As soon as it completes some state-related franchise compliance formalities, the nation's second largest real estate brokerage in sales volume will start replicating its winning formula. That's right. Weichert,Realtors, an independently owned mid-Atlantic brokerage, is about to go into the franchise business.

Marty Rueter, the new president of Weichert Real Estate Affiliates, believes the timing couldn't be better. "People may wonder why Jim (Jim Weichert) is doing this," says Rueter. "Jim's intention is to continue to grow and to compete. The industry is consolidating, and there is more domination by large conglomerates, including franchises. Rather than buy companies, Jim has elected to use a proven model called franchising."

It's a bold move. As existing franchises have grown stronger, gobbling up small and mid-size independents, there have also been no new competitors recently. Perhaps not since Prudential has a company launched a nationwide franchise campaign. "There have been some strong regional franchises, but I can't think of a national franchise within the last five years," says Rueter.

Is there a market? Some independents may not want to give up their company name to take on a franchise name that isn't as well known in other regions as it is in its own. Prudential was, at least, a well known financial and insurance brand of national stature before it began franchising real estate brokerages.

"Sixty percent of independents remain independent," says Rueter, a 35-year real estate and franchising veteran. "I have gotten to know many independents and they all see the value of being affiliated. What prevents them from affiliating is that some franchises are unavailable because of saturation or perceived saturation, or they are reluctant to affiliate with a brand run by Wall Street concerns that are more focused on shareholders than franchise holders. The other issue is that services seem to be going away. The Internet was being used as an excuse to take away services rather than add value."

Weichert Real Estate Affiliates plans to put plenty on the table in front of any interested broker. "We have a strong, consistent brand, a proven operating system, which is evident in 200 plus offices, and we will bring strong services to our franchisees," says Rueter.

Weichert-franchised offices will have access to all the programs that are currently offered through the Weichert Family of Companies, including mortgage, insurance, title, pre-licensing schools and relocation services, as well as bringing leverage to national and local advertising for broker. "We can bring local clout to get brokers better rates," says Rueter.

The Weichert Gold Services Program, a concierge program for consumers, coordinates financing, homeowner’s insurance and title insurance through Weichert Financial Services (WFS) to provide customers with a guaranteed closing date. Also available is GE’s Homebuyer Privileges, a program that saves customers money on moving and home-related products through the Internet, and a Weichert Home Protection Plan, which covers repairs during the buying and selling process and beyond. The programs have just given WFS its best month in the company's history with $200 million in closed loan dollar volume while the Weichert Insurance Agency, Inc. generated over 1,000 insurance policies last month.

Sales associates of Weichert-franchised offices will have access to Weichert, Realtors’ training, marketing materials and technology services and can also participate in life, health, disability and retirement benefits packages offered through the Weichert Insurance Agency.

Key to the company's offerings will be lead generation and management through Weichert's referral and relocation network, and through its affiliation with the RELO Network, as well as technology-based lead capture systems. "We will be installing a leads generation, management and incubations system which is designed to service consumers and keep brokers and agents from losing leads," says Rueter. "Traditionally, only three percent of callers end up buying a home from the company they called. The reason is that the majority are not ready to buy today, and there is a tendency to ignore the ones who aren't ready to buy right away. They're put on the back burner, and then they get lost. With a leads management system in place, the buyers are happier and tend to stick around."

One thing the company is not going to do is dictate commission structures as some Internet-based companies are doing. States Rueter, "I believe we don't have to apologize for what our brokers charge because we can prove the value of our services, and when you can do that, people are happy to pay."

Published: July 13, 2001

Use of this article without permission is a violation of federal copyright laws.

Blanche Evans is the award-winning senior editor of Realty Times, the Internet's leading independent real estate news service. She is featured daily on the Realty Times Video Network in the "Realty Viewpoint" segment. Blanche has been named one of the "25 Most Influential People In Real Estate" by REALTOR Magazine, and has been twice recognized as a "notable." In 2005, she was named "Top Reporter Covering the NAR" by Delahaye-Bacon's. 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. To contact Blanche, email her at . For more articles by Blanche, click here.