REALTY EXECUTIVES PHOENIX FILES CHAPTER 11 BANKRUPTCY

May 2, 2011 at 12:40 pm Leave a comment

by: Maria Hass*
Inman.com reported today (May 2, 2011) that Phoenix based Realty Executives is filing for Chapter 11 bankruptcy to give itself protection from creditors and time to pay its debts.

This announcement came after agents where assured that Realty Executives’ finances are stable. Earlier, many agents were locked out of the Phoenix office for non-payment of rent. President Rich Rector said the move will help Realty Executives in Phoenix reorganize its debts and get back on its feet following the reorganization.

As a former Realty Executives agent, I always wondered why the company insisted on charging high fees even after the real estate market had tanked by as much as 50 to 85 percent. It just does not make business sense to pay the same exorbitant fees while the agents’ earnings are droppings by at least 50 percent. As a result, many agents were forced to leave Realty Executives in favor of rival HomeSmart Real Estate and others to stay in business.

Also while at Realty Executives, I often wondered where the fee money was going and who was getting most of it? While there, I asked Dominic Scapattini, CEO of Realty Executives, to help us agents by reducing our fees so we could stay with the company. President Rick Rector and Scapattini quickly responded to this request by modifying the fee structure for agents. However, the new fee structure was still too high and did not help many agents — and many opted to pack their bags for other real estate companies.

For the full story go to: http://www.inman.com/news/2011/05/2/realty-executives-phoenix-files-bankruptcy-reorganization.

Entry filed under: Arizona Real Estate, Chandler Real Estate, Phoenix Real Estate. Tags: , , , .

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