Ruthmarie's Blog: This Brokerage Has 750 Listings…..So they must be the best! (Part 1)

When I started my tiny company, I named it ACTIONAGENTS.NET.  

The action and the .net part of that have their own (more or less obvious) reasons but the agent part...

the agent is right in the middle of things...at the center (on purpose)...the most important part of the logo/puzzle/brokerage or successful purchase/sale.

Ruthmarie - I learned years ago that most folks do business with the PERSON and not necessarily the COMPANY they work with/for.  While there are certainly exceptions, I do believe that the focal point of trust is between the consumer and the person they choose to work with.  Generally, the company is just backround noise.

People do business with the agent and not the name. This has been my experience.

Ruthmarie:

Great post -- We have a firm here that is the same way -- They are a "listing house" and boast as the area's number one brokerage -- However they have to true web presence and do little if any advertising -- they are no friend to their Seller or the market... Thanks for sharing!!

JE

Absolutely, the key to getting the listing sold is the agent and not the brokerage.  Some of the best producing agents I know are independents who work for their own company. 

I have seen one man shops have some of the most effective listing marketing in the game.  My experience has been that the clients do business with an agent not a firm.  Which is why when a producing agent leaves a company, the listings usually want to follow the agent and the broker is left wondering why.  Well, now I am the broker and I know why.  I take a referral fee and let em go...it is in the best interest of the client to not put them in the  middle of a broker/agent fight.  Good points!

It is not the size of the stadium but rather the quality of the team that determines success.  In real estate it is a small team..your agent and you the buyer or seller! It is football season so it creeps in on all I say! Go Gators!

Featured @ Club Chaos

Great blog - one company in town pins their record on the number of listings.  They work the numbers that way too.  Are they selling them is the real question....

Hi Ruthmarie!  I second Gary's analogy about the size of the stadium!  We have that very issue here and I hear all of the time that sellers are frustrated with feeling like they are only a number to this firm.  Funny thing, their percentage of sales in the market is higher than other firms' but, when you look at listings actually SOLD, they fall well short of MOST other firms!  I can't wait until the media becomes privy to this information and shares it, so that sellers are no longer duped by the large firms that are all about numbers, not quality!

Have a great weekend and congrats on the well-deserved feature!

As a small independent it is sometimes difficult to get sellers to understand that it never is the brand name that sells the house, nor the logo, it is always the agent. Great post!

Here in our area the big brokerage companies tend to smoke the little guys.  Doesn't always happen, but it does seem to be a trend here.

Just because you are not the biggest borkerage doesn't mean that your numbers aren't impressive.  Clients need to look at agent and office. There are many personalities and abilities within an office.

I think it's definitely true that the agent carries more weight than the brokerage, and one agent can taint an entire brokerage in a consumer's eyes.  I can't tell you how many times I've heard someone say they would never work with XYZ Brokerage as the result of lackluster service from one of their agents.

Excellent post!

Many of the larger brokerages use their agents as a profit center, charging their own agents sign-up fees, desk fees, technology fees, and they even charge excessive E&O fees. These brokerages need a constant turnover of agents to pay the fees that cover the cost of their infrastructure .... and selling client's properties is not the main focus of the branch managers.

There's a lot of smoke and mirrors with the large brokerages.

National recognition (TV adds). Other than that it's all the agent.  

Hmmm . . . how can I explain this?  I've never seen a company sell a house.  XYAZBE Realty, Inc. is a name on a piece of paper filed with the corporation division.  That company doesn't answer the phone, it's just a name on a piece of paper.  It's a CONCEPT.  The person whose name in on that FOR SALE sign, or who answers the phone . . . they could be with XYAZBE Realty, Inc., or EBZAYX Real Estate, LLC . . . . it doesn't matter.  It's the AGENT that does the job, performs the due diligence, represents the buyer or seller . . . . a person is best served in finding a GOOD agent.

We know the agent sells the home.  However I am not sure what your getting at. For example in our cities KW has about 80 agents and about 70 sell less then 10 homes a year. So if your trying to rip the "big" companies your shooting yourself in the foot.

Ruthmarie -- Excellent post. I work for a small independent brokerage and we compete against those brokerages who have hundreds if not thousands of agents.  My biggest obstacle has always been sellers telling me that they have to select a brokerage that has an office 'in town' thinking that they will be the ones who will bring more buyers in.  They couldn't be more wrong.  I, again working for a small company, market extensively and hands down can beat any of the larger competitors anytime. It is definitely the agent who sells, not the brokerage. 

Many people think bigger is better and the agent with the most listings is the way to go. In many cases that is wrong thinking. The agent that has too many can,t properly service them including keeping flyer boxes full. Your listing just becomes another number. With out an assistant I find 10 is my limit to actually stay on top of details and contact with the seller.

Ruthmarie, it's interesting that the power larger agencies wield with listings are lost on buyers- an in house listing in NY eliminates full buyer agency, so from a buyers perspective, not much cache in the fact that a particular agency holds listings (unless they want "best possible price/scenario" eliminated from their side of the transaction).

