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LARGE COMPANY vs small company - The pros & cons in today's real estate business

By
Mortgage and Lending with Social Media - Infinity Home Mortgage Company, Inc

Small companies vs large companies

Are we larger than life just because we work for a large company or a well recognized name in the industry? Examples of this would be Wells Fargo, Bank of America, RE/MAX, or Keller Williams.

You as a consumer, when shopping for that realtor or loan officer, do you first search for that large name? A company that is recognized on tv, in the paper, or by word of mouth from friends and co-workers? 

Do you think that you will get the best deal by going to a large company?  Or is it security, in fear of the company going bankrupt, so your decision is based on bigger and established?

 

 

This is not to throw any one individual or company under the bus, but just recently, I have spoken to 4 separate borrowers who all started their process with Wells Fargo. Not only are they being told that it could take 45 to 60 days to close their transaction, but many of their loan officers aren't supplying accurate information. I actually had one borrower who was told incorrect information by 3 different loan officers from the same company. Many of us would think if the majority of the people say the same information, that it must be correct. Unfortunately in my opinion, this is not longer the case now, especially when it comes to mortgages.

Yes, it comes down to education, education, and education. And no, I am not saying that you have to be educated with a degree from Harvard. But that the person servicing you, helping you through the transaction, should be educating you on the whole process.

 

In the world of mortgages, we say that there are two types of loan officers.

1.) A true professional, who is on top of their game, knows most programs and can explain them, will give you good customer service, and will be more than fair with you when it comes to rates and costs OR

2.) An order taker.  Someone that could easily work at a fast food joint, in which case, sometimes your order doesn't come out the way it should. The same in mortgages. There are loan officers that will tell you what you want to hear, even if they don't know if the answer is correct or not. People, it happens.

 

 

good loan officers vs not so good loan officers

So, how do you pick your loan officer or realtor?  Does a large company name matter to you as much as you think it should? Again, there are very good people at both large and small companies. But from my experience with consumers in the last several months, it seems like there are more order takers at the larger companies now than ever before.

Pros & Cons -  Many of you think that just because that company is one of the largest, that they are a safe choice and that you should be able to get the best deal. This is not always the case. Back in 1998 or so, Norwest Mortgage was the largest lender out there. They were bought out by Wells Fargo, even though it was for name sake for the larger scope of things. And now look at Countrywide, who was the largest, until Bank of America just bought them out.

Best price/rate from a mortgage company?  How about service?  Do you know that there is a small price for excellent service and that in many cases, what is promised or advertised as the best price, usually doesn't come with the service. Same goes for realtors. Just because most real estate transactions have a 6% fee, doesn't mean that if you get it lower, that you will get excellent service. Again, are you looking for the giant to make you feel secure or are you looking for the one that isn't selling you false hope or promises.

 

 

Summary :  Many consumers don't understand the mortgage and real industry. One main thing that is forgotten in many cases.  Most of us are 100% commissioned.  In many cases, these are you least experienced and least knowledgeable in the business. Many would think that service should come with their real estate transaction at all times, no matter what.  At many larger companies such as Wells Fargo, if you talk to someone on the phone, they are part of a call center.

Keep this in mind.... Many that I know in both real estate and mortgages love their jobs, and truly love helping people. Many of us will go out of our way, even if it means we will earn less. But we don't work for free and I hope I can speak on behalf of other realtors and loan officers. This is not McDonalds, where service comes with a smile. Many of us are dedicated and passionate in what we do, because it's not a job, but a real career.  Just think about this next time when you are speaking with a realtor or a loan officer.  What do you truly want?  In my opinion, it should come down to the person that you are dealing with, not the company. Sure, reputations do make a difference, but that is a whole other topic. Bottom line, you are dealing with people.

 

 

 

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Copyright © 2009 by Jeff Belonger

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Copyright © 2011 by Jeff Belonger of Infinity Home Mortgage Company, Inc

Comments (57)

Larry Bettag
Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL
Vice-President of National Production

This is spot on...I think that this is just too huge.  The companies that allow for individual creativity allows for greatness.  Large companies are great, but they're so limited as to what's permissible.

