Changing brokerages

ISellRiverview · #**1 Changing brokerages** 10-19-2007, 02:59 PM

I've removed my avatar & signature to be somewhat anonymous for now, but those of you who know me from the forums know who I am.

Does anyone have any opinions on whether it is better to go with a big name like Keller Williams or Coldwell Banker versus a smaller firm? Do you think it matters to customers if you are with a big name brokerage? I am thinking about changing brokerages.

Also, what do you make of these 100% commission brokerages out there? I was looking into one here called Charles Rutenberg but then heard from another agent that a lot of times these 100% places give you little training for newer agents, and you have limited access to the broker because they have so many agents.

Thoughts? Why is one better than another?

Dave Kovaleski · #**2 Re: Changing brokerages** 10-19-2007, 03:08 PM

I think a well established mom and pop real estate shop can do very well. They have an advantage in many ways. We have several real estate companies that don't carry a coorporate big name and do very well. Its more about personl relationships with towns folk and word or mouth more that it is about the name.

But for a new company starting out, having a large brand name is probably pretty important unless the broker was a very successful agent and his/her name is good in the area of business.

jessiesc · #**3 Re: Changing brokerages** 10-19-2007, 03:32 PM

This topic comes up quite a bit here. If you searched you may find some older posts about it as well.

IMO, it really depends on you, the agent and what you want out of the business.

The high commission brokerages while seeming to be putting more dollars in your pocket, really is not true, is it?

Instead of corporate and office fees, you have to pay for everything yourself (advertising fees, marketing materials and graphics, content for advertising and so on).

So the questions become:

Is what a Corporate broker offers worth the reduced commission?
Corporate brokers tend to offer much more in the way of training, marketing materials and education. Can the small independent offer the same?

Do you as the agent need access to a broker regularly or are you a stand-alone agent? While having access to a broker is fine, do you really need close access? In a large corporate brokered office you see many times quite a few agents. Is that something you as the agent need?

What about the costs of moving to a new brokerage?

We (actually Jennifer since she is the Front person and I'm basically a team member) get recruitment offers quite a bit these days. The offers include: More listings (broker sponsored and at a reduced commission rate), Internet leads (which we get more than the offering office, and would have to pay for no less), better commission rate and so on.

The underlying question for us is: How much will my business suffer if I have to change brands at this point? Re-branding the website alone will cost us plenty (loss within the serps could be catastrophic if new kw placement is needed), not to mention the cost replacement for all the signage, business cards and all the other marketing materials.

I believe I calculated our total re-brand cost today for materials at over $7000.00. Whenever we get an offer of recruitment, I always ask if they are willing to absorb any of that cost. Of course the answer is always no.

If we had the type of business that was profiting more on referrals and repeat business, I think we would consider a move much easier than we do today.

Bottom line: IMO, it depends what you as the agent value and how you run your business.

On a side note: Many of the small 90-100% commission brokerages in our area are falling by the way side while the name branded offices are still holding their own.

Sorry for the long drawn out post...

ericbramlett · #**4 Re: Changing brokerages** 10-20-2007, 01:18 AM

All real estate is local - the KW shop in Austin is a ~2000 agent machine....the KW shop in Anchorage could be a 2 agent mom/pop shop. Evaluate the brokerage based on the office.

For you to even ask about training indicates that you're looking for some. Interview a few brokers & ask what their training schedule is. If they have a training schedule (immediately) they're serious about it - if they bumble around on that question, move on.

Northern_IL · #**5 Re: Changing brokerages** 10-20-2007, 06:36 AM

This was just talked about a couple weeks ago and I know most here feel it's the agent that makes the difference not the brokerage firm.

However, I can tell you this, I have had several deals come in my way just for the simple fact that my business card says RE/MAX.

Good luck in your transfer.

svrpaul · #**6 Re: Changing brokerages** 10-20-2007, 08:53 AM

Evaluate the marketing of the company and make sure you like the Broker/Owner and/or Sales Manager. (Does the brokerage advertise all of it's listings and if so, where?)