A buyer is much better off finding a buyers agent absent a house of interest to them, but most simply aren't aware that this is the case, so buy into the idea that a bunch of listings = a successful outcome.

Interesting post especially coming from someone whop is with a downstream recruiting franchise. I appreciate your candor and recognition of what is still a one on one service. I have seen large organizations where more than 50% of the agents sell one house or less in a year. I hope this industry changes to raise the entry level. I was with RE/MAX for 16 years and I saw the big compnaies increase their emphasis on market share being the most powerful marketing tool. When nI started with RE/MAX it was exclsuive, but as market share became an "arms race" between franchises and mega-independents the slap in up against the wall and see if they stick mentality changed everything, If you had 50 agents that due 80 transactions that helped market share, but diluted the real estate gene pool.  

This post could well cause me to get on my soap box ...however it is too early in the day to get myself riled up over the number of listings agents take ... it is about quality. Do the listings have photos and does the agent answer the phone.  We have seen a lot of posts about such agents ... self-serving agents who run the numbers game and don't really care if the home sells.  Seriously, if the agents cared, they would price the home to sell and market it to expose it.  Got to get off my box now ....

The only advantage I see in the larger firms is that most of them have some type of structured training program.  With that said, I do a lot of internet training for companies in Charlotte, and some of the smaller companies, also have outstanding agent development programs.  When it comes right down to it, we must never forget that Real Estate is a Person to Person buisness and more often than not, when a referal comes in, it usually is for a particular agent.

Great post, I look forward to the next.

Charlotte Homes For Sale

Hi Ruthmarie.

I agree with Chuck in comment #18. Keller Williams IS a large company. In fact one of the biggest.  In Tampa Bay Florida, Keller Wiliams has a significant percentage of listings. Even if their business model is significantly different there is room for everyone.

However I do agree with your statement "Look to the AGENT to market and sell your home." Whether with a small or large company, the agent is key.

In Tampa Bay  Keller Williams agents in the area  are some of THE most professional. In my area they do not feel the need to disparage other large brokerages which is understandable considering that Keller Williams is a large brokerage and has alot of listings.

Likewise every brokerage and every agent is different in some way. Some models appeal to some while some do not. To each his or her own :-)

~ Lana

Hi Ruthmarie: I'm gonna stick up for the big brokerages and share my experience. For starters, Lyon Real Estate, according to the Sacramento Business Journal September 2009 ranking, has a higher sales volume and more agents than any other real estate company in Sacramento. This is a company that builds a strong camaraderie among its agents, which means many of our listings are sold in-house because Lyon agents like to work with other Lyon agents. You don't get that in a small brokerage.

In addition, sellers see our signs all over town, so when I meet with them on a listing presentation, if aren't familiar with me personally, they are familiar with the name Lyon Real Estate.

I'm a broker, so I could work for myself if I so chose, but the tools, technology and support I receive from Lyon far outweighs the call of the wild to go independent. I truly believe that sellers who list with Lyon agents have an edge that is not available to the smaller guys.

Sure, I sell my listings myself and market them, but I also have a giant power behind me that I find invaluable.

It is always agent first and should be. The consumer wants to work with someone they trust and have an honest relationship with....I am always leery of those agents that have 30 listings at one time; how are they actually servicing each cleint, they are not...this is a service business and the focus needs to continue to be there....more is not always better!

I agree that the agent comes first but I'm with Elizabeth on this one. I can pull from personal experience in that I worked for a very small brokerage and I felt it was an uphill battle trying to get listings. You might argue that is was my listing presentation but I would beg to differ as more often than not, I would hear "We really like you Barb but your company barely has any listings." Now with ReMax, I never hear that objection and almost always walk away with the listings. Like it or not, there is strength in numbers. Never say never, but I cannot see myself ever working for a small brokerage again.

Who markets the listing depends on the level of autonomy granted to the agent  Karen

"Throw 1000 up against a wall and maybe half will “stick.”

Oh yea, I see it ALL the time, take anything, use no comps. It drives me insane in Ann Arbor.

I don't do business that way. I know my comps and the value of the neighborhood.

When I call for comps because I can't find any, I have actually been told, "we don't have any, they called us to list, so we did."

Right

No money out to say they are listing a house, if it doesn't sell....not one cent out of their pocket.

Hello Everyone!

OMG!!! Came home expecting a couple of comments and found 30....I'm going to answer each and every one of you but please give me a bit of time.  When you generally do hyper-local posts - getting a lot of comments is unusual.   Thanks for all of your input...I'll start now - and see how far I get....

Hi Jim,

I agree completely.  The agent is at the center of things and I think that this is partly why consumers are so confused with respect to agents vs. brokerages.  Of course brokerages confuse things even more by branding themselves - and then the agent brands him/herself.  Most seller's just don't get what is going on.

Hi Jason,

Exactly - there are exceptions to every rule.  I'm sure there are a few brokerages that offer tremendous support. I was in one of them (it was small) but it was absorbed by one of the big guys.  For the most part - in the end its the agent who sells the home.