Apr 30, 2009 03:24 AM
Diane Aurit
LKN Realty, LLC - Mooresville, NC
Lake Norman Real Estate

I love what Larry just wrote.  My greatest frustration with big firms is that they don't really allow experienced and creative individuals the freedom to do what they do best.  I know I am in this very situation right now and pondering going out on my own.  Yes, I will miss the big name but I will finally be able to give the very best of everything to my buyers and sellers and have fun doing it!

Apr 30, 2009 03:43 AM
Kathy Baker, GRI Tennessee Realtor
Realty 1 - Jamestown, TN

Hi Jeff,

How right you are! When I first started my Real Estate career 7 years ago, I was affilated with one of the big name companies. We were trained to sell the name, the company, we as Realtors were secondary. It was an incredibly stifling environment.

I then went to a smaller venue and began selling myself, and as Larry stated above, I was allowed to use my own creativity, and that is what made the difference. Success was almost immediate!

Kathy B

Apr 30, 2009 04:04 AM
Barb Szabo, CRS
RE/MAX Above & Beyond - Cleveland, OH
E-pro Realtor, Cleveland Ohio Homes

A variety of opinions on this but I think the majority are focusing on what's important to them as an agent. The question here is what do the buyers really think and I think many of them feel "safer" with a large company. I've worked for large local, small local (6 agents) and now Remax and I've done the best at ReMax but still it's the buyer's and seller's perception that counts.

Apr 30, 2009 04:08 AM
Jo Olson
HOMEFRONT Realty - Kettle Falls, WA
Retired - HOMEFRONT Realty @ LAKE Roosevelt

I do believe that the general public has no idea about what the relationship between the agent and the company is.  In my area Windermere and John L Scott are the hitters and always have been.  I spent 10 years with Windermere and loved the culture and the company.  I however, did not received one lead from them.  I was my own business - that is key to me. I work for the largest independent in my area and they allow me to run my business my way within my contract.  Funny, the comments I receive when agents question why I work where I do.  You see in my area (Greater Puget Sound) there are a lot of "company snobs" type agents.  When another agent finds out I worked for Windermere for several years they all of a sudden change their tune.  I don't sale homes to agents so I could careless.  My clients choose me based on what they see in my marketing materials. I do have to state that I am 90% a buyer's agent so this might be the reasons.  Once I explain my business model it all makes sense to most.

Apr 30, 2009 04:11 AM
Patricia Aulson
BERKSHIRE HATHAWAY HOME SERVICES Verani Realty NH Real Estate - Exeter, NH
Realtor - Portsmouth NH Homes-Hampton NH Homes

Big or small, there is good and bad on either side of the street so to speak. Shop around for the best deal you'll know if when you find it.

Patricia Aulson/Portsmouth NH Real Estate

Apr 30, 2009 04:36 AM
Darin Osenberg
Funky Quail Vintage - Nashville, TN

You know, alot of people trust the BANK when they walk in because it is a BANK.  Hmm...Wasn't INDYMAC a bank??  Isn't Citi??  How about WAMU??  Were they not backed by a BANK??

If the new legislations continue to pass, this country will be filled with socialistic order takers..and no longer will contain, or be MAINTAINED by professionals.  However, I think by the time some people realize this it will be too late.  Professional athletes are the same way...Look at the percentage of GREAT and I mean GREAT pro baseball players that make the jump from High School, to the Pros'  NOT VERY MANY>  We are pro's!  It is difficult and challenging, but we are professionals!  Credit Unions are notorious for filling their seats with order takers.

Nice blog Jeff.  Reitiration is the mother of learning I have always thought.

Nice McDonlads analogy.

 

Apr 30, 2009 05:59 AM
Jim Paulson
Progressive Realty (Boise Idaho) www.Progressive-Realty.info - Boise, ID
Owner,Broker

Realtors are not commodities however the consumers sometimes treat us that way.  The benefit of large franchises in many cases is the consistency you should be able to expect at each one.  For example, a Big Mac should taste and look the same in Chicago as it does here in Boise, Idaho.

However, here in Boise, each Realtor is still a unique commodity in themselves (as it is where ever you live).

