This Brokerage Has 750 Listings…..So they must be the best! (Part 1)

By
Real Estate Agent with Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605

Does size really matter?  Do the number of listings or the size of the brokerage have anything to do with the ability of the agent to market and sell a home successfully? Is it the brokerage or the agent that is the determining factor?

What Does the Brokerage Bring to the Table?Blowing smoke

One of the biggest issues  I encounter on listing presentations  are questions regarding the brokerage itself.   Most questions revolve around marketing.  What does the brokerage do in terms of marketing  for the listing?

I think that most sellers assume that since the brokerage is “big” and has capital behind it, that they are the ones spending  big bucks on marketing the home.  But this is rarely the case.   Many big-box national brokerages build on that confusion and perpetuate the myth that their brokerage “brand” makes a significant difference in selling a home for top dollar.  They also tout their “marketing package” in terms of the amount of support they offer.  Some actually stress that the number of agents in the brokerage somehow makes that brokerage better or somehow more able to move the property.   With all the hype and misinformation out there it is small wonder that sellers are confused.

I  would challenge these large brokerages who claim that their numbers speak for themselves  to enumerate exactly WHAT  they do to justify their claims?  And while they are at it, I would like to have some hard numbers to back up their success stories.  I haven’t seen any of them come up with any marketing advantage that holds up under scrutiny.  Most of the time they appear to be blowing smoke.  Don’t get me wrong, I’m not slamming big brokerages. That would be rather foolish since the brokerage that I am currently associated with is quite large.  What I am trying to do is cut through the hype.

Follow the Advice of Deep Throat:

Who actually sells the listing? The agent or the brokerage? To figure that out you have only to listen to the words of “Deep Throat” in All the President’s Men.   He told Robert Redford to “Follow the money!”

If a brokerage has  hundreds of agents, it is likely that they have close to 1000 listings.  Brokerages are business to make money on sales.  For a big brokerage like this – the listings are a numbers game.  Throw 1000 up against a wall and maybe half will “stick.”  So how important is your individual listing going to be to that brokerage?  Answer: not very.

But what about the agent? Most agents have just one to two listings at a time.  Top producers can  have as manay as  20-30.  Agents are paid on commission.  If the property doesn’t sell – all the work they did is down the drain….and  there is a lot more to than sticking  a sign in the ground.  When a listing fails to sell an agent is out usually well over 150 hours of time AND they are generally out a good deal of marketing money as well.  Do you think that agent cares if your home sells?  You better believe it.

Take Home Lesson:  Look to the AGENT to market and sell your home.

Stay tuned for part 2 – where some major marketing myths will be revealed.

Further Reading:

Mirror, mirror on the wall…who’s the fairest listing agent of all…Part 1:

Mirror, mirror on the wall…who’s the fairest listing agent of all…Part 2

To Search for Homes and for further information go to my website/blog with free home search at The Westchester View

I am always happy to answer your questions and you can speak to me directly on my moble phone: 914-374-5529.

 

© 2009 Ruthmarie G. Hicks http://thewestchesterview.com.  All rights reserved.  Initial post

This Brokerage Has 750 Listings…..So they must be the best! (Part 1)

 

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Re-Blogged 5 times:

Re-Blogged By Re-Blogged At
  1. Gary L. Waters Broker Associate, Bucci Realty 10/31/2009 01:51 AM
  2. Ty Lacroix 10/31/2009 02:02 AM
  3. Charles Stallions 10/31/2009 03:51 AM
  4. Gene Riemenschneider 11/01/2009 01:58 AM
  5. Pam Keen 11/01/2009 04:42 AM
Topic:
Home Selling
Location:
New York Westchester County
Groups:
Posts to Localism
Bloggers Choice Selections
The Ninety-ninth Percentile
Club Chaos
Tags:
advice for sellers
westchester ny real estate
white plains ny real estate

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Rainmaker
716,033
Ruthmarie Hicks
Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605 - White Plains, NY

Hi Erica, I've had more than enough of that too...It gets really OLD fast.

