Realty Executives Real Estate Ltd., Brokerage
Realty Executives Real Estate Ltd
Realty Executives is one of the most closely followed real estate franchises in the world. In 1965, the company first drew attention as the originator of the 100 percent commission concept. Today, phenomenal franchise growth and a unique franchise development strategy are creating even more interest in Realty Executives.
Since its dramatic beginning in Phoenix, Arizona, more than 44 years ago, the company has become one of the fastest growing franchises in any industry. Publications like Entrepreneur, Success and Inc. Magazine have recently ranked Realty Executives as a leader based on such criteria as franchise growth, management stability and financial soundness. Realty Executives only began its aggressive franchise expansion in 1987. In 1988, there were 31 franchises and just 624 agents. Today Realty Executives has thousands of Executives in countries around the world. Our broker/owners are adding professional, top-producing Executives every day, continuing our aggressive growth. For the home buying and home selling public, the news is even better. Because Realty Executives attracts professional and experienced real estate marketers to the company, the ultimate winner is the consumer who chooses the services of an Executive.
But, how did it all begin?
"To understand the difference between us and other companies you don’t need to look any further than the sign.”
The year 1965 was a time of change. People were taking a long look at the world around them and trying to find new ways of making a difference. One of those visionaries was Dale Rector, a REALTOR® practicing in Scottsdale, Arizona.
By the 1960s, Dale Rector was a real estate professional who had worked for traditional real estate firms in Colorado and in Arizona. But he was unhappy. He had a number of grievances that weren't easily solved:
In residential real estate, the top 20% of the agents regularly do an estimated 80% of the business. The standard fee and commission structures treated everyone equally even if there were vast differences in their performance. The result was that someone who sold one home a year was treated equally to someone who worked harder and smarter and sold ten homes a month. Somehow, Dale thought that didn’t seem right. Dale didn't sit still or complain for long. He opened his own split-commission firm. Soon he found himself becoming overly involved with the administrative duties essential to a smoothly run office. He also had to relinquish the selling time he had always enjoyed. Not surprisingly, Dale found his top sales associates frustrated with the split-commission system for the exact reasons he had been. Eventually, some would leave his office just as Dale had done earlier in his career.
The industry needed a change. How could he ensure that the top producers could work free from administrative duties and unburden the office of deadwood?
Dale set out to create a company that would literally turn the industry upside-down. Most companies were designed as complex levels of management and stockholders with income-producing agents occupying the lowest tiers. Dale’s company would recruit top performers with the best reputations and place them on top and build a company structure that would support their efforts. He named his company “REALTY EXECUTIVES.”
“To understand the difference between us and other companies you don’t need to look any further than the sign,” Dale said. “The company is named for the Executives and brokers that make it work. They are the elite professionals who personify the values, service and efficiency it takes to become tops in their field. They are more than agents or brokers. They are ‘Executives’ in every sense of the word.”
“Our company promotes our Executives as individuals to help them create the name recognition they need to grow their business.”
Additionally, each Executive’s name appears on the sign in big bold letters that often appear larger than the company logo. “Our company promotes our Executives as individuals to help them create the name recognition they need to grow their business. It’s not about us. It’s about them,” Dale added.
From the onset, Dale faced stiff resistance from the old guard that didn’t like the idea of putting their agents before their company coffers. But among the top agents, REALTY EXECUTIVES was turning heads and gaining interest. From the very beginning, the bar was set very high.
“The key was that we were very selective in who we hired. Being a high-volume producer was not enough. Our people also had to meet the highest ethical standards because the company’s reputation would be built on every transaction. In the beginning, their early success formed a die from which every associate would be cast as the company grew.”
Grow it did. From a single idea, REALTY EXECUTIVES has flourished. In 1987, REALTY EXECUTIVES International began to offer franchises to broker/owners across the country and around the world. These franchises meet the same rigid criteria established during Realty Executives humble beginnings. “Although we now have offices in every corner of the globe, we are still a relatively small company compared to many of our competitors. And that’s fine by us. After all, Dale didn’t set out to create the world’s biggest residential real estate company...just the best.
Dale Rector became the first man in North America to open a 100 percent commission office, Realty Executives. The concept, revolutionary at the time and now widely copied, was quite simple: Sales associates receive 100 percent of their commissions. Associates would share equally in office expenses. Offices would be coordinated by a full-time broker, whose salary was paid by the associates. The concept caught on. By 1972, the pilot operation in Phoenix, Arizona was producing the highest volume of all competitive independent real estate firms. By the 80s, with greater expansion, volume totaled more than the competitive national franchise firms in the area.
Each year, sales volume and the number of associates have grown - proof of the concept’s wide acceptance and success. Realty Executives rapid growth is no surprise. Give professional sales associates an environment where they can concentrate on what they love to do - sell - and they will get results.
Through Dale Rector's vision and dedication to his new concept, the real estate industry has experienced a major change an alternative to traditional operations that have hindered the real estate profession for many years. Realty Executives has revolutionized the real estate industry by focusing on the needs of the real estate Executives.
Today, the vision of our future is guided by Rich Rector, Dale Rector’s son. Rich is the current president and owner of Realty Executives International.
President & CEO, Richard A. Rector
Richard Rector has served as president of Realty Executives Phoenix since 1980 and as president of Realty Executives International since 1984. As an instrumental leader of Realty Executives International and its franchises, Rector is responsible for managing the strategic development and growth of the international company.
Four years after being named president, Rector purchased Realty Executives International from his father, Dale Rector.
The “spirit” of REALTY EXECUTIVES can best be described as that special spark we all have in common. Back in 1965, the spark took the form of an idea that started this very company. Today, it lives on in the integrity, leadership and ingenuity that exists in every office around the world. It drives us, inspires us and motivates us to achieve new levels of success. If you have that spark, And here at REALTY EXECUTIVES, it can light your way to a very bright future.
There’s nothing like the feeling of being in charge of your own destiny. There’s a sense of confidence in knowing that your only limitations are the ones you place on yourself. At REALTY EXECUTIVES, we never want you to lose that feeling. Our company is designed to support your efforts so you have more time to do what you do best, help people buy and sell real estate. It’s the best of both worlds. You’ll always feel like you’re in charge of your own destiny but you’ll never feel like you're going it alone.
