Today I am going to talk about why a real estate company’s name matters less to the consumer than the agent helping them.
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I recently moved companies and it got me thinking about what matters to consumers. Does a real estate company’s name really matter? I don’t think so, and today I am going to explain why.
What matters most to a consumer is actually the agent—the person who is helping you price your property, take photos, and shoot videos with drones.
When I meet someone at a listing appointment, I like to ask if they remember what company listed the house when they bought it. Most of the time they are unable. Instead, they say they chose the house based on the school district it was in, the price range, or its square footage.
Beyond these factors, buyers also say tend to cite the listing photos they saw during their search as a catalyst for their purchase. This means that it was the marketing that affected them most. Pricing is 80% of marketing. If you have an overpriced listing, no matter how many showings you do, mailers you send, and nice photos you have, the place won’t sell.
With this in mind, it’s important to realize that the agent you work with also plays a vital role. They are there to explain the process and guide you toward the best possible decisions. When working with buyers, they help them find a property that fits their budget and search criteria. For sellers, agents provide helpful insight into the market. They also study comparable properties to help the seller effectively price their own home. Listing companies don’t do these things — the agent does.
When you list your property, regardless of the size of the company, it is added to the MLS and then syndicated out to Zillow, Trulia, Realtor.com, etc. These websites don’t recognize the company that it is listed with. They recognize that it fits within a certain price range, fits within a certain square footage, and has a particular number of bedrooms and bathrooms. The consumers then look at those advertising sites to see everything, regardless of the company.
When you interview agents, know that while there are great agents working for big companies like RE/MAX and Keller Williams, there are also great agents based out of brokerages you might not have heard of. The same goes for bad agents. Don’t interview agents based on their company. Interview them based on their personal experience. Do they explain the market analysis to you? Do they have great photos? Are they a member of the MLS? How many properties have they sold? These things are the more pertinent questions.
Now, why did I move to eXp? As a business owner, this company of 13,000 agents has a better business model for me and my family. Ultimately, eXp is an agent-owned company as opposed to a franchise or a mom-and-pop company. They are like the Uber of real estate in the sense that they are disrupting the norm.
This company has a great disruptive business model and since I’ve always liked to be on the cutting edge of what’s new, I joined them. In the end, I think that it’s better in a lot of ways for the consumer because of their emphasis on technology and my ability to put more of my own money back into my business.
If you have any questions about this or are interested in buying or selling, please feel free to contact me. I look forward to speaking with you soon.