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Michigan's Largest Flat Fee Company Speaks Out on Misconceptions and REALTORŪ Relations: A Talk with Greater Michigan Realty's Gary Moody
Mention "flat fee brokers" to most full-service REALTORSŪ and the eyes roll and the outward signs of distaste emanate by body language or through words. The theory by some, is that the flat fee or limited service folks are stealing listings from full-service agents and unknowing homeowners and they're not doing what they say they are. We've published a number of stories lately on how to counter the flat fee brokerages thought it was a good time to find out who these people are and let them speak for themselves. Gary Moody has the fortune of being married to Denise Moody - an aggressive broker who last year, according to Gary, racked up more than $60 million through her Greater Michigan Realty, based in Rochester. Gary, who runs the business end and is a web designer and marketing wiz on the side - knew he was potentially walking into hostile territory by talking to a newsletter geared towards the "full service REALTORŪ", but agreed to talk to us anyway and set the record straight from his vantage point.
So why go this route instead of opening a traditional brokerage?
Gary Moody: We were a customer three years ago of a flat fee agent who didn't have the slightest idea what she was doing and was totally incompetent. I thought that what she was doing was horrible compared to the potential of running a flat fee brokerage and doing it right. My wife is a licensed REALTORŪ and within six months we put those poorly run flat fee companies out of business. We became the largest of all of them.
How do you handle the criticism from full service REALTORSŪ?
Gary Moody: When I get blasted by traditional REALTORSŪ, I want them to know that I'm not touching their customer base. I'm only targeting the For Sale By Owner (FSBO) market and those people would never list with them anyway. Frankly, I'm turning them into a revenue stream for everyone. My wife closed over $60 million last year and generated $1.8 million of revenue to the full-service Real Estate community. We're the best friends of them.
Aren't you in fact stealing FSBOs from REALTORS?
Gary Moody: It's all speculation. If you talk to my customers, they can't afford to pay them. Every percent they pay comes out of their pocket. These people are hurting. If they don't need the service why should you pay for it? It's no different than breaking out the pricing for your cable bill. Why should you pay for more than you need?
So what differentiates your service? How do you cut costs?
Gary Moody: We look at the industry from a totally different basis, especially the marketing. We embrace the internet and don't buy anything else. We don't believe ads in newspapers sell houses. The key is getting it properly listed and priced - that's what sells the houses.
What in your background has lent itself to your current success level?
Gary Moody: Both my wife and I have MBAs from Wayne State. This is just something that came to us when we had a baby on the way, my Dad was seriously injured in an accident and Denise was tired of working at GM. The opportunity presented itself and off we went. Now I'm cookie-cutting technology across the nation to help others do what we're doing.
What do you see as the future of your type of business?
Gary Moody: I really think that down the road, the big boys (large full-service Realty companies) are going to realize the type of money we're making and buy us out. I'm not sure I should say that, but I believe it's true.
How do you change the reputation of limited service brokerages like yours?
Gary Moody: Listen, we're doing good business. My wife had 500 listings last year - the average in the full service industry is 25. What we're doing is ethically right and I know there are other stories out there about unethical flat fee companies, but we've never done anything illegal.
Editor's Note: Gary Moody testified last week in Lansing against State bills 4849 and 4850, which would essentially put him out of business. We'll look at both of those bills and update their status in next week's edition.