History of Realty Executives

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 35 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? Dale Rector is the visionary who founded Realty Executives.
By the 1960's, 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: a) His commission splits were used to train and support new recruits, rather than provide him with new and better support services. b) Inexperienced floor people were encouraged to respond to inquiries on his listings. c) He was expected to spend valuable field hours on office work. d) He was required to share commission checks on his own property purchases with the broker. e) He had no advertising control over his own listings.

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 also free the office of deadwood?

In 1965, Dale Rector became the first man in the nation 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.

To understand the difference between us and other companies you don’t need to look any further than the sign.”
 

A Company Unlike Any Other
So he 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.”

The Differences are Obvious
“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.

People Before Profits
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,” Dale noted.

And grow it did. From a single idea, REALTY EXECUTIVES has flourished. In 1987, REALTY EXECUTIVES International began to offer franchises to broker/owners from across the country and around the world that met the same rigid criteria established during their 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.