GLOBAL real estate company Remax has opened its first Perth office and, if the success of the Queensland operations are any measure, the Perth real estate industry will be taking notice.
GLOBAL real estate company Remax has opened its first Perth office and, if the success of the Queensland operations are any measure, the Perth real estate industry will be taking notice.
In just three-and-a-half years, Remax has opened 24 offices in the sunshine state and chief executive officer Peter Hanscomb says it is the investment in its salespeople that has made Remax a global success, and is the reason why it will become a market leader in WA.
The first of the Perth Remax franchise operations will be known as Remax Realmark, and owner/proprietor John Percudani said the team would make a ripple within the industry.
He said Remax Realmark would not be matched by local players because they would not be able to adapt to the change in conducting their business.
“They are set into thinking a certain way and they can’t think outside of that,” Mr Percudani said.
Similarly, Mr Hanscomb said that, although the industry in Queensland took notice, the reaction was muted because they could not match the winning formula of Remax.
“They try to match it but they don’t get it all,” he said.
“They just take little bits and they can’t make it work, they don’t get the formula right.”
Mr Hanscomb said Remax could open more offices in Queensland but keeping the operations “small” benefited its business.
He said they did twice the turnover as the largest Queensland firm but with half the number of offices.
Keeping the operations on a smaller scale helps increase their market share because they can maintain quality staff, which is the key to their success,Mr Hanscomb said.
The company has an extensive training program and a “different” philosophy towards its salespeople.
Unlike most firms, Remax salespeople’s commission is 100 per cent, with the salesperson covering the expenses.
Mr Hanscomb said treating their salespeople as small business people is most likely why their retention rate is so high, with a low staff turnover rate of 20 per cent compared with the industry average of 70 per cent.
WA operations manager Clem Paull said the training program the company provided was one that they saw as an investment and an integral part of maintaining professional salespeople.
The program includes more than 3,000 videotapes, which can be accessed directly through the Internet, a resource network, an online chat facility, plus extensive in-house training.
Mr Percudani said he joined the Remax team because it provided the means to increase Realmark’s business and said joining the group came at an opportune time.
“There has been a dramatic change in the real estate industry with the introduction of new technologies and the like,” he said.
“The days of the boutique real estate office are disappearing.”
Mr Percudani said they were looking for a way to expand in the Perth marketplace for some time but chose Remax for its innovative approach to real estate
“We have been looking to expand for some time and received the same pitch, the same story and heard nothing innovative. We decided not to run with any of them because it would have restricted our business,” he said.
“I have been aware of the Remax philosophy for a number of years and felt that their resources and technology would provide the right partnership to grow in the marketplace.”
He said he agreed with the philosophy held by Remax and said many estate agents treated their sales people as money earners which ironically makes firms less money.
“If you’re only in it for the money it won’t last forever,” Mr Percudani said.
Remax already is speaking to other firms to set up similar franchise arrangements and plans to open 22 outlets over the next four years.
