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Real Estate and Home Improvement Franchise Report 2014

Real Estate and Home Improvement Franchise Report 2014

People often think the real estate and housing market is economy-dependent because it usually mirrors the cycle of the economy in its ups and downs. As true as this might be, everyone needs housing regardless of the current state of the economy and they tend to seek the very best options that fall within their current financial means.

To enter the housing market, finding a residence is the first step, and real estate franchises have a long record of assistance and expertise in this area.

Real Estate FranchisingReal estate franchises mainly handle the buying and selling of residences and take various forms, including:

  • Brokerage
  • Home flipping
  • Home inspection
  • Leasing
  • Property management

According to the National Association of Realtors, the population of real estate sales agents is evenly split between independent and franchised companies. On the contrary, only 40% of Realtors reported an affiliation with a franchised company, with 56% reporting an affiliation with an independent company. Thus based on these reports, most brokers and broker associates are actually associated with independent, non-franchised companies (62%).

While many of these professionals opt to practice real estate independently, the advantages for real estate franchisees are many when compared to independent operation. They include brand awareness which helps establish trust with potential clients, lead support, training, marketing materials, assistance with transactions, access to specialized software, networking opportunities and much more.

The real estate and housing market is showing signs of continued improvement following an extended downturn. In early 2014, Conference Board, a non-profit business association, found the percentage of consumers who intend to buy a home was at its highest since 2000.

Real Estate FranchisingIn addition, sales figures are pointing to a stable rebound in the market. In the past year, sales of existing homes and condos rose 11%—nearly the highest level in four years—with the National Association of Realtors expecting sales to remain consistent. Two more factors pointing to a positive outlook are market observations predicting a rise in home prices, a typical sign of a stronger real estate market, and a decrease in foreclosure filings.

Recently, the motto for real estate franchises has been slow and steady. The Franchise Business Economic Outlook, 2014 on the other hand says the pace is about to pick up. The real estate franchise segment is forecasted to rank first in output growth, third in establishment growth, and fourth in employment growth for franchise businesses when compared to 2013.

But what do people do after they’ve found a residence?

While living in a residence, many must invest in repairs, especially if they’ve decided to take up ownership rather than rent or lease. Assisting these landowners and renters are several franchise segments that fall under the umbrella of home improvement, specializing in a wide range of services. These franchises typically fall into one or more of the following categories:Real Estate Franchising

  • Decoration
  • Landscaping
  • Renovation
  • Repair
  • Restoration

Why are repairs important to so many after acquiring their residence? Here are some estimated home improvement return on investment (ROI) statistics from an infographic provided by Nationwide Insurance:

Home Improvement Project

Estimated ROI

Cleaning & organizing (e.g. closet organization) 


Lighting (e.g. cleaning windows, improving light fixtures, etc.) 


Updating plumbing & electrical 




Staging (when selling) 


Updating/cleaning carpets 


Cleaning/updating floors 


Painting interior 


Updating kitchen & bath 


Painting exterior 


Real Estate Franchising

Aside from the immense potential benefits of an increased return on investment, changing cultural characteristics in today’s society also help the growth of the home improvement franchise industry. Observers have noted that as time has passed, the general population has shifted to adopt more of a “do-it-for-me” culture. Increasingly fewer individuals possess the necessary skills to perform what were once common “do-it-yourself” projects around the house.


Home Improvement Franchises...

The Groutsmith The Groutsmith could easily be described as the perfect business model! Home-based, low overhead, superb training. Read More Min. Cash Required:

TruBlue Total House Care Led by one of America’s top franchisors, TruBlue’s executive team has decades of experience in the senior and home... Read More Min. Cash Required:

Screenmobile Join the nation's largest mobile screen repair company. We've screened out the competition! Read More Min. Cash Required:

Kitchen Solvers Kitchen Solvers has over 30 years of experience as the premiere franchise for total kitchen remodeling solutions.... Read More Min. Cash Required:

Outback GutterVac Poised to become the premier gutter cleaning brand nationwide, partner with Outback GutterVac! Read More Min. Cash Required:

The Glass Guru Align with the world leader in glass restoration, repair and replacement. Cutting-edge, recession-proof. Read More Min. Cash Required:

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