Elders is one of Australia’s most experienced agencies and its business model sets it apart from other agencies in the market, says its general manager.
Tom Russo, general manager of real estate, said that Elders is a true real estate company as opposed to a franchise company.
“The distinction is important. Put simply, we put our money where our mouth is and actively invest in a large network of company-owned real estate agencies,” the GM said.
Mr Russo said that 75 per cent of their revenue came from agencies they owned and operated.
“We don’t just expect our franchisees to take the operation risk at coal face; rather we are investing in the industry alongside them and consequently have a real understanding of the challenges they face and the opportunities they have,” the GM said.
Mr Russo explained that Elders is one of few companies to not only be a major ASX agency but also one of the few Australian businesses that can genuinely claim to be the custodian of a truly iconic brand.
“The independent research we have commissioned supports this and demonstrates a level of brand recall and trust which would be the envy of most Australian businesses,” Mr Russo said.
What this meant for owners and their network was an unrivalled culture and network, the GM added.
“We have access to network relationships and access to national buyer pools, experience and expertise in residential and rural real estate across all regions of Australia,” the GM said.
Not content to rest on their history, Elders Real Estate grew by 15 per cent last year and they expect similar growth this financial year.
Mr Russo said that they would continue to acquire quality agencies in established and high-opportunity growth markets.
“Typically, we are looking for businesses of scale, for example, large rent rolls of at least 600 properties and substantial sales teams. Above all, the business must be a good cultural fit for Elders,” the GM said.
A good example of that was a recent acquisition in Bunbury, Western Australia.
“This is an outstanding business anchored by a significant property management book and holding a market-leading position built by a quality sales team,” Mr Russo said.
Moving forward, Elders will continue to expand their franchise network and their home loans business.
“We will grow in adjacent areas such as Elders Home Loans, which is a start-up mortgage broking business that is growing rapidly,” Mr Russo said.
“We are also launching a new Elders Real Estate website in mid-2018 which we consider will be the best network website in Australia.”