Hi Cindy, I'm full time...but I think we confuse full-time with diligent a bit too much.  Some part-timers really kick ass!  They retain their "day jobs" in order to make enough money not to have that "hungry look" a lot of full-timers have.

Nov 01, 2009 05:00 PM #101
Rainmaker
716,033
Ruthmarie Hicks
Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605 - White Plains, NY

Hi Kathy - I see that a lot too. They don't want to market it though...that's the nasty surprise a lot of money-hungry sellers get.

Hi Joe - thanks for stopping by.

Nov 01, 2009 05:08 PM #102
Rainmaker
716,033
Ruthmarie Hicks
Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605 - White Plains, NY

Hi Marte,

That's a great story.  The big brokerage sold YOUR services for you!  I just see too many people lured by the big name and falling for the propaganda.

 

Nov 01, 2009 05:12 PM #103
Rainmaker
716,033
Ruthmarie Hicks
Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605 - White Plains, NY

Hi Roch, 

You just have to keep hammering the message home. It's tough.

Hi Lenn,

Interesting thoughts. I try to keep my marketing plans to myself as much as I can.  I tell people what I'm going to do, but I don't leave any written material around that they can show to other agents.  It is amazing what seller's will fall for.  Withdrawing is one way of dealing with it.

 

Nov 01, 2009 05:18 PM #104
Rainmaker
716,033
Ruthmarie Hicks
Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605 - White Plains, NY

Hi Judi,

Sellers STILL seem to want to see their listing in print.  It accomplishes nothing, but there you go.  It is the agent that matters!

Hi Ben,

In our area Brokers do pay for marketing - and charge a really fat split for the privilige  THe marketing is generally more fluff than substance.  But the agent is on such a low split they can't possilby shell out for more.

Nov 01, 2009 05:21 PM #105
Rainmaker
716,033
Ruthmarie Hicks
Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605 - White Plains, NY

Hi Mike,

This is so true...that's why we write blogs!

Hi Carol,  This is so true - but so many sellers just don't get it!

 

Nov 01, 2009 05:24 PM #106
Rainmaker
716,033
Ruthmarie Hicks
Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605 - White Plains, NY

Hi Christine - People STILL believe that this works. It advertises the brokerage not the listing.

Nov 01, 2009 05:25 PM #107
Rainmaker
507,412
Martin Kalisker
Greater Boston Association of REALTORS - Boston, MA
Professional Standards & Legal Assistant

Some firms are better at representing sellers, others buyers.  Some agents won't play the "game" of listing the home for more than what it is worth and instead choose to represent buyers and consistently fight the myth that overpriced homes eventually sell for market value - -wrong.  Overpriced homes sell for less than market value because sellers become desperate and take the next offer after they become fed up with no activity on a stale listing.

Nov 02, 2009 05:18 AM #108
Rainer
61,905
Dennis Puckett
Adams,Cameron & Co. - Deland, FL

Great post. I agree, the agent is the one that gets the job done.

Nov 02, 2009 05:32 AM #109
Rainmaker
716,033
Ruthmarie Hicks
Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605 - White Plains, NY

Hi Martin,

This is also true in depreciating markets - if the price is goining DOWN price it ahead of the market.  The only time I was roped into overpricing was for a client I had a long history with.  If I had it to do all over again - I wouldn't have done it.

Nov 02, 2009 05:39 AM #110
Rainer
28,661
Joy Caldwell
Coventry Glen Realty - College Station, TX

Small offices, big offices, it is the agent that sells the home and if you are in an MLS you have the power of all those agents helping sell your listings. We have a local franchise office that I always get to go head to head with their #1 producer on relocation listings. I have heard her speel "I have 60 agents in our office ready to sell your home". On the listings that she gets, it is rarely anyone in her office that sells the home, it was a member of the 600+ MLS members. So if you are little you are big with the members of your MLS.

