ERA Jones-Rutherford, Murney firms benefit from company acquisitions

The recent acquisition of several local real estate companies by ERA Jones-Rutherford has resulted in a far-reaching impact on the Springfield market.

Jerry Rutherford has transformed ERA Jones-Rutherford into one of the top real estate companies in the area. Rutherford has increased his market share by buying four real estate companies Rand Holland Realtors, Jones and Company Realtors, Century 21 Hometown Realty and Ash Real Estate.

For Rutherford, bigger is better.

"Bigger does mean better better service to our clients because there are more agents available to take care of specific needs; more support staff available to assist the agents; far more support for bigger agencies from franchise authority, not to mention the membership in a greater community (ERA/Cendant) means more exposure world wide for our company, our agents, and the clients. "Also, bigger agencies have a stronger tendency to stay on the leading edge of market trends, be it technology or fiscal trends."

Murney Associates also has reaped a windfall from the ERA purchases, as Murney has gained several top agents

"So far the ERA merger has had a very positive affect on our company," said Patrick Murney, owner of Murney Associates. "Nineteen top-producing Realtors with sales volume in excess of $50 million have transferred to Murney Associates, Realtors."

Murney Associates has added an annex at 1545 E. Primrose St. to house the agents. It is an additional 3,300 square feet of office space.

"It has been a reconfirmation of our business plan and also of how we treat our customers and agents," Murney said. "We've been able to create an environment for agents to grow their business with us.

"Even though a national franchise with large financial resources may offer certain benefits to some agents, we've seen that most agents still see a need to be affiliated with a local company that may be better in tune with their agents and customers." Other real estate compnies also gained experienced agents after the ERA Jones-Rutherford acqusitions.

Franchises vs. independents

The purchases helped secure a larger market share for ERA Jones-Rutherford, which has 220 agents and offices in Springfield, Ozark and Republic. Although Rutherford didn't wish to reveal his company's projected sales volume, he predicted his agency would be one of ERA's top 20 offices during the coming year.

"There is a great deal more synergy now," Rutherford said. "(There is) more ability to buy and sell property within your own organization, access to a greater range of resources internally and within the ERA Corporation, more ability to support training expenses and issues, more access to other ERA companies for referral business, and wider exposure throughout Southwest Missouri because of our new locations."

Rutherford, who started ERA Ruther-ford in 1997, said being part of the ERA franchise has its advantages. ERA is part of Cendant Corp., which owns a variety of companies that provide financial, hospitality, real estate, vehicle and travel services. Rutherford said he is able to offer his agents and clients a host of services through Cendant, which helps make buying and selling a home easier.

"I had a brand new agent who sold a $150,000 house the other day," said Rutherford. "He closed the deal by linking into Cendant's mortgage company, and the buyer was qualified within two hours."

Rutherford said ERA also helps him with training. In mid-March, he took 15 ERA agents to San Antonio for a convention and training seminar.

Agents who wish to get additional real estate designations also can take advantage of ERA's online training programs. In addition, Rutherford employs an ERA-certified trainer for new agents.

ERA also provided Rutherford support and training when he purchased other brokerages.

"The resources I get from ERA are unsurpassed," said Rutherford. "When I purchased Jones and Company, ERA brought in some trainers who helped make the transition for the agents friendly and workable."

Still, not every Realtor wants to work for a franchise.

According to Brenda Ellsworth, president of the Springfield Board of Realtors and owner of a franchise office of United Country Suburban Brokers in Ash Grove, some agents jump ship when their brokerage is bought out by a real estate franchise.

"A lot of people just don't see the benefits of a franchise," said Ellsworth. "They just see the regulations and the extra fees."

Murney said he regularly receives calls from real estate franchises that are interested in affiliating with his company, but he always declines their offers.

"I view being independent as a positive," he said. "Being independent gives me a lot more freedom to operate as I see fit for our community."

Murney said business at his company has increased by 58 percent since 2000, and his company saw a 20 percent increase in business from January 2002 to April 2002, as compared to the same period in 2001.

Technological changes

While not every company was directly affected by the ERA acquisitions, all companies have to continue to adapt to a changing field.

When Carol Jones, president and founder of Carol Jones Real-tors, began selling real estate in 1966, she didn't need a lot of equipment. She didn't need a digital camera to take pictures of the properties she was trying to sell. She didn't need a laptop computer so she could log onto the Internet to check the Multiple Listing Service. She didn't even need a mobile phone.

Jones didn't need these devices because they didn't exist. Real estate agents today, however, can't survive without these tools.

"It's so expensive to run a real estate company nowadays," said Jones. "You need all of these computer systems to stay competitive. ... It's expensive."

Jones said she currently employs one full-time computer specialist to maintain the company's computer network and teach new agents how to use various software programs.

She also has another full-time employee who handles newspaper ads and posts digital images and information about properties that are for sale on the company's Web site.

"When I first started out, you could just open up an office, get some For Sale' signs, and you were in business," said Jones. "You can't do that anymore. It's so expensive now to open and run a real estate office."

Commission splits

Another area of change is in commissions. Jones also said she believes brokerages in the area have had to become increasingly competitive to attract and retain the best agents.

"The trend I see right now has to do with commission splits," said Jones. "The agents are asking and getting more on their commission splits with the brokerage than ever before, and if they don't get the commission split they want, they go to another brokerage."

The trend towards Realtors receiving higher commission splits also is being seen nationally. In recent months many real estate industry publications have profiled brokers who have developed creative compensation plans. Most of the plans are hybrid plans, which see agents receive a smaller commission along with a fixed salary.