Right now the media hype is all about Rogers taking over ZooCasa and claiming they will connect “Top Realtors” with buyers. The discount brokerage model is nothing new and has been around since real estate commissions were at 6% and they will be around forever. Along with discount brokerages there are many new up and coming brokerages. Unfortunately the media does not do a good job at clarifying the difference between a start up brokerage and a discount brokerage and many realtors working for big brands also like to exploit this and claim they are “discount brokerages”.
A discount brokerage is a brokerage that advertises lower fees and commission for service. They usually sacrifice certain aspects of traditional real estate such as marketing and a truly personalized service because there aren’t high enough margins. I have written many times about these types of brokerages with strong “you get what you pay for” cautions. This business model will always be around and I welcome having an open market from which consumers can choose.
A start up or boutique brokerage on the other hand is a real estate company that has a new vision of real estate and works towards creating a unique identity for themselves and their sales representatives. My brokerage for example is called IPRO Realty, which is currently in its 4th year of business and one of the fastest growing brokerages in the GTA. The owners, Rui Alves and Fidelle Colluci, owned and operated six successful Sutton Group offices before deciding to open their own brokerage that they felt was better suited for today’s technologically driven real estate market.
You may be driving home and see different signs and if one is not familiar you may think that is a discount brokerage but in reality, it is just another real estate brokerage. When working at Royal LePage I was sold on the “brand”. I was told people would use me based on being with the company and after getting my feet wet in the industry I realized that couldn’t be further from the truth.
Real estate isn’t a brand in the sense that Apple or Microsoft is, we are simply the carriers of the product. The true brand is your home and a realtor’s ability to affectively market and sell your brand. Working for Royal LePage or Re/Max does not give anybody a competitive advantage or automatically turn them into high power agents making you more money (even if that’s what they pitch).
As always I like to look into the mind of a buyer and think like them for a moment and ask what affects their purchasing decisions. I will ask you to rate the criteria below in order of importance:
The location of the home
The brokerage who listed the home
The price of the home
The quality of the finishes
The ability to contact the agent to answer questions
Now I can almost guarantee that any way you do your ranking, the one that is always at the bottom of the list is the brokerage who listed the home. Why? Because it is the least important factor from a buyers perspective! Why would a consumer care AND if they don’t, why would you?
As a seller, it is very important for you to understand:
“You are your own brand and the services in which your realtor is able to offer you should ALWAYS be your top priority”
Do not get discouraged or think that by using a newer brokerage that you are at any competitive disadvantage. If you are choosing an experienced realtor who understands the industry, is able to offer you full service and truly listens to your needs and wants then the choice should be simple!