Nationwide or Local Brokerage?

Question

Hey, Everyone!

For anyone who's followed my journey, the timeline has been a bit spread but I'm closing in on my goal. I own a business in Boston, MA but now live in Bar Harbor, ME. It's a seasonal business, so over the winter I took the course, I passed the course on April 1st right before I had to devote some time to getting my seasonal business up and running for the new season.

At this point, I have a staff in place and the business is set up to run itself for the most part. I have someone who's committed to stay with us year round and for the foreseeable future, who can run the show. So I think all bases are covered.

With that said, yesterday I finally scheduled my state exam for July 21st. I plan to get past the potential distractions that come with 4th of July (business, family) and plan to give myself 2 solid weeks to study starting July 7th. At this point the question of what brokerage to work for is on the horizon... I have a question though, for anyone who'd like to chime in.

Based on your experience, what would you suggest - A nationwide type brokerage like Swan, or a local brokerage (small, mom and pop kind of brokerage)?

Hopefully that's not a dumb question.. Any insight is appreciated. Thanks!

Steven Foster Wilson · Answer

I think it depends on your goals. For me I wanted a place that I could find mentorship and that would push me to keep being better. Every day that I go into the brokerage I want to do more and I want to push myself to be the best that I can. Being around all of the people in my brokerage is inspiring and fun. I wake up every day excited to go into my brokerage. I know everyone in there is aiming for big things and they are doing it.

Ian Meyer · Answer

@Steven Wilson I'm right there with you! I would absolutely love mentorship. I am always trying to be better. It's hard after so many years running your own business with no one to push you but yourself. It would be great to have someone / something to test me again. I'm sure I could go further in the business world but owning a business is brutal for so many reasons. I know this won't be easy either, but it's something different and goes in a direction I want to go towards.

Ian Meyer · Answer

I should probably mention... One day by chance I met this nice old man at a local arts and crafts show and I told him I just started my real estate course, only to find out that he started Lynam Real Estate which is right here in Bar Harbor! It was such a coincidence that it kind of felt like it was meant to be, ha. But he gave me his number and I've just been pondering over it ever since. Should I go with a larger operation or work with this guy who's been doing this in the area his whole life? But then again, I may get my foot in the door over there and then barely ever interact with Mr. Lynam. I feel exactly like what you guys are saying, there must be pro's and con's to both. It's a tough call but I really do appreciate everyone's input this is so helpful. Thank you! @Bruce Lynn @Christian Ehlers @Steven Wilson

Brandon Goldsmith · Answer

That depends on what your goals are. My brokerage is focused on multifamily investments so if you want to be a little more niche then a more local one might be better. @Ian Meyer

Marian Huish · Answer

@Ian Meyer i’m also a bit curious that you say you have staff in place and the business set up but you have not yet passed your state exam? I must have missed part of ‘your journey’ as it seems the cart is moving before the horse!?  As far as I know, all states require experience as a salesperson before running your own brokerage!

Marian Huish · Answer

Congratulations on your decision to start your real estate career @Ian Meyer- Why not consider a brokerage that can enable you to do either?  You can self brand and build your own business locally yet net work and scale your business to service clients and receive referrals from all 50 states and 23 countries worldwide!  You can also build your team of agents without having the liability, responsibility, etc. of a broker yet being paid from their sales for as long as they are selling real estate. Join a borderless brokerage that will provide you all the training and technology and support you’ll ever need but without a franchise fee. Oh and of course you’ll also receive stock awards and revenue share. Be happy to provide more information but this is a good start; https://life.exprealty.com/why... I wish you all the best in your decision but there’s really no reason to reinvent the wheel!

Robert Carmody · Answer

Many of the big brand name brokerages are locally owned franchises, so on one hand, there is a more "corporate" element to those offices, and on the other hand, the owners might still be local, with local market expertise, operating as a locally owned business affiliated with a national or international brand. Ultimately, the decision probably depends on the direction you'd like to take your business, where you see your business coming from, whether or not you plan to eventually hire team members, and so on. I started selling real estate when I was brand new with a smaller company. About 18 months later, I moved to the largest brokerage in our market at the time, which was a Coldwell Banker brokerage. Today, I work for the top Re/Max office in our market, which is much smaller than Coldwell Banker. I have always found the brand name affiliation that a large brokerage offers to be valuable, and primary reasons being:

1) Brand Recognition: Most customers don't care what company you work for as long as you know what you are doing and take care of them. But, sometimes they do. As a newer agent, I was able to rely on the brand and reputation of the company that I worked for when I didn't have a lot of personal experience. And, during the market meltdown and crash and recession that started in late 2008, it was helpful in securing listings and retaining listings during a time when sellers were understandably expecting that every possible resource was being used to help sell their house.

2) Streamlined Systems & Training/Coaching: Larger companies, especially the big real estate brands, have created systems and tools and access to things like marketing material, online lead tracking, personalized websites, and so on. The fees are relatively small and resources are branded to the company, and usually streamlined through one system. This allows a busy agent to run their business more efficiently without having to purchase each little app or service individually, and then having to organize and make sense of it all. For new agents, many of the large brokerages have training programs and training materials that are effective and useful. Compared to the smaller company that I started with, there is much less "reinventing the wheel", and it's a big time and money saver. When it comes to building teams or hiring support staff, larger companies are more likely to have experience in this department, and many times can help provide a road map and some guidance for expanding productively and without derailing your business in the process. Again, goes back to not having to reinvent the wheel.

3) Referral Opportunities: Over the years, I have received numerous referrals from other agents around the country that have found me through the company referral directory, or that I've met at a company conference, and sending referrals to another agent has been easier also. In addition to traditional referrals, my affiliation with a national real estate brand has opened doors for other opportunities to partner with other service providers or cross market with organizations that require their business partners or affiliate is also an affiliate