This is a topic that I find particularly pertinent and interesting for economic activity, in Portugal and in the World, but above all for the real estate industry.
The sharing economy is a topic that has been extensively discussed in the last two decades and that has made its journey a bit rough in the wake of globalization. But just as the sharing economy in terms of the consumer (enjoyment of goods and services) is one of the future trends, in terms of service providers, business sharing has an equally bright future.
Portugal a mixed scenario ...
In Portugal, our past history of agricultural economy supported by the smallholding has conditioned mentalities for decades, preventing companies from benefiting from the advantages that the economy of scale, provided by the collaborative sharing between competing entities, could bring them.
From the point of view of real estate mediation, this is a controversial topic and not always discussed in a transparent and clear manner. We are talking about something that in Portugal is not always well regarded: working in partnership with the competition, sharing revenues, services and customers.
There is a little bit of everything, companies like Keller Williams that bet without reservation on internal sharing between consultants and external with other mediation companies. Other companies like ERA that do not share with the other partners. Remax that it shares with other competitors, but not with Keller Williams. EasyGest that you also share with everyone. Outside the reality of franchising companies, sharing is usually made easier even by their lower competitiveness.
Shares in the rest of the world
In the same way that in Portugal, information does not abound with respect to sharing agreements between real estate mediation companies. But speaking to some colleagues who operate in these countries, I was able to collect some information.
In Spain, sharing exists and is facilitated by the major brands - including Keller Williams counterpart - although the mediators installed in the market for a longer time and who work according to more traditional methods are not so receptive to this type of business.
In Poland, the real estate market is undergoing a major restructuring, with the arrival of the only two international brands: Remax and Keller Williams. The remaining brands in the real estate industry have failed to enter this market due to the strong competitiveness that exists. Thus, in addition to these two brands, there are a number of networks already established, of local companies, in which some share and others do not. This stance is also extended to consultants, with many seeking to avoid sharing in order to avoid the division of commissions.
Benefits of Property Sharing
It is important to highlight the main advantages for this industry:
For the real estate brokerage company, sharing allows you to expand your usual client portfolio and multiply it, through partnership agreements with investors and promoters, real estate funds and other mediators.
For the real estate consultant there are two major advantages: 1) when working with exclusive contracts (as at Keller Williams) sharing expands your real estate portfolio by improving customer service and increasing the likelihood of success; 2) on the other hand, by exposing their properties to a wider network of mediators, the target audience increases significantly in number and diversity.
For the customer the motivation is universal: to sell your property as fast as possible and at the best price. For those who sell the benefits of sharing are clear: 1) when exposing your property on a wider dissemination platform the likelihood of selling more quickly increases. 2) the second advantage is that the concurrent work of several mediators on the same property enhances the appearance of competing proposals, which benefits the final sale price.
In short, sharing in the sale of real estate is good for all parties involved and effectively complements the sale of the property under an exclusive contract regime.
Disadvantages of Property Sharing
It is in this chapter that property sharing comes up against. The main disadvantages for a brokerage firm or a real estate consultant are:
The reduction in the amount of the commission received by the mediator in the sale of the property that will have to be shared (usually 50/50%) between the side of the mediator who obtained the property and the side of the partner who obtained the client (or vice versa).
The control and management of the sale process is no longer in the hands of one media player but of two, which makes communication between all parties more difficult and increases the likelihood of "surprises" and unforeseen misunderstandings.
Conclusion
The advantages are obviously greater than the disadvantages and in my case sharing with colleagues from the Keller Williams network and with partners in the real estate industry has proven to be a fundamental tool to leverage my success as a real estate consultant and convey an image of seriousness and confidence which is recognized by everyone, starting with my clients.
Working in a company like Keller Williams is breaking down barriers that other consultants face in other companies, for us Sharing is a way of being and a way to improve your productivity, while improving the service provided to your customers. If you want to change your life for the better, come to work at KW! See my page .