Real Estate Coaching

This is an open invitation to all Real Estate Franchisee’s or non affiliated Real Estate Brokerage Companies.

My name is Michael J. Stefonick and I was one of the original RE/MAX Regional Owners who purchased RE/MAX in Southeastern PA in January of 1978 and a few years later the state of Delaware.
In addition I was the first RE/MAX Broker/Owner in PA in 1978. During my tenure with RE/MAX I sold hundreds of RE/MAX Franchises and helped recruit thousands of Agents into RE/MAX.
We had one of the best RE/MAX Regions in the system.
After my retirement in 1999 through RE/MAX International reacquiring my two regions I decided to form a consulting and coaching business to assist both RE/MAX Brokers as well as other companies with their respective business issues.

The Real Estate Industry is in a major decline. Mainly caused, in my opinion, by a very negative press and the failure of the US Government to accomplish or solve any of the major problems it’s citizens are incurring.
Therefore the lack of confidence and their concern for their families future have almost frozen the market in most of the US.
With 95% of the US population who wants to work and having jobs, why would anyone think the world is coming to an end. IT IS NOT!

So what is a Real Estate Brokerage firm to do to survive this deep business decline?

The first thing they should do is to call me at 888-393-1230 and I will listen to YOU. YES LISTEN !
It is more than you will get from most of your Franchise Companies and it will not cost you any money unless you enlist in my GROWTH CONCEPTS COACHING service.

The second thing you should do is to look within and see if you really want to own a company.
Be careful, some of the Franchise companies will not even let you shut it down without paying huge fee’s for what they say is their lost income stream even though you may not even be profitable.

Most Real Estate companies are small business’s owned by very good sales agents who want to control their own destiny.
Furthermore most of these small companies, including many Franchised Offices, are subsidized by their respective owners personal sales commissions.

My suspicion is that most of these independent brokers would like to go back to selling and divest themselves of the headaches, lawsuits, franchise fee’s, and huge operating expenses that drain the business each week.
I have friends who feed their company about $250,000.00 per month. I ask why? They feel things will turn around. One friend who owns a 100% office tells me his agents owe him $450,000.00. Do I think he will ever see that money? NO, but yet he feeds the business every month to pay the Franchise Fees, and the so called Group Advertising Fee’s to further support the Trademark and Lead Generation Programs.
That’s all good if someone is looking to buy a home.
Depending on where your home is it may have declined in value like my cousin’s home in Jacksonville, FL. She bought it for 1.3 Million two years ago and today it may sell for around 800k.

In looking at the bigger picture of where the industry is headed, one must come to the reality that it’s never going to be the same. Can it be a good business? Absolutely! Will the business model change? Absolutely!
The question arises who will make that change. A friend once told me that ” Nothing Changes Until the Pain of Remaining the Same is Greater than the Pain of Change”.

This is what I call a Truism and is not related to a Gumpism ” Stupid is as Stupid Does”.

Change comes when the old business model does not work anymore, or when the management of a brokerage firm must be changed, or when the leadership of a Franchise Company has failed. Franchise companies seem to change Senior Management every 5 years. Leadership in Real Estate is everything. Without leadership the ship will not have a course to follow or attract the agents to lead the charge or carry out the plan for success.
The next thing that must occur is to have the best sales staff. You only obtain those by combining leadership with a great compensation package. RE/MAX built a huge company with that model.
If your willing to pay someone 100 % of a specific commission your going to get someone’s attention. If your willing to pay them more than 100% you really have their attention.

THAT IS THE BUSINESS MODEL I DEVISED YEARS AGO AND IT HAS WORKED EVER SINCE.

If you are looking for answers on how to grow, sell, merge, your real estate business I would welcome your call.

If I can’t help you I will tell you. If I feel I can then it just may be the best call you’ll make this week.

Wishing you every success the industry has to offer!
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