Hi Ruthmarie,  I guess every one of the issues you raise could be said about any office regardless of size.

Ruthmarie, Without a doubt it's the agent not the brokerage. I have competed with the large brokerages my entire career and it's never even been an issue. Buyer and sellers mostly know experience when they see it. I can think of no advantages at all with going with a larger brokerage.

Hi Harry,

I agree -but I've been seeing some real confusion with respect to what the broker provides.  I think a few of the brokerages in our area are touting certain marketing "ploys" that cost almost nothing and accomplish about the same. There has been considerable consolidation among brokerages - and that gives me cause for concern as well.  These guys are great at marketing the brokerage - that doesn't necessarily mean they will market the HOME. A couple of them are falling all over each other trying  to say that "they" are  the biggest and therefore the best.  I'm sorry, but gobbling up a bunch of other brokerages does not greatness bring.

Hi Rob - One thing people don't understand is that a small independent needs the transaction to work more.  They will work each listing far harder in many ways than a brokerage that has over 700 listings.

Hi Jason,

There you go! I'm seeing this a lot here too. Read my response to Harry above for clarification.

Hi Jeani,

It's nice hearing it from the broker perspective.  I think that there is a lot of confusion.  The difficulty is that larger brokerages often have a bigger megaphone.  The difficulty is that many choose to spend it on marketing THEM not marketing the client's property.  That my reel in the listings, but how does it help the client sell their home?

Hi Gary - LOVE the analogy and soooooo true.

Hi Kathy - What I find is that this is often a way to get around talking about any real marketing and sales plan.

Hi Debe - I think some sellers may be influenced by the sheer number of signs in the ground.  This is particularly true when brokerages are consolidating and one or two are gobbling up a million listings.

 

Hi Corrine,  So many things contribute to the sale of a home.  Good photos are a MUST!!! Widespread internet marketing is key.  In some areas allowing open houses is very helpful as well as marketing said open houses. Other areas that don't get a lot of traffic, not so much. But many critical factors are, in reality, the responsibility of the seller!  Things like condition, making repairs and PRICING IT RIGHT!!!! Often the seller doesn't want to do these things and in this market blames the AGENT or the BROKERAGE.  The grass is always greener and some larger brokerages aggressively pick up listings this way. Sellers somehow think that their overpriced listing is going to sell better at a big-box broker.  Nopers...sorry, it will languish just as much there.

Hi Bob, we see that here as well - or at least they try to.

Hi Jody, I agree completely - Also, I would add that a big box chains like Coldwell, Prudential etc. that each franchise is unto itself.  Just because you have a bad experience with a Prudential in CA doesn't mean that another franchise won't offer a better expereince.  It comes down to individual agents and brokers. 

Hi Kim, You would think that individual brokerages would be more discriminating as a result when hiring an agent.  But many just  throw as many as they can up against a wall to see what sticks.  They seem to turn a blind eye as to how this impacts their reputation.

Hi Stewart,

I agree.  The fees and splits can also impact the ability of the agent to front the costs of marketing.  Newer agents are stuck with terrible splits - and are money cows for the brokerage.  the idea is that even if they don't stick - they have at least a couple of deals in them before they crash.  Around here commissions are roughly  about 1/3 lower then other parts of the country.  Granted prices are higher here but cooperatives are priced as low as $85k.  Also the cost of living is really high.  With high splits for the broker and franchise fees - the agent may not be able to do any marketing - and must count on what the broker brings to the table. Heck, they are barely making $5/hour in some cases.

Hi Craig,  True enough. But how effective is that in moving a home?

 

 

I have too often see the opposite. It looks like a place to hang the license, and whether there are 20 licneses or 1,000 licenses does not amke a difference. Agents are still lonely wolves there.

And then you call the agent and the agent is not answering the phone, and you need to show the house. So then you call the office, and they hold you forever, as they are trying to find the Listing itself, and then they finally find it and read it back to me as if I did not tell them that I am a licensee and can read without their help, and have checked the showing instructions before calling them...

And then you get the agent on the phone and the agent angrily tells you that she is soooooooo busy with taking listings that she does not have time to talk to me. She does not remember the code for the combination lock, and she is not in the office to check it, and if I keep insisting on getting that info somehow, I might have nothing better to do. And, obviously, she does.

Hi, Ruthmarie. I think that the quality of the listings is also an indicator. I am leery of agents who take any that they can get, just for the sake of having them.

There is a brokerage back east that actually pays their agents a higher split if an inhouse listing is sold to a buyer rather than a listing from a competing broker. I never could figure out how that was legal, but they've been doing it for a really long time.

Hi Carla - I agree...A good agent from a bad brokerage can sell a house better than a bad agent from a good brokerage...the brokerage is not that important.

