Top 10 Real Estate Franchises To Watch in 2020

Homeownership has always been considered a key milestone in the pursuit of the American Dream—and whether or not millennial Americans will pursue the same goals as generations previous as they continue to gain more purchasing power, real estate is always a good investment. 

Such is the reason the commercial and residential real estate sector is a strong contender for entrepreneurs exploring an investment in the franchising space—there’s an abundance of options on the market, each with their own unique offerings and support systems for those who choose to invest. When weighing real estate franchise opportunities, though, it’s important so factor in the ways in which the industry has evolved over the last decade—most evident in the rise of Zillow and Trulia—and which concepts have adapted in step. 

“Technology is now a basic expectation of today’s consumers,” RE/MAX CEO Adam Contos told 1851. “Buying and selling a home remains a complex process. Computers can’t navigate the intricacies of a transaction the way our agents, with an average of 15 years of experience in the U.S., can. And machines certainly won’t hold your hand through the rollercoaster of emotions a transaction of this size can bring. … Where brands will really stand out in 2020 will be through demonstrating the value of the human on the other side of the app.”

Whether big-box or niche, commercial or residential, these 10 real estate franchises are keeping things interesting in an increasingly tech-savvy space heading into 2020. 

HomeVestors of America

Locations: Over 1,100

Investment: $30,000 to $70,000

HomeVestors of America, also colloquially known as the We Buy Ugly Houses® brand, trafficks primarily in cash home buying, allowing it to close deals in as little as three weeks, conditions permitting. By focusing on the homes that other brands tend to neglect, HomeVestors has found a large appetite for its services and has in turn, been able to create a unique, niche market primarily based on renovating unattractive homes, bettering their surrounding communities in the process.

What you can learn from this brand: Where the Zillows and Trulias of the world focus on the newer, retail-ready houses, HomeVestors works with older houses that need significant updates and repairs to bring them up to today's standards. By taking a product many buyers won’t consider at the surface level and helping owners first, sell, and then, put houses back on the market as desirable, attractive assets that first-time buyers can reasonably afford during the current affordable housing crisis, HomeVestors is creating more inventory and providing a recession-friendly business investment as a result.

Keller Williams Realty

Locations: Over 1,030 offices worldwide 

Investment: $183,947 to $336,995

Keller Williams claims the title of largest real estate franchise by agent count in the world. The brand has had quite the year in 2019, as it expanded into Malaysia, Japan and Morocco and entered into a partnership with DocuSign to help better facilitate real estate transactions in the digital age. Recognition of its business opportunity was abundant, too, as Forbes ranked Keller Williams one of the best large employers in the U.S. 

What you can learn from this brand: As millennials continue to show a preference toward values-based businesses, brands are increasingly working cause-based initiatives. Keller Williams got in on the action this year, expressing its commitment to diversity and inclusion by signing onto the Business Coalition of the Equality Act, legislation that aims implement protections LGBTQ+ persons against housing discrimination nationwide. 

Lakefront Living International

Locations: Territories covering 7 states 

Investment: $32,265 to $39,705 

Lakefront Living Realty is a niche-focused real estate franchise that exclusively supports the buying and selling of lake homes. The franchise works with independent real estate brokers and agents to provide the backing and support systems to make them a one-stop shop for home buying and selling on a given lake. Lakefront Living believes in selling not just a home, but a lifestyle— and is actively pursuing growth in a number of key lakefront markets across the country, including Smith Mountain Lake in Virginia and Lake Norman in North Carolina.  

What you can learn from this brand: In a world full of generalists, Lakefront Living has established itself as an expert on not only lakefront properties, but the lake on which these homes reside. Doing so has captured the attention of HGTV, which has repeatedly featured the brand on its programming. 

NextHome, Inc.

Locations: Over 400 offices

Investment: $14,500 to $212,600

Young real estate franchise NextHome, Inc. prides itself on adapting to changing consumer needs—after all, the brand was founded due to the industry’s lack of minimum standards and service level. As more and more sellers question the value of a real estate broker or agent’s role in the home buying equation, NextHome has infused automated and integrated technology into the real estate industry where it is otherwise lacking, which, when combined with a dedicated, customer-centric focus, creates a personalized consumer experience other tech-focused brands cannot claim.

