Louis F. Francis, president and chief executive officer of United Country Real Estate headquartered in Kansas City, Missouri, has spent his entire 33-year real estate career with United. He and his partners, Don Sprague, COO, and Carl Hopkins, CFO, purchased the organization in 1990 while all three were senior managers of the company. Much of United’s success has occurred since 1997 when they introduced the United Country franchise program.
United Country is the only national franchise system specializing in small town and rural America. The company’s heritage dates back to 1925 when United Farm Agency was founded. The company produced the very first catalog ever used in real estate marketing and the original 1928 edition is housed in the Smithsonian Institute.
Under Francis’ leadership, United Country has developed a host of unique marketing services designed to meet the special and specific needs of real estate brokers in small cities and towns found in rural America, including the publication of a national full-color catalog, a catalog of historically significant real estate known as “American Treasures,” and a variety of real estate samplers and bulletins. United Country also hosts an award winning web site at unitedcountry.com that features the entire listing inventory of its franchise system, which attracts nearly 16,000 visitors a day. The site uniquely offers the public the opportunity to search nationally by geography, acreage size, price and property features.
United Country operates a national franchise system that today numbers more than 365 office locations in 34 states.
You can reach Lou at lfrancis@unitedcountry.com.
The marketplace looks somewhat different in rural America than it does in urban areas. Many of the changes that have occurred in the last few years in urban markets are now finding their way to rural America. Paradoxically, however, the need to expand market opportunities for the rural real estate broker has driven progressive companies to embrace the Internet, perhaps faster than “mainstream” urban brokers. I think it was Socrates who said, “The only constant in the universe is change.” Technology drives change and, as technology emerges, I expect those innovations to find their way into our industry.
I continue to read about the changes that NRT and other industry giants are making to the real estate landscape; however, ownership in and of itself does not drive change. Technology and the way we as an industry interface with our customers and clients are the true hallmark of change. It seems to me that the technology companies—which then affect the E-Bays and Yahoo players of the world—are going to drive real change. I say this, knowing that I’m the first person in the world to stand on my soapbox and state that computers don’t sell real estate; however, they do give a strong advantage to those who understand technology and embrace it as part of their corporate culture.
Besides my partners, Don Sprague and Carl Hopkins, our organization has been influenced by the likes of Steve Murray and the Buffini brothers. I have been impressed with the leadership that John Bearden has brought to GMAC. I think Ed Krafchow is a straight shooter and demonstrates his leadership in tangible ways for his organization.
The emerging real estate consumer has become better educated and techno-saavy. Those who communicate via e-mail often hit the send button and then stare at the screen expecting to see an immediate reply. Because many of the consumers that move to rural America are from urban markets, they come expecting services to be available through their “country broker.” The fact that sales volumes in more rural areas sometimes cannot justify the inclusion of ancillary services has forced many rural brokers to merge for economies of scale or to purchase—or at least consider to purchase—franchise relationships that will provide those services to their customers and clients.
The operative word here is “immediately.” Since consumer expectation is an ever-changing intangible, it is the brokerage firm and Realtor association responsibility to be listening very closely. Because technology will continue to define change, we must have systems in place that monitor the mood and the desires of the buying and selling public. The best we can hope for is that our response to those changes are swift. The time lag will continue to define the difference between success and failure.
In our ever-changing environment, profitability at the brokerage level is defined by leadership, technology and, most importantly, people. The trick to technology is being tuned in to the point that the firm walks the delicate line between the leading edge and the bleeding edge. Operators must be willing to invest in technology, but do so in a fashion that allows people to be more productive without breaking the bank. Far too often, brokerage firms invest in the latest chip, the latest program, etc., without establishing in real dollar terms the return for the company. Investing in leading edge technology requires significant investigation prior to the leap of faith. And no investment in technology is of any worth unless the people are in place to take advantage of that technology. The changes that are required for broker profitability in the future are the same changes that were required of brokerage firms in the past. And that is, the simple understanding that one must create an environment for success, opportunities for people to succeed, and then quickly discern who will prosper and flourish given the environment and opportunity while being willing to part with those that don’t see the vision.
I don’t believe it is the role of the Realtor Association/ MLS to ensure Broker profitability. If it is, there are a whole lot of lawsuits that should be filed. Rather, I believe it is our Association’s responsibility to provide educational and training opportunities, and to provide platforms upon which networking can occur.
In recent years, one of the greatest challenges to our industry (and unfortunately, some of it has come from within our own ranks) has been levied on our value to the transaction. We must be vigilant as an industry to focus on our relevance to consumers by promoting at any opportunity our value to society. We are professionals. The doctor, lawyer or accountant never apologizes for the fees they charge. There’s a popular saying that goes something like, “This isn’t brain surgery.” Well, I contend that it is brain surgery! The care and personal attention that we must give a young couple buying their first home is important and delicate work. The advice and counsel we give in working with a family estate selling property that perhaps has been owned by that family for generations requires a special touch. And just as the physician heals, the lawyer advises and the accountant calculates, we must understand that what we do is and important and necessary service in the markets we serve. Understanding this importance is a key ingredient to confidence, and confidence creates value. There are no shortcuts to service. Therefore, our value to the transaction is justifiable and reasonable.
