isn't yet complete. however he has greater things on his plate -- like turning Century 21 into essentially the most sought-after, beloved manufacturer in precise property. That’s a huge project, specifically given that that almost all consumers loathe the domestic buying and selling technique, no be counted who is assisting them do it. The repair could be external (new emblem, messaging, pretty much a full rebrand) in addition to inner and emotional -- altering methods, altering culture, altering client expectations. It received’t be convenient, Bailey is aware of, and success isn’t a guarantee. neither is the blind aid of personnel, let alone a worldwide community of 8,800 offices and 122,000 agents.
nevertheless, Bailey is setting high desires. He says the enterprise can double transactions in the subsequent 5 years and develop into the most beautiful manufacturer within the trade. He additionally believes historical past is on his facet. 5 many years ago, Century 21 re-created the actual property company in the us. What’s to claim it can’t happen once more?
Century 21 turned into based in California in 1971 by way of two true property agents who wanted to construct “the McDonald’s of precise estate.” It turned into the primary business to take the very native enterprise of real estate and function it on a national platform -- operating a franchise gadget, with local franchisees who employ their own brokers. In a few years, Century 21 changed into opening a hundred offices a month. From 1988 to 1990, it ranked in the exact 10 of Entrepreneur’s Franchise 500® listing.
however the information superhighway fundamentally altered the true property business during the last 15 years. “once the checklist counsel grew to be publicly purchasable, the agent went from being a guardian of tips to being an expert features issuer,” says Clelia Peters, president of new york’s Warburg Realty and co-founder of MetaProp, a venture fund concentrated on real estate know-how.
This in turn created new opportunities for real property upstarts, who got here in with clean ideas to tackle an industry that’s value $31.eight trillion within the U.S. Redfin, for example, launched in 2004 with a DIY mannequin: purchasers may find and purchase a house on the web site with no use for an agent. That turned out to no longer work; within the highly emotional method of buying a home, Redfin discovered, individuals like having an authority with the aid of their facet all over the buying system. So Redfin pivoted to seem extra like a standard brokerage, hiring more in-condo brokers and making use of its technology to make the purchasing and promoting system as seamless as feasible. “know-how makes real estate extra effective, and that’s why the economics of it are changing,” says Redfin’s CEO, Glenn Kelman. “but there’s still a place [for an agent] to assist someone figure out: is that this the appropriate apartment? is this the correct rate?” The pivot worked: Redfin is now a public business that showed a 36 p.c leap in annual earnings in its final quarterly file.
however as entrants like this embraced exchange, Century 21 resisted. “The attitude has always been Don’t rock the boat,” says Bailey. “We’re too gigantic, we’re too huge, we’ve been around too lengthy. What if we alternate and it destroys us?” trade came anyway. The remaining time the former mainstay of Entrepreneur’s Franchise 500 list made the rankings become 2008.
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Bailey, youngsters, feels geared up to capture the company up. He received his profession start as a Century 21 agent and most lately served because the VP of broker members of the family at Zillow, the online-listings enterprise that helped buyers recognise they don’t deserve to pay an agent to inform them what homes are on the market. It became there that Bailey says he discovered what the business thinks of Century 21: “It turned into referred to as ‘your grandfather’s brand.’ ”
Century 21’s new emblem (left) and its usual.
photograph credit: Courtesy of Century 21
to change that notion, in March, he added a visible rebrand -- a step towards attracting more youthful franchisees and more youthful purchasers. long past is the black-and-gold emblem that includes a midcentury, Brady Bunch-vogue condominium. In its region are nuanced tones -- grey and lightweight gold -- that showcase a simple C with a 21 nestled interior.
subsequent, Bailey desires Century 21 to better understand its customers and their considerations. previous this yr, the enterprise commissioned a look at by means of Wakefield research on patrons’ emotions towards the actual property universe. The results had been comically dismal. Forty % of individuals feel it will be worse to promote their home than get a root canal; concerning the equal percentage feel being a true property agent is more convenient than driving a taxi. Century 21’s first response got here by the use of social media: “We need to beginning a dialog round how the true estate event can be stronger,” it wrote, “and the way our brokers might aid achieve that.”
