Does One Size Fit All?

Southampton - A common question posed by prospective buyers and sellers, as well as tenants and landlords when choosing a real estate brokerage firm is whether the "size" of the firm matters.

 

What this usually means is, am I better off going to one of the large franchises or a firm whose name may not be nationally known.

 

This question is also one that I am most often asked by new agents coming into the real estate business. As with most general questions, the answer may begin with, "all things being equal." But like almost all matters to which this preface applies, all things aren't usually equal; which results in the next comment: "It depends." And finally, before becoming engaged in specifics, "there are pluses and minuses to both."

 

In an attempt to provide insights to the relative advantages of "big" and "small," I reached out to two agents who are active in the real estate market on the South Fork of Eastern Long Island, more commonly known as "The Hamptons."

 

Traci Robinson is an Associate Broker with Corcoran in Sag Harbor, and Ann Rasmussen is an Associate Broker with Devlin McNiff in East Hampton. In the interests of full disclosure, I want to state that both Traci and Ann have been students of mine with respect to their real estate training. They are also individuals of integrity, professionalism, and achievement.

 

In my discussion with Traci, she pointed out the benefit of "name recognition" that is characteristic of the franchise firms. In addition, she said, "These firms disseminate a great deal of information to their brokers and agents on current market conditions and related issues that are taking place nationally and locally, and have meetings with other Corcoran offices where information and experiences are shared that will benefit the agents."

 

Ann made the point that "smaller firms, such as hers, provide an opportunity to acquire more hands-on experience because you have to be more self-sufficient than in a larger firm; and the camaraderie among agents of the smaller firm makes for a pleasant work environment with little agent turn-over. Our broker makes it a practice to invite people who are expert in various aspects of real estate to come to our office as guest speakers.

 

A question that often arises when comparing the "larger" to the "smaller" firms is the issue of inventory - who gets the most listings. If it is simply a question of numbers, it shouldn't matter in the sense that the broker who procures the listing from the seller is expected to "share" the listing with other brokers who will also represent the seller as well as cooperate with buyer brokers. The sharing of the commission should be the same as discussed in our previous article.

 

What both Traci and Ann emphasized, is, whether a nationally recognized "name-brand" firm or not, real estate brokerage is a person to person business. In the final analysis, the relationships you develop with clients and customers, as well as others involved in the process of selling and buying homes, will determine your success.

 

Another conviction they shared was the critical role of the broker in setting the tone for the entire office. While over 90 percent of all real estate agents work as independent contractors, the tone that the broker sets is paramount to a smooth-running operation.