Dec. 29, 2018
Brandon Patton Tri Cities
Brandon Patton is a Real Estate Broker in Tri Cities. He Owns Real Estate Market Leaders in Kennewick Washington. He started Real Estate Market Leader in 2010 after working for a couple of other large Real Estate Brokerages in Tri Cities. He worked for Windermere Real Estate and Progreesive Real Estate Prior to starting Real Estate Market Leaders.
The office environment at other Real Estate Brokerages in Tri Cities seemed to have a lot of unnecessary overhead that created extremely high cost to consumers. It seemed like the profit margin for the brokerage was huge and there was some potential to lower the profit margin per deal so that the clients could save money and the brokerage could increase their sales volume by saving clients more money. In fact if you look at the business model of any Real Estate Franchise you will see that the local Real Estate Companies are sending a large portion of their profit to cooperate offices just to use their logo. In many cases you have Franchise companies like Realogy that own Centery 21, Coldwell Banker, ERA, Sotheby's and other large "Real Estate" businesses that all compete against each other locally but pay the Franchise a percentage of the profit of each deal.
Looking at Different Real Estate Business Models in Tri Cities
As an MBA Graduate Brandon Patton looked at different business models and found that large companies like Walmart did great when they saved their clients money. In fact, the more money that clients saved then the more volume the business had in sales. There is a direct correlation between sales volume and cost. Now, as a business owner Brandon Patton decided that Tri Cities needed a Real Estate Company that saved clients money. When you try to lower the overhead for a Real Estate Business the first thing you do is cut out the Franchise. You need to realize that Real Estate is a service based business.
The Reason Retail functions so well with a Franchise is do to the fact that companies can buy large volumes of product from around the world and distribute the product through out their retail stores across the United States. Retail stores depend on the Franchise to supply the product at rock bottom prices. It is basically a transportation and distribution business that involves moving frights from point A to point B.
With a service base business we do not need a product delivered or distributed through store fronts. The product we are selling is our service!
Why should we pay a Franchise for a service that we sold to a local client?
What did the Franchise do to earn the money between the local Real Estate Broker and their client?
If you wanted to hire an attorney would you hire them because of their results and word of mouth reputation or would you hire them because of their Franchise Logo?
I view Real Estate as the same style of work as an attorney or hair stylist. Nobody Really Cares what company they work for, they care about the results.
The Evolution of Real Estate in Tri Cities
The Real Estate Business has moved to online sales. Doing large volumes of Real Estate Sales has became easy. The old school days of driving clients around to show them listings for sale has changed.
The 6% listing business model was started in the 1970s. Back in the 1970's Real Estate Brokers had to do a lot more work to help clients buy or sell homes in Tri Cities. For Starters, there was no internet in the 1970's so Real Estate Brokers had to meet their clients at the local MLS office to check out the book of Real Estate listings. The MLS office had pictures of all the local houses for sale that was updated by local Realtors who dropped off photos of houses they had for sale. After clients and brokers visited the MLS they would set up a tour to go view the houses in person.
The broker had to have knowledge of the local community to be able to set up an effective tour of the community without using GPS. It took a lot more work to gain that local knowledge of the Real Estate Market in Tri Cities because they did not have software that would show trends and graph everything in nice little software program within seconds. Brokers has to research sales and pay attention to the inventory by making phone calls and staying up to date on what was available and what has sold. Tracking the sales prices and the future inventory meant doing more street work. Now you can log into a website and search by neighborhood or subdivision and get all the results you are looking for within seconds.
Lets face it, times have changed. Now buyers can use their smart phone to do a quick Google Search and browse Tri Cities homes for sale within seconds. Large Companies like Zillow and Trulia have direct access to the MLS and display all of the Real Estate Listing to the Public. In fact all Real Estate Brokerages in Tri Cites are members of the MLS and they set up web websites that displays MLS information to the public.
If a seller wants to list their home for sale they have no problem getting their house to appear on the first page of Google. When a buyer is looking at Homes for Sale in Tri Cities they will end up on a Real Estate Page viewing listings for sale. It doesn't matter if they are using Zillow, Trulia, Windermere or Century 21. They will be viewing all of the houses for sale in Tri Cities. It does not take Rocket Science to figure our how to take photos and upload them to these websites. Are consumers willing to pay Real Estate Brokers 6% to take 30 photos of their home and syndicate their listing on the internet?