How will it obtain that? It’s a big question.
To beginning, the company is taking a cold, challenging examine each a part of the home buying procedure. From a true property agent’s factor of view, the problem starts immediately. “Seventy % of americans use the primary agent they meet,” says Cara Whitley, Century 21’s CMO, who joined in 2015 and got here from a background in hospitality and finance. “individuals spend extra time gaining knowledge of restaurants than who will oversee the biggest purchase of their lives.” but this is also a chance -- either to be that first adult a buyer meets or to alternate buyer habits and win them far from rivals.
The closing method is an additional regular pain factor. It’s that ever-moving goal when possession is formally transferred to the purchaser. “As a purchaser or seller, you don’t take into account why [that date is never met],” Whitley says. here, Century 21 also sees probability: It wants to make the process much less worrying, greater clear and streamlined with know-how.
For as open as the business is about its issues, it’s much less drawing close about its solutions. I time and again pressed for specifics on the changes it could make and the tech it become constructing. How would all this impact franchisees, brokers and consumers? The business commonly spoke of it couldn’t offer specifics. It’s early days, to be fair -- lots is both in building or nonetheless in the conceptual phase.
It did present a couple of basic outlines, notwithstanding. Century 21 says it’s making colossal investments in technology, will simplify the present system for agents and will make its site greater cell-friendly for buyers. Franchisee onboarding will trade, too, leaning on video chat and conferencing to make the method “more experiential than theoretical.”
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Bailey is greater specific about how he intends to alternate the enterprise’s lifestyle. To beginning, he these days introduced whatever thing he calls condominium Habits -- six motivational ideas that have been allotted to all franchisees and are to serve because the new foundation of brokers’ performance evaluations. They’re idealistic, if not a little tacky: “all the time bring up,” reads one. “121 % wins,” says a different. The critical component, Bailey says, is that they contain directives. “personal it” is intended to exchange the enterprise’s appropriate-down choice-making procedure. “What if?” invites brokers to problem the legacy thinking that’s kept the brand at a standstill. “Dream massive, circulate fast” asks franchisees to keep up with the adjustments at HQ. And “Open the house” calls for transparent conversation -- inside the business and between agent and consumer.
“We wish to get brokers to deliver an dazzling event,” Whitley says. To do so, she’s also exploring new incentives and rewards. This summer time, Century 21 presented six agents with the Relentless Agent Award, an honor in keeping with service in place of sales volume. leadership pored over 5,000 customer testimonials to determine honorees, who were taken to ESPN’s ESPY Awards in los angeles this previous July. And that turned into no random prize: Century 21 is now partnering with ESPN with a purpose to align the ardour of its brokers with the ardour of a activities fan. (Century 21 will sponsor “relentless moments” in sports via classified ads featured on ESPN social structures.)
If it appears like an unnatural healthy, that’s the aspect. Whitley and Bailey want to trap the attention of fresh, formidable blood -- and that they’re searching smartly backyard of real property to determine how. may a rankings gadget turn into as useful to the enterprise as Yelp has turn into to restaurants? could the predictability of an Amazon start be translated to the timeline of buying a home? Says Whitley: “We’ve obtained to seem to be across to different sectors to see what’s working and bring that pondering to what we’re doing.”
changing any large company is difficult. nevertheless it’s even tougher in franchising, where adjustments on the corporate level have to then reverberate right down to lots of or hundreds of franchisees.
In those franchisees, Bailey is finding a unique problem. true, hard-charging franchise groups run in lockstep, with their franchisees accomplishing a smartly-honed device. but at Century 21, while the company become failing to adapt over the past half-century, its franchisees discovered their personal optimum practices. for example, Dylan de Bruin, co-owner of a Century 21 in Des Moines, carried out an audit of the buying and promoting manner to learn the place brokers can increase carrier. In Washington, D.C., franchisee Todd Hetherington customized working towards with more individualized, in-the-field work.
