Large corporations are slowly taking over smaller businesses, leaving small-scale firms to close up shop. This is a pretty widely recognized statement. The same thing is happening in real estate as large brokerages take business from each smaller independent brokerage.
Many realtors are discouraged by the idea of having to compete with larger brokerages and the marketing budgets they have. While this poses a challenge, there is a silver lining. Contrary to what most might believe, many people are more comfortable operating with an agent from a smaller independent brokerage than a larger one for many reasons.
Let’s look at the three significant reasons why this is the case.
Innovation and Freedom With A Smaller Independent Brokerage
Most large brokerages usually have a series of strict rules and standards that must be upheld by any agent that represents the brokerage. This can mean that certain technology and marketing stacks are required to be used. Even if it isn’t the best option on the market.
What this leads to is a “cookie-cutter” approach to marketing a home. Each strategy for marketing a home will have its merits. However, do you feel that a homeowner wants a rigid approach, or the ability to innovate in the current market?
Homeowners feel much more comfortable knowing that their agent from a smaller independent brokerage is able to provide tailored solutions to their needs. Rather than the agent who must adhere to the rules and requirements of the corporate brokerage they represent.
Customer Service And Support From Your Agent
In many large brokerages, the focus is on hitting a quota for transactions per month. As a result, the attention that its agents give their own clients can vary.
With the constant pressure to churn through transactions, it’s natural for agents to focus on the most efficient and impactful clients. Higher price point sellers or buyers with a big budget will regularly take priority. The downside of this is that many homeowners feel forgotten. Often commenting that their agent didn’t fully understand what they were looking for. Buyers and sellers can experience slower response times from their agents. Particularly, if their agent is working with several clients at once.
Considering that buying or selling a home can be the largest transaction in many people’s lives, attention is what these people are looking for. Knowing that you are your Real Estate Agent’s number one priority helps build trust. It establishes a deeper connection and rapport throughout their time working with an agent. When you think about how 82% of real estate transactions come from repeat and referral business, leaving a lasting impression is a no-brainer. An agent from a smaller independent brokerage should be leaning into this as their unique value proposition.
Community Knowledge and Connection
Let’s face it, large brokerages are focused on listing price, time to market, and buyer budget. They’re not taking the time to know everything about the intricacies of a house they’re marketing or the family searching for a forever home. Of course, it’s a different case entirely when it comes to small brokerages.
Real estate agents who operate under smaller independent brokerages take the time to research the neighborhood the home is in. It’s also very likely that these agents have a deeper connection to the community they’re in already. Agents from smaller boutique brokerages often position themselves as go-to connectors within a community, getting to know all of the businesses and local professionals within it. The reason is that by doing this, they are able to better serve their clients as well as the people in the area.
This creates a strong competitive advantage for the smaller brokerage agent. Consider how much an agent, who is only in the area because of the location of the buyers, knows about the community? Sure, they can download the nearest businesses off Google Maps and give this to the family. But that’s likely the extent of their knowledge about the area. And when you think about it, a homeowner can access this information themselves. What they can’t access, is an introduction with the principal of the local school, connecting with one of the best local hairdressers in the area, or a one on one with the event manager at the nearest sport and recreation center.
With an agent from a smaller independent brokerage, buyers and sellers are getting a personal touch. When you think about the home buying or selling process, isn’t this what you would be after?
Need Help Building Relationships In Your Smaller Independent Brokerage?
Many agents struggle with trying to grow their business. The number one challenge? Trying to generate leads while growing real relationships to expand their database.
Fortunately for personable, friendly, and community-minded agents, there is a way to do both these things. Focus on becoming a leader in your community, a go-to connector.
Now, if you’re not interested in expanding your sphere or are only interested in chasing your next transaction, it likely isn’t for you. But if you want to grow your client base, relationship count and referrals focus on becoming a leader in your community.
As A Become A Local Leader reader, you have access to our Crack the Code System. Stop paying for costly online leads and start creating an endless supply of referrals from your community.