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Concern, excitement over purchase of Realty One by Howard Hanna
By Elizabeth Weinstein
Staff Reporter
"Is it true?”
That was the first thought Jeffrey Young, a realtor-broker with Keller Williams Realty in Greater Cleveland, had when he heard the news that Howard Hanna Real Estate Services, the region’s largest real estate brokerage, had bought Realty One, a top competitor. As a result, Howard Hanna now owns a large share – about 37% – of the sales market in 20 counties of Northeast Ohio. Sales agents from both companies received the news via e-mail Sat., Nov. 1.
Like many local realtors, Young had heard rumors of the acquisition for some time, but was surprised when the rumors were confirmed. While he thinks it probably won’t have much impact on Keller Williams’s business, he can imagine “what a shock it must be for Realty One agents.”
Val Bendersky, president of V S Realty Group, in Woodmere, was also “a little surprised that the two biggest companies would buy each other out,” he says. Though Bendersky doesn’t think the deal will significantly impact local consumers, he says it could be a positive development for smaller and medium-sized realty companies like his. With fewer larger companies to turn to, consumers might turn instead to smaller and medium-size competitors for the personal attention and service the latter two provide.
“I don’t think bigger is always better,” adds Barbara Glick, a real estate agent with Coldwell Banker Hunter Realty, in Beachwood. “I think that my customers get more attention being listed with a medium-size company instead of a mega-size company… It’s nice to have that personal touch.”
Glick predicts that sellers are “going to be challenged by whether or not they want to be part of this big conglomerate, or if they’d rather get the personal attention of a smaller company.” She also says she knows of “a bunch of people” who left Howard Hanna to work for Realty One and who “are now being forced to go back to Howard Hanna” – a move that might not sit well with them.
At the former Realty One’s Pepper Pike location, brokers say the mood is mostly positive – a mix of anticipation, excitement and some anxiety about how things will play out logistically.
“My first reaction when I heard the announcement was one of complete disbelief,” says broker-associate Sharon Friedman. “We were a powerhouse as realty went – a leader in the industry as well – and just, like, how could this happen? But, seeing what’s happening around us in the economy, with other national entities like National City Bank (being sold), it’s a sign of the times.”
However, she adds, “Any trepidation I had seems to have been quelled” after meeting with management.
“We’re here for the long term,” says Howard “Hoddy” Hanna, president and chief executive of Howard Hanna. “This is our business. This is our family’s life. This was an opportunity to acquire a great real estate company and make it part of the Howard Hanna brand.”
“We’ve always been very personalized,” Hanna adds. “That’s not going to change because we have more agents.”
With more employees, resources, listings and products to work with, Hanna expects that the company will increase its advertising and marketing campaigns, making the Howard Hanna brand “even more substantial than it has been.”
Howard Hanna branch offices in Elyria and Canton will combine into a centralized location, he adds, but for the time being, the Rocky River and Pepper Pike offices will both remain open.
Ultimately, a company is only as good as its people, Realty One’s Friedman says. “Some agents are nervous. Change is difficult – the uncertainty is always difficult. But it’s all about the relationships with people.”
eweinstein@cjn.org
That was the first thought Jeffrey Young, a realtor-broker with Keller Williams Realty in Greater Cleveland, had when he heard the news that Howard Hanna Real Estate Services, the region’s largest real estate brokerage, had bought Realty One, a top competitor. As a result, Howard Hanna now owns a large share – about 37% – of the sales market in 20 counties of Northeast Ohio. Sales agents from both companies received the news via e-mail Sat., Nov. 1.
Like many local realtors, Young had heard rumors of the acquisition for some time, but was surprised when the rumors were confirmed. While he thinks it probably won’t have much impact on Keller Williams’s business, he can imagine “what a shock it must be for Realty One agents.”
Val Bendersky, president of V S Realty Group, in Woodmere, was also “a little surprised that the two biggest companies would buy each other out,” he says. Though Bendersky doesn’t think the deal will significantly impact local consumers, he says it could be a positive development for smaller and medium-sized realty companies like his. With fewer larger companies to turn to, consumers might turn instead to smaller and medium-size competitors for the personal attention and service the latter two provide.
“I don’t think bigger is always better,” adds Barbara Glick, a real estate agent with Coldwell Banker Hunter Realty, in Beachwood. “I think that my customers get more attention being listed with a medium-size company instead of a mega-size company… It’s nice to have that personal touch.”
Glick predicts that sellers are “going to be challenged by whether or not they want to be part of this big conglomerate, or if they’d rather get the personal attention of a smaller company.” She also says she knows of “a bunch of people” who left Howard Hanna to work for Realty One and who “are now being forced to go back to Howard Hanna” – a move that might not sit well with them.
At the former Realty One’s Pepper Pike location, brokers say the mood is mostly positive – a mix of anticipation, excitement and some anxiety about how things will play out logistically.
“My first reaction when I heard the announcement was one of complete disbelief,” says broker-associate Sharon Friedman. “We were a powerhouse as realty went – a leader in the industry as well – and just, like, how could this happen? But, seeing what’s happening around us in the economy, with other national entities like National City Bank (being sold), it’s a sign of the times.”
However, she adds, “Any trepidation I had seems to have been quelled” after meeting with management.
“We’re here for the long term,” says Howard “Hoddy” Hanna, president and chief executive of Howard Hanna. “This is our business. This is our family’s life. This was an opportunity to acquire a great real estate company and make it part of the Howard Hanna brand.”
Hanna expects that the company will increase its advertising and marketing campaigns.
As a result of the deal, he says, brokers and agents at Realty One will now have access to more products to improve their business, such as the 100% money back guarantee Howard Hanna offers buyers for most of its listings.“We’ve always been very personalized,” Hanna adds. “That’s not going to change because we have more agents.”
With more employees, resources, listings and products to work with, Hanna expects that the company will increase its advertising and marketing campaigns, making the Howard Hanna brand “even more substantial than it has been.”
Howard Hanna branch offices in Elyria and Canton will combine into a centralized location, he adds, but for the time being, the Rocky River and Pepper Pike offices will both remain open.
Ultimately, a company is only as good as its people, Realty One’s Friedman says. “Some agents are nervous. Change is difficult – the uncertainty is always difficult. But it’s all about the relationships with people.”
eweinstein@cjn.org
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