In another acquisition that builds on its presence in the Bay State, Coldwell Banker Hunneman has bought Sharon-based Herburger Realty Inc.
David Nelson, who joined Herburger in 1984 as part owner, said a key reason for the sale was the critical support and technological services that Coldwell Banker promised to bring to the small firm. Those services are often difficult for smaller firms to provide, he said.
“To try to do all the things that consumers are looking for in a small office, requires you to be an expert on a lot of things,” said Nelson.
Herburger Realty was the last remaining independent real estate firm in Sharon.
Started in 1966 by Eleanor and John Herburger out of their home, the firm handled thousands of transactions in its 35-year existence as an independent real estate company.
The company handled about 15 percent of all home sales in Sharon over the last few years, according to Nelson.
Eleanor Herburger continued to manage and grow the company after death of her husband in 1977.
Within the past four years, the firm and its six employees moved to its current location at 3 Main St.
Herburger Realty is one of several independent real estate firms in Massachusetts to be acquired by bigger franchises like Century 21, Coldwell Banker and Re/Max.
Inez Steele, executive director of Realty Guild, a group that represents independent real estate firms in Massachusetts, said many independents are strong despite the misperception that big franchises are gobbling them up.
Many times, independent real estate companies hold the biggest market share in a town or area and are not truly “small offices” as they are considered, she said.
“When an independent office is in an ownership transition, the franchises or chains are very adept at convincing independents that the franchise or chain is their only option,” said Steele.
Franchises often have aggressive marketing and acquisition strategies that persuade people that they are growing, she said.
“They want the public to feel that they’re getting stronger and stronger,” Steele said.
Out of 4,380 residential real estate offices in the state, only 579 – or roughly 13 percent – were franchise offices as of last year, according to the Massachusetts Association of Realtors.
“All real estate is local,” said Steele. “Because a company has offices all over a region or all over the country, does that mean that the company can market your house better in your particular town? I think the answer is that you want to look at the strongest [firm] in your town.”
Nelson echoed Steele’s remarks, saying, “I don’t think it’s impossible for the small office [to survive]. I know a number of independent offices that are extremely successful.”
Coldwell Banker Hunneman has 75 offices in Eastern Massachusetts and Southern New Hampshire. The company’s residential real estate sales exceeded $7 billion last year.
‘Similar Culture’
The Herburger/Coldwell deal comes almost a month after ERA Mediate Real Estate Co. in Boston bought The South End Realty Group from co-owners Barbara Spears and Liz Kedzierski.
The nine-agent brokerage firm at 476 Columbus Ave. in the South End neighborhood of Boston was taken over June 29.
Spears and Kedzierski are remaining with the firm as vice presidents.
This latest acquisition is the third for Mediate Real Estate Co. The firm also owns brokerage firms in Back Bay and Dedham.
“The culture of their office is similar to ours,” said Mark Mediate, president of ERA Mediate Real Estate. “It was a good fit. What it also means to me is that we’re able to service the South End community in a way that we couldn’t before.”
Mediate would not disclose the purchase price, but said that together the Back Bay and South End offices allow the company to service a larger market share in the community.
ERA is an international residential real estate firm and with Boston being a gateway city to Europe, the latest acquisitions will allow the company to better serve foreign buyers moving into the city and also to market and advertise properties to a broader market, Mediate said.
Mediate also owns Mediate Management Co., which manages more than 1,500 condominiums and apartment buildings in downtown Boston and Brookline.
ERA is owned by New York City-based Cendant Corp., which is the parent company of Coldwell Banker, Century 21 and other hotel and vacation franchises.
