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Real Estate Companies: Mergers and Acquisitions

As companies grow in the marketplace, they become growing entities or ripe fruit to be acquired. Mergers and acquisitions. How does this affect you, the consumer? As far as tech is concerned, there will hardly be any discernible bump in the road. You won’t notice any change with Zillow or Trulia. But what about real estate companies? Do you think a $5.3billion a year conglomerate like Realogy can’t impact your home purchase or sale? See here for a horror story…

2014-09-08_1450

Here is a quick run down of just the residential real estate side of Realogy. They own a majority of residential franchise brands (top of image,) as well as a majority of those franchised brick and mortar offices. Those offices employ brokers, who then hold independent licenses of agents, like one you might know or consult with.

This translates to a global conglomerate that can impact the services of your adviser during your transaction. Remember the financial meltdown in 2008? Stock brokers were out on the streets after overnight bankruptcies, banks were merging at a pace not seen since the Savings and Loan debacle of the ’80s and so on. Trusted service providers were pulled from our grasp, as unknown outcomes were in the haze of the future. It was a long process for us to find a business bank after our account was stuck in the shuffle of uncertainty, being tossed from manager to manager as the bank and branches underwent their changes. Not consumer friendly in the least.

“But how does this impact me?” you must be asking yourself. Add to that list Keller Williams (100,000+ agents) and Re/Max (100,000+ agents,) and 50% of the market is being controlled by three sets of hands. Do you want an agent who is moving brands and brokerages frequently? One who needs to worry about what the franchise boss is worried about? We wouldn’t hire someone who bounces around, why should you?

This comes full circle to why 1850 Realty exists in the first place. We are beholden to our clients. Not a regional manager, not corporate or “headquarters.” We can concentrate on the business at hand, helping people 100% with their real estate needs, while bypassing talks of who is buying who. Something to keep top of mind when interviewing a trusted adviser in real estate.

Have any questions?

Call (760) 814-1850 or email info@1850realty.com

 

 

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1850 Realty ® California DRE #01946868                      Carol Farrar DRE #01733808                                         Eric Farrar DRE #01949104
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