Some agents are so self-sufficient, or work infrequently enough that they don't want the commitment of associating with a big-name firm. A California broker has an answer that works for his agents and himself - the office-less brokerage.

Not virtual, mind you. Office-less. This is a broker that when you need him, you can find him at his house.

Broker Jim Hanson is 75 years old, and has been in the real estate business since 1989, when he moved to Sonoma and fell in love with the area. All his life he had been in the car business, and when buying an automobile dealership didn't work out, real estate did. He bought some houses, and became a mortgage and real estate broker. He became partners in Visual Listings Inc, one of the first companies in the world to put real estate listings on the Internet. That company later became known as HomeSeekers.

Hanson started Visual Listings Realtors in 1995. He likes working, but he also likes to take it easy.

"I spent so much time in computers, so I opened a home office in my bedroom," recalls Hanson. "I did two or three deals a year. A lot of friends started calling me and telling me they didn't want to go through the stuff required at a larger brokerage. I never had to solicit anybody - these folks just wanted to sell a few houses a year."

Hanson says his seven agents are all experienced and work out of their houses. The average profile of his agents is five to seven years experience, married, older, but how much they work is a matter of conjecture.

"One is kinda part time who has an antique shop," says Hanson, "and another one has sold five houses so far this year. Then I've got a couple where she does the legwork and he does the paperwork and they do it full-time (they sell 10-12 houses a year,) and then I've got two who do both, so it's hard to say who's full time and part time."

Hanson supplies his agents more than autonomy; he lets the agents keep a lot of income in commissions and save on office costs.

"Normally, when an agent is with a brokerage they start at 50 percent commissions," says Hanson. "I start them at 90 percent and I get 10 percent, and we all share in the E&O and liability insurance, and I buy the workman's comp. The agents have their own computers and set ups, and I supply the signs and A-frames. I have the signs made, and they pay for the signs, and the agent pays for the sign company to put the sign in the ground. I have a sign company that keeps all my signs. When we have a listing, they take a sign and put it up with a four by four post, and charge me $28-$30 and take it down when the listing is finished. If there are any rides, the agents put that on."

Agents can write off their home offices. "If the office meets all the IRS rules," says Hanson, "and their work area is used exclusively for business. I have one room that has all my equipment and another chair for a client or agent to sit in."

What makes an agent choose his brokerage over RE/MAX or another "100 percent" company?

Hanson admits that his brokerage isn't the answer for everyone.

"What's lacking with us is that large image concept that institutional companies have to offer. But with our clients who know the agent, they are all people who are experienced, and we have no problem with anyone trying to put us out of business." Plus, he adds, "they still have to pay a percentage of fixed overhead at other companies."

Hanson also allows his agents to share in loan origination fees when they bring a buyer or homeowner to his mortgage company, which does have a bricks and mortar office.

"A friend had a mortgage company and he and I have an office for the mortgage company with three agents there," explains Hanson. "We can represent the buyer or seller and go through the mortgage company and make the buyer the loan and refinance people - a lot of large brokerage houses have a mortgage broker in the office, and so the majority of mortgage brokers handle all the loans for that office, if the selling agent chooses to use them. There are a few offices that let the agent represent the loan and the sale like we do. All you need is a real state license to represent a buyer and seller and a loan, so the agent already has the real estate license, so if their broker says it is OK to make loans, it is OK. They share in the loan origination fee, just like the commission on selling a house. A mortgage broker gets a commission on selling the loan, a lot of large brokerages don't want the agent fiddling with the loan - they want the agent to get more listings. We are low key. We sell about 25 homes a year between the eight of us."

How does the rest of the real estate community view the laid-back Virtual Listings Realtors? Hanson says his brokerage is well respected; he was on the MLS board of directors in Sonoma, he was Realtor of the Year in 1995, and was given the distinguished Edgar Hanson (no relation) award for work in the community.

"We aren't going to hurt anyone's production," laughs Hanson. "Most of our business is through referrals. The real world is referrals. That's their biggest source of income, and that's what trainers around the country train agents to do - mine their referrals.

Even though communication is mostly by e-mail, and agents are 95 percent in control of their own business, Hanson says he still runs a tight ship. "They have to abide by the guidelines set by the NAR, and give complete service. They can make any kind of commission terms they want, if they want to work for small commission, I'll go along with it."

There's just no need for an office anymore, he says. "Now with all the forms on the Web, they can download everything," explains Hanson. "We don't need a rack of forms like we used to. If there is any change in anything, I will go and meet them at their offices and keep them abreast of new laws, and we go to the MLS meetings. We do everything any agent will do, but we do it in a more relaxed environment."

How do clients feel?

"That is sometimes an obstacle," admits Hanson, "because institutional advertising is a big influence. The larger the company, the more exposure the house is going to get. But in the real world, our homes get as much exposure as large brokerages give unless the agent wants to advertise on TV or radio or the newspaper."

Hanson says not working bores him "silly."

"I've always been self-employed," he says. "I got a broker's license in 1990 so I could be independent. A couple of years ago, my wife died. I have just enough to keep busy. I'm on the board of directors for a nonprofit, so I'm involved with the community. I'm listing a house today, and another one tomorrow. Not big volume, just enough to keep my hand in."

"I'll never retire. I'll live to be 100. I'm a vegetarian, and swim every day at the local health club."

Published: May 8, 2003

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