The Executive Suites Model: Better Homes and Gardens Real Estate Executive – Seattle, Washington

Posted on 01. Sep, 2009 by Robert Albanese

(From a phone interview with Keith Nelson, CEO)

As early on as 1991 with only 25 agents, Keith Nelson, CEO of Better Homes and Gardens Real Estate Executive in Seattle Washington was already experimenting with alternate business models. Over time, his concept of “executive suite” type locations has emerged as a strong operational alternative. The basic principles behind his executive suite model include;

• Moving past the need for huge facilities, but locations in the community are necessary
• Locations include niche local office suites for agents
• Functionally, in a good “class A” type building adds competitive advantages.
• Executive Suite type locations have very low monthly costs that include:
  • Unmanned locations
  • Accessed via a secure card
  • Between 400 and 1000 SF, but usually between 800 and 1000 SF
  • Equipped with 1 – 2 conference rooms and an open area for equipment and sales activities
  • Reception, phones, copy machines, fax machines, refreshments, etc. are available and billed on a consumption basis.

Mr. Nelson notes that the average “session time” for his agents is about 20 minutes. That is, agents stop by to mail forms, drop off transactional documents and then move on to sales activities. Agents do not use satellite locations for all of their customer meetings and often execute contracts where it is most convenient for the customer.

Points to consider

Agents still prefer to hang their license in the office where they work, so it’s advisable to continue traditional practice in this area. Mr. Nelson is currently considering dedicating an agent to each office between the hours of 10 am and 3 pm to accommodate walk in clients, although walk-ins are not a major factor. Some suites have signage while other “building” regulations restrict the use of company signage. Nelson makes it very clear that the ability to have signage is by far the preferable situation.

Space Availability

Interestingly, Better Homes and Gardens Real Estate Executive has no issues with availability of conference rooms. Conference rooms are used exclusively for customer meetings, rather than conference calls or agents-to-agent meetings. In addition, many vendors (title, mortgage) allow sales agents to use their conference rooms for client meetings, freeing up even more space in Executive’s offices. Mr. Nelson also keenly observes that most real estate companies have policies preventing clients from entering the agent desk area and as a result, the difference in office size has little or no impact on the consumer’s experience.

Management Style and Climate in an “Executive Suites” model

Many independent contractors prefer to work without being micro-managed, so real estate companies need to develop balanced leadership styles. On the other hand, the situation is simplified by the fact that office politics all but disappear in this type of environment. Some practices that have worked well for Nelson include the following;

• Regular, formal communications keep agents informed of developments (new laws, tools and services) and take the place of traditional office meetings
• Agent phone numbers are displayed on every sign, drawing listing leads to the listing agents
• Company leadership is easily accessible via phone and e-mail, making communication quicker and more efficient

What’s next for Executive?

Keith Nelson clearly understands the need to continue his company’s evolutionary process by finding newer and better ways to serve the needs of consumers and agents alike. The next iteration of Better Homes and Gardens Real Estate Executive will include updating to office locations that possess a newer ‘look and feel’.  Building on the model already described in this blog, anticipated enhancements include;

• Signage for every location
• Agent coverage for a portion of the work day (10 am -3 pm) in every location
• Technology upgrades, and
• Increased availability of “non-formal” work areas

Posted by Robert Albanese in Next Generation Tags: Agents, Better Homes and Gardens Real Estate Executive, BHGRE, Blog, Brokerage of the future, brokers, Business Models, Clients, Communication, Economy, Executive Suite Model, Franchisors, Keith Nelson, Marketing, Next Generation, Office Locations, Office Space, Real estate, Seattle, Signage, Vendors, Washington