Many people that are new to the market feel that larger real estate corporations are the way to go. In a socially conscious society, brand recognition is everything. Hence, the agents at big name franchises are often able to easily sell clients on all of the perks of hiring their brokerage company. (Note: In Florida, when you hire a real estate professional you’re hiring his brokerage company too.)
Benefits of Boutique Real Estate Firms
To open your own real estate brokerage company, you must hold an active broker’s license. The state of Florida requires a person applying for a broker’s license to be an active realtor two consecutive years prior to application. Thus, a new broker has to have been working for someone else prior to branching out on his or her own. Accordingly, this means they have made valuable connections with other realtors, and more often than not, they offer great incentives to those realtors to join their team. The advantage to the customer hiring the independent broker is the experience and the solidarity in knowing that the broker has his livelihood rooted in the client.
Smaller boutiques are generally comprised of realtors who have worked together for years, building a sense of work place familiarity. The agents in these offices are handpicked by the owner who’s invested in the brokerage. Hence, he or she is sure to only work with the cream of the crop. Large firms make money off the administrative and desk fees they charge member agents, so there is no incentive to get rid of agents that are not producing. At a boutique firm, the owning broker foots a large part of the bill, so you can be sure that the agent you’re working with is a producer.
Smaller brokerages tend to work cooperatively to sale homes, so home owners can find assurance in knowing that their property will not be just another property lost in the shuffle. Usually there is an incentive in smaller brokerages given to agents to sell in-house listings in the form of more money to the contributing agent. The focus is on driving the business and ensuring that a quality brand is being built.
Considering a smaller firm is also beneficial to homebuyers. Realtors working with smaller brokerage firms tend to have the experience necessary to ensure buyers find the right property at the right price. Moreover, knowledge of the mortgage market comes with this experience. Not to mention that the brokerage is the owning broker’s baby so clients can rest assured that all parties are working toward the same outcome.
There is a greater sense of care and diligence and attention to detail when your name, business, and reputation is on the line. Brokers with larger firms are usually hired, salaried employees that do not have the same sink or swim mentality. Considering a smaller firm might prove to be a move in the right direction.