The photo is of the reflections Science Museum of Minnesota building.
There is a trend in St. Paul that isn’t getting much attention yet. More local Realtors are getting brokers licenses and starting there own companies. Consumers don’t really understand how real estate companies work. We are not employed by them, we are independent contractors. We pay for all the advertising and no one pays us to show houses or to sit in open houses. The real estate companies do not list the homes, nor do they sell them. The agents who have gone out on their own just have more paperwork and have to pay more for E&O insurance. They still do the same job that they did before.
I still hear consumers say things like XYZ company sold the house down the street. They don’t understand how it works. It could be that the for sale sign had the XYZ logo on it but the home was listed by a Realtor, an independent contractor, and there is a huge chance that it was an agent from another company that sold the home, but that agents and company logo will never appear on the sign.
The real estate companies that have the most signs out there are the companies that have the most agents. It works that way becasue it is the agents that sell real estate. The companies with the biggest market share are also the companies with the most agents. Real estate companies increase their sales and market share by brining on more agents.
Seniors seem to be the most brand conscious. They often choose a real estate company when they should be choosing the best agent. One of the best ways to find a great agent if you don’t have one already is to ask family, friends and co-workers for a recommendation. Chances are if they were happy with the agent you will be to.
It really doesn’t matter which company an agent is with. It is the agent that works directly on the sale for the home or with the buyers. It really does matter which agent you choose.
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Teresa,
I think the trick is to be able to balance what you’re getting for the money your broker is keeping from you; if that amount is equal or about the same or even higher than the cost and benefits of what YOU as an individual broker would pay, then knowing that number would put you in a better position to decide what to do. Your broker should take away that “risk” factor for you.. if what the broker keeps from your split makes you feel comfortable with what you have left, after the services, then stay where you are. If not, consider openning up your own.
For example, the company I work with provides the following; and I will try to tell you what my perceived value is per “feature” provided.
Desk – Not Shared – My own phone and electrical to use, my own internet connection…
Conference rooms
Free Photocopies (within reason)
A certain amount of mailings per month (within reason)
The company installs the signs and the posts. I just attach the rider. I can use practically any rider I want. If I want, I can even use my own sign, the company could STILL install the post. (I don’t need to rent or store anything, or hire someone for that)
The support of their legal department. That alone is a benefit that I place a very very high value.
Excellent pre listing packages and statistical information put together for me quickly and efficiently.
A manager who is very fair and willing to hear you out. Also, a manager who is willing to “go to bat” for you. I’ve known of my manager since the mid 1980′s but I’ve only worked with him for the past couple of years. Believe me, and I’m not saying this to “kiss up” to anyone, but I’m glad I’m where I am. More than once has he heard my stories..
Realistic training programs; based on Jay Schweppe-Denise Riordan, (truenorthprinciples.com) and also intensive training partially based on the Mike Ferry system. They are NOT long winded, unrealistic time wasters. Most training, continuing education, and so on and so forth are either free or at reduced cost.
What I am trying to say, Teresa, is I don’t know how the real estate companies are structured in St. Paul. Where I am, Coldwell Banker works for me. Also, although some may not place a high value on this, but Coldwell Banker is the number 1 office in my area, and New England for that matter. You may have the “Itch” to branch out on your own. That’s fine and that’s your decision. I would sit down with a pad and pen and write down everything that matters to you, the associated costs, the “risk” factor, and if you’d rather do it alone or with a company. Wheras I do agree that older folks may place more value on brand names, that’s not the sole or main reason I am where I am. It’s just a matter of where you feel you’ll be best “maximized…
Thanks
Jim
I agree with you, Teresa. The “best company” in any given area is going to have some all star agents and some chumps working there.
My experience running my limited service company goes one step further — I’ve found that a yard sign, an MLS listing, and the right price sells homes. Other stuff like newspaper ads, open houses, monthly magazines, etc serve mostly to promote the listing agent (in my humble opinion).
I appreciate Jim’s perspective…some people want the perks that a big company can offer and that’s cool.
Some of us thumb our noses at the system and do it our own way!
Respectfully,
Mike
I think your right on the public has no clue how the real estate system works. Weather its a good or bad experience 99% of what happens in a sale is the sole responsibility of me as an agent, my company has very little (if anything) to do with it. Here in Tucson we have a very large company that controls 1/3 of the market and 50% of it is that they have the most agents and 50% of it is that they have a name that everyone recognizes which does build a trust factor into the community. I work for a different company but again anywhere I “worked” the results for my transactions would be the same.
Teresa,
Wow, you just hit it right on the head. I have been with RE/MAX for 4 years and the costs are killing me. I have had my own company under the umbrella of RE/MAX for a few years. I have been really petrified to go on my own. I have been working by referral with Brian Buffini for about a year and discovered that it is me and my reputation that will bring me buisness. About the E&O, I just got off the phone with a company and it will actually SAVE me money going out on my own. Amazing and Exciting all at the same time:)Oh Yeah. I will soon be a new Tomato Blogger- wwww.TalkCharlotte.com and should be up in a week. I am thrilled to be a part of the Tomato clan:)
Donna
Since the Internet is the future, one thing to consider when choosing a broker is the type of Internet exposure each broker provides. My company down here in South Florida, EWM Realtors Inc., has it’s own blog (with hundreds of agents posting on one site our SEO power is unbelievable), they also do things that I don’t even understand with Trulia and other real estate sites to maximize hits to our listings – which is good for both sellers and realtors.
Hmm, sounds like someone is testing the waters of opening their own brokerage. If that’s the road you take, I wish you well. It’s very challenging, but very rewarding at the same time.
Yeah It is very challenging and I really admire who did that.