Two Clowns and a Sign

There are some ideas that just don’t translate well to other uses. One example is the idea that a couple of people who happen to have real estate licenses (one would have to be a broker license) can set up shop as a full service real estate company - sort of Two Clowns and a Sign.

In many cases this is the definitive “mom and pop” shop, since it really is mom and pop. But is this really doing a disservice to the unsuspecting customer who happens to employ this “real estate company?” I would argue, yes.

When a person hires what they believe to be a real estate agent and company to help them with the sale of their home there are likely some expectations that have been formed over time about what the services are that they will be receiving from this company. Certainly the real estate industry and it’s various associations are trying very hard to educate the public as to what those expectations should include.

In addition to the agent taking full fiduciary responsibility for the client, a customer might well expect that the company has some form of advertising and marketing operation in place that will attract buyers. That goes beyond just having a sign to stick in the front yard or the ability to put the listing on the local multi-list service. In too many cases, that is really about all you get with these operations. They operate on the "real estate is a numbers game" theory. Put lots of listings out there are wait for buyers to show up. Many times these operators work from their homes with just personal cell phones and voicemail as their communications infrastructure. By Michigan real estate law, they must have a separate office space (separate from a home office) from which they are supposed to conduct business. Many times that is nothing more than a mailing address.

Things like having a real office, manned by real people who can answer your questions or set up appointments are important. Things like having enough advertising clout to get your agent a good rate so he/she can advertise your house are important. Things like having a significant Internet presence and agreements in place with other major Internet real estate sites to display your house are important. Tools like 24-hour phone hot lines for the house or agreements with the various TV real estate shows are important. These are the kinds of things that companies like Real Estate One bring to the table. Even smaller, local franchise operators for some of the "big name" real estate companies get some benefit from the umbrella advertising campaigns of the parent company. Many of these "independently owned and managed" operations just aren't capitalized well enough to do much on their own and few have any real clout with local media - papers, TV, whatever.

Real Estate one does over $2 Billion (with a BIG “B”) worth of business just in Michigan each year. That’s 1/3 again bigger than our next closest competitor. That gives Deidre and me great leverage with the media, with the Internet companies and with everyone else of importance to the marketing of your home. What kind of attention does the operation that does $40-50 Million in sales a year get compared to that? You figure it out.

So the next time that you see some strange looking sign, with a company name that you cannot recognize, or one that sounds more like a piano duo that a real estate company, ask yourself, “Is this two clowns with a sign and would I want to try to do business with them?” Check out their office and their "staff" to see what kind of service you are likely to get. Then, when it’s time to sell your house, call me, I have a sign, too, and I bring $2 Billion worth of Real Estate One infrastructure and advertising clout behind my efforts! There is a difference and you deserve to get what you expect when you hire a Realtor.