The list of challenges to today's large real estate firms is endless -- federal lawsuits against the National Association of Realtors (NAR.) Banks in real estate. See-sawing marketplaces. Minimum service licensing challenges. Competition from non-brokers. These are just a few of the topics that are impacting efficacy and profitability.
One organization aims to do something about it. Many of the marquee names in real estate brokerage are part of the select membership of The Realty Alliance , which "provides strategic ideas, discussion formats, timely information and benchmarking to assist" members in "growing their companies profitably."
Following the passing of Charles McKee, president of The Realty Alliance, the all-star real estate networking group is starting over with a new CEO and a new strategic plan to increase its voice and power in the marketplace, the National Association of Realtors and Capital Hill, and any other areas requiring advocacy for large brokerage interests.
Until now, the Realty Alliance had been primarily a networking group among top brokers of the nation. With a strict and limited invitation-only membership of brokers with excellent reputations and high volume sales, the organization consists of members who meet a high test of requirements -- having closed a minimum of $500 Million in residential real estate sales volume for the previous calendar year. Prospective Member Companies must have completed a minimum of 5,000 transaction sides of residential real estate for the previous calendar year.
But that's going to change.
"There is a braintrust factor that will continue to be the focus of the Alliance," explains acting president Petey Parker . "But, there needs to be some advocacy given on the behalf of the Alliance."
The Realty Alliance has found their advocate in the person of Craig Cheatham, who is leaving his post as CEO of the Association of Real Estate License Law Officials (ARELLO), an "international federation of agencies involved in the regulation of the real estate industry," explains Parker.
Cheatham says that "now, more than ever," the member firms of the Alliance rely on the network for the best ideas on how to navigate current and future challenges successfully.
"A major issue for 2006 with TRA is consideration of who they want to be -- in terms of what kinds of firms should make up The Realty Alliance," he says. "They already have established that they intend to remain the voice for the large brokerage. One issue will be whether to expand membership or whether the current mix best comprises the ideal foundation for future work."
Cheatham continues, "A core purpose for the organization is to deliver the kind of peer review and benchmarking that this network can do better than any other. The Realtor organization has an invaluable role for real estate brokerages, but The Realty Alliance provides additional layers of benefit for firms in the unique position of North America's very largest companies. The Realty Alliance will grow in importance to policy makers as the voice of the large brokerage, and representatives of these types of firms will continue to work within and through NAR on appropriate issues as well."
Cheatham comes with over 16 years experience within the Realtor organization and the regulatory sector, most recently leading ARELLO to help fight banks getting into real estate with any exemption from state-level licensure.
"I am certain that Craig is extremely qualified to continue the duel purpose of this Broker-led organization. First as a 'brain trust' involving 67 of the most respected and leading Brokers in the USA and Canada producing nearly $300 billion in residential sales with 95,600 sales associates in 2,620 offices; and second -creating the voice of the Alliance -- representing its membership and managing relationships within the Real Estate Industry," said Harold Crye, Chairman of TRA. "The CEO is the facilitating visionary of The Realty Alliance creating a clear path for the future."
Cheatham says he's up for the challenge.
"This group will put me right in the midst of specific issues associated with the business of real estate, as well as ancillary business lines, and will allow me to learn from the individuals who have built the continent's most successful companies," says Cheatham. "With all the significant issues swirling around the real estate industry -- market correction, online innovation, content questions, third-party competition -- jumping right into the middle of it all with the most powerful stakeholders is as exciting as it gets."
