J
essica Edgerton, chief legal officer and EVP at Leading Real Estate Companies of the World, believes regional and family brokerages can excel by adapting quickly to market changes and prioritizing culture and trust. Key factors contributing to their success include:
Local and family-led firms often operate with a "founder's mentality," free from corporate bureaucracy and shareholder pressures, allowing them to pivot swiftly in response to changing market conditions.
Regional brands that focus on building strong company cultures tend to have higher employee retention rates and satisfaction levels compared to larger corporations.
Smaller, local companies are more likely to engage in community activities and charitable giving, fostering trust with their customers and the wider community.
Despite consolidation in the real estate industry, Edgerton argues that independent brokerages can still thrive by leveraging their regional brand recognition. She notes that smaller firms can react more quickly to market changes than larger corporations, which are often weighed down by management bloat and shareholder expectations.
Edgerton cites research from Harvard Business Review, highlighting the benefits of a "culture-first approach" to growth, including higher revenue growth and lower employee turnover rates. Companies with strong cultures also tend to have higher levels of customer satisfaction, particularly among family and regional brands.
In addition, Edgerton points out that smaller businesses are more likely to give back to their communities, with 76% of local charity funds coming from family and local brands. This not only fosters trust but also demonstrates a commitment to the community, which is essential in real estate where relationships and reputation are paramount.
Ultimately, Edgerton emphasizes that culture, retention, and trust are key attributes of successful family brands, and that consumers will continue to prioritize these factors when choosing a real estate company.
