Do consumers prefer the bigger brand when choosing a real estate broker? Maybe yes, maybe no.
Perhaps sellers are drawn to the big brands based on the perception that they are more successful, and therefore, more qualified and experienced to sell their home; the large brokerages have greater resources to advertise and market the home; they have access to more buyers because they have more agents; and their brand name recognition may mean buyers will feel more comfortable dealing with them. In essence, does the big brand provide a greater level of security and marketing clout to a seller? In other words, is the seller hiring the brokerage when it hires the agent in that brokerage? Does the big name brand give an agent an edge in listing presentations?
But what about buyers? Are their needs different? Buyers don’t have a marketing or advertising need. They need someone to take them to see homes. Maybe they seek comfort from an individual agent who can understand and fulfill their needs, regardless of big brand broker affiliation. Personal attention maybe more important to a buyer, especially a first time buyer– the quick return calls, the availability, the time to talk and understand. Does the smaller firm have an edge over the big boys when it comes to buyer perception of personal attention
Just wondering. What do you think?
What is your experience with size?
Related Post:
How to Sell a House with a Mercedes: 10 Perception Principles.
Technorati Tags: real estate brokers, brand, marketing, advertising, real estate agents
I think that the large brokerages enjoy a distinct advantage on the listing side, though the Internet may be eroding that advantage more each year. Few consumers realize that the number of agents rarely helps them much on the selling side, as few brokerages give discounts for handling both sides of the transaction. It’s a free-for-all of competition, with the small buyer agent just as likely to bring a buyer.
Now, it’s a different matter I think on the buyer side. I am pretty much a hermit, writing 12 or more hours a day. I don’t mix, mingle, prospect or network. I just work my web site (http://www.galleryrealtyoftaos.com). I am able to do quite well with buyers who appreciate the information there, my response to their emailed questions, and my reasonably-spaced and informative newsletters from the blog posts.
It’s probably the age-old thing about what works well is what you put your efforts into. I put my efforts into the web. Those who put maximum effort into local networking and courting listings will do well at it, no matter what size brokerage. But, when I was with REMAX, I got listings from repeat REMAX clients who called the office because of their previous experience with the franchise.
There, I think I’ve muddied up the situation quite well with this comment. Thanks for your posts, as your feed is one of my favorites.
Jim
Interesting post topic! In my experience working with sellers in the South Florida market,
I explain to my sellers that it is not the brokerage that will ultimately sell their home but
the dedicated real estate prfoessional that will put a sold sign in the front yard.
Also, when perspective sellers ask me why they should list with me and not with a
larger name brokerage, I ask the sellers that when they bought the home that they
are living in, do they remember what company was the listing brokerage? Most
sellers bought their home because they fell in love with the property. They did
not care what company for sale sign was in the front yard.
Michael Citron
www.PowerBrokerSeminars.com
Thanks for the insights Michael and Jim.
Jim, I enjoy reading you. I guess when you love to write, it isn’t work.
-jf
I don’t believe that it matters much, if at all, on the buyer side. As far as the listing side, some people still want the big brokerage firm while others don’t care.
The ones that want the big brokerage firm want it because they don’t get that it’s the agent, not the broker that really sells the property. The other ones that don’t care get that it’s the agent, not the brokerage firm that is the most important.
I agree Danilo.
Of course there is a lot more to it, but generally, the seller wants marketing and advertising muscle(distribution to as many buyer eyes as possible) and the buyer wants to see all the homes. Marketing takes money so I think sellers may perceive the big firms as having more money to allocate to the marketing of their home. Yes, the agent does sell the home but marketing brings the prospects to the door. So, if the broker does the marketing, he or she plays a role in the sale.
Very true regarding the marketing of the home, but there is not one brokerage firm in this area that pays for their agents’ ads or marketing or anything else.
I wish your scenario was the case (it would save me some money), but it’s all the individual agents that pay for marketing and advertising around here. That leads to a leveling of the playing field so to speak and speaks to the level of competence and expertise of the individual agent, not the brokerage firm they are with.
Interesting. Is that all marketing, including pushing the listings to portals and aggregator sites?
Yup. Everything.
The only benefit to a big brokerage firm is having your lisitngs on their own site (www.kw.com). But buyers around here use non-brokerage firm specific sites such as Realtor.com, homesdatabase.com, homes.com, craigslist, etc., so it doesn’t really make a difference.
Agents have to upload their own listings on the various sites through companies/aggregators such as Listhub, Number One Expert, etc. The brokerage firm has no involvement in that.
Great discussion. Of course it is a selling feature if you are a Remax agent and can tell your potential seller that if they elect to list with you that there home will be on the most searched brokerage website online.
But, approximately 80% of all real estate listings, or more in some states, sell through another real estate agent. So, no matter what company you work for, large or small, won’t the market find your listing if it is priced well, staged, and accessible?
Michael Citron
www.PowerBrokerSeminars.com
Michael, is the ability of the big brand website to bring more visitors to the listing (theoretically) enough to convince a homeowner to list with you rather than a lesser known brand?
I strongly believe that the commercialism of Remax, Century 21, & Coldwell Banker drive the perception that these companies are the elite brands in the business.
Why do people purchase Mercedes Benz or BMW cars or buy Nike Brand shoes? Are these products superior to the competition?
Sometimes perception isn’t truly reality. Aren’t there just as many bad agents that work for Remax or Coldwell Banker as other lesser-known real estate brokerages?
I agree with many agents, over 140,000 Remax agents, that working for a larger well known brokerage with web/tv presence will generate more business for their agents because of their media exposure and will ultimately help land a Realtor who works for the larger franchise more overall business.
But, doesn’t the agent, not the brokerage, have to go out and market and sell the listing in this challenging real estate market? Who earns the commission: the agent or the big kahuna brokerage?