Local Real Estate Comments and Ramblings


Big company or small?

What is the value of a "brand name"?  Being with REmax my entire career I have been trained that the brand is quite powerful to the point of being irreplaceable. 

I know that there are many of you out there that are quite successful iwth big brand name brokerages and also being totally your own boss with your own brokerage.

I'd like to get ideas from some you what is the value of the brand name?

How does it effect ability to attract new listings?

I suspect that the brand name has less effect on attracting buyers but soem ideas there as well.

All opinions are welcome and I look forward to your comments.




Bob Southard
Broker - Owner  Atlas Realty Service LLC #75911
1% Listing Commissionand BuyerRebates



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Comment balloon 9 commentsBob Southard • November 30 2007 11:30AM


Hi Bob,

 I've had experience with BIG and small -- and I've opted to stay with the small brokerage. I've been with Prudential and Keller Williams -- but am now with Independence Realty.

I agree most buyer's don't care, or even notice, the difference. They just want to find the right home.

Listings, on the other hand, seem to be attracted to bigger names. I still get listings, but getting the appt. is s bit tougher. The payoff is worth it to me to be with the smaller broker, who doesn't take such a big chunk of commission.

Personally, I have yet to see a big broker EARN their share. Does your big brokerage really give you $50 a year in advertising and support? If they do, great. I've never seen that. More like $5k.

Lasly, and this isn't necessarily good, I had a friend say "I like the big companies. That way, if something goes wrong, you have something to go after." Needless to say, I don't do business with that friend.

 Happy Sailing ... _/) Paul -- http://www.enewslettersolutions.com/

Posted by Social Media, Email Marketing & Search Engine Optimization Specialist (PCS Online Solutions) over 11 years ago
Thanks for the post.  I'll be following it with interest.  I've only every been with Coldwell Banker and have often wondered about the value of the National Brand.  They take 6% of the gross commission on every transaction which amounts to a fair bit of change.  I've found it very difficult to quantify the benefit of the national franchise.  There, no doubt, is some benefit but whether it equals or exceeds the cost is unclear.
Posted by Don Stern, Greater Baton Rouge Real Estate (Realty Executives South Louisiana) over 11 years ago
Paul and Don - Thanks for the comments.  I don't think there is a way to actually quantify the values. My big question is in regard to listings.  I think that the sellers actually think that the big name will sell the house.  We know that agents do the marketing and selling so th brand doesn't matter.  But if the sellers do in fact think that way does being with a smaller name hurt the ability to get listings?
Posted by Bob Southard, e-Pro - Cobb, Cherokee, North Fulton (Atlas Realty Service, LLC) over 11 years ago
I've been with both and I prefer a smaller company.  I think if you work hard and get results, it doesn't matter what size company. It's all about trust and results.
Posted by Aggie Friend Kay Perry, A&M Class of '94 & '97 (Kay Perry, Broker) over 11 years ago
Thanks Kay.  That's the way I feel as well.  I guess i just need some confirmation.
Posted by Bob Southard, e-Pro - Cobb, Cherokee, North Fulton (Atlas Realty Service, LLC) over 11 years ago
I started with a big company, did not really get my business going (for personal reasons--namely the arrrival of my third child).  Took some time off and decided that I would go back in to it with a small company because I wasn't sure how committed I wanted to be. Since then I have fully committed and  been with 2 small companies before going out on my own with a partner. I have not found that being with small companies has hampered me at all. Of course, I work REALLY hard to market myself and get no coporate advertising advantage.  I also make more from every transaction.  The way I look at it is that I probably work harder to get my clients, but have to work slightly fewer transactions to make the same money. I, too, wonder if my life would be easier with one of the big companies, but I am happy staying small!
Posted by Holly Weatherwax, A Great Real Estate Experience ( Associate Broker, Momentum Realty) over 11 years ago

My take on it is that the average consumer is not so brilliant, and thinks that they're going to receive better service from a larger company.  Those of us in the business know otherwise.  I think that the money they waste on advertising is wasteful, and mostly used to pump up the ego of the owners and other corporate types.  If you have the client base, and all the knowledge that you can get from ReMax, take it to the next level, and start your own business.

