Century 21 sees booming business with millennium fast approaching

Phil Levine

Monday, Nov. 29, 1999 | 10:49 a.m.

Home prices

Las Vegas home prices are expected to rise 3.2 percent per year on average over the next decade.

A forecast by RFA Dismal Science, a consulting firm, says Las Vegas ranks No. 35 nationally among 50 metro areas for expected home price gains.

The forecasts was published in today's Wall Street Journal. It says Western cities, Seattle first among them, will lead the nation in home price gains.

These are heady days for America's real estate industry. Stable interest rates, combined with low unemployment and inflation, have produced a home-buying boom in Las Vegas and nationwide.

Reflecting on regional and national industry trends, Robert Moles, president and chief executive officer of Century 21, says the current real estate cycle is unlike any other he's seen.

"This is a universally good period for the real estate business," said Moles. "In the past, the real estate industry has been stronger in various regions at different times. Today, the market is strong almost everywhere."

The CEO of the world's largest real estate company was in Las Vegas this month, visiting local affiliate Century 21 MoneyWorld.

The universal demand for real estate has lifted Century 21's bottom line to record-breaking levels, said Moles. Through its franchisees, the company expects to handle about 800,000 home sales this year.

"What's so amazing is that we initially had our best year ever in 1997, with sales up 17 percent over 1996 levels," he said. "Since then, we had annual (sales) jump 21 percent in 1998, and our year-to-date sales are up an additional 10.6 percent. That's three consecutive years of double-digit growth."

Century 21, a division of New York-based Cendant Corp., has more than 6,300 franchised brokerage offices in 25 countries and territories. Cendant's other real estate holdings include industry heavyweights Coldwell Banker and ERA Real Estate.

Moles attributed the explosive growth to an unprecedented economic expansion, and his company's ability to capitalize on the boom. Mindful of his role as CEO of the real estate franchising giant, Moles credited "local entrepreneurs" for the company's success. He cited Michael Donovan and Mike West, co-owners of Las Vegas-based Century 21 MoneyWorld, as prime examples of successful franchise entrepreneurs.

One of the top 10 Century 21 firms worldwide, the Las Vegas company handled about $400 million in transactions last year. The company recently renewed its Century 21 franchise for another decade, and hopes to soon move into a new headquarters on Sahara Avenue.

Moles said the late 1990s have been a transitional period for the real estate industry.

"We've really had to re-invent the way we sell residential real estate," he said. "There's been a radical transformation in the industry, and today's consumers are much more demanding. For us, a prime example of that is our 'Connection Program.' Instead of just selling customers a home, we're involved in all aspects of the process. That includes hooking up utilities, and offering mortgage and insurance products."

Donovan agrees. Today's Las Vegas home buyer expects no less than a full range of services from his or her real estate company, he said.

"It used to be enough to just sell the home, but now the purchase just signifies the start of the process," said Donovan. "The customer expects a wide range of services. In order to provide those services, the real estate company must find local partners who share the same business philosophy. That can be quite a challenge in itself."

Moles touts his company's ties to Cendant Corp. -- whose other divisions include Cendant Mortgage and several insurance companies -- as key to Century 21's ability to provide multi-product services.

Technological advances -- such as the Internet -- also mean today's customers are more informed and are better able to access their own real estate information.

Illustrative of the melding of technology and real estate, Reno-based Homeseekers.com signed an international agreement this month to provide services to Century 21 affiliates in 23 European and Latin American countries. Homeseekers.com provides online residential real estate listings.

Still, Moles said technology is no replacement for the human interaction people have come to expect from real estate professionals.

"About five years ago, the prevailing thought in the industry was the move to what's called 'disintermediate,' or the removal of intermediaries (licensed real estate agents and brokers)," said Moles. "I don't believe that's going to occur. Unlike amazon.com, where a consumer can click on and buy a book, purchasing a house is a complicated process.

"No two homes are exactly the same. That's why, despite the benefits of technology, home buyers will still require the assistance of real estate professionals."

Donovan said local real estate companies have come to realize the importance of not overlooking any part of the potential market.

"In the past, customer service in the (Las Vegas) resale home market has been appalling," he said. "However, recently the resale sector here surpassed new home sales. It's vital we pay attention to that market, as resales can insulate us to some degree from any downward trends in new home starts."

With the arrival of the new millennium, Moles said his company had at least one indisputable advantage over its competition.

"Entering the 21st century with the name Century 21 is a marketing bonanza for us," said Moles. "I'm just happy that 25 years ago someone had the vision to name us with an eye to the future. People ask me about changing the name once we've entered the next century, but I tell them that won't happen until about 2097 so I doubt I'll be involved in that decision."