Hi Chuck - I'm talking specifically about large brokerages that try to stress the value of the brokerages marketing package as the be-all and end-all.  At Keller, agents are given a bigger split but are largely responsible for marketing their own listings.  Keller has technology help and our brokerage is very well organized. But a lot of the other big-box brokerages use the fact that agents from our brokerage promote their own listings against us.  They claim that the brokerage is better capitalized to market a listing (this part may or may not be true) and that therefore, they can offer far "more" in the form of financial support for a killer marketing plan that allows them to get top dollar - even above market value. This part is patently not true since they the major players that I know have strict budgetary limits per listing and offer nothing but the same-old same-old.  Also - NO marketing plan can defy the market. If the listing hasn't sold at the price the seller wants after 40 showings - the market has spoken and the listing is overpriced.

Also - Keller is not a big name around here.  In the NY people often say "Keller who?"

Hi Barbara,

This is more hype.  The notion that the office must be located  a few minutes from the property is antiquated. If anything - having a ton of satellite brokerages only raises the cost of doing business for the brokerage - increased overhead = less marketing money for properties...In fact we are rapidly moving AWAY from the multi- storefront presence in order to make brokerages more competative financially.  Now KELLER is trying to gain presence in the area - but it is not opening a small office on every corner.  One brokerage - in office space - covers a large geographical area - lowering overhead.  For example: County wide - Keller has five offices.  Some of our "big" competition - 10 & 22 offices.  The client benefits more by a leaner presence.

Hi Rob,

I think that's a good number.  Many people don't realize that with more listings - the agent is more likely to push work off to their team.  They have to - its simply a matter of not enough hours in the day.

Hi Laurie,

This is very true.  I'm not a fan of dual agency.  Buyers are increasinly playing games though.  Many try to negotiate down the commission by using the listing agent - thinking it will save them BIG BUCKS.  They are WRONG, WRONG, WRONG!!! But there it is.

 

Hi Joe,

Keller isn't  that big here.  As I said before, many people look at me and ask "Keller who?"  I've never hyped the brokerage unless I had something truthful to say.  The fact that we profit share and have good team spirit in our brokerage (which we do) doesn't necessarily help the seller.  When I go on a listing appointment - its about how to move the seller's home NOT me, my brokerage or anything else.  I do a lot of out-of-the box marketing.  It does help promote the listing and that's what's important.

Hi Kathleen,

It can be the same for agents as it is for brokerages.  Although I was mainly referring to brokerages - the same truth holds. Sheer volume doesn't help a seller get to the closing table.  Feel free to use the soapbox any time. I invite debate and even dissent.

Hi Eric,

This is true.  But it all depends on the brokerage.  Some big brokerages offer great training - others  not so much!  I've seen smaller brokerages  do a great job training. It's more one-on-one.  It comes down to individual brokers, and individual agents.

Hi Lana,

Keller is very big in some parts of the country, but it is just getting started around here.  Our brokerage is substantial but it doesn't have anything close to the number of agents some of the big players have. Some people like a large brokerage that covers marketing.  I was with one for a while. Bottom line: they took far too much in splits for what they gave in marketing. I've seen the same trend in the other big players around here.  But this might be  a local issue.

Hi Elizabeth,

I think that this model works best for established agents and associate brokers. They can command a high enough split to make it worth their while.  This often comes out of the hide of newer agents.  For a newer agent the splits we get from such a brokerage (at least around here) are pitiful. Then if the broker isn't REALLY offering top-of-the-line marketing - there is no wiggle room for us to do anything.   I had two listings with a big brokerage early on and I LOST money on each trying not to lose the listings.  The big "supportive" brokerage wasn't spending much of anything - and the rest was on me.  Since I came away with well under 50% after franchise fees - there was no room for me to dig into my pockets and still come out with any kind of profit.  I sold the properties - but although I won the battle, I lost the war. We are in this business to sell homes and to make money.  I sold the homes, but didn't make money doing so.

 

Hi Penny,

I also wonder about those who have that many listings.  The few that do (say over 20-25) are literally all over two counties.  In such a densely populated and unique area - I have to ask how they can even know each town and village well enough to properly evaluate the listing.  Some who have  great teams can manage...but most are just seeing what "sticks."

Hi Barb,

But this is an example of what I am saying.  Agents are using the big-box name to promote themselves without offering anything of real value!  How does the NAME help SELL the listing.  It may help you get the listing, but what does the brokerage bring to the table that actually helps you get to a closing for top-dollar?  The answer is that this probably comes from you - not the broker.

Hi Karen - True - but we are supposed to be independent contractors.  I would steer clear of any brokerage that said "you are an independent contractor EXCEPT - you can't market listings by  the following methods...(insert list.) That's a brokerage trying to "control" the agent.  Sorry, as a newer agent, that is code for "helping the established agents while MILKING the money from the newbies." I don't play pyramid games where I am at the bottom of the pyramid.  I think one of the reasons Keller gets so much guff and there is sooooo much misinformation about how we operate among agents in the local big-box brokerages is because Keller SCARES THEM!!! The smart newbies are going to Keller for the training and the great split.  They KNOW that the leads and "support" the big box brokerages claim to provide are a joke and that the structure serves the status quo.  they can't service the listings properly on what they are being offered.  For a long time there were no alternatives - the fact that they exist now threatens these brokerages and they area scared...so they attack.