Posted by Alix Pinzon, (562)743-6086 (Open Mortgage, LLC NMLS # 2975) over 11 years ago

Holly- I can definitely relate to hard work! Thanks for the comment


Gregg- Thanks for the kind words.  I don't think I am going to start my own, but I am looking at a smaller name with much lower fees.

Posted by Bob Southard, e-Pro - Cobb, Cherokee, North Fulton (Atlas Realty Service, LLC) over 11 years ago

The post got me thinking.  I extracted current listing data from our local MLS for a single zip code in our area.  I computed the number of active listings by office, looked up the number of agents in a given office and computed the number of active listings per registered agent in that office.  The following table accounts for 80% of the listing volume sorted by decending listing volume.  I marked the national brands with an *.

List Office CodeOffice NameTotal # of ListingsNumber of AgentsListings per Agent% of Total # ListingsCum % of Listings
B10603B10603 C J BROWN  PERKINS301530.1969.1%9.1%
B85704B85704 RE/MAX FIRST ASCENSION20201.0006.1%15.2%*
B85701B85701 RE/MAX FIRST201280.1566.1%21.2%*
B10601B10601 C J BROWN  SHERWOOD201480.1356.1%27.3%
B12102B12102 COLDWELL BANKER MACKEY ASCN19470.4045.8%33.0%*
B55501B55501 BURNS & CO INC18570.3165.5%38.5%
B61701B61701 RE/MAX EXCELLENT PROPERTIES1381.6253.9%42.4%*
B71201B71201 ALL STAR REAL ESTATE GROUP1161.8333.3%45.8%
B56501B56501 BLOOMINGHOUSE REALTY LLC10180.5563.0%48.8%
B75401B75401 REAL ESTATE ONE GROUP, LLC942.2502.7%51.5%
B65801B65801 M A ALLEN REALTY GROUP LLC9770.1172.7%54.2%
B21201B21201 KELLER WILLIAMS REALTY REDSTIC82420.0332.4%56.7%*
B48101B48101 LAKEWOOD REALTY LLC717.0002.1%58.8%
B47501B47501 COLDWELL BANKER ONE61020.0591.8%60.6%*
B17301B17301 EASTBANK REALTY6270.2221.8%62.4%
B69101B69101 ACCESS REAL ESTATE GROUP INC541.2501.5%63.9%
B47701B47701 PRUDENTIAL GARDNER REALTORS BR5510.0981.5%65.5%*
B46301B46301 VILLAR & CO. REAL ESTATE5210.2381.5%67.0%
B14201B14201 CENTURY 21 INVESTMENT REALTY5340.1471.5%68.5%*
B11901B11901 RE/MAX REAL ESTATE GROUP5350.1431.5%70.0%*
B55301B55301 BUILDERS DIRECT SALES REAL EST460.6671.2%71.2%
B50501B50501 ERA STIRLING PROP. BLUEBONNET4320.1251.2%72.4%*
B43401B43401 PRIME REALTY GROUP441.0001.2%73.6%
B84301B84301 TIGER TOWN REALTY LLC340.7500.9%74.5%
B74301B74301 MCDONALD NOLAN & SOSSAMON REAL3260.1150.9%75.5%
B65601B65601 AREA REALTY SERVICES LLC3120.2500.9%76.4%
B58901B58901 KEYSTONE REALTY3150.2000.9%77.3%
B57401B57401 GEAUX REALTY CORPORATION350.6000.9%78.2%
B53201B53201 HELP-U-SELL REALTY GROUP321.5000.9%79.1%
B47503B47503 COLDWELL BANKER ONE HIGHLAND3250.1200.9%80.0%*


Well AR sent me off on another tangent.  Oh well, it was a slow day today anyway.

Posted by Don Stern, Greater Baton Rouge Real Estate (Realty Executives South Louisiana) over 11 years ago

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