Are large property franchises better at selling homes than independent property brokerages? Everybody recognizes that brand recognition is an integral part of promoting. Big franchises have large budgets to operate advertising on television along with other media, and a number of these franchises have been in existence for many years.
However, independent real estate agents have acquired ground on the market during the last decade, largely because of the Internet. Online listings have grown to be an enormous element in exchanging homes.
Consumer Reports tackled this problem within their September 2008 survey on property brokerages. Their survey established that there’s no improvement in satisfaction level from sellers dealing with independent brokers versus. the main franchises. However, laptop computer did reveal that autonomous brokers were much more likely, coupled with more freedom, to reduce commission rates when requested.
This post is not every that surprising. Today’s housing market is way diverse from the marketplace franchises dominated three decades ago. Over 1 / 2 of the brokerages in the industry today are individually owned instead of franchised, based on the 2009 Nar Member Profile. Levels of competition are fierce, buyers tend to be more savvy, and also the Internet enables anybody to look the MLS (mls) of homes to locate promising qualities within their cost range. A lot of the legwork that agents i did so continues to be eliminated.
What could come as a surprise to understand is the fact that independent real estate agents, despite their “boutique” image, frequently offer financial savings within the big-name franchised agencies. Because autonomous firms don’t have to split their commission having a franchise, they’ve got more latitude to barter and become flexible over commissions and charges. The Customer Reports survey validates that non-franchised brokerages are competing directly using the franchises by really lowering commissions much more frequently than franchise agents do.
Franchised agents typically charge between 4 and seven percent using the national average at 6 % for any home listing. Franchises brand themselves as offering more services than independent brokerages, and tout being listed using their extensive referral network to be well worth the money. But does having to pay a greater commission to visit your property seem sensible in the current Internet-driven housing market?