Home : Blogs : Loreena Yeo, Realtor®| Frisco TX Community Ambassador (214)783-2210 : Stories from Frisco TX Homes Community Ambassador

Should I List my home With a Large Brokerage Firm?

Should I list my home with a large brokerage firm?

That's a question that comes across the minds of many home sellers. This post is to answer that. Read the comments as the real estate professionals generate them. I will provide my answer in my blog.

As smaller and locally owned brokerage firms are coming into the marketplace to provide consumers more choices, this is a burning question a home seller may ask. Some do, and some just wonder. Today, we'll take this question head on.

Should I list my home with a large brokerage firm?

What does a Large Brokerage Firm do, that a small (locally owned) does not?

Will my buyer come through that large brokerage firm I list with?

Will my home be shown more if I list with a large brokerage firm?

Let me first disclose, this is not a post to dismiss a larger or smaller brokerage firm. Known or not known. Recognizable or not. Every size business and name has its own position and influence in the marketplace. I've never been sponsored by a large brokerage firm in part of my personal experiences. I've always been with smaller, locally owned, independent brokerage firm. By the time it was time for me to open shop, that was the natural position I gravitated to.

A listing agent is only as good as the agent's knowledge and skills. The logo on the sign or business card does not necessarily mean a home will sell or not. The event lies within employing the best agent for the job - be it a large or small firm.

A listing agent - at a large or small brokerage firm operates as small business owners. Each of them put in their own effort in driving their self-employment. Again, it lies in the work ethics of the agent, not necessarily the sign or logo it carries.

In any size firm (large or small), the 80/20 rule typically applies. 20% of the agents generate 80% of the business for the company.

As long as the property shows up on MLS, it's free for all. The listing brokerage agrees to co-broke (ie. to share the listing and commission fees). Any buyer's agent who has a buyer that meets your property profile will most like show the house. After all, the buyer's agent is also to make the sale. S/He will not not show your home because it was NOT listed by his/her brokerage firm. As Realtors(R), we cannot do that anyways.

A single listing agent can be just as powerful in networking as one in a bigger firm. Again, the power depends on the individual him/herself. Since all real estate agents are self-employed professional anyways, they may not necessarily choose to come to the office. At least, not all 300 who are associated with the agency come into the office everyday. Some choose to office out of their home. Some want the synergy while others are much more productive at the office.

Coming from a small agency buyer's agent standpoint, my buyers that I work with do not care the business name I'm associated with, just as long as they feel they have been treated fairly and their interests were taken into consideration. They care about how I can bring value to the transaction.

The way buyers operate have changed since the Internet became a dominant home search tool. In the past, the buyers show up at the agent's office and the agent display a list of 10 homes they will see that day. Today, the buyers show up telling the agent the list of homes they want to see that day.

The home buying process has changed and so is the home selling process. It has always been an individual sport but with the Internet, it has become even more dominant.

I hope this post can help answer some of your doubts about listing a home with a large or small brokerage firm. It's not the company but the individual.

The comments and feedback from this post will be just as interesting. I hope you will read it.

*********************************************************************************************

All contents are original. Consider subscribing to my blog for more real estate commentaries.

Subscribe via Email if you are not an Active Rain member here.

Pick up your phone & call today!

Loreena Yeo - Frisco TX Realtor
Loreena Yeo
Frisco TX Realtor(R)
Realtor®/ Broker of 3:16 team REALTY
(214) 783-2210
loreena@loreenayeo.com

Super-serving Frisco, Plano, Dallas, McKinney, Allen, Little Elm, & North Dallas area communities.

Posted by Loreena Yeo, Realtor®| Frisco TX Community Ambassador (214)783-2210 on 06/21/2010 04:27 PM

Comments (107)

Home Sales in the Home Selling Channel

realtor success tips, home selling in frisco

Originally posted at: faithfully frisco tx homes for sale: Should I List my home With a Large Brokerage Firm?

Generate short URL

This post has been included in Texas Real Estate News Collin County, TX Real Estate News Frisco, TX Real Estate News
Post is included in group: Selling Soulfully
Post is included in group: Running a Brokerage
Post is included in group: Realtors®
Post is included in group: Learn to be a Top Producing Listing Agent
Post is included in group: Frisco Texas Real Estate

107 Comments on Should I List my home With a Large Brokerage Firm?

JUN

2010

Loreena.....an office is as good as the agents who work for it....bigger is not necessarily better.....ask "Jennie Craig".....seriously, when I managed a small "mom and pop" office, we were #1 in the town of Franklin.....no one could compete with us....c-21, coldwell banker, era, etc....they were all in town....if an agent is on top of her game and knows how to market, that agent can work alone or with a big office, it won't make a difference....it's the agent's individual ability that counts...

today it's who has a mastery of the internet and technology....if I were up against you, Loreena, you would win....I'm not tech savvy, but I know just enough to get by....fortunately, I'm one of the few in my area who blog.....so I'm on top and my blogging and tech skill are improving....but, again, I would not be able to compete with your knowledge and ability to use technology....my years of experience just means I'm old compared to your skills.