Hi Missy - we see a lot of this with discounters - these sellers are TRULY getting what they pay for - which is nothing...and they are just seeing what "sticks."  Thanks for stopping by!

Hi Bill - Yes, there are bad apples in every size. I'm pointing to a trend in my area that agents use in order to obtain listings.

Hi Bryant - It shouldn't matter - but sometimes sellers are swayed.  They also can get badly burned.

Hi Olga,

Many brokerages are that way.  I think newer agents are stunned at how hard it is to get a business going. Lone wolves is a good way to put it.

 

Hi Joe,
I use centralized showing. It's the best for setting up appointments.  One stop phoning for showings - I think its great.  But I get your point, it can be very difficult to get an appointment if the agent isn't answering the phone!  I've seen a few like that where it takes hours to get through and your "tour" is totally up in the air because one agent hasn't responded to a "must-see" property.   It's  is very annoying. 

Hi Leslie,
Great pic of you and your friend...WE all know who these agents are...the public doesn't and that's the problem.

Hi Christine,

OOOOOHHHH!  You've hit the nail on the head!  That is one of my "Part 2" issues!  You are ahead of me - way to go!

I have always thought what matters most is how many have sold, not how many are listed.  Regardless it is important to keep up with your competition

I'm with you on many of these points, except one. As an independent broker, I know that bigger does not mean better by a long shot. It is the agent.

Here's where I disagree with you. I have 40+ listings concentrated in 4 counties. I may not know the diner gossip of each zip code, but I sure get the job done for my sellers no matter where they are. How I do that and what I do to know the local market is not something I can delve into much here, but I do have 12 licensees dotted throughout the region with impeccable experience and knowledge.

...That dreaded "team" word again.

Thanks for the post today. I've bookmarked it.

Patricia/Seacoast NH

Hi Daniel - That is the bottom line. Do they sell and do they sell in a timely manner. Also, do they sell at a competitive price.

Hi Philip - The point is that you have several licensees to help you.  Would you do that all by yourself with no support?  I don't think you have to be totally local.  I certainly think that a brokerage in every hamlet is a waste.  When someone is all over the place with perhaps only one or two assistants that are also in the same location - I have to wonder how effective they can be.  The trick is to be effective.  I look at the ratio of cancelleds to solds as one measurement.  There are several agents who have more cancellations than sales.  We are from roughly the same area - and we all know who they are.   Even in this market, that's not good.

Hi Patricia - Thanks for stopping by and thank you for considering it worthy of a bookmark.

Always pick the best AGENT. Brokerages make very little difference.

Just use the stats that most listings are sold by other agents not by agents employed by the same brokerage

Ruthmarie - You are right, but perception is reality.  As long as our clients believe bigger is better, I'll stay with the #1 firm in market share in my area.  I sometimes wonder if I left the firm and became my own broker how many clients I would lose.  I won't do it as I don't want the headaches and expenses of having my own firm, but I just wonder what the difference would be.

It can be rather interesting if you take a company and compair the number of listing to the number of agent and get the average listings per agent. Now with this said there are many non listing agents in a company as well. So do the math... In many cases, the smaller companies actually have a better average of listings per agent.

Now as for advertising. It's the agents who truly spend the money to market the listings, not the company.

We recently went up against a big well known brokerage for a luxury home listing. Our marketing blew them away the seller was so impressed - yet they decided that they wanted to list with the big brokerage because the agent kept emphasing how the brokerage this and that - bla, bla, the seller even asked if the agent had sold something and she said no! What! and the agent said it would take at least a couple of weeks to get the house on the market! What... anyway it was crazy. The brokerage and others we hear are struggling big time. Listings are not selling etc. Anyway long story short the seller decided to lease after all - LOL. ~Rita

The person is what is important -- not the "big box" name -- we have been with "big boxes" and there was never anything given to us --  lean and effective works for us.

I am not so sure that a mega company is that big a deal anymore.  I think that certain franchises have a edge on people moving from out of an area but that is about it. 

This a relationship business and people relate to people not corporations. Agents sell the property not brokerage.

Ditto the comments here, we are an independent brokerage and ouir 30 agents probably outsell individually many of the brokerages with double or triple the number of agents.  It's just amazing the things brokerages say in the name of competition.

Hi Tigard - Yes!  This is what makes the most sense.

Hi Kyle - I'm glad you liked the blog.

 

Hi Russ,

That's definitely PART of the problem, but in -house sales are quite high around here.  Nevertheless, the bottom line is  that at the end of the day, its the AGENT that sells the home.  there are agents at big brokerages who have listings that don't budge.

Hi Gail,
As I said before, this might work for an established agent.  I find that these brokerages are a pyramid scheme with newer agents at the bottom of said pyramid. We bring in the money and the big shots get all the benefits.  As soon as newer agents catch on - the days of that type of pyramid scheme will be over.  But this was geared more for the consumer.  How does this REALLY help the seller.  IN short, it doesn't.

