Long & Foster, the largest independently owned real estate company in the country, has set up shop in four Charlottesville-area offices and taken a big chunk out of Better Homes and Gardens Real Estate III, with nearly 60 top agents defecting to the new firm.
“Our missing link for years has been Charlottesville,” said Long & Foster Senior Vice President Scott Shaheen. “We had an opportunity when four managers with a previous company decided they wanted to be with Long & Foster.”
Chantilly-based Long & Foster stretches from North Carolina to New Jersey with over 200 real estate sales offices, including one of its newest in Glenmore, which always has been a Better Homes/Real Estate III stronghold. The gated community’s developer, the late Frank Kessler, also founded Real Estate III, and his son-in-law, Jeff Gaffney, heads the current incarnation.
Not too long ago, Real Estate III was the area’s largest real estate firm, with nine offices and 227 agents. In 2008, it closed two offices, and in 2010, it joined the Better Homes and Gardens real estate franchise. Art Pearson, who had been at Real Estate III since its inception in 1972, was named president of the new Better Homes entity. Pearson now heads Long & Foster’s Old Ivy Road office.
Better Homes/Real Estate III management said they’re not concerned.
“Actually, our company is stronger than ever with 120 agents in five locations,” said Gaffney. “We’re very excited about the future.” Gaffney refused to answer any questions about the defection of his top lieutenants except to repeat the statement above. “Our company is stronger now than we’ve ever been,” he said.
Longtime Better Homes/Real Estate III employees Joe Aust and Tom Pace will now run the Long & Foster offices in downtown Charlottesville and Glenmore, respectively. Long & Foster also took over a former Better Homes/Real Estate III office in Fishersville.
“That entire office walked over except for two,” said Shaheen, and the firm plans to expand into Staunton, he added.
Former Roy Wheeler realtor Denise Ramey left for Long & Foster, a painful separation that both she and Roy Wheeler CEO Michael Guthrie acknowledge.
“She’s an outstanding realtor,” said Guthrie. “We helped her with her career. I’d be lying to say I wasn’t disappointed. I wish her the best.”
“I was very happy with my previous firm,” said Ramey. “It was a very difficult decision to make.” She describes Guthrie as her “friend and mentor.”
Ramey was attracted to Long & Foster’s size in Virginia and throughout the Mid-Atlantic. “I’m primarily a listing agent,” said Ramey. “I really like the exposure my listings will have with The Washington Post and The Wall Street Journal.”
“Our agents like the fact that they can refer clients up and down the East Coast,” said Shaheen. “We’re very profitable and we have deeper pockets to offer agents the tools they need.” The offices have been outfitted with new equipment, he said, because the company doesn’t want agents worried about whether the copier or the scanner work.
“The people we’ve gotten are top notch,” said Shaheen. “A lot of the agents that came over have phenomenal reputations and have been in the real estate business for a long time.”
Over at Roy Wheeler, Guthrie sounds unfazed by the competition from powerhouse Long & Foster. “New companies come into the marketplace all the time,” he said, mentioning Nest Realty and Loring Woodriff as examples. With 120 agents and six offices, Roy Wheeler is one of the area’s top three firms, along with Nest and Better Homes and Gardens Real Estate III, said Guthrie.
“We at Roy Wheeler are doing business in a way we feel good about,” said Guthrie. “People trust us. We’ve been here 87 years. At the end of the day, the real estate business is a relationship business.”
Overall, the number of realtors is rebounding from the housing bubble collapse. Guthrie said when he came to the area in 2006, there were about 1,300 agents and by 2009, it was down to fewer than 900. Currently he estimates there are about 1,000 realtors, a number unchanged by Long & Foster moving into the area.
“These changes and shifts are part of every healthy real estate market and play a large part in keeping us all on our toes,” said CAAR president John Ince.
Shaheen is unapologetic about poaching a hefty number of Better Homes/Real Estate III’s agents. “They obviously were not happy where they were,” he said. “Recruiting is an everyday activity in the real estate business. They’re independent contractors.”
Said Shaheen, “I’m a firm believer there’s enough business to go around if you treat your clients and your agents right.”
Correction 1/14/2015: Loring Woodriff’s name was misspelled in the original version of this story.