Loreena - I agree 1000% that the company does not make the agent - a fantabulous agent can be in a small shop, large shop or in her own shop. A large, well-known brokerage firm might be full of incompetent idiots. With the technology available to individual practitioners, sole proprietors and small firms can provide just about any service a large firm can.

The real question is... DOES the small firm/one-(wo)man-show provide those services? For example, if it is customary in your area to have 7 day/week showing services, does the small office or sole proprietor... or are they closed on the weekends? Is the signage distinctive and professional-looking? Do they have access to the systems you expect from a professional - such as a dedicated fax machine, a scanner, etc.? Does the agent have back-up when needed, or are his or her clients out of luck when he or she is on vacation or otherwise occupied?

There's NOTHING magical about a big company from a bringing-in-buyers perspective. That's what our MLS is for.

Good stuff Loreena!

Great post Loreena! It is all about what the individual agent can bring to the table in the form of knowledge, marketing and effort. Name does not produce results! The individual produces results!

A few thoughts and things I say:

I sell XX houses per year. If I thought I could do better in a large firm I'd make the move in a heartbeat. I prefer to run my own shop.
It is the agent, not the office, that matters when you list a house. What they say when they answer a call, field questions about the house, handle objections and screen buyers is crucial and makes a bigger difference than the sign in the yard.
In a large office, the staff are actually competitors. If one gets a sale another doesn't get it is the same as if another company got the deal.
Here are some houses that were listed with large firms prior to my listing them. Here is when they sold. Please note that J. Philip Faranda sold them.
When you list with me, the house is still on the large firm's home search thank to the MLS.
I run a boutique, not a department store. I specialize in homes just like yours. Do you want boutique style service, or would you rather be another brick in the wall with a big box outfit?
When you deal with me, you deal directly with the owner of the company. The buck stops at my desk. This isn't a hobby or part time job. This feeds my family.
Read these testimonials and ask the other agent if they can match them.
I have the premier real estate blog in our marketplace.
If bigger were better I wouldn't be as successful as I am.

That's off the top of my head.

Loreena, I beleive one should always "bank on the banker, not the bank". I don't see why the same would not hold for real estate.

Loreena I believe people seek services from individuals, not companies. Sure when I worked with a national brokerage, I used that name to my advantage because it was recognizable. But as an independent REALTOR(R), I use some of the same skills that I learned with the large brokerage and even more now that I'm an independent.

What I probably would have missed had I stayed there, is the opportunity to reach out to consumers in a way that I employ via my ActiveRain blog and other online venues. As an avid contributor to AR and other blogs including my own, I have proof that my local competitors are behind the curve and I am in position or am positioning myself to take advantage of marketing opportunities that my competitors aren't. "I'm gettin' social with it" and so are my buyers and sellers and the buyers and sellers I hope to represent.

When people say that they have heard of a large brokerage "name", chances are they've just heard the name. It does not imply that a good reputation, ability, resources, etc follow the brokerage "name." Bottom line: People do business with us because they "like" and "believe" in us and our ability to market their homes for sale and help find places that they can call home. If we can do that, we've provided the service that they are seeking regardless of brokerage size.

I am a RE/MAX Franchisee. That being said, I don't know that the name offers me much beyond great name recognition for out of town buyers.

Fantastic post Loreena, I just had to reblog it.

Loreena, nice post

I think that as long as the company you work for, large or small, employs an appointment center so that agents can reach someone to show the listing, and the seller has a good rapport with the listing agent, it doesn't really matter much. The clients I have do not list with me because I'm with RE/MAX. I think they meet me, like me and find me approachable and professional. Smaller companies that do not have an appointment center and who rely on voice mail are frustrating for cooperating brokers to work with and this ultimately hurts the seller, a fact that I am not sure sellers actually know.

I've worked for both major franchises and mom and pop offices during my career and I don't think it makes a lot of difference which office holds the listing. Though the large offices try to sell everyone on the idea that theirs is better based upon sheer size, my experience has proven otherwise. It is definitely the person you list with who will shape your experience as a seller or buyer. Two different clients with agents in the same office can have a totally different outcome, depending upon the expertise and competence of the person they hired.

Loreena, love the post. That definately is a question that comes up every once in a while. I work in a smaller office than some around here. 29 agents with one location. There is a neighborhood I concentrate on that I sold more homes last year than the entire office that is located on site.

That does not sway everyone but your overall presentation sure helps.

When I worked in a boutique firm I always said: "You will be a large fish in a small pond, not a small fish in a large pond."

Now that I work for a larger firm (regional not national) I don't say that anymore. I tout the benefits of my new company which are the reasons I left the boutique firm.

But mostly I sell myself because the company is the window dressing.

Loreena....congratulations on another feature.....you do a great job of blogging and marketing.....this is why you do not need to worry about competing with a large firm....you know how to market.

