Michael Schlott is the general manager at Charlestown-based Randall Realtors GMAC Real Estate, the largest real estate firm in Washington County. The 33-year-old company recently announced plans to open a new office in Norwich, Conn. The new office is expected to have about 25 staffers and serve Windham and Tolland counties or as many as 40 towns. Schlott, who joined Randall Realtors in 2002, recently spoke with Providence Business News about the decision to open the office during this economy.
PBN: Why expand in this economy?
SCHLOTT: We see this economy as an opportunity. If we are smart, and if we choose our opportunities wisely, we will make strides that we would never have been able to make in a “booming” economy. We’ve already begun to see signs of stabilization in housing and in the economy as a whole and, ultimately, we believe that moves like our Norwich expansion will pay large dividends.
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PBN: Why enter the Norwich area?
SCHLOTT: Norwich is not only an important market for any firm servicing New London County, but it’s also critical to servicing the entirety of eastern Connecticut. Due to its position on [Interstate]395 and Route 2, it will allow us to service markets north to the Massachusetts border and as far west as suburban Hartford. Additionally, Norwich’s proximity to Foxwoods, Mohegan Sun, the Sub Base and Pfizer make it a primary market for relocating employees.
PBN: Do you think the real estate market will bounce back enough to justify the expansion?
SCHLOTT: Absolutely. Real estate values have already begun to stabilize and housing inventories have been reducing on a month-by-month basis. With interest rates remaining at historic lows and with the government expanding the first-time buyer tax credit, we see these trends continuing. We’ll probably never return to markets like those we saw in 2004 and 2005, but that’s OK. Real estate isn’t meant to be a get-rich-quick vehicle. First and foremost real estate provides shelter. Its added benefit is that it has always proven to be a great investment vehicle.
PBN: Even if the real estate market does rebound, people are increasingly turning to the Internet and alternative sources for housing listings. Why put all this money and effort into bolstering personnel and offices?
SCHLOTT: Technology has definitely changed our industry, but at the same time it has only enhanced the importance of the Realtor. In order to have a successful transaction, consumers need someone who will advocate for them on a daily basis. A good real estate agent has to be able to decipher ever-changing market conditions, successfully market property, negotiate on behalf of their client and facilitate the complexities of the transaction. As a result, the value of the real estate agent has only increased and, at firms such as ours, we will always view real estate professionals as a good investment.
PBN: Last year, Randall expanded into the Cape Cod market by acquiring Kinlin Grover. Is Cape Cod and Norwich just the start of a broader expansion plan?
SCHLOTT: Our acquisition on the Cape was a unique opportunity to expand our presence along the southern New England coastline. Kinlin Grover is the largest residential real estate firm on the Cape and Islands and has a widely recognized brand name. At the same time, Randall Realtors is one of the largest firms in Rhode Island and eastern Connecticut and is recognized as a highly ethical and professional company. Some day we would like to fill in the geography between Kinlin Grover and Randall, but only if we can maintain the same high standards that exist today.