Hi Roland,

In our area its a bit different.  The brokerages often TOUT as part of recruitment what they do to support the listing. Its also all over their listing propaganda information.  Most do support the listing with TOKEN advertising.  It's glitzy - looks great-  and in reality advertises the brokerage.  The agent and seller are pretty much SOL on that. They use this "support" to justify ridiculous splits for newer agents.  The agent therefore is making pennies and has no money to support the listing when the paltry sum the brokerage shells out is finished.  Long time agents can command a better split - so they are not as seriously impacted by the system.  They may benefit from it.  But my point is that does this help the seller?  OF COURSE NOT!

Hi Rita,

The "my brokerage this, my brokerage that" speech is a signal for the seller to RUN THE OTHER WAY!!!

HI Bob and Carolin,

That's pretty much what it is here - all smoke and mirrors and very little substance.  It's all geared toward marketing the BROKERAGE not the listing or the agent.  For that they want a 50% split not including franchise fees. It's highway robbery.

 

Hi Damon,

I don't know. Around here there is a great deal of success the "my broker this and my broker that" listing presentations.   Sad but true.

Hi Marcello - there you go! Absolutely right.

Hi TerryLyn - It is amazing what they will say.  So much is patently untrue.

When you order pizza for more people, you buy a larger pizza but each person typically eats the same amount and larger pizza's are harder to cook evenly so you might argue they typically taste worse.

When I worked for one of the largest firms in the valley, their policy was they would pay to advertise one listing a week per agent in the paper.  I carried on average 15 listings so that didn't work.  The agent with one listing looked like a hero.

I am much happier at my current brokerage that is focused on results, not the law of large numbers.  I guess that is why I own the company (lol).

The average agent spends "well over 150 hours" on a listing? Please!!! That's 8 hours a day for an entire month just on one listing? I don't think so...my calculation is that the average time spent on a listing from start to closing is about 25 hours max.

I have to say that (in my opinion) the "consumer" perception is what drives everything in this business. I truly believe that the consumer thinks "bigger is better" for several reasons.

 The more signs they see around town, the more business they feel that company has and they assume it must be a good company because so many others are using them

 Let's face it, signage is a great form of advertising. I own a small brokerage and do not have the expense account of the big brokerages. Its tough to compete, even though I know I do an excellent job for my clients.

Unfortunately, some of this actually "is" a numbers game. If people do not see your name, they will not think of you first.

There is a company in my area that is "known" for selling high end homes. The original founder has long since passed away but the name remains.  I find it amusing that people still refer to "her" and do not even realize its not her!! 

 However, the company has a well established name and I would say 90% of the state uses that company to sell their homes. They have a zillion listings, not necessarily selling, but their name is out there in everyones' face and the average consumer is not going to stop and track how long each house has been on the market.

Then again, "she" started off as a small brokerage!!!  So there is still hope!

(sorry for the blog:)

[So how important is your individual listing going to be to that [mondo mega] brokerage?  Answer: not very.]

I've called on listings the 'mega mondos' couldn't even remember they had. :)

The level of personalized service I want to provide precludes me from taking too many listings.

No, of course it doesn't matter - but it goes along with other illusions and delusions that the public has about how the real estate process works.  I'll name just a few:

1.  Open houses will sell my house

2.  That [broker] is well-connected and has more buyers for my home than [you] do

3.  [she/he] specializes in "high end" properties (see number 2 above)

Other big illusions/delusions are that if you work for one of those "big" companies you must be a better broker - not really...they might have a great training program but it doesn't mean anything has seeped into your head.

Delusions are everywhere in our industry.  You can be the brightest, smartest negotiator.  You can have the best business ethics.  None of it really makes a difference - it's all built on delusions.

But I will say that if you are in a market where you are the 'little' guy with the 'big guy' in the fish pond always knocking at your door - forget about it.  You will have clients who don't care, and just pay attention to them, and them only.   Your raving fans (to borrow a phrase from our industry) won't care what company you are with....and if the company you are with keeps reminding you of the other big 'fish' in the sea you probably need to refocus your efforts on another company.

But - it's not only the customers who are focused on the 'big' company in your town, it's YOU - and you need to quit paying attention to it and get back to work.

If my "big" company closed tomorrow I wouldn't miss one little beat and that's where YOU need to be.

150 hours is a lot of our time, that is for sure. Do you feel like you spend a lot of time talking to potential clients on the size of the brokerage?

Grea post and I will re-post it on my blog.  IT says something that is important for consumers to realize.

I think the answer lies somewhere in the middle.  There are advantages and disadvantages to both small and large brokerages.  I think the key focus for a home seller should be the individual agent and their methodology for success.

As the owenr of a small brokerage I have had to combat this argument before. This post says it like it is and I will be sure to pass it on to others.  I work hard for all my clients, and I have sold and rented homes that "big brokerages" were not able to, I agree it is the agent, not the "big brokerage" that sells the home.

I think this is a holdover pre-web argument. Back in the day buyers might indeed gravitate to a large brokerage that spent a lot of money branding themselves in print and on TV. So it followed that you as a seller might have the perception that the big guy has more potential buyers. Today Realtors AND consumers have pretty well much the same access to listings. There is no rationale that a big brokerage will have more buyers.

