Press Release

After Change in Franchise Affiliation, Brokers Battle for Agents

Rarely do brokers fight for agents in such a dramatic way. But the deep downturn in Arizona's real estate market set the stage for the bad blood that emerged between Realty Executives and a former franchisee.

(Boonton, NJ, June 1, 2010) — In one conference room at a hotel in Tucson, AZ, broker Anthony Azar told his agents about the superior services they'd enjoy as a result of his switch from Realty Executives to Keller Williams Realty. In the hallway outside stood two officials from Realty Executives, who told agents they could stay with the company if they wished. The Realty Executives representatives even directed agents to another conference room at the same hotel.

How did the situation escalate to this point? Realty Executives was unwilling to give up its market share in Tucson and Azar had let down his guard.

Realty Executives Chief Executive Officer Glenn Melton says he was able to recruit dozens of agents from the former franchisee in large part because the broker didn't communicate effectively. "As business conditions got worse, he communicated less and less and less," Melton says in the June issue of industry newsletter Real Estate Broker's Insider.

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