Do I Choose a Brokerage, or Choose an Agent?
by Nick Segal on January 17, 2010The real estate business is competitive. Brokerage houses, big and small, compete for market share; in the trenches, agents jockey for first position, focused on securing their next listing or buyer. It seems like everyone is promoting their advantages with drum-banging campaigns in order to capture the public’s attention: “We cover the globe…” or, “With 68% of the market, how could you consider anything less?” …but hold on just one escrow minute!
Beyond the hyperbole and manipulated confidence, every real estate transaction involving the general public and their real estate agent comes down to one defining factor: what experience did the client have while achieving their objective of buying or selling a home?
Sure, the magnitude of advertising campaigns from established companies over long periods of time brings a degree of comfort — particularly for those looking to get in the game for the first time. Human nature dictates that “tried and true” can look appealing to a new buyer or seller entering the markets. After all, “limiting risk” is often a sound business practice, and to an untrained eye it seems even more sensible. Everyone wants a good night’s sleep, right?
But these kind of assumptions are disadvantageous, even dangerous, in this new era of transparency, access, and cooperation. Consider the following:
1. 85% of all real estate transactions take place between cooperating agents within brokerage companies.*
This means that every brokerage must share the vast majority of properties available for sale in order to keep the lights on. Conclusion: when buying or selling a home, individual agents in the field work together to make deals well beyond the company where they hang their license.
2. The agent defines the experience.
What do you care about the name of the Broker when it is the agent that will be offering you the counsel, strategy and negotiation-implementation throughout the process of your transaction? The agent, far and away, defines the experience, either pleasurable or distasteful, based on their abilities. The brokerage name on the sign in the front yard does little to define the experience (no matter what anyone tells you).
Big brokerages don’t want you to really know this information, by the way. Because they spend inordinate amounts of money promoting their brand, while also supporting a work force in which easily 50% will close less than 2 deals in any given year. Behemoth brokerages must “play to their strengths” of numbers and market share.
I know the initial counter-claim will speak of global outreach and sheer mass to dazzle you back into their fold, and that’s fine, except the problem with that offering is that the internet has leveled that playing field. Now market share will be defined online, through Search Engine Optimization and Google Ranking.
My point in this message is simple: If you are a perspective purchaser or seller of a home, focus more on the individual that will be with you every step of the way and less on the company that they are affiliated with.
*provided by the Multiple Listing Service
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Now we’re all going to be charged to pay attention to quality of service on an individual level. From a boutique point of view, I say, “Bring it on”.
This is excellent information for someone contemplating the perceived benefits of working with a corporate brokerage. The importance lies in the integrity and loyalty of the agent with whom you are working, not the name recognition of the firm. A trustworthy relationship between the agent and their client creates a pleasant experience and the beginnings of a lasting relationship.