Hi Jim,

A lot of the bigger brokers in my area are like sussage factories.  The agent sticks a sign in the ground and puts in the marketing request - and PRESTO!!!  A one size-fits all marketing plan that accomplishes NOTHING.

Hi Norma,

It depends on everything that you are doing with the listing. There is NO WAY that I spend only 25 hours on a listing. Maybe you aren't doing as much as some of us are to move properties...Hmmmm....

I start with photographs...usually about 300. I also take photos of the surrounding neighborhood and create a picture story of the area.  I select the 50 best shots. I then make sure the images are correctly cropped and I use photoshop to make sure the colorization and resolution are correct.  Sometimes I go back in the evening and take evening shots.  From those shots, I create videos and picture galleries - load them onto several photo sites including Flickr, Facebook, and sometimes Picassa.  Each photo is labeled for google juice.  Then I work on the text.  I sometimes send that to the seller - and we work that out in about 5 different formats - geared to the length of text allowed in the NY Times, MLS, Realtor.com and a long one for the web page which appears on my blog site.  Each page gets its own domain name.  I then order sign riders with the new domain. Create colorful business cards with pics of the listing - domain name and essential information.  I spread the printed material all over town.  Then there are open houses - which work well for some properties.  If its an area where this works - I'll do about 3-4.  Each open is 3 hours - with 1.5 hours prep at the front and about 30 minutes at the close.  That's 15-20 hours right there! If YOU AREN'T doing something on this scale, maybe YOU should wake up and smell the coffee perking.  Its tough to move a home in this market and this type of publicity gets a response. BUT it  is wildly time consuming.  After that, there is follow-up with agents. Tweaking and changing the marketing if the price needs to be reduced.  Working with the stager to make the house shine.  Then there are negotiations that seem to drag on for weeks these days.  The real work often begins after the offer is accepted.  The list goes on and on.  But in no way, is a home being moved in 25 hours - at least not around here.  At least not with someone who is actually trying to SELL the home not list it.

I am the owner of a small firm, and I believe we offer our clients more personalized plans/packages than a one-size fits all/big box approach.

I hate the "we're the biggest and therefore we're the best" argument.

Thanks for the post! What truly matters is the Integrity, Ethics, and Core Values of the Franchise your affiliated with, then their hiring process.  Will this Realtor' represent the Brokers and clients best interest? Will they be a Full Time Agent? Part time agents in this industry will not work, clients need someone who is in the trenches every day. Having a Brokerage of 750 agents is great, but Quality not Quantity important element!

...and some brokerages take overpriced listings just to have their sign displyed!

Five years ago I had my 2M lake home for sale in what was only the beginning of a very tough time in Michigan real estate. After a summer of what should have been prime selling time I had worn myself out daily preparing my home to be "show ready".

I walked into my listing agents office to chat. Upon his desk sat a giant bottle of Champagne and gift basket with a card congratulating him on achieving $40 Million dollars worth of listings for his 3 year old company. When I asked him about it he sat there looking all puffed up expecting an agreement from me on how great a company he was building.

Man, did he get a surprise. His usually mild mannered soccer mom client (me) let go of a few caustic remarks peppered with language worthy of a truck driver. I said it then, and I'll say it again: as a seller I don't how much property around town you have LISTED. I care about how much you have SOLD, are SELLING and how efficiently your are getting it DONE. Period.

When presented with this information, the logical consumer will make the right choice (whether it is a small or large brokerage). If they choose to believe a dog and pony show, good riddance.

Good post. The agent build the relationship, sells the home and gets the referrals.

Too bad the general public doesn't have access to the actual sales statistics. You can list 10 homes a day, but if you don't sell any of them, what good are you to your sellers?

I think it always comes down to the agent.

When I owned an agency we were independents. We did have to fight that perception that maybe we didn't have the referral business coming in from other parts of the country that a franchise would have. To counteract that we published a monthly newsletter, and every quarter we'd include a pie chart that showed what percentage of homes were sold by each agency. (Small town - only 7 of us at the peak, and I lumped all the "out of town" agencies into one.) I don't think I ever showed how many listings we had - only how many sales.

Then our landlord rented the office next to us to a national franchise office.

While some of our loyal supporters were up in arms over him doing that, it really helped our business. Newcomers to town would go to the "recognized" name... then walk out of their office and into ours. Guess I don't need to tell you, their agents were so lame that many people didn't stay in their office even long enough to go see one home.

They were there about 2 years before they closed the door and went home.

Names don't sell houses - agents sell houses.

Great share, these questions actually come up from some of the people I meet and I always go through the explanations that these numbers don't mean anytime sometimes.

I consulted with an agent last week that was invited to make a listing presentation to a property owner who was 45 days into a 60 day listing and had already advised his agent that he will not renew. 

The agent was invited to make a presentation and the seller told him that he, the owner, was also considering an agent with a mega broker here.  Their claim to expertise was "we're so big we probably have several buyers already working with our buyer's agents in the market for your property". 

