As brokerage firms consolidate to cut costs, maximize name/brand awareness and improve market share, an old maxim seems to still hold true - you are only as good as your good name.

When Washington, D.C. Coldwell Banker broker Tom Stevens decided to conquer Baltimore in a big way, he tried to purchase the holdings of a sister company, Coldwell Banker Grempler, but was unsuccessful in negotiations. He promptly opened up four new Coldwell Banker Stevens locations instead. Before long, the victorious purchaser of CB Grempler, Long and Foster, soon found itself short more than fifteen percent of the agents whose licenses were held with Grempler. To the 150-plus agents who defected and came over to join Coldwell Banker Stevens, what was the motivation? Brand or leadership? Or both?

Stevens explains that the former Grempler agents were loyal to the Coldwell Banker brand, and wanted to continue to be known as Coldwell Banker agents, which they would not have been with the large, but independent mid-Atlantic Long and Foster brand.

But, it's possible that they were also impressed with Tom Stevens, and being part of the third largest Coldwell Banker brokerage in the nation, and largest on the East Coast.

Stevens sees it as a combination of factors. "They were with Coldwell Banker and were comfortable with a national identity," says Stevens. "But we've had rapid growth over the last seven years, and we're a leader in technology and our programs for agents."

Agents are independent contractors and they have a choice. When you buy the assets of another company, what value can you place on its revenue generators? It's a risk, acknowledges Stevens. "You are hoping you can convince them to stay with the benefits you can offer them," says Stevens. "There is business on the books you can purchase, current contracts." Beyond that, the new broker is banking on his or her good name to attract and keep agents.

Stevens says that his brokerage's affiliation with Cendant Mobility, the largest relocation firm in the nation, is also an advantage for his new agents. "Now the agents can refer business to a colleague, instead of a competitor," says Stevens.

Why the march to gain size? "This is a new economy," suggests Stevens. "Real estate is very competitive, margins are thinner, and you have to be creative with ancillary companies to make money. Consumers are demanding more and to have more information at their fingertips. That takes revenue, and it creates the opportunity for the strong to get stronger."

In Dallas, broker Virginia Cook, has also created a brokerage that is attracting agents from other brokers. Find out tomorrow, what made over 100 agents leave their former broker to join Cook.

Have you ever left one broker to join another? What was the benefit(s) you were looking for? Did you get what you wanted?

Building A New Brokerage - Part II

Published: October 2, 2000

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Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 That Interview Guy - Get Inside The Head Of Today's Generation 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. For more articles by Blanche, click here.