For Sale by Owner VS hiring a Realtor
The days of going down to Ace Hardware to purchasing the Red and White For Sale By Owner sign are over! Now people who want to sell their home for sale by owner can take digital photos and upload the photos to Zillow and Trulia and share the links on social media sites like Facebook and Craigslist. If you know how to use a digital camera and upload photos to the internet then you understand how to advertise a home for sale by owner. The For Sale by Owner will get their house to appear in the Google Search Results and on large website like Zillow. However, the for sale by owner will not get their house to appear on the MLS and syndicated to local Real Estate Brokers on their websites.
When a Real Estate Broker uploads the marketing information to the Tri Cities Association of Realtors it enters a larger network. Members of the Tri Cities Association of Realtors work together to sell your home. After your house is listed any Realtor who is a member can sell your home and earn a commission regardless of what company they work for. Therefore, it does not matter who you list your home with because in most cases the listing broker will not be the broker who brings a buyer to your home to show the house and create an offer. In most cases the listing broker list the home for sale and another member of the MLS represent the buyer. This is true for any Realtor that you work with in Tri Cities. I often hear a lot of false advertising by Realtors saying, "they can sell your home for the most money" or "they will buy your house if they don't sell it" or "they have never been fired". I can pull up each Realtors stats on how many times they have sold a home or had another broker sell their home and I can quickly see that in most cases the broker who list a home for sale is rarely the broker that brings you a buyer for your home. In fact if they are representing the buyer it is called a duel agent and you will need to sign a form explaining to you what Real Estate License law is.
How Listing Brokers like Brandon Patton list homes for sale in Tri Cities.
Real Estate Brokers like Brandon Patton can use software to make the entire listing process take less then 1 hour. When Brandon Patton list a home for sale in Tri Cities he will visit the clients at their house and bring the required paperwork with him. He will bring a camera that shoots high quality photos with a wide angle lens. After all required paperwork and photos are completed the information will be uploaded to the MLS. The MLS syndicates the photos and listing data to all Real Estate Brokers websites in Tri Cities. If you here radio name advertised saying that Lance Kenmore or Bob Moon would have a higher probability of selling your home then the information that your getting is probably false. This is deceptive advertising. All Real Estate Brokers in Tri Cities are members of the Tri Cities Association of Realtors and they all syndicate their listings to the same Real Estate Network. Therefore, it does not matter what Real Estate Broker list your home for sale because the listing will appear on the same website no matter what. In today's Real Estate Market over 90% of buyers are buying houses that they view online according to the National Association of Realtors. Therefore, the most important thing is to make sure that clients homes look great online. The reason some Brokers have more sales then others is due to how many listings they have. The brokers with more listings spend more money advertising themselves not the houses they are trying to sell.
Brandon Patton Saves Clients Thousands
Brandon Patton started Real Estate Market Leaders with the approach that taking great online photos and syndicating listings data to the top pages on Google would get clients the results that they are looking for. The biggest difference between selling your home with Brandon Patton or another broker is the price. Brandon Patton saves his clients over 50%. In fact, in most cases he only charges a 1% listing fee when his competition will do the same thing and charge a 3% listing fee. The average sales price of a home in Tri Cities is $250,000. This means that Brandon Patton will save the average client $5,000 when they decide to list their home for sale in Tri Cities.
How does Brandon Patton afford to save clients so much money on selling their home? Well, its a volume game. When a Real Estate Broker list a home for sale often times they end up helping those clients buy a home. In most cases people are not selling their home in Tri Cities to try to move away. It seems like most clients are selling their home to buy another home in Tri Cities. It doesn't matter if they are selling to upgrade or downsize but the listing often turns into another deal. When Real Estate Brokers list homes for sale at a discount they get more listings. When they get more listings they get more buyers calling asking to show them houses because they have more real estate signs through out Tri Cities. They end up with more sellers listing their home for sale, more buyers calling on Real Estate Signs and more qualified buyers looking at homes for sale.
Brokers can either advertise on the radio and waste money saying things that are not true or they can save clients money and make getting more deals lined up easier. Brandon Patton decided to start Real Estate Market Leaders to offer clients a way to do business that would save them thousands. Brandon Patton lives in Richland Washington and his office is located in Kennewick Washington. He works with clients in Richland, Kennnewick, Pasco, Burbank, West Richland, Benton City and Prosser.