Independent Brands

Independent Brands

There is a battle occurring in the Queensland Real Estate market to be the premier brand across franchises. The once dominant brands of Ray White, LJ Hooker, Raine and Horne are now in a fight for supremacy from brands such as Belle, Place and McGrath.

However there’s another battle going on in competition too and that is coming from Independents. A recent article by Real Estate Business said “According to a recent franchising market report, once dominant brands such as Gloria Jeans are losing ground to a grass roots resurgence from local cafes.”

The report suggested shifts in consumer needs and a growing trend towards a more focused, individualised approach to business has seen franchising decline across a variety of sectors in recent years, and according to industry coach and head of the Real Estate Results Network (RERN) Michael Sheargold, real estate is included.

“Nowhere is the decline more prominent than in the real estate sector,” Mr Sheargold said.

He claims the appeal of an ‘individual approach’ is preferred by modern consumers over the sanitised corporate logos and methods.

At REAS we have certainly seen 3 changing trends in recent years. These trends include more agents working from home, more Property Management only businesses and an upward growth of Independent Real Estate Businesses.

A well branded and well marketed independent brand has many attributes to a local community. A negative of Independent branding is the use of the word Boutique. Our feedback is that it confuses consumers of its message, has no meaning and adds minimal value. Consumers have a mixed understanding regarding what Boutique actually means.

Instead of using Boutique in your branding, show value in your message of the attributes of being Independent. It’s your Independence that holds value, not that you are “Boutique”.

The funds saved by being Independent should not be used to reduce fees but instead used for your marketing budget to market your brand, create awareness and attract quality clients and staff.

Franchises however also remain a genuine option for many reasons and you should always keep your options open, complete your research and apply a strategy in line with your Vision, Culture and Brand you feel would best align with those aspects of the business you want to create.

Kevin Hockey

Why use a broker to sell your business or rent roll

Why use a broker to sell your business or rent roll?

This week I have had a conversation with a principal who related with me his disappointment that he sold his rent roll privately and didn’t use me as he originally intended. It was probably 2 years ago and we had been in discussion about selling when a buyer approached him directly and he figured he could save some commission which seemed a reasonable idea at the time.

Unfortunately, a lot of things went wrong and the contract didn’t protect him. He had no support or good advice and it cost him a lot, lot more than our commission.

This isn’t a rare occurrence. I have had similar conversations with other. I remember one transaction where I was told they chose not to use a broker and of 340 managements, 130 were lost. As a broker I know how to limit that likelihood to almost certainly never happening.

Using a broker such as Real Estate Agency Sales provides you access to a full market of potential buyers, our systems to assist you in the sale process, our contract which is designed from years of experience, our knowledge of market conditions and the best methods to ensure the right sale is effected and provide advice around the process, vendors, contract matters, financial matters and the best buyer for your business.

If you have any questions about selling, contact Kevin Hockey on 0413 879986 or email kevin@reas.com.au

Our website – 1

Real Estate Agency Sales’s website has been designed to be completely user friendly and provide potential buyers the fastest, simplest access to the information required to allow you to make a decision about purchasing.

It also upholds a strict requirement to protect both Sellers and Buyers personal information and maintaining the confidentiality of all parties involved.

Our Website provides you a complete automated process for confidentiality agreement access and the ability to receive the data you require within minutes. If you want to know about a rent roll for sale, it can be at your finger tips in moments.

REAS Website

Our website – 2

Want to know more about Buying or Selling a Real Estate Agency or Rent Roll. Our website has a lot of information to help you understand more about the process.

Review our Blog page and read all about the process. Check out our services page and see how else we can help your office grow, assist in your rent roll purchase or just get a better understanding of the equity in your business.

There are lots to see on our website. Check it out now

Agents - Most Trusted Opinion Poll

Agents – Most Trusted Opinion Poll

Another survey shows agents rating poorly in the most trusted professions by ranking 28th out of 30, below lawyers, talk back radio announcers and even below politicians.

Apparently we’re surprised by this because as an industry we have improved. I agree, I have no doubt that as an industry we have improved however is it just the Top 20-30% that have improved their skills significantly just widening the gap with the rest, leaving 70-80% of the industry still untrained and unskilled?