Trust is the main factor of why somebody will use a real estate agent and if you don't have the name, you better be with a brokerage that has it.

Honestly, starting out (especially in this market) I would take the bigger national name that has the name recognition. In our area one of the most well known mom and pop brokerages (and very highly respected in our area) is affiliating with a very well known and highly respected RE/MAX office.

I talked to the Broker/Owner of this RE/MAX office and interestingly, I ended up talking to him (about everything including market trends, Brian Buffini, etc..) longer in two meetings then the entire time I had talked to our previous Broker/Owner of a C21 franchise we used to be with for 5 years.

(Like Jessie had mentioned in his reply concerning the costs to change, we were there because the cost to re-brand and change over was just too high and this particular Broker held all of our listings as hostage. Leave and you can't take the listings with you and all sales in escrow belong to them. That can be pretty expensive when you are averaging 5+ closings a month and carrying 8+ listings on average.)

For us, the fit with our local RE/MAX is there. Commission structures should not be the primary concern but only a piece of the puzzle. You really need to like the Broker/Owner, Sales Manager, and staff. This particular RE/MAX Broker/Owner gave me the personal phone numbers of everybody in his office to call up and ask how they like being there. Many of them have been there for over 10 years and I have not had one person say one bad thing about them.

I would also make sure that the Broker/Owner or Sales Manager has the mentality that the affiliation is a two way street. You are bringing something to the table and they should be bringing something to the table and not acting like they are doing you a favor. Our previous Broker did not seem to understand that and it's why her office was a revolving door with agents leaving and never coming back.

It's easy to change offices but it's not entirely too easy to find the right fit.

(Sorry for the super long post but we are actually going through the process ourselves so I can certainly relate to the confusion... and we've been around for awhile.)

Susan Zanzonico · #**7 Re: Changing brokerages** 10-20-2007, 09:09 AM

I know you!!! ;o)

Make sure you understand completely how they both work...KW has a cap and then you get 100%..the cap varies. They also have training from what I understand. You pay for your advertising and expenses and you get all the leads from your listings plus Wolfnet IDX. CB pays for your advertising...the splits are maybe 68-69%...here they also take out an add'l 6% (franchise or marketing fee)...I don't believe their site is constructed so you get your own leads...here they have a system to side track them. Check that out. I think getting the leads on your listings is important.

Eric Blackwell · #**8 Re: Changing brokerages** 10-21-2007, 05:11 AM

Hey Riverview;

I know you too! ( insert smiley here--grin)

As I have said on numerous occaisions here at the REW campfire...IMO it is all about the broker.

Does having more market share make it easier to get listings? Often YES.

Does having a brand (franchise--like RE.MAX) at the top along with it that carries some wieght sometimes help? Often yes.

Does ANY of this matter if the broker is a LOSER? Nope. since each franchise is independantly owned and operated...the Broker is the MAIN THING.

Step one: Evaluate your business plan--what do you need that you are not getting currently?

Step two: Evaluate IF you had what you need, what would you likely produce.

Step three: Narrow your list of brokers and talk to their agents. See if they really ARE providing what they say they are...

Find the one in your area that gives you the biggest bang for the buck.

Notice that in my list is NOT KW, REMAX, GMAC, CB et al...it is the SINGER..not the SONG.

Last peice of advice.. You sell the full service thing all day...You explain to clients why they need a full service real estate agent, right?

You NEED a full service brokerage! Look at EVERYTHING. Doing sell full service through a discounter broker who doesn't back you with a COMPLETE arsenal of marketing and technology tools and expertise.

Avoid the temptation to go with a cult of personality...

Hope that helps!

Best;

Eric

darrenwoodard · #**9 Re: Changing brokerages** 10-21-2007, 11:23 AM

I think the big name helps when you are a listing agent. Many people may disagree with me, but look at your top listing agents in your area. I could almost guarantee that they are from one of the bigger agencies.

waynelong · #**10 Re: Changing brokerages** 10-21-2007, 01:39 PM

It has been discussed here many times and there are arguments to be made for all sides but I think Eric Blackwell said it best - it is really all about the Broker and how you fit into his model.

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