The increasing use of technology is taking its toll on midsize real estate companies, according to a top Wisconsin Realtors Association official.
In fact, technology’s impact on the industry has been so dramatic that some companies are forced to merge to compete, said William Malkasian, association executive vice president.
But smaller firms “continue to do very well,” said Kevin King, executive vice president of the Greater Madison Board of Realtors.
“Especially if they have a niche,” which could include a particular type of client (such as empty-nesters), market, price range or geographical area, said King.
Higher costs for technology, advertising, marketing and retaining agents are forcing companies to be large “or a small boutique to survive,” Jim Imhoff told a group of Realtors at a state association training program earlier this year.
Imhoff is chief executive officer of First Weber Realty Group, Dane County’s largest real estate brokerage, and also the product of a recent merger.
Malkasian noted that the definition of small, medium and large to describe real estate companies is relative. For instance, a large company in Madison may be considered only medium-sized in Milwaukee.
But despite the expanded services offered by larger real estate firms, some people are more traditional and prefer the smaller real estate shop, Malkasian said.
Coldwell Banker Holmes Realty in Madison has eight agents, handles commercial property and has separate construction and appraisal companies.
And like larger firms, it has a relocation director who assists other agents when needed, said Denise Holmes, who owns the company with husband Robin Koth.
“Our business has a big price range, from $75,000 to $1.2 million, but we really like that diversification because we can meet all of our customers’ needs,” she said.
As for the size of the company, said Koth, “We know our place. If you’re willing to work hard, there’s enough business for everybody.”
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