The issue of Trust with consumers lies in our system.

From a consumers perspective, and let’s not forget they buy a property every 7-10 years, they believe they can apply a level of trust in the agent. That’s natural, it’s what we are trying to do, however we do not represent the buyer, we represent the Seller.

The Seller is told “we work for you and we will look solely after your best interests”. As the sale process continues and the feedback begins based on buyers opinions the Seller then begins to question where the loyalty lies.

How can consumers understand and trust us when our role “represents” both parties?

The American system relies on a representative of each party. Agents act for Buyers or Sellers and each are paid by their client. Agents do not communicate with both parties.  Wouldn’t this provide consumers greater clarity around who they can trust and where loyalties lay?

We do have buyer’s agents here but the system is different and it’s not an indoctrinated culture like the USA.

Is there an opportunity here for us to recruit staff to act as buyers agents within our Agencies? Salespeople’s whose role it is to service a buyer and find a suitable property, negotiate on their behalf and be paid by the buyer?

www.rebonline.com.au/breaking-news/7525-less-than-1-in-10-believe-agents-are-trustworthy?utm_source=Real+Estate+Business&utm_campaign=Real_Estate_Business_Bulletin16_04_2014&utm_medium=email

Buying a rent roll – 1

Using your equity in your Rent Roll to purchase another portfolio is a great way to generate instant growth and cashflow. The benefits are substantial.

Remember to generate maximum value from the purchase, review the rents, communicate with the Landlords and give high levels of service to increase the income.

For more information about buying Rent Rolls contact us on 3266 4242 or email kevin@reas.com.au

Buying a Rent Roll – 2

Buying a Rent Roll is a great way to grow your business. The purchase process is important and will reflect the value you can gain from the investment.

Ensure when you buy that you include a Due Diligence condition within the contact and use this period to properly review the portfolio. Look at the files, interview any potential staff and make sure the portfolio has been accurately represented to you.

If you are unsure about what to do, call us and we can help guide you through the process.

Contact Kevin Hockey at Real Estate Agency Sales on 0413 879 986 or email kevin@reas.com.au

How do we ascertain the multiplier

How do we ascertain the multiplier?

A common question is How do we come up with the multiplier for a Rent Roll.

A Rent Roll multiplier is based on a range of factors and KPI’s determined by reviewing the details of a portfolio.
The most importantly considered factors, but not limited to, are:
Management Fee
Landlords with multiple properties
Spread of the portfolio
Location
Annual income per management
Arrears
Extra fee income

There can be other factors which may effect the multiplier but these are the most common determining criteria.

Like to know more? Contact Kevin Hockey on 0413 879 986 or email kevin@reas.com.au

Maximising the Rent Roll price

Maximising the Rent Roll price

In most cases of a small to medium sized Real Estate Agency the rent roll holds up to 95% of the value of the business. Therefore ensuring your Rent Roll portfolio is in prime condition to sell has major benefits.

To ensure a premium price in your market follow these tips.

  1. Low management fees reduce serious buyers. Ensure your management fees are in line with your market place and not competing as the lowest.
  2. Ensure rents are at full market rates
  3. If your portfolio includes managements from outside your local core area look to have enough that they may be able to be bundled up and sold separately.
  4. Review the files and check they are in excellent order and have the appropriate information required. Ensure all appointments are valid and have been correctly signed by the Owners.
  5. Ensure the office has keys available for every management.
  6. Complete all inspections and ensure they are up to date
  7. Extra fees for Property Management are not included in the multiplier but they are an important facet of the sale. Maximise the income and ensure you negotiate to include extra fees as part of the income.

If you have any further questions contact us anytime

Rent Roll values

Rent Roll values

In a positive sales market as is the case now in 2014 we are seeing less supply and greater demand for Real Estate businesses and especially rent rolls. This of course places pressure on value and increases the multipliers.

In the last 12 months we have seen substantial increases in Rent Roll values, depending on location. Brisbane Northside and Gold Coast are currently 2 prime examples of very strong rent roll markets.

Mining areas have been the exception to this in Queensland, where a slowing of the market is being experienced.