The seller actually fell for that.  Once the listing got into the MLS, any agent with a buyer should be ready to show it to their "existing buyer".  Or, do they only show their own listings????   Mmmmm.  He didn't have an answer for that. 

He then asked for our "marketing plan".

We withdrew and let the seller know that we were not going to compete with such claims.  We advised that we would not reveal our marketing plan since we were not going to compete for the listing.  Somewhat surprised, the seller asked why.  Simple.  We are not going to reveal our marketing plan and have it passed around to other agents. 

Hire us and our marketing plan will be put into action, we said. 

Yep.  Competing with the megas is hard.  The smart thing is not to. 

 

You're absolutely right, Ruthmarie!  I've always maintained that, given the choice between a great agent and a mediocre company versus a mediocre agent and a great company, the great agent wins hands down!  If the agent isn't servicing the client (buyer or seller) there is virtually no impact even a great company will have on that fact.  Generally the managing broker never hears a word on the subject.  However, if the company offers ABSOLUTELY NOTHING beyond a mailing address, a great agent CAN PERFORM ALL THE FUNCTIONS NEEDED AND DESIRED TO SERVICE THE CLIENT. 

The "need" for a great company is a myth propagated by brokers trying to capture a larger share of the production pool.  Is having a great company a benefit?  It can be....the question for each agent is whether the benefit the company offers is worth the cost.  For the consumer?  Well, I guess if it's important to have your house "on" a big page spread in the paper (where likely you're among the plethra of others and are therefore virtually invisible), I guess there could be a perceived benefit.

The public assumes a lot. Many clients are stunned when I tell them that my Broker pays for nothing...

It's amazing that some people just don't get it.

Hi Ruthmarie,

You SO hit it on the head! I agree with #67 that this is a relationship business and our customers relate to us and not the company name. The agent is KEY. The agent is the one who sells the property, not the company name. It is all about the amount of service the agent gives, the advertising and creativity of the agent.It is about the integrity of the agent. Are we actually working with them and not just taking an overpriced listing to get a lot of listings and then praying that they will sell?

 Carol Riley, Huntington Real Estate, Albuquerque, NM., CarolsellsNewMexico.com

This makes a so much sense. I  know that some large brokerages "advertise" the listings in the papers, but my understanding is that it's more of a lead generator than a house seller.

Hi Karen,

It's true, but blog away!  Because perceptions can changed by simply blogging the TRUTH.  I know exactly what you mean.   A smallish brokerage by the name of a long-departed but beloved broker was taken over by Sotheby's.  After 3 years of - ahem- consolidation - they brought the name of the departed broker BACK!

 

Hi Linda,

Part of what we do here on AR is try to dispell myths, delusions and illusions.  You sound as if you would rather that they remained.

 

Hi Candace,

Unless you have a team or several associates - there are limits as to how many listings any single agent can take.

Hi Sandy,

I DO spend a lot of time and energy marketing my listings..The list above was only partial.  But by the time a deal closes - it is easily that much time.  The first week alone - dealing with the photography, the printing the web sites, domain names and all the rest  is easily 30 hours.  It seems incredibile, but I work hard to give MAXIMUM exposure.   This push is often repeated at some point during the listng - so you can add at least another 20 hours.  Then you have 3-4 open houses - that's 12-16 hours.  On one recent listing I redid ALL the publicity.  A lot of time and energy AND money goes into my listings.

This blog was in part percipitated by a fellow agent who found herself up against a big-box marketing scheme that looked nice and glossy and acoomplished NOTHING. The big-box brokerage listed the house at an obscene price saying that they could get above market value for the home.   That's ludicrous.  I started the blog - but I kept running into issues that could bite me.  I was about ready to "go public" when it happened to me.  This was a listing that I really KILLED myself on.  I did the entire marketing plan twice.  The seller was "high maintenance"  and so each time a good 40 hours went into marketing.  As one friend of mine said - "apart from hiring the Good Year Blimp there was little more you could do to market it more.  An agent they had "consulted" decided to contact them by leaving a message in their door and convinced them that THEY could get them MORE MONEY.  44 showings and one solid offer - and they have been convinced that the "new marketing scheme" that only a big office can provide will  get them thousands more - in a depreciating market no less! PLEASE. 

And yes, if they would hand over the name of the agent - I would file a grieveance - but they refused because they want to use them.

Bottom line.  I have a kick-ass marketing plan that blows the big boys away.  I won't discuss it in too much detail for obvious reasons  - however, I'm tired of big-box guys  trying to steal listings and making listing presentations that are nothing but smoke and mirrors.

Hi Pam - well put....thank you for stopping by.

Hi Rick - it is indeed a holdover.  It might even be a holdover from pre-MLS.  People don't "get" that all listings are promoted on web sites etc. The MLS was invented to create a level playing field.  The notion that a brokerage would only show their own listings...Hmmm.

Hi Cecilia - what a great story .  and what a great example of the difference between listing and SELLING.

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.

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.

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.

 

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.

 

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.

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!

 

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

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.

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

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.

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.

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

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

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."

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

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.

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.

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.

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.

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