Scott McDonald: A few, yes, I’m happy to say. Our sales are up 70 percent for us in the first six months of this year over total sales in 2012, so there is certainly cause for optimism in our market—and, in fact, we’ve just opened another office to handle the increasing business. But at the same time, we’ve made adjustments and cost reductions over the past two years that we expect will continue to keep us on track even as the market expands…revising our commission schedules, for example, to bring them more in line with local standards, and setting up a property management division to handle rentals for investors.
LP Finn: I think the key to sustaining profitability is understanding your business model. A company has to be in balance—commission dollars paid out, percentage of revenue dollars retained, expenses for the things you need to offer. As the market pendulum swings back today and sales are more robust, we need to increase market share and transaction volume, and focus on recruiting efforts. But we don’t want to be looking at a lot of shiny new toys that would put our expenditures out of line.
Jason Waugh: We’re putting an emphasis on training in our company, because agents need to not only focus on building relationships and expanding their business, but also on helping buyers and sellers understand how fast and how far the market has changed and how important it is to be realistic in today’s real estate environment. So while our cost controls are easing, we’re taking a hard look at the resources we have in place and the projected return on investment for any outlay.
Jeff Barnett: Sounds like you’re advocating keeping a tight rein on new expenses.
