How to choose a real estate agent or company.

I’m going to let you in on one of the big secrets of the real estate industry: it doesn’t matter which real estate company you choose. Why? Because almost all Realtors, or real estate agents (they are not the necessarily the same thing, a Realtor is a real estate agent who belongs to the national association of Realtors) are independent contractors, and do not technically work for the real estate company they are associated with. In fact, we Realtors actually interview the real estate company and then decide which one we want to work with.

I have personally worked at five different real estate companies, and Christine has worked at six, both large and small, including Keller Williams and RE/MAX (where we were both individual Platinum level agents, an award for a high level of sales). We have worked with hundreds of other agents, some of whom worked at the same brokerage, and others whom we worked with on various real estate transactions. What we can tell you is this: Choose the agent, not the company. In every real estate company out there you will find both highly effective professionals as well as under-performers.

If you look at the ads for most of the larger real estate companies like RE/MAX, Keller Williams and Coldwell Banker, you will see in fine print “each office independently owned and operated.” That means the office is a franchise that is operated by an independent owner, who may or may not run that office well. You can find, as we have, large companies run poorly and small companies run well.

Here’s another truth: How the brokerage is run has no effect on the consumer. Why? Because the brokerage has nothing to do with how your real estate transaction is managed. As Realtors we find our own clients, or they find us, and we personally manage their transactions. We develop our own marketing programs, both for ourselves and for our clients’ properties. We pay for our own lockboxes, signs, marketing materials, virtual tours, websites, office supplies and office space (agents with offices in the brokerage usually pay a fee, often a very high fee, for that space).

Think of it this way: Real estate agents are in the real estate business – we assist clients with buying and selling property; Real estate companies, or brokerages, are in the real estate agent business – the business of recruiting and retaining agents. Real estate brokerages make their money from fees charged to the agents who work at their brokerage; usually a percentage of sales, flat monthly fee or fee per transaction.

But as a home seller, can’t a national company market my home more effectively? Absolutely not! All real estate agents enter their listing date into the same MLS (Multiple Listing Service). This data is then ported automatically to Realtor.com and other internet sites. After that it is entirely up to the individual agent how much more effort they put into marketing your home.

But as a home seller, won’t I benefit by having my site listed on a national company’s website? Not at all. All the national company sites list all properties listed by all brokers. And all MLS listings appear on Realtor.com (though we Realtors have to pay an additional monthly fee to Realtor.com for enhanced listings), which is much more important than any national company site. Additionally, I would argue that you are better off having your property listed on a site dedicated to local real estate, such as this one, which attracts loads of visitors every month interested in local real estate, and covers issues and topics that national sites cannot.

In my opinion it all boils down to this:

My advice for home sellers: Choose the agent with the better marketing program, who has a lot of experience, and who returns your calls and emails in a reasonable time. Compare the agent’s listings to others; look for quality of photos, virtual tours and written descriptions. This will tell you something about their level of interest and their ability to market your home effectively.

My advice for home buyers: Choose an agent who is truly interested in helping you find the best home for you, not in “selling” you a home. They should return your emails and calls in a reasonable time and answer all of your questions thoroughly. You’ll likely spend a lot of time in person and in communication with your agent (at least that’s how it should work), and personal service will mean everything.