It's all about the agent. There are great agents at small shops and lousy agents at big franchises. And vice-versa. People really need to do their due diligence when picking an agent, because the name behind them is a smaller part of the equation that the agent him/herself.

From a seller's point of view I think the Internet and ease of national marketing by ANY firm has taken this question out of play. I think now it's ALL about the listing agent. You want one who is accessible, accountable and works for the seller. And I know agents like that at large and small firms. I also know agents with 80 listings who are sitting back hoping someone will sell one of them, but doing nothing themselves to make that happen.

Hmmm. I think that it is a combination of things. Especially in today's market, the ability ot adequately service clients will all of the available technology and tools to market homes and bring buyers to the table is crucial. There are some big name companies where it is old school, business circa 1999. Then there are the small companies which operate in the same fashion. Hard to tell in that type of environment if being large or small makes any difference.

No question about it...it's the AGENT who sells the listing...or represents the buyer.....regardless if they're in a big or small company.

Well, I was going to post a nice comment on our position, but it seems J-Phil has done it for me, probably far more concisely than I would have! I tell ya, it's so nice to have a ghost commenter! (just kiddin', J-Phil!)

Anyway, the simple fact that it DOESN'T matter if it's a big box or a boutique is why we opened our own shop in the first place. We knew we could hold our own with the big boys quite nicely, and we have done so. Plus, we have agents contacting us regularly asking about joining us, so we must be doing something right!

Name recognition helps when you are dealing with relocation properties but it is ALWAYS the AGENT not the company that sells the home an gets the job done!

Congrats on your feature. I agree that it is the AGENT who makes the difference. This is why real estate is such a personal business.

Big or small? Both work. It's about the individual. I don't think I have ever lost business because I'm a home based very small business. It's all abiout getting the job done.

Jane Pacheco Agents have access to as much information as buyers do. The differentiating role of the agent is to add value to the search, and provide advice, recommendation and insight based on experience & knowledge of the market. The more diligent agent will usually win the confidence and trust of the buyer, regardless of the agent's broker affiliation.

Great things for potential clients to think about as they're interviewing agents to represent them. The bottom line is that it doesn't matter how large the brokerage. It's about performance in the numbers, and that's metrics. A "triple threat" agent is going to help a seller price right, present well and exploit the client's product - their home.

This is a great post. Hi Loreena I love the name of your company. I have worked at both the big bang office C21 and now I would say a step above the mom and pop. As long as you know how to market yourself you should not have a problem.

I'm convinced that buyers and sellers rarely have a connection to a Franchise. Usually if they do it's because they had a horrible or wonderful experience with an agent, and that reflects on the larger company.

I do know that when I started in this business there was not a Keller Williams office within 45 miles. I spent a LOT of time answering the "Keller Who?" question. Hindsite being 100%, I'm certain had I joined one of the larger offices in town, I would have had to spend less time explaining my broker. Did it cost me a deal or two, perhaps.

Now as an experienced agent, I doubt it would matter, I've branded MYSELF, not Keller Williams.

Pretty sure if you polled most buyer/sellers and asked who they bought or sold their house with they would KNOW the agent NOT the company.

Loreena, often the smaller outfit gives MUCH more attention that that listing...

Around here, people know my office. They have been around for over 20 years and our market share is huge. All in all, people hire the agent but their eyes light up when they hear what brokerage I'm from.

Loreena, It is the individual not the office....great post and congrats on the feature,

Loreena:

Real estate agents are independent contractors and as such we all have to build our own strengths and reputations.

There is a certain franchise that has the slogan, "Nobody sells more real estate than ______" and sometimes I think people actually believe that. However, it is not the company that sells real estate, it is the individual agent. I actually worked for that company during my first two years and they did nothing to help me sell real estate. I did it all myself.

Bigger is not necessarily better... as you say, it really all boils down to the individual listing agent. That being said, I have found there to be more resources available to help agents do their job well in a large brokerage firm. I'm well aware, however, that this may vary from firm to firm and even office to office within a firm.

Loreena,

I personally sold 59 homes last year. It's just me, I don't have a team and I don't have an assistant.

Ken Meade Realty is the small "Mom and Pop" company who lists and sells approximately 30% of the homes in Arizona Sun Cities. 30% is also sold and listed by another small company (Long Realty), an organization with quality agents. Size does not matter, it's the individuals that comprise of the company.

Congratulations on being featured!

Loreena - I worked for a small brokerage that was affiliated with a national franchise. The broker later dropped the franchise because of their exorbitant fees and the lack of added value. When I decided to start my own company in late 2004, I never seriously considered a franchise. I like the control and flexibility of being a broker/owner at an independent company.

With regard to the question you pose here, I agree 100% that it really depends on the agent, and has almost nothing to do with the size of the company. The entire company isn't working for the client - the agent is. I rarely come across any potential client who is brand-loyal in real estate.