The key to success still depends on "marketing".  An idiot at either large or small, independent or massive franchise, should still be perceived as an idiot at the end of the day.  A great Realtor, however, still can't rely on the strength of the company name or brand to make them successful.

 

Apr 30, 2009 06:04 AM
Ann Cordes
Century 21 Randall Morris and Associates, Waco - Waco, TX
Home Ownership is Not a Distant Dream

Jeff, when I first got in to real estate 2 years ago, I joined Century 21. Even though it is a big company, the office here in Waco is small, about 8 to 10 agents, and about 20 to 25 listings. Last fall I moved to Keller Williams, which has 60 agents and over 100 listings.

We have had " come list me calls" from people who called Keller Williams because they say they see our signs everywhere. But there are also people who call smaller companies because they don't want to deal with a big corporate office.

Both have their good and bad points. It just depends on what makes you feel comfortable.

Apr 30, 2009 06:15 AM
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

 

KERRY.... . the issue that Wells Fargo might be bombarded with refinance requests is still not excusable, to a certain respect. Part of my argument is that 4 people that I have spoken to in the last week have asked their loan officers at Wells Fargo and they keep getting different answers, even from people in that same office. And these are basic questions. Again, it goes back to hiring order takers, just bring the over abundance of deals in, and then worry about the problems. Yes, this could happen to a smaller company, but it's more likely to happen with a larger company. 

Again, not trying to just put down Wells, but most of the complaints that I am hearing about, are coming from those dealing with Wells. But just as you stated, and so many of us agreed with, it does come down to the individual, small company or large company. My whole point to this, to the consumer was, don't just assume because it's a big company.  thanks

 

JON.....  I think the cover your ass format is even with small companies, but those companies that value integrity, but being careful also. Keeping in mind that this is one of the largest investments in ones life, and there are a lot of sue happy people out there.  Overall, working as an individual, no matter if it's with a large or small company, if we aren't hampered by corporate BS, is where that can also separate some of us, professional or not.  Just my .02.  thanks

LANA......  well, dealing with a small mortgage company and having them sell that loan to someone else, is really a mute issue here. Even the larger lenders sell off your loan in pieces, to other investors on Wall Street, even though B of A services your loan. They aren't the sole owners of that loan. Just a fyi...  too me, it comes down to the service upfront, because once you go to closing and sign that note and mortgage, nobody can change that on you.  thanks

VIRGINIA..... bingo, that is what you want. You don't want..."I worked with a realtor from ERA, what's er face."  You want... I worked with Virginia Heep, who worked for, some real estate company."  Sure, the ultimate is, "I worked with Virginia Heep from ERA."   But you as an individual, you want to be remembered first, as you did a great job, not your company. It starts with the lead person.  thanks

JB.... . yes, the true professional that is on top of things, has very good service, not always great... great in my opinion can be too demanding... but not just an order taker or a liar/bait and switch.  And thanks for that very polite compliment, it's much appreciative.

SASHA.... . my pleasure.. thanks for the kind comment and for stopping by.

BRUCE & MARY... bingo, if the service isn't there, even the large name can be tarnished. But it takes a larger word of mouth sometimes.  And yes, it doesn't take 25 people in your office to give great service and to get the deal done.  I need a great receptionist, a great/excellent processor, a very good underwriter, and a closer that knows what they are doing and can juggle many obstacles thrown at them on any given day... and me, the person that will be there from start to finish, answering questions and helping to get the deal done in the time that is expected.  thanks

 

Apr 30, 2009 06:25 AM
Gary McNinch
Better Properties Real Estate - Renton, WA
Broker, Renton WA Real Estate

Jeff,

Usually I agree with you.  On this one I have some additional input. In our market in Seattle, the "order taker" agents are no longer in business.  Agents that don't have great referral sources and are not aggressive on the web aren't doing business.   On the other hand, those of us who have solid client bases to touch, a strong net presence and good systems are doing just fine. 

I enjoy working with Keller Williams because of the excellent training for experienced agents and teams and the systems are great.  I started here when it was "Keller who" (2001), now I receive good comments because people have been given good service by our agents.  To Missy's point, I too was surprised when I started getting click thrus from a search for Keller Williams Renton.  But the numbers prove the value.

