- Name brand real estate broker is often expensive for sellers.
- Name brand brokerages are less flexible than independent brokerages.
- Name brands charge more fees, reducing the amount of money (equity) you give after selling your house.
- Name brands can be restrictive for agents on what marketing methods are allowed.
- Name brands are usually part of big corporations that have their own rules and regulations on how things should be done.
- Name brands offer less personalized attention because they have so many clients. At the same time, independent brokerage firms tend to give more personal service to each client since they’re smaller businesses with fewer clients overall.
- Independent brokers and name brand operators have the exact legal training requirements and access to the same data. See Chapter 475 of the Florida Statutes.
Many name-brand big box brokerages will say they are better than independent brokers; however, in our opinion, this claim has no basis.
There is very little difference between working with a name-brand brokerage firm and an independent brokerage firm: both set the sale price, both work with buyers, both list and sell properties for sellers, both help to negotiate contracts, and all brokers and agents have access to the same data and local MLS (where your property is listed so other agents can find it).
The main difference n our opinion between name brands and independent brokerages is that most name brand brokerages typically charge a 6% commission on the sale price of the home, plus charge other fees such as technology and transaction fees (check your last settlement statement).
In addition, name brand brokers are usually part of national franchise companies that have mandatory rules on how agents should act and what types of marketing methods are acceptable. Independent brokerages tend to be less restrictive, which means you get more personalized attention.
There is very little difference between working with a name-brand brokerage firm and an independent brokerage firm: both set the sale price, both works with buyers, both list and sell properties for sellers, both help to negotiate contracts, and all brokers and agents have access to the same data and local MLS (where your property is listed so other agents can find it).
The advantages of using an independent brokerage firm are that you can choose between services that fit your needs without being restricted by any franchising agreements. Some big-name brands even try to market themselves as independent, but most name-brand brokerages are not separate if you do the research.
That being said, independent brokerages like Sell Street typically charge less commission or offer a fee-for-service model. It’s important to note that while a one-percent difference in commission may not seem like much of a difference, the added cost of using a big brand and paying their unnecessary fees can cost you thousands of dollars in the long term.
For example, if you sell your property for $300,000 and save 1% on the commission, that means you would keep an additional $3,000 in home equity. If you invest the $3,000 by paying more of a down payment on a new home and your mortgage is 5% per year, that is $1,500 in savings over ten years.
What if you had invested that $3,000 that you saved on real estate commission in a cryptocurrency like SHIB or Dogecoin? How much would you have made? The entire point is that keeping one or two percent on real estate commission can add up to a lot in the long term.
Whether you hire a name-brand broker or an independent one, it is essential to weigh the pros and cons of each broker and their agents who will be listing and selling your property and determine what is best for you before selecting a real estate agent list and sell your home.