Loreena,

I've owned and operated a small (~35 agents) brokerage and I've been part of a larger office of a national brand. Both have advantages and disadvantages. People work with people they like and trust. The bottom line for the consumer in this kind of market is to list with someone with a proven track-record of getting properties sold.

Tom

It's all about the Realtor®. (just learned the rules about the circle r thing). The brokerage is only a name for the most part.

Loreena,

LOVE this post. Good comments, too. J. Phillip - you are brilliant, again:-)

It's amazing how much of it really depends on the agent. While I do believe some of the bigger offices might have more processes or systemization, a large majority of a success in real estate depends on how well the agent handles the deal, showings, offers on your end.

All the best, Michelle

There are good agents in every office, large or small.

There are more bad ones in large ones because the top agents do all the business.

New or Old it is all about the marketing.

Loreena ... you do a fantastic job blogging, video's and marketing. Keep up the good work! pippa

Great Great Great blog post topic... My husband has a year under his belt and after sitting near me in the office he is amazed that potential clients call the brokerage and ask for me. He has already seen what most of you know.

Ironically, I'm with a big brokerage - but it is not a big name LOCALLY. When I go for a listing appointment I'm often asked "Keller WHO???"

The traditional large brokerages (I exclude Keller and ReMax from these) have perpetuated the myth that the big name behind the agent is going to come in with a truck and shovel marketing money at the listing.

The other myth they keep bringing up is that with the number of agents in the office - they dangle the "inside deal" without speaking of it directly and without promising (directly) a cut in commission. I know when I was in my first brokerage, one of their slogans was something like this:

"Having almost 200 agents all working to sell your home....priceless!" You can take from that what you will. It does not promise a discount. To my feeble mind - it implies and inside track that is not what the MLS is supposed to be about. I was never willd about that slogan - it seemed leading in a direction that my ethics didn't want to take me. I left after a very shrot time there.

It doesn't matter the size of the brokerage. It is simply the agent that makes the difference.

Loreena, great post.

My philosophy is price it rght and make sure all calls are answered or responded to promptly.

JUN

2010

Loreena, Wow what a great question. Your first 2 comments came from the very best of AR. I can not add anything to compare to my heroes Barbara and JA except an old saying here in the south "it is not the size of the dog in the fight, but the size of the fight in the dog".

I think good web presents levels the playing field.

Loreena, I agree that the brokerage is only as good as the agent. I chose a nationally known brokerage firm because I was new to my area and wanted the safety of a large brokerage firm to help me grow my business. The training was excellent, I got good leads from the internet in my office, floor duty and walk-ins. But my primary reason for joining KW was their value system. It is a Christian based brokerage...God first, then family, then business. That's the same value system I have so it was a good fit for me.

I don't typically find that buyers care which company has listed the property. They're just interested in the property. For the sellers, I think it's the agent, not the company that is most important.

Great Realtors can be found in large brokerages and independent offices. Loreena, you are so right. Good agents are a product of knowledge, experience and skills.

Sellers you are hiring a person not a company.

Loreena, you hit the nail on the head!

I LOVE Loreena's post here. I just lost a listing to someone who (without even hearing my presentation) chose a different agent "because of the network of a big company."So good I had to re-blog.

I have worked for both large and small brokerages, but always sold myself not the company.

Loreena, a great post & on the money...my firm left REMAX, all 35 of us,last December to go back to our own community office. It has worked great & actually my business has picked up because I do alot of marketing on me & what I bring to the table for clients. I will do a blog for members only on that transition which was very interesting in itself!

You do a great job on your blogs & videos- you'll be at the forefront in your community.

I wrestled with this question over the past few months deciding whether to stay with RE/MAX or go to a local company whose fees were incredibly low.

I looked back and remembered several clients who brought up the RE/MAX name and how they had a good experience and wanted to work with another RE/MAX agent. We all know that is pretty silly logic but it gives one a glimps of what's in the mind of a buyer or seller. But I always have said that if there is one person thinking a certain way, you better bet that there are hundreds more who feel the same way but don't voice it.

I decided to stay with the well known RE/MAX brand because I figured it was one less obstacle to overcome. When you're with RE/MAX, you don't have to sell someone why they should feel comfortable with your company. Maybe I'm lazy. Maybe I'm just practical and being with a well known brand is the quickest way to a new client.

Wow. What an overwhelming response. You guys have contributed to some awesome answers for sellers. For that, I want to thank you.

Loreena,

There may be advantages and disadvantages for both, but in today's real estate there is no evidence of being better off with large companies and big names. We are still on our own.

Loreena, I've worked in large and small firms and it boils down to one thing - the agent.

The old ideas that the large brokerages gobble up market share and sell listings quicker is mere myth. Smaller brokerages with bigger hearted agents who skillfully market listings oftentimes do a much better job.

Well stated, Loreena. Just about everything you wrote is North Shore Homes' pitch in recruiting agents. Agents must "BELIEVE IN THEMSELVES - THEIR CUSTOMERS DO." Look at where your business comes from. For an overwhelming majority of agents, business comes from their sphere of influence.

