Are your broker-dollars buying you the best return on your career investment?
It’s been a long-standing belief in real estate that if you want to make progress in the luxury market, you have to spend your commissions on a high-profile, high-fee brokerage. But does your clientele really feel that way? If not, is your investment in high broker fees really producing the best results for your career growth?
The 2013 annual survey by the California Association of Realtors once again asked home buyers to identify the most important reason for selecting their current agent. For several years running, the top reason cited by actual clients has been “most responsive”. This is followed by a variety of other agent-centric traits. (The full report, which includes wealth of info about industry info, is downloadable here.)
Did you notice what is conspicuous by it’s absence? There is no mention at all of the agent’s brokerage. This year, “agent’s brokerage” didn’t even make the top 8 reasons. If I recall correctly, in some previous years it has limped in at the bottom of the list.
Though they don’t necessarily want to dwell on it, the big firms know this too. In fact, there have been not one but two rather high-profile name changes among large national franchises this year. In both cases decades of name-recognition were traded for shiny new identities. Think about that. Could you imagine Coca-Cola deciding to change their name? Or Chevrolet?
So why is there no equity value in national real estate franchise names? Probably because there is no measurable loyalty by consumers to the brokerage that the agent works for. Don’t get me wrong. Your clients have loyalty — to you, the agent. The annual California survey measures that every year. But there is no measurable loyalty from the consumer to your company.
So I have good news and good news. The first good news is your clients care very deeply about picking the right agent, and will show you great loyalty when you meet and exceed their expectations. And the other good news, the even better news, is you are free to select the brokerage that lets you keep more of your commissions, as long as that brokerage provides you with everything else you need and you’ve become accustomed to.
So I have a simple question for you. If you could have all those broker splits back, all the royalties that disappear even before the splits, all of it — how would you invest your money?
Luxury real estate on a 100% commission plan.
No broker splits. No royalties. All the service and support.