Franchise Pays Off For Real-estate Agency Owners

Reeces' ‘overnight success' took 16 years

(Sunday, November 11, 2007) - What attracted you to the business?

Lori Reece and co-owner Dean Reece were real-estate agents who wanted to own a real-estate agency. They didn't want to reinvent the wheel. Even so, deciding to purchase a RE/MAX franchise in 1991 was a big step, she said. They started with eight agents and the kitchen counter as a desk. The four offices of RE/MAX Whatcom County exceeded $300 million in sales in 2005 and 2006.

What training and experience did you have?

Lori Reece earned her real estate license in 1980 after graduating from Western Washington University with an undergraduate business degree. She worked in banking and real estate development and management before earning a broker's license. Dean led the sales team and she managed the business. "We complemented each other's strong points," she said.

What was your vision?

"We wanted to build a company based on what a real estate company should be," she said. They wanted to operate a real estate business that would treat customers the way they would want to be treated as customers — ethically and professionally. They admired the business model created by Dave and Gail Liniger, who founded RE/MAX International in 1973. The Linigers remain at the helm of the parent company, which operates from 6,200 franchised offices in 63 countries. The Reeces purchased the first RE/MAX franchise north of Seattle.

Did you customize the franchise?

They took the franchise information and fitted it to the local market. After opening their central Bellingham office they opened smaller offices in the surrounding area to specialize in rural and recreation properties. The RE/MAX merchandising model helps agents in diverse locations work together in assisting clients who are relocating. "It's like being in business for yourself, but not by yourself," she said.

How did you stay on course?

Lots of hard work and personal investment. "We worked 10 years and never took more than two or three days off at a time," she said. The hard work paid off and they now have time for travel and other leisure pursuits.

Your biggest obstacle?

Overcoming the naysayers who said it couldn't be done. "Starting a franchise wasn't easy. It involved an incredible amount of work and sacrifice. The odds were against growing to this size and market share," she said. Owning and operating real estate offices calls for wearing many hats, everything from training staff to doing daily financials.

What changes stand out?

The Internet changed real estate. Clients used to contact an agent to view listing books. These days, they've often done preliminary online research. "We've stepped up other services to better serve our customers," she said. This includes staying on top of a changing real estate market to offer current information, giving more customer support and partnering with Wells Fargo to provide mortgage services.

What's new?

Doubling the capacity of the Ferndale office and maintaining a small Point Roberts office in anticipation of more investment in Whatcom real estate by Canadians enjoying an economic boom. She also added an in-house technology support department. "I'm not afraid to take a risk. The key to growth is taking risk along with following good basic business practices," she said.

What's ahead?

Staying out in front in a changing market. She teaches classes and brings in experts to keep agents abreast of the market. Real estate is cyclical, so the emphasis now is on training and assisting agents to make adjustments and serve their customers, she said. Reece laughs when people say the business was a sudden success. "It was an overnight success that took 16 years. It was a wonderful journey and I'm looking forward to the future."

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