I agree with most of the comments. In reality, it's such an easy question to answer. All you have to do is show how you work with both sellers and buyers and your marketing. Does it make a difference if you list your home with any of the brand name franchises or the independent brokerages? We all know the answer is no. Just go to realtor.com to see it for yourself. Just show your listings and how they appear in your advertising and select area area that your buyer is interested in and how the solds were sold by brokerage name. You'll likely find few to none in-house sales.

Great post and good comments. Now, as always, there are some sellers that we have to keep bringing this education to.

I worked for a huge franchise in the early 90's...I didn't care for the culture there...I now work for a small, old firm and find it much more to my liking...I'm fiercely independent and I can do what I want here...I set my own commissions and handle my deals, my way...my broker is excellent and we often bounce ideas off of each other...if I start my own office in the future it will be, and stay, a small one.

The agent does really make the difference - I have worked for small firms and now work with Re/Max - I have been with Re/Max since 2006 and I do think that helps as they do so much national marketing that generates business but you still have to base your final decision on the agent.

Loreena, you hit the nail on the head. It is the agent's talents and capabilities that make them stand tall above the rest. I work for a larger company and there are definitely plusses and minuses. There is name brand recognition, training and a mulititude of agents to gleen wisdom from but there are also many apples that can spoil the apple cart, more personalities and ego's to wade through and for newer agent, they can sometimes get lost in the shuffle. In the end, for me at least, name brand recognition keeps me with my Broker.

Loreena,

I read every content with great interest. I too firmly believe it is the Realtor® not the agency that services a client.

When you look for a service providor you look at what that service providor does for you. When you look for a Dr. or a Lawyer...you don't look for a firm...you look for what provides EXCELLENT SERVICE!

I too am re-blogging this great piece Loreena!

Interesting post!

This has been a subject of debate amongst real estate agents for a long time. With the rash of new age start-up companies in recent years, it seems to have turned traditional thinking upside down. Some feel that it's all about the agent, some feel that they need the comfort of having that big brand name to identify themselves.

It is certainly true that people recognize the big brands immediately and will call that company when they have a need. I think it boils down to this-- If you have a head to head interview with a prospect, the advantage of branding quickly disappears and the agent's sales ability and people skills will eventually win out.

Totally agreed. The agent is the one that does the selling/work... the company is just a name.

I've found that the potential clients with their hearts set on a big broker are the least experienced. That said, explaining how it actually works is not so tough. There is nothing wrong with the big offices and franchises, but these days they exist for the sales agents, not for the consumers. I remember when I had a big office with a view, unlimited full color promotional materials, and a great support staff to handle my paperwork and answer the phone. That was really nice, but now that my career has matured it is easier for me to get away from the water cooler talk and focus on my business with a smaller company.

The quality of the agent is first-and-foremost. With technology available today, a good agent doesn't necessarily need a large franchise association. A second consideration, and a reason to consider a smaller brokerage, is the availability of a quality broker behind the agent. If the broker is managing a large number of sales people you may not get the kind of attention you may need at a critical time if the broker is just too busy.

Great Post. Many views and thoughts for both sides of your topic.

I have worked with the large, medium and small brokerages. I believe it is up to the individual agent on their own success.

As a owner of a non franchise brokerage I have not seen anyone that does not list with us due to our size. We show value via our internet presences and like all the MLS.

Love it! Thanks for speaking what we Mom-and-Pop brokers have a difficult time articulating. Also enjoyed the very thoughtful comments by your readers!

While I agree that it all boils down to the agent, a large brokerage franchise has 1 distinct advantage. If you are in an area that is increasing in size because of companies hiring (obviously with unemployment as it is now, this is not our present situation), people from out of town will search for companies they know to find an agent in that area. That's where a well recognized name could come into play. Someone looking for an agent on the opposite coast may do an internet search for a familiar name or one they've dealt with in the past that provided good service and either contact the office or read the bios for the agents at that office and pick one. They are at a disadvantage if they don't know anyone in the area, so they fall back on the familiar.

Other than that, it is all up to the agent. You have good and bad in large, medium and small companies. It would be great if all consumers were familiar with the area, the real estate agents and firms and could pick the best one for their needs, but that's not reality. There are several of the Century 21 francises where I work and they are not all created equal. I stay here because the broker makes sure we operate as a team with the consumer being number 1. Being made up of human beings, there are some here that are better than others, but they don't last long in this company.

Great post! The issue comes up when I'm recruiting as well. I'm always surprised when agents talk about wanting to be with a large national brand. That immediately tells me that they are not confident in their own abilities, and fail to understand that the seller is selecting THEM, not their brokerage, to represent them in the sale.

I agree that the agent makes the difference. That said, some large brokerages offer training and interaction between top agents that helps make an agent better.

