original article from http://www.brokeriptv.com/kentwood-leads-with-quality-over-quantity
Peter Niederman and Bill Moore acquired Kentwood Companies which is one of the most profitable and productive real estate offices in Denver Colorado as well as the Nation.
BrokerIPTV : We are talking with Peter Niederman today, the Chief Operating Officer for Kentwood Companies and Peter congrats on your acquisition of Kentwood. Talk a little bit about that decision.
Peter Niederman: Most exciting to be back in the Real Estate Business. We were in the business through our family run company of 67 years. We sold that in 1998 and we messed having our own companies, so we decided to enter back in and we were after the quality and that’s what we decided on the Kentwood Company.
BrokerIPTV : In ‘06,
Kentwood
did 1.3 billion roughly in total sales over a 150 brokers. How has the broker population either expanded or changed since you have taken over?
Peter Niederman: We have just shy of a 155, 160 brokers right now, and we were on track to do 1.6 billion in sales this year, so year over year where you are going to be to the positive and we are excited with our growth.
BrokerIPTV : I was going to ask you, that is the overall projection for 2007 above 1.6?
Peter Niederman: Just shy of 1.6 and we are on track to do that.
BrokerIPTV : Now on a national level about 70% of the sales force has actually never even seen a down turn in the Real Estate Market. What are you telling your brokers here about getting through a cycle like this?
Peter Niederman: Well, we need them to focus on what needs to be done as far as marketing homes and finding the right home for buyers and too many times people lose that focus and we are primarily a seasoned brokerage company, our brokerage average in excess a $10 million, so it’s not like we have to retrain our brokers on what to do in an up market or down market.
BrokerIPTV : Typically you go after seasoned brokers and I imagine that’s by design.
Peter Niederman: That’s correct, in the last five months since we have purchased the company, we have hired 14 brokers in excess of a 135 million in 2006 sales which has been wonderful for the expansion of our company.
BrokerIPTV : Is a couple of models out there I mean some people say well if we hire a new brokers coming in and we train them, we have got a higher profitability, then if we do have a seasoned agent with the higher commissions paid, your thoughts.
Peter Niederman: My thoughts are you hire the right brokers that fit our business model, we are after the quality, the brand, the recognition, the service. There is many different types of brokerages that you can run and we just have to pick, we happened to pick one and want to continue to operate the highest and most productive sales team.
BrokerIPTV : Some people have predicted the death of the large traditional brokerage house. What are your thoughts on that?
Peter Niederman: Well I am not too sure that they are necessarily going to go away. I think what’s going to happen is the middle tear broker who doesn’t have a niche or have an identity. It’s probably the most at risk, the larger brokers that are higher end brokers that are reducing their bricks in mortar, there pretty more bodies into one office, just look confer any type of production out of those people who has reduced cost. The middle broker they are not a large broker, they are not a niche type broker, they are kind of at a loss.
BrokerIPTV : Peter, thanks for joining us, great talking with you.
Peter Niederman: Your path, thank you Dan.
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