HomeSmart: Revolutionizing Real Estate with Technology and 100% Commission Model

HomeSmart is a real estate brokerage that was established in 2000 by Matt Widdows in Scottsdale, Arizona. Since launching its franchise program in 2005, the company has grown to encompass close to 200 locations nationwide.

What sets HomeSmart apart is its 100% commission structure combined with flat transaction fees, allowing agents to retain more of their earnings from each sale. The brokerage emphasizes technological innovation, offering exclusive tools such as RealSmart Broker and RealSmart Agent.

These proprietary platforms simplify tasks like transaction management and marketing, helping agents and brokers operate more efficiently. HomeSmart’s main office remains in Scottsdale, Arizona, underscoring its roots as it continues to expand across the U.S.

Training

The HomeSmart franchise provides a detailed and structured training program to prepare its franchisees for success. Here’s a breakdown of the training offered by the franchisor:

1. Initial Training Program: This mandatory program lasts between three and five business days and is typically held at HomeSmart’s headquarters in Scottsdale, Arizona. It covers system operations, advertising, sales techniques, customer relations, quality standards, and practical business operations.
2. Operations Manual: As part of the training, franchisees receive a confidential Operations Manual on loan. This manual includes essential specifications, operating procedures, standards, and detailed guidance on various business obligations.
3. Ongoing Conferences and Seminars: Franchisees or their Designated Business Managers must attend annual conferences and periodic seminars. These events provide updates on sales techniques, marketing strategies, service developments, and operational standards.
4. Technology and Computer Training: If required, franchisees must complete additional computer training at an approved institution to ensure they are proficient in the systems and software critical to running the business.
5. Support and Refresher Training: HomeSmart offers ongoing support through phone consultations and may conduct refresher training courses or workshops to address new services or operational updates, maintaining high standards across all franchises.

Territory Protection

The HomeSmart franchise grants franchisees a defined territory where they are permitted to establish their Central Office and any additional Branch Offices. During the initial term of the agreement, and as long as the franchisee remains compliant with all obligations, HomeSmart agrees not to open another competing real estate brokerage within the franchisee’s designated territory.

The size and specific boundaries of the territory are negotiated before signing the Franchise Agreement. However, the franchise does not provide exclusive territorial rights.

Franchisees may face competition from other HomeSmart franchisees, company-owned outlets, and alternative channels of distribution controlled by HomeSmart, including internet-based services. Customers within a franchisee’s territory can still access services offered by other franchisees or by HomeSmart through these alternative channels.