In addition, large brokerages can afford more marketing dollars than many smaller agencies. Our MLS in Arizona charges brokerages for advanced services that may not be as affordable to smaller brokerages. Our firm pays for our agents to have preferred placement of listings on Realtor.com and Trulia. They also are implementing some very advance technology initiatives that smaller brokerages would find it difficult to afford.

Thanks for a good question and we wish you well.

I agree with most of the comments above. When working with buyers it is all about the agent. When working with sellers it can be a different story. Just putting a listing in the MLS can be done by companies that offer no other service at all. A good (and fast) web presence is a must in today's market. If I visit a slow and untended website...I move on. If I have to enter ay contact info on the site...I move on. I have sold many homes to people that had no idea what company I worked for, but the branding that comes with a franchise can be invaluable.

I think that consumers use the agent....not the company. Period!

The brand behind the listing agent definitely isn't the key factor to getting a home sold, but I believe there is a small benefit. In general, national brokerages have relationships with the top real estate search engines, meaning once your listing is entered on the national franchise's website, it's automatically syndicated to the major real estate search engines (trulia, zillow, front door, yahoo real estate, etc...). Independent brokerages usually have to manually enter their listings on these websites. So my point is that national franchises often times offer a more automated online marketing approach. Certainly not to say that an agent with an independent brokerage won't utilize these powerful online marketing tools, it's just more time consuming for them. When a national brokerage has to make changes to the listing (particularly price changes), these changes propogate immediately to all the linked websites with one change to the national website, whereas an indy agent will have to make the change manually on every website where they've posted the listing. Impossible? Of course not, but I think everyone can agree that automation is more efficient than manual entry.

The real beneficiary of a national brand is the agent, in my opinion. National brokerages do have very powerful lead generation and lead capture systems in place. For example, a TV ad that says "Nobody sells more real estate than..." contains a call to action that encourages the potential buyer or seller to visit the national website to search for homes or an agent. The prospect visits, searches the local MLS and/or agent profiles, and then sends an online inquiry which is directed to a local agent affiliated with that national brokerage. That is a lead that, if worked properly, was captured before a local brokerage even had a chance.

In summary, buyers and sellers can just as effectively buy or sell a home using a local brokerage vs. a national franchise since the SERVICE and EFFORT of the agent is what gets the deal done. The real value of the national brand is in it's "perceived value" to the consumer, which essentially benefits the agents associated with that brand more than it does the consumer.

So, is a national brand important to getting a home sold? Not really. Is a national brand a great recruiting tool for brokers looking to bring on new agents? Absolutely.

I respectfully agree that the agent is more important than the company.

I respectfully disagree that the agent is the only thing that matters. Bigger companies tend to have better marketing resources and name recognition. Does it matter? Absolutely. Ever heard of McDonalds? What about Rush'es (local burger joint in my neck of the woods)? Bigger companies usually have better BIC's, better training, better support staff, more agent interactoin. Does it matter? Absolutely. Do bigger companies typically stay better informed on the pulse of the market? Absolutely.

I won't disagree that the agent is the matters more, but don't discount the company. I always wonder what I'm going to get when a small local brings me an offer. I don't mind telling you they are typically less knowledgeable than the agents from the big companies.

Hi Loreena - Golly I hope Brandon's comment does not apply across the board. I have been an independent for 19 years (29 years licenced, and have never heard that comment. Several months ago I wrote an article on this very topic. Here is a link to that article:

Should I list with a large company or a small company?
(Or what company size does have to do with it all, anyway)

http://www.carolyne.com/bigorsmall.html

I am not advertising on your site - just sharing information. Hope this is okay. Cordially,
Carolyne

Love your post! And to the agent that mentioned McDonalds- I know of McDonalds- but you will not find me eating there. Aloha Karla Casey the Proud Principal Broker of a small family friendly with professional and quality customer service real estate firm in Hawaii PS we have access to zillow, trulia, realtor.com and all the other websites that large firms have. Check out our website at www.caseyhawaii.com

Brandon, There is a large firm here in Honolulu that is a nationally known company. Every time I get an offer from their firm, I am fearful that my seller will accept. I find that the agents I have dealt with there to be unethical and not knowledgeable. If there is a problem, their BIC will not call you back. One of their "president's" knocked on my seller's door and asked to show the home with his clients standing with him. No phone call to me! Very unethical. My clients were furious. It goes back to what the post says - it's the agent - not necessarily the company. In any situation, it is the broker's responsibility to train their agents and to be available when there is a problem.

In my area i find that agents from larger companies are very high strung and seem to have an air of entitlement. I work with a small firm and tend to work the expired listins of those big companies whose agents were too busy with their noses in the air to help their clients

I think the real issue is the Agent not the Brokerage. Now some agents use Brokerage statistics to make themselves look better.

In general, I agree with the majority of the comments indicating that "it's the agent, not the agency." However, from the seller's standpoint, the large franchise broker has one advantage, and from the buyer's standpoint, the small brokerage has one advantage.