List and Sell (and yes it is the service first)  Gary @ RentonHomeFinder.com

 

Apr 30, 2009 06:38 AM
Roland Woodworth
Blue Cord Realty - Clarksville, TN
Blue Cord Realty

Jeff: Great information... I have been with the larger Real Estate companies... There is good and bad... the larger the company.. the larger mix of agents you have.. this is not always a good thing..

 

Apr 30, 2009 10:07 AM
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

 

MISSY.....  yes, I know you track your leads. Any good realtor or loan officer should. I can tell you where each borrower comes from, because that is one of the first questions that I ask, if it's not in an e-mail.

In regards to people finding you other than from the blogs that you write, which are very good because of the information supplied, because you use social media networking as another source, and yes, because of the name Keller Williams... no, I am not actually surprised.  Keller Williams has truly made a good, respectable name for themselves, and not because of Gary. Having great, professional, knowledgeable, and dedicated realtors such as your self help contribute to this.

Overall, hence why I decided to write this post. It wasn't so much how we prefer to get our leads, and if with a large company (a recoganizable name), that I want to clarify.  But from a clients perspective, why do they in many cases, search & prefer a large company. And this blog could have been 3,000 words or 2 separate blogs... but I see it more of an issue when it comes to searching for a mortgage company. And I hate to say it, but I am finding so many are searching out Wells Fargo and many aren't happy with the loan officers, the service, and the time period. And in all 4 cases, I was even able to beat out Wells with rate and no fees.  SO I just wanted this to be an awareness blog for consumers.  I would love to get a few opinions from the consumers. I might have all 4 people chime in or write another blog about this.  thanks for your input.

 

CINDY..... I agree, it does come down to relationships.  But this was more about that borrower shopping for a real estate agent or loan officer, who has no relationship with someone, and to find out what they look for or why they just chose that bigger company,.. why?  Security in name and recognition would be my first several answers.  thanks

 

PAUL..... here is where we need to define the type of the industry, when you say a larger company would have larger resources. For example, I would think I have the same resources or in many cases, more resources when competing against a company such as Wells Fargo.... but...

If we were talking about pharmaceutical companies, then I would agree more with your statement that a larger company in this case would have larger resources. They would usually have more funding, more private or gov't monies to use for research.

Overall, when it comes to real estate companies and or mortgage companies.. sure, they might have more money to impliment systems, but we are a small to mid sized mortgage banker and we have some great systems being put into the system, in place. I think with mortgages, it comes down to knowledge and a good staff on hand. .. and not needing much more.  That's just my opinion. 

But you do make a good statement that there are more marketing dollars if with a larger company. But I will say this, that is sometimes a false pretense. I state that because it's built into pricing and servicing. I can be more lean on a deal and make the same amount of money. So if I want, I can charge a tad more, always back to the client, and pay for marketing or partner up with others. I thought the same when I first left a large company that I was working with, but did pricing on marketing materials that my previous company supplied, and it was very affordable. In most cases, you are just paying for the convenience factor, that you have someone doing it for you.  thanks

 

RENEE..... .  picking the right company or in many cases, a very good company, small or large, is a key to a lot of things. What stinks is that you just don't know, no matter how much homework you do or how many people that you interview, that you picked the right company. I have been with 3 large companies, a #1, a #51, and a #60 or so... and many small ones...  and I think I finally found that match.  Still bumps, but I feel comfortable still and it could be a match made in heaven.  In some cases, it can be as much as the luck of the draw.  thanks and good luck..

 

Apr 30, 2009 10:34 AM
Sandy Childs
Keller Williams Realty - Spartanburg, SC
Realtor - Spartanburg, SC

Jeff: I think that the public wants an agent that they trust to handle their business, that's why past clients remember you instead of what company that you work for. I have worked for both the big and the small companies ~ the training is better at the larger companies.