Nov 02, 2009 06:37 AM #111
Rainer
51,145
Jody Deeds
Key Realty, LTD - Columbus, OH
"Helping You Move On With Your Plans"

You can't be everything to everyone and not everyone is going to like everything.  It's a matter of preference.

Nov 03, 2009 01:44 AM #112
Rainmaker
199,540
Mark Velasco
Sharpstone Realty, Inc - Whittier, CA
Listing Agent-Whittier & Surrounding ciities

Great post Ruthmarie. Very true, bigger is NOT always better. Sometimes it is. However, Seller beware.

Nov 03, 2009 04:53 PM #113
Rainmaker
716,033
Ruthmarie Hicks
Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605 - White Plains, NY

Hi Jody,

Perhaps, but this was about misrepresenting what they bring to the table.  Most of the big brokerages don't offer much of anything of value.  Why consumers fall for this and waste valuable time watching their overpriced listings depreciate because the agent promised "above market value."

 

Hi Mark,
It's interesting.. In our area Century 21 used to be big, big, BIG. Now the biggest franchise was swallowed up by another big-box.  So the argument for a C21 agent NOW would be "bigger isn't better."

Nov 04, 2009 01:03 AM #114
Rainmaker
449,852
Vickie McCartney
Maverick Realty - Owensboro, KY
Broker, Real Estate Agent Owensboro KY

Hi Ruthmarie~ Large firms try to use that as a marketing advantage.  But ,they are only as good as their agents, period! 

Nov 05, 2009 07:00 AM #115
Rainmaker
1,495,428
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Real Estate

Hmmm, I am fortunate enough to be able to prove my office & company stats by the MLS.  It lets us show sellers (if they want) who exactly sells what in a specific town.  Also lets the sellers see how many agents in that particular office and then firm.  I guess if you can prove it, your OK to say it.  The public has perceptions on alot of things I'm sure you'll agree.  I think that the agent is the person most buyers and seller rely on and then the brokerage name/franchise.

Nov 05, 2009 10:01 AM #116
Rainmaker
716,033
Ruthmarie Hicks
Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605 - White Plains, NY

Hi Vickie, 

I'm a bit tired of two big players in our area falling all over themselves claiming that they are the biggest.  It's ridiculous.  Then they run around claiming that this makes them best. 

Hi Lyn,

You'd bwe surprised at how much people can be convinced that something that is absolutely useless will sell their home.  I think the current market makes this worse.   They are hoping for a magic formula that will make their home worth more than market value.   It's like selling snake oil.  Sadly it often works - just look at health insurance in America.  Most of it isn't worth  much at all - yet we all pay through the nose for it.

Nov 05, 2009 02:24 PM #117
Rainmaker
2,323,259
Charles Stallions
Charles Stallions Real Estate Services - Pensacola, FL
800-309-3414 - Pensacola, Pace or Gulf Breeze, Fl.

Wow what a post and so right on, most folks do not know that the biggest single payers in most markets are independents, even in Atlanta I hear. Good luck and keep us posted.

Nov 06, 2009 09:22 AM #118
Rainmaker
716,033
Ruthmarie Hicks
Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605 - White Plains, NY

Hi Charles,

I just wrote a long reply and it disappeared.  I agree - most of the public just doesn't get it.  And that can hurt them in the end.

Nov 07, 2009 04:15 AM #119
Rainmaker
107,841
Dana Devine
Charles Rutenberg Realty - Apollo Beach, FL

good advice....i agree...and to take it futher, why go with a national name company...the buyer / seller should care about what I the agent is doing for you not who has the best TV commercial and what about the individual agent you has 50+ listings...i know this guy he is an ass, he does not return calls and does not service his clisents, but in the paper he states look at all my listings...list with me and be with a winner..BS

Dec 17, 2009 01:47 AM #120
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