For a seller, trying to sell a high priced home, the large franchised broker has relocation assets that help provide a wider market for that high priced home. A high priced home in my area is just as likely to sell to a high salaried employee of a big corporation who is being relocated to the area as to a local moving into a bigger home. I've only worked with small firms in my career and none of them could network a seller's high end home to potential relocation buyers. If you're selling a high priced home using a small firm, you better hope that your agent has connections with local corporate HR offices.

For a buyer, I am convinced that a buyer is far better off to work with an agent from a small firm. The agent with the small firm is under little or no pressure to show the company's inventory. I can't tell you the number of buyers I've worked with who have told me that the agent from Big Big Realty wouldn't show them anything but what was listed by their brokerage. On the other hand, I will show them anything that suits their needs. I believe that's true of most agents working for smaller firms.

I agree with Margaret Woda that a larger firm can provide more resources for its agents than the smaller firms. I have worked for a large firm for twenty years and they are constantly pulling agents into the newest technology and working to educate them so that they can serve their clients better. I find that agents with some of the smallest firms and with the brokerages that do nothing but hang licenses are often behind in knowledge. Obviously individual agents can educate themselves and provide marketing services just like the rest but I find that most of them don't. A marketing program for sellers should be more than using the MLS as the beginning and end of your marketing program.

I agree--it's all about the AGENT and what they bring to the transaction--not just the brokerage. I came out of a large franchise brokerage, where the philosophy over time became more agents was better for the corporate bottom line, and it seems that anyone that walked through the door was given a desk. A large brokerage may be the place for newbies to start, as they can ride on the experience and sales stats of the company until they get some sales under their belt. Still, it was the same 10-20% of the agents who sold most of the homes month after month and their sales gave the new licensees what they needed to get started..

Those top-selling agents knew how to market themselves to separate themselves from the rest of the pack. They could do just as well in a small brokerage as a large one. And as the market has gotten a bit tougher, these same agents are the ones that are still selling houses. It's definitely about the individual agent and their experience and track record,regardless of the size of the brokerage.

One more thought here about the small agency vs. the large one. Depending on your state's agency laws regarding buyer representation, its also clear to me (at least in Connecticut) that the smaller agency is much less likely to be dealing with dual agency situations--disclosed or undisclosed--and that is always BETTER for the BUYER.

Oh boy...I must respectfully disagree with many of these comments about "larger firms providing more resources for it's agents". These resources are only as good as the agents that use them. I left a big box company, for LACK of training after relocating. Sure, we could log on to a webinar, etc., but really, how many agents (other than AR members that "get it") take the time to do that? I would get so frustrated with the lack of technology and resources.

I opened up my own Boutique company and know for a fact that I market better than ANY of the large companies here, and agents that work for them. I Google my listings and see for myself, then Google random addresses and they are no where.

A company does NOT an agent make, whether large OR small. Choose your agent for their knowledge and marketing skills, NOT who they work for :)

Perfect Loreena... We sometimes hear agents say that it is because the national brand markets everything that they are better to list with... nonsense... we, as a small brokerage, have AT LEAST as much savvy with marketing in today's marketplace as any of the big boys... often more... and when it gets right down to it, the individual agent is what matters, whether on the buy side or the seller side.

Great post.

Loreena: My sister and I always say, "It's not the Company, it's the Real Estate Agent's individual effort". Great post - we totally agree. Carrie

Definitely quality of agent should be your first criteria. There are baseline expectations that will make your property standout - I suppose they differ from market to market, but some of them include:

will your property be presented in the one (or more) MLS services that the majority of potential buyers agents use?

will your property be presented in an outstanding way in pictures and words; will "all" the fields in the MLS be competed?

if there are specialty sites used to market properties like yours (I use land and horse farm specialty sites for example) - will your listing agent be using them?

Having said that - assuming those first criteria are met, I think a national brand provides an extra edge, especially for buyers new to the area.

I agree with you up to a certain point. Some firms do offer more to their agents, and in turn these agents pass it on to their clients.

Loreena, before the internet became the big equalizer, larger companies did have somewhat of an advantage. Not anymore. I actually had a buyer tell me he almost didn't hire me BECAUSE I was with a company who had a large number of listings. And I had another buyer who just told me he didn't even know our building was there (huge two-story) before he met me!

It is truly about what the agent does and their marketing. The public really isn't big brand conscious very much anymore at all.

What a great post Loreena. It was nicely put and effective.

You are correct the home will sell or not sell based on the listing agent that is running the transaction. It does not matter the company name behind it. If the LA is inexperienced and lacking knowledge or the wits to know where to find the right answer then the seller is in trouble no matter what company name they work for. As long as the RE company participates with the local MLS then the house will get its needed exposure, if the price is correct, and there is good accessibility to the property.

I have only met one client, my first, who could have cared where I worked. At that time I worked for Keller Williams who were not that well known and he only agreed to go with me after he saw their ad in the Sunday paper. Other than that, no one has given a fig.

Nestor had a saying when he competed against the big dogs- don't get lost in the crowd:)

We have never even had this come up when we take a listing. But then again, the homeowners in our market want to do business with small independent brokers and they want the broker to broker their deal. Our biz has flourished and our profit margin exploded since opening our own independent brokerage.

Sharon Comment #93 and we must fight to keep it that way, the big guys don't like the small fries getting a piece of the pie. They are out in full force to shut us down by forcing us out with fees and regulations that most of us could not take care of.

I appreciate all the wonderful comments. Based on the comments that came in, again, perhaps I'm still not convinced that the larger forces give an agent's advantage to selling the home.

What I've learnt about selling homes over the years, nothing beats pricing the home correctly the first time.

Now, that may take some education either by school of hard knocks by the individual agents or good quality education that could come from the power houses or individual smaller brokerages.

No powerhouse has been able to sell a property above market price.

Pricing is a skill that comes from an agent.

And I want to thank each and everyone of you for commenting. It tells me what I want and plan to be. I sincerely appreciate it. And whose to say, a small cannot become "large" someday?

The agent makes all the difference in the world. I truly believe that the "Large" can be very small if it doesn't have the agents with the skills, the enthusiasm and the love for the business. Bigger is not always better!

Loreena - Looks like you received quite a few responses from your comments. Some strongly agree and others strongly disagree. I think it depends on the company (both large and small). Some small companies do not have solid brokers to train properly and therefore the new agents fall into bad habits, but this can also be said for larger companies with poor brokers/training. I recently worked a deal where the agent asked me for 'the next step' and they were from a larger company (one of the Big 3). I've also worked with some great smaller companies where they took excellent care of their clients (like yourself).

JUN

2010

Fantastic post.I will re-blog it.

I agree that its patience and market knowledge that makes the difference between agents. Great post

I reach over 180,000 real estate folks here on ActiveRain that makes me pretty large I think

Pick the agent you like, not the company. There are plenty of good agents out there that work for both models, but the model itself doesn't make the agent. In Florida, there is an office with 10 agents who started up new in 2004. By 2006, they were number one in the area and still a small boutique office, knocking the socks off the two big box brokerages who had 300 agents each. Her service was outstanding, and it showed by her rise to the top, it had nothing to do with the size of her office. I look to her as a mentor and proof that bigger is not always better.

JUN

2010

I've been selling for over 30 years. First as a Head Hunter, now as a Realtor and have always been associated with small firms where I knew the management team / owners. It is a shame that some people are twisted buy advertisements and claims made by some organizations that use fuzzy math to make themselves look better. I think working for a small one office operation is good and can work but that organization needs to be out in the local market too making a name for itself. In my town most of the franchise offices kept the local name in association with the franchise kind of like ReMax McDonald's ... so how much are they really getting from the franchise? To me they are still trying to keep the local feel. The only one that seem to flex big brohter mussel to me is Pru. call any office and its Pru ..

In the end it's the Broker and the Agents that matter ... it was the same as a Head Hunter and its the same as an Realtor..

JUL

2010

The agent makes or breaks their business. Part of that is the decision to leverage resources and a respected big brokerage has worked well for us.

OCT

2010

I prefer dealing with small brokerage firms. Some of the larger firms, in my opinion, treat you just as a client and not as a person/friend. When I was looking at this franchise directory, I found a lot of large brokerage firms.

JAN

I prefer small brokerage firms as well. I like being able to get to know the realtor individually and feel like im their friend and that they are working to help me. Take a look at this <a href="http://profitstreet.com/" target="_blank">franchise directory</a> as well, they have a bunch of helpful resources.

Leave a response…

Name:

Email:
(optional)

Comment:

What does the graphic say?

Loreena Yeo, Realtor®| Frisco TX Community Ambassador (214)783-2210

Frisco, TX

More about me…

3:16 team REALTY ~ Locally-owned Frisco TX Real Estate Co.

Address: Frisco, McKinney, Allen, Plano, Valley Ranch, Little Elm, The Colony, North Dallas, Addison, Frisco, TX, 75035

Office Phone: (214) 783-2210

Cell Phone: (214) 783-2210

Email Me

View Top Picks - Houses of the Week - as viewed by Loreena. These are homes with attractive value. Contact Loreena for a showing.

Testimonials

We were completely impressed with Lorenna. She helped us find and buy a home in Frisco. We have very high expectations from a realtor and she ... more

5.0/5.0

by JerryInFrisco

Loreena is our agent for life. She has gone well beyond the call of duty on all aspects of our home buying experience. She graciously and joyfully ... more

5.0/5.0

by rakoczy_99

Professional, efficient, knowledgeable and easy to work with. Also ethical and very up with information and resources such as builders, specialty ... more

5.0/5.0

by Jeffallysonk

My Frisco Real Estate Listings on Zillow

Listings

Links

Archives

Find TX real estate agents and Frisco real estate on ActiveRain.

Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.