When listing your home or buying a new home, a buyer and seller are faced with a decision to make. This decision to use a small “boutique” real estate company or a large national company. Both have their advantages but in this day and age the smaller real estate firms have an advantage over the large national and international companies. Firms like Remax, Keller Williams, Liv Sotheby’s and Coldwell Banker are all national larger firms. Orson Hill Realty would be considered a smaller real estate firm. In the Denver Foothills we are seeing more and more small boutique brokerage firms popping up. Many brokers and agents are leaving the larger firms. There ware many reasons for this.
Companies with the most real estate agents and brokers aren’t always the best firms
Larger real estate firms boast they have the most amount of agents in a particular market. This is not always a positive thing. Just like any industry there are people that just aren’t really that good at their job. Some of the larger real estate company models are to grab every agent and broker they can. They have a real estate training program and grab agents before they even pass the state and federal real estate test. It is true they teach their brokers how to be good broker (some of them anyways) but at the beginning they are just people trying to figure things out. Some of these big companies need to teach their brokers how to log into their gmail accounts. Orson Hill Realty only hires experienced agents and brokers. You will never need to wonder if your agent knows what they are doing. The smaller real estate companies are truly the way to go. It really doesn’t say much about a firm if they have more brokers than another. It just means they are not nearly as selective at choosing brokers. Companies like Orson Hill vet their brokers. They only invite high volume and good agents to be part of the team. Orson Hill believes quality Realtors are much better than bragging about having the most brokers.
Real estate companies that take a lower split leave more money to market your listing
When a listing agent takes a home on to sell they have to put their own money up to market the listing. When a listing agent is part of a large international firm they pay a huge amount of the commission to the local firm and the national company. This eats into the real estate agents capital to spend on marketing the listing. Some listing agents pay over 40% of their commission on a home they sell. Danny Skelly the owner and founder of Orson Hill Realty says he feels this money can be better spent on marketing a listing so it sells faster and the seller gets maximum amount for the home. If an agent or broker needs to give that much money, sometimes 10’s of thousands of dollars, to the brokerage firm the agent isn’t able to spend that money locally marketing your home. The money that goes to national or local franchise real estate company is spent internationally or nationally for marketing their brand. A listing in the Denver Foothills is most likely not going to be sold from a national ad in Dayton, OH.
Most buyers don’t look at the company name on the listing they just look at picture of the home
It is very seldom a buyer will look at a company sign or web listing and say “oh look at this one honey, it’s an XYZ international listing it must mean it’s a great home we should make an offer without seeing it”. This is most likely never going to happen. When a buyer is making the most expensive purchase they will for the next ten years, they are going to be more concerned about the property and not who the listing is with. Although on the flip side I have heard brokers that have said “We had a horrible experience with XYZ international and we will never use them again.”
Syndicating your listing on the internet can be done by any size company
With this new thing called the world wide web really taking off and looking like it might be here to stay (joking but needs to be said because believe it or not some brokers don’t use the internet the way they should) any size firm can market a listing online. It is a great way to get listings in front of potential buyers. A real estate agent doesn’t need to be part of a large offline networking group anymore. It does help sometimes if a luxury Realtor has some folks in the pipeline but most of these potential luxury buyers were acquired at one point through internet leads. There are many syndication companies out there that are available to small real estate companies and the internet puts all companies on the same level playing field.
There is no benefit to using a large real estate company over a small real estate firm
When it comes to the size of a real estate company it might be in the buyer and sellers’ best interest to think about a small real estate agency and not a large one. If a small agency most likely goes for quality over quantity when recruiting agents and brokers, has more income to invest in marketing a listing to maximize your traffic flow through a listing and has all the same networks available to market a home wouldn’t it make sense to use a smaller local firm? Why give your money to real estate company that spends advertising on markets over seas? Besides isn’t it better to spend your money locally?