Do Not Choose the Real Estate Firm with the Most Agents
Does the number of real estate agents that are employed with a real estate firm or the relocation service matter? Find out the answer to these two questions and more below.
What is the Relocation Service?
Not many real estate agents are fond of Relocation Services, because these types of companies are responsible for making one phone call and earning up to forty percent of a referral fee. A Relocation Service is a service that is offered by an organization that operates “for-profit”. There are dozens of these companies located worldwide.
A Relocation Service Company has an entire network of real estate agents that give them “out-going” buyer and seller leads, with the hope that the company will receive money, in the form of “in-coming” leads. This type of Company rewards real estate agents who send out the most “out-going” leads with even more “in-coming” leads. Oftentimes, the manager of a real estate firm or broker will monopolize each of the leads that come in through this type of service.
Relocation Services is a term that sounds grandiose or impressive, when in fact this term has nothing to do with selling your home. In fact, a Relocation Service Company will receive a nice size chunk of the commission that you pay to your real estate agent, the company only made a phone call or two. A buyer’s agent, is the Realtor, who does all of the hard work. A buyer’s agent is responsible for showing prospective home buyers properties after working hours or on the weekend. It is the real estate agent that deserves the entire commission, not the Relocation Service Company.
What about the Number of Agents?
Did you realize that every real estate agent is employed as an “Independent Contractor”? This term means that the real estate agent is not paid a salary by the real estate firm, but instead is paid based-upon commissions. Since a real estate agent works as an “Independent Contractor”, they do not have anything to do with the other agents that work within the same office.
What this entails is that a larger number of real estate office locations or a large volume of agents does not mean that you will sell your house any faster. In fact, the larger the office the more complicated the working situation may be, for all of the parties involved. A real estate office is an extremely competitive environment that can be very cutthroat, especially when Realtors struggle to make their own mortgage and car payments.
There has not been any proven statistics that confirms that the size of the real estate firm has any bearing on the sale of your property. What matters most is that you choose a good real estate agent that will show your property to a prospective client, no matter which real estate firm lists the home. Now, it is important to note that a big brokerage firm may not negotiate commission payments because of the amount of overhead that the firm has to pay out.
It is crucial that you choose a reputable real estate agent, instead of an entire brokerage firm. It has been noted that often a broker is not even familiar with your specific home or piece of property that you are selling. Make sure that you know the following key points about your agent: their years of experience, negotiation terms, knowledge in the areas of disclosures, contracts and financing and how they handle their transactions.