Apr 30, 2009 11:25 AM
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

 

AARON.... .  I would agree that people have to pick what fits for them. Part of my argument is that I know people that will go to the bigger just because of the name, without even giving the small company or person a chance. Just a fact of life.  thanks

MARK..... I agree 100% and I think many of us feel the same way. And I find this more in mortgage companies than at real estate companies, but I find more incompetent loan officers at bigger companies.... more of an abundance of.  thanks

NORMA.... . I will admit that I do find more of the family atmosphere at the smaller companies.  I did work for a top 50 company for 4 years, and most of us in the office were like family... but that is rare I think.  thanks

CHAD.....  yes, there will be people that will get an attitude if they haven't heard of your company before. I haven't really had a problem with that. What I have gotten lately are many that found me online, who started with Wells Fargo, and now want to come with me because they feel more comfortable with me.  Thanks for the compliment.

SHELDON.... . I think a RE/MAX or Keller Williams will have a good fit for many and that the name is a big difference and recognized. But I can't say the same for when it comes to mortgage companies. I could give my opinion on several reasons why. But overall, I do see a difference in both industries and unless you have been in the mortgage industry, I think it's harder to see that.  thanks

 

Apr 30, 2009 02:32 PM
Thomas E. Elder
Mortgage Broker Compliance Consultants - Forest Hill, MD
Founder, Mortgage Broker Compliance Consultants

Good article.  Good to see you again.   I am back :)  

Apr 30, 2009 02:34 PM
Charles Stallions
Charles Stallions Real Estate Services - Pensacola, FL
850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.

Great post by the way. I think it comes down to the agent. People need the feel good and to know they made the right choice. I have been with 2 big franchises, 1 large independent and I am now on my own. I can make it anywhere.

Apr 30, 2009 02:45 PM
John Cannata
214-728-0449 http://TexasLoanGuy.com - Frisco, TX
Texas Home Mortgage - Purchase or Refinance

Funny that you mentioned Wells Fargo.  I just picked up someone because they were told it would take up to 60 days to process the loan.  I have not dealt with them much, so its odd that I would have had this situation just as you wrote your post.

Apr 30, 2009 04:59 PM
Liz Moras Migic
Chilliwack, BC
Chilliwack, British Columbia - Realtor

Interesting on so many levels...Irony here is I went from a BIG company (REMAX) to a small company...........:-)  Keller Williams here is still a very small company - only 3 offices in the province.........So often it depends on the individual office.........and the relationships you've built.....the initial pull will be because of perceived reputation......or visibility/credibility.........unless there've been some negative past experiences.....now that was a bit of a ramble on...lol

May 02, 2009 02:48 PM
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

 

MARIANNE..... I blog on a national level, since I am licensed in 12 states, so I get the Wells Fargo thing from several different states. And that is the other problem that I have... people going to their banks or FCU's, just because they are suppose to be good and or helpful.  But many of the loan officers at these institutions don't have the experience necessary, at least from what I have found and have heard.

BETTINA.... . I think many of us would agree that it starts with the individual.  And yes, every company had to start out small, unless they took over a larger company. But that wasn't my point with all of this. It's how and or why many people choose larger companies over small, but then they complain about the service, yet many don't leave,,... and in some cases, they just hope.  thanks

 

KAT...... so,do you still believe that big is always better, from the comment that you made? Just curious...  I think it depends on what kind of industry that we are talking about. Example.. you can't compare big electronics companies over big mortgage companies. Each has a product, but the mortgage product anyone can sell if they have it, but it comes down to service. The electronics companies?  It comes down to a quality product. That's how I look at it.

So, big or small can be good in the real estate and mortgage industries.  And as many of us have stated, it does come down to service. thanks and thanks for the polite compliment.

 

MARK... .  I would agree....  having resources can help, but I still believe that it comes down to the individual that has great service and who actually cares about their borrowers.  thanks

JOE......  I would agree... I just think that so many consumers hang their hat on the name. Even many realtors and loan officers working for these larger companies, can be average at best. But I make this statement more in regards to the loan officers and not the realtors.  I truly believe that there is a huge difference before a RE/MAX or Keller Williams agent than what you might find at a Wells Fargo or Countrywide/B of A loan officer.  thanks

TERI.... . you make an excellent point and I would agree with that statement. It's part of what I was just explaining to Joe, who is above you. You could be a small branch or office with a large name.  Thanks for your input.

 

May 03, 2009 06:10 AM