“There were no business shifts sent all the way down to us on the ground stage,” says Manny De Silvia, a Century 21 agent in Corona, Calif. In his event, agents are more focused on their own brand than that of the enterprise, anyway. “All agents say the same issue: ‘It’s not about the company; it’s about me,’ ” he says. “americans will buy and checklist with us on account of who we are. They aren’t taking a look at manufacturers anymore.” He says a few of his colleagues had been tempted to defect from Century 21 to nexthome, a startup-vogue brokerage (and franchise) that launched in 2015. There, expertise and a contemporary culture is part of the founding DNA. “They’re constructing what millennials like,” he says. “There’s a large worktable; everything is digital.”
These are the styles of people that a rebranded, refashioned Century 21 will deserve to reengage as a way to be successful. And in order to imply listening to a lot of opinions.
After Century 21 published its new branding, as an instance, franchisees across the nation dutifully replaced their signage and business playing cards -- but that doesn’t mean they’re all satisfied about it. “Fifty years building a manufacturer, the gold standard! All to be thrown away for beige and boring,” wrote one on fb. a further echoed, “appears like the clothier went to a mall, passed a Michael Kors store and a continuously 21, then this brand turned into born.”
In conversations with franchisees, I heard complaints of all varieties. Some, like Tracy Larson, an agent with a Century 21 franchise within the Florida Keys, believe the logo design isn’t common enough. “It’s first-rate for metropolitan areas,” she says, “but there’s no connection to an island lifestyle, which is what we promote right here.” Others complain of the charge. Franchisee Hetherington says it will require lots of of lots of dollars to change out indications and advertising materials. “I gained’t say I’m happy to pay it,” he says, “however’s making a metamorphosis and inserting us on the map.” And in manhattan, Ryan Sherman wants to see extra exchange. “To make a splash, Century 21 has to reinvent the mannequin,” he says.
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Some say that they had no conception the alternate turned into coming except it arrived. a number of franchisees had been consulted all through the design method, even though Bailey says it might were unimaginable for the company to connect with each remaining one. Like many colossal franchisors, he changed into resigned to the truth that he couldn’t please all and sundry. “The preliminary rollout changed into emotionally charged,” he says.
What he hopes now is that franchisees supply him the benefit of the doubt, and time. The rebrand will take a number of years to hit all 8,800 offices, and that’s just the visible elements. Cultural and technological alterations will take place at their personal tempo. however, he looks to think, a good first step is as a minimum acknowledging all of the issues. Century 21 vital work. Its trade is grappling with enormous trade. a company that faces challenges head-on is more healthy than one which doesn’t.
“precise property is local -- even 10 miles makes a change,” Bailey says. “yes, we want to have consistency. but we are able to have a level of flexibility that still lets individuals be people.” in spite of everything, particular person success can handiest result in improved issues for the company. “If the industry gained’t create the normal,” Bailey says, “then why can’t we?”
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Tara Deschamps, The Canadian PressPublished Tuesday, September 18, 2018 9:30AM EDTLast updated Wednesday, September 19, 2018 7:37AM EDT
TORONTO -- precise property boards throughout Canada are mulling the free up of home revenue information on-line after the Toronto true property Board began permitting such numbers to be published on password-included web sites on Tuesday.
Calgary, enhanced Moncton and B.C.'s Fraser Valley have been among a handful of actual property boards that stated they had been searching in opposition t the stronger Toronto area to decide how their own region may still handle the contentious problem that involved seven years of fighting at three judicial our bodies for TREB, which wanted to preserve the statistics beneath wraps because of privateness and copyright concerns.
The combat, which started after the competition Bureau alleged in 2011 that fighting the book of the statistics became anti-competitive, led to August when the Supreme courtroom of Canada refused to listen to the case. TREB took just a few weeks to determine details around how realtors might publish the numbers before giving them the go-ahead Tuesday.
Alan Tennant, the manager govt officer of the Calgary true property Board, observed he watched the case closely, knowing it might seemingly have ramifications on how his board handled the concern.
CREB, he spoke of, is already doing an analysis of how releasing revenue records would influence its guidelines, however has no intention of combating the liberate of the records on password-protected websites like TREB did.
He talked about it is essential the board no longer rush into releasing the records, but he anticipates its e-book in Calgary can be "notably short."
"I do not see this desiring to pull on. I see it as being in fact easy," he noted. "(precise property boards) are all probably on the same factor in eager to try this correct and easily get on with things."
Like Tennant, stronger Moncton real property Board government officer George Murray referred to he paid consideration to the TREB case and as a result of it and a few inquiries from native realtors in fresh weeks, his board has put a discussion on the rely on its Wednesday meeting agenda.
"We appreciate the magnitude of the subject and wish to circulate on it as right away as possible," he observed, including that the board is already consulting with lawyers in regards to the implications of making such facts attainable on-line.
If the board decides to move ahead with allowing realtors to put up the facts on-line, Murray observed it may not simply replica all of TREB's standards, which already bar realtors from scraping, mining, selling, reselling, licensing, reorganizing and monetizing the numbers.
"We should have our personal options from legal information and act in our own approach to make sure we're doing the premiere we can to now not only be compliant however take care of the optimal pastimes of the public."
John Barbisan, the president of the Fraser Valley real estate Board in B.C., stated he has watched TREB come upon "growing pains" as it discovered how it would enable statistics to be launched.
The board tussled with how to handle historic bought cost advice the place is of the same opinion were given earlier than sites have been in existence and the way long listing pictures should stay lively on a broking service's web site after the sale of a property has been achieved.
It also needed to cope with realtors who rushed to submit the facts online instantly following the Supreme court docket's dismissal of the case. TREB ended up sending them stop-and-desist letters, warning it could dispose of facts entry and TREB memberships or bring prison action against contributors it believed had been violating its user agreement via posting income numbers on-line "in an open and unrestricted fashion."
Barbisan would not think the issues TREB confronted will be distinctive than what his place may encounter, however observed his board intends to "take the high highway" and view the way it can unencumber the statistics.
"i'm certain it is going to be coming our manner and we're making efforts to put together for it."
RISMEDIA, Oct. 1, 2008-Altera actual property, previously RE/MAX precise property services, announced that it has turn into the most up-to-date affiliate of leading real property companies of the area® (LeadingRE) positive nowadays, October 1, 2008.according to the business, LeadingRE is among the biggest networks of true independent local and regional brand-identify brokerage firms within the residential sector of actual estate. The just about 700 businesses affiliated with LeadingRE are represented via 5,500 places of work and a hundred and seventy,000 pals in 38 countries international. Its associates comprise six of the top 10 actual estate agencies within the nation. In 2007 LeadingRE affiliates produced 1.2 million domestic sales valued at well-nigh $370 billion within the U.S.
The Thomas household is the only owner of Altera real estate®. CEO and Founder, Gary Thomas, together with President, Steven Thomas, are well primary each in the neighborhood and nationally. Gary Thomas is a former President of the California association of Realtors® and is slated to be President of the national association of Realtors® in 2013. Steven Thomas has served as the president for 5 years and has turn into a depended on supply on actual estate concerns for a lot of media sources including the Orange County Register, the biggest subscription newspaper in Orange County where the business’s distinctive places of work are located.
“Our name has changed, but our dedication to Orange County communities and to being the premier actual property company within the area continues to be steadfast,” stated Gary Thomas.
“while our partnership with RE/MAX has been mighty for many years, we recognize that our energy comes from being a local business whose 350 agents standard far more journey, production and client referrals than any other native multi-workplace firm. We agree with that every one precise estate is local and a local focal point will allow us to more desirable serve our brokers and clients,” stated Steven Thomas “decisions can now be made in a greater well timed trend to reply to our market situations.”
“As a member of the leading true property companies of the realm we can have access to forty,000 broker-to-broker referrals every 12 months,” pointed out Thomas, “In nowadays’s risky monetary market, the electricity of foreign currency has made the purchase of U.S. goods, services and homes even more attractive, and leveraging LeadingRE’s big international base is a particular benefit to our buddies.”
Altera true estate will quickly launch ‘delight starts off At domestic’ a comprehensive advertising crusade aimed toward buyers and agents positioning the brokerage, as a native business with all of the technological sophistication of an enormous foreign company, backed by a wealth of local real property event due to the fact that 1985.
For greater information, discuss with www.AlteraProperties.com.
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