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Staff Reporter
Professionals Real Estate Group said its decision to enter the US market in August is proving to be a success, based on the new offices it has already opened and its ability to attract local management talent.
“We have successfully opened our U.S. head office, secured an experienced management team including some key executives from a rival agency, signed up our first offices and we are now hopeful of securing a rush of deals in early 2012,’’ Professionals’ chief executive Glyn Morgan said.
The Professionals also pointed to the inclusion of Mr Morgan and US director Jeff Turner on the Inman Publishing’s top 100 influential people in the US real estate market list as further proof of their early success.
Mr Morgan said he believed Inman had recognised that the Professionals' flat fee model had the potential to "revolutionise" the US real estate market.
“Our fixed-cost membership model means that once an agency is performing strongly, the agency owner is much better off switching their operation to the Professionals brand,’’ said Mr Morgan.
“Agency owners in the US are finding our model very attractive because it provides for more upside with better performance.
“In the US, franchisees for the other chains are paying fees per agent and a percentage on their sales while under our model the agents only pay their membership fee, which gives access to a whole suite of service offerings."
Mr Morgan believes the US real estate model has many similarities to the Professionals' Australian model, which has made the transition simpler.
“The main difference will be that the Australian-based Professionals Real Estate Group will retain a major stake in the US membership group whereas in Australia it is 100 per cent controlled by the members,” said Mr Morgan.
“If the US operation grows to the level we expect it to, it will have substantial benefits for our Australian members.”
“While there is still substantial scope for further expansion of the Professionals network within Australia, we also want to build a sound foundation for growth in the US market."
The Australian-based company has more than 300 offices through Australia, New Zealand and a number of Asia-Pacific countries.
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