Choosing a realtor: Big Guy v. Little Guy

We are in the process of interviewing realtors to list our home with. What do you think the benefit is of listing with a larger brokerage (Prudential, Century 21, Re/Max) versus a smaller brokerage or an independently owned brokerage?

I haven't met with anyone but Century yet - I have appointments scheduled starting today - but I was told that one of the local realtors in my town who owns her own realty charges 3% commission. Century told me they would give me a deal because we are repeat customers at 5%. What could Century be doing that they would deserve to earn an additonal 2%? I always see listings in the paper and on MLS from the local realtor so she adequately markets. Is there some marketing that the bigger guys do that the little ones don't/can't?

Basically, I guess my question is, if they are both doing the same type of marketing, is there any reason why I would want to go with the large brokerage over the little guy?

Re: Choosing a realtor: Big Guy v. Little Guy

My parents went with the littel guy and switched to the big guy after a bit.

The littel guy said they would do all the same things but in the end they just were not as aggressive as the big guy.

In my neighborhood now there a bunch of homes listed with a BIG guy and a few with little guys. The houses that are selling are with the Big guy. So if I were to sell in my neighborhood I would def go with who seems to be selling in the area.

Re: Choosing a realtor: Big Guy v. Little Guy

I would compare marketing. You can also most likely negotiate with the Big guys to pay between 4% and 5%. If you list with a slightly higher commision it offers an extra incentive to selling agents, might make selling your home more desirable then selling the home next door where they will make less money.
Good luck!

Re: Choosing a realtor: Big Guy v. Little Guy

Personally, I think in terms of service (personal attention, communication, etc.), it really depends more on the individual agent than on the company. You have great agents at small companies and lazy/incompetent ones at big ones and vice-versa.

This is somewhat true of marketing as well -- some agents are very proactive and creative about marketing, and some aren't.

But I do think that there are some advantages to listing with a big company (obviously, I work with Century 21, so I am biased, but these are reasons that I chose to work with a larger company):

1. Name recognition -- In this economy and with this big of a purchase, buyers want to work with a company that they trust and that they think is "safe." Century 21 is #1 among real estate companies when it comes to brand name recognition with consumers. That translates into more visitors to our website, more sign calls, and more buyers for your home.

2. Marketing dollars -- Big companies tend to invest more in their marketing. I know my company puts our listings on up to 500 websites AND we do a single-property website for listings. We promote our open houses on Listingbook. These are just a few examples, but in a smaller company, that marketing may not be included, or it may have to come out of the agent's own pocket (which means they are less likely to do it). I think you get better and wider exposure for your listing when you list with a big company.

3. Training for and Supervision of Agents -- I generally think that the training and resources available to agents at big companies like Century 21 is amazing! As a seller, I would think you would want the most knowledgeable agent working for you, especially in this ever-changing and more complex market. Plus, most big companies have not only a broker but also a manager (so you can elevate any concerns you may have with how your listing is handled), and a team of agents that can cover each other's business, work open houses together... All of this adds up to better and more comprehensive service for you. A smaller company may be one or two agents who hung out a shingle. Again, I am sure there are very capable, wonderful agents working with smaller companies, but I am just generalizing based on my experience and opinion. And suggesting these are points that you should bring up with ALL companies you interview.

As far as the smaller company offering to take listings at 3% -- I would really press them as to what they will do for that 3%. On MLS, it's standard to offer out 2% to cooperating agents to entice them to sell the listing. So why would the listing company, who is investing all of the time and marketing dollars, agree to take only 1%? They either don't intend to offer out 2% to a cooperating agent, which means your property is less likely to be shown, or they don't intend to do much marketing or spend much time servicing your listing. I always encourage people to try to get the agents they work with to commit to a marketing and service plan IN WRITING. As with everything, there are exceptions, but I think you mostly get what you pay for when it comes to realtors. I also think agents who are so quick to cut their own commission may be quick to give away YOUR money when negotiating the sale of your home.