A good real estate company is vital to making your real estate transaction run smoothly. Whether you are looking for a home, a commercial property or anything in between, you can find a company that specializes in your need. Real estate laws and disclosures change so frequently that unless you are a student of these things, you need the professional to make sure you conform. Using a real estate company, you should be aware of how they earn their income and what their responsibilities are to you as a buyer or seller. Knowing these things can give you a better experience the next time you need to one.
Type
The most common type of real estate company is the full-service company. They list properties for sale and they help buyers find what they are looking for. They are paid a percentage of the sales price as a commission from the sale. Most have independent contractor agents that represent the company, although some real estate brokers like to work alone. All real estate companies are run by a broker who is trained and has experience in all aspects of the business. Almost all of these companies are members of the National Association of Realtors, their state and local Board of Realtors and their local Multiple Listing Service. The next two types are similar in all aspects except they either represent sellers or buyers, but not both. It is more common for an agent to be this specialized than a company, but they do exist. With more and more For Sale By Owners coming onto the scene, there has been a development of bundled service companies. These offices charge flat fees and allow you to pick what you want them to do for you. You can choose to let them advertise and put your home in the Multiple Listing Service, but you do all the showings and open houses. Or, you may choose to only have them do your paperwork once you find a buyer. Lastly, are the specialized fields. Some companies specialize only in relocations and others specialize in commercial rentals, such as malls and office buildings. All of these real estate companies have their own place in the business and are important to you're real estate experience.
Function
The main function of any real estate office is to bring about a transaction that results in satisfied customers and profit for their clients. Which means to find buyers for their listings and listings for their buyers in a full service office. In a bundled service office, the function would be to offer only those services that the customer cannot do for himself. The relocation broker wants to help a customer find a home in another state with as much ease as possible, and the commercial office needs to keep his client's very big investment rented and profitable. However, most people pay a professional to make sure things get done right. In all cases, the real estate office personnel should have the law and your protection in mind when they perform any service for you. Even if they don't personally file all the paperwork, they're paid to make sure it is done correctly and filed where it needs to be. You should have peace of mind, that things you don't know handle are being done for you.
Size
The size of a real estate company has no bearing on the expertise inside. There are offices with two hundred agents, others with 20 and still others who are one-person bands. One size is not better than the other; where the difference is found is in the expertise of the broker and his management and training skills. This not to say that all brokers who have 20 years of experience have the best offices. If they can't train or manage their agents then they usually don't have a good office. On the other hand, you could have a broker with only 2 years experience that is a motivator and trainer and has a very successful office. Size isn't just about the local office either. Companies like Century 21 and Coldwell Banker Real Estate, may have some small offices, but the company itself is huge. These large companies offer their own training and are in every state in the United States. However, they are franchises and you still have to depend on the broker of the individual office.
Misconceptions
The biggest misconception about real estate companies is: they are all the same. They are not all the same; some are specialized, some are constantly training their agents and all of them only make money when a transaction is completed. They can work on a transaction for months, just to have it fall apart at the settlement table, through no fault of their own and they don't make a cent. Another misconception is they all train their agents to be pushy and sell the most expensive properties. The better agencies train their people to be knowledgeable and not to waste time showing property that a buyer cannot afford. You will know when you walk into a real estate office if the people there are trained properly with the first question you ask. If they don't know the answer, they know where to find it and they will know their market better than anyone else. They will not try to sell you, they will try to help you find what you want.
Expert Insight
If you are looking to buy, sell or rent a home, call a few real estate offices. It is their job to get your contact information while you are on the phone, so don't take that as being pushy. You don't have to divulge any information if you don't want to, but they will take that to mean that you are not serious. Listen to the tone of the agent and ask questions. Ask what some of the broker's accomplishments have been. After talking to each one for a while, you will find the one that you know has knowledge of the area, understands marketing and is confident in what they are doing. Once you choose a company, stick with that company until you find what you want or sell your home. Market conditions are the normal reason for a house taking longer to sell than usual. If you feel the agent isn't doing enough or has put the wrong price on your property, talk to her about it -- don't go office hopping. Not only will it not help you sell your property, but it looks bad for your home when the sign in the front yard changes often. A knowledgeable company will not try to sell you, and they will list a property right the first time. Lastly, don't let the size of the company make your decision for you. Call a large, medium and small company and let the answers to your questions make the decision.
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