What you can learn from this brand: Where most companies haven’t yet embraced the needs of future home buyers, NextHome has staked its claim and is ready to pounce on the next generation on millennial home buyers. Just four years after its founding in 2015, NextHome was named by Inc. Magazine as one of the nation’s fastest-growing private companies. By embracing a tech-first approach to real estate 

Realty Executives

Locations: 500+

Investment: $23,500 to $131,000

In 1965, Realty Executives was founded as the first ever 100% commission real estate company. It now employs more than 8,000 real estate professionals at its 500-plus locations across the globe. Realty Executives has een able to maintain longevity and steady growth in a sector subject to volatility through agent-centric technology, extensive training and placing a premium on excellent customer experience. 

What you can learn from this brand: Realty Executives prioritizes real-time conversation through lightning-fast responses to queries, with a ZenDesk report stating that the company’s support response times are 2.7 times faster than the industry average. 

Realty ONE Group
Locations: 170+

Investment: $49,250 to $222,500 

Forget about culture—Realty ONE Group is all about “coolture” and giving “everyONE” a voice. The brand adopts a 100% commission model with monthly fees, a practice it says deters unproductive agents from joining its system and rewards efficiency with larger returns. RealtyONE Group has been  named among Inc. Magazine’s 500 fastest-growing companies for seven straight years and earned a spot on the Franchise Times Top 200+ List in 2019, as well. 

What you can learn from this brand: On the heels of the strongest quarter in system history in Q3 2019, Realty ONE Group recently launched a new education platform made up of 1,500 different online courses called the ONE University Learning Management System in an effort to continue bringing in larger independent agencies as conversion franchisees.

RE/MAX

Locations: More than 125,000 agents in more than 110 countries and territories 

Investment: $40,000 to $284,000

RE/MAX reached a major milestone in 2019 with the launch of its new booj platform, a tech tool unveiled at the company’s annual conference in August that will help brokers focus even more on face-to-face interaction. 

“Real estate remains a relationship business; the new platform helps agents spend less time in the office and more time serving buyers and sellers offline,” Contos explained. RE/MAX is following up the back-end tech upgrade with a new consumer app that will be rolling out before year’s end. 

What you can learn from this brand: As the industry becomes more saturated and RE/MAX grows to new heights, Contos said the brand is putting a lot of emphasis on community building. “I think we’re currently seeing a movement within the network that’s leveraging technology to build stronger human connections,” Contos said. “Brokers are using Facebook groups—and video posts in particular—to exchange best practices and trade ideas from offices around the country. Collaboration has always been a hallmark of the RE/MAX network, but that shared value has been gaining new energy in recent months. It’s a culture that’s unmatched at other brands, and I think our brokers are creating something other entrepreneurs will want to join.”

Showhomes

Locations: 60+ 

Investment: $43,000 to $82,000

Full-service home design, staging and remodeling franchise Showhomes has redefined itself over the course of its 30-year history. One of Showhomes’ most unique differentiators is its home manager program, which provides a live-in professional caretaker to make sure a client’s home is always in “show-to-sell” condition. The brand grew its service offering from home management and staging to include design updates and renovations, turning Showhomes into a full-service solution. 

What you can learn from this brand: After undergoing a major repositioning several years in the making, the act of moving from one revenue stream to four helped Showhomes put up the best two months in brand history in Q2 2019, including a year-over-year sales increase of 59% in June 2019.

United Real Estate

Locations: 85+

Investment: $54,500 to $285,500

In 2019, United Real Estate brand was ranked by Inc. Magazine as one of the fastest-growing companies for the fourth year in a row. As a high-growth franchise in the real estate industry, United Real Estate is invested in helping its current franchisees grow their ownership to cover multiple territories, Creating such growth opportunities within a franchise system is in and of itself strong validation of any concept, but in the real estate sector where many concepts simply chase sales numbers, franchisee longevity is a unique characteristic.

What you can learn from this brand: United Real Estate’s model is conversion-friendly, meaning existing smaller-scale real estate brokerages can maintain their current client base and keep their staff intact while still benefiting from the proven systems and marketing support of a larger-scale brand. 

Weichert, Realtors

Locations: Nearly 500

Investment: $62,500 to $324,700

Weichert Realtors is a residential and commercial real estate company that serves nearly 200,000 customers per year throughout the U.S. Weichert grew beyond its New Jersey base through franchising, and is still a competitive option in the space due to its comprehensive business model: A strong lead generation system; a defined unit-level growth plan; a proprietary CRM and online marketing tools; and end-to-end support. 

What you can learn from this brand: Weichert was built by brokers who have not lost sight of the fact that the franchise system aims to serve brokers. Despite 50 years of growth and success, the brand maintains strong communication that is focused on support and recognition, as evidenced by the systemwide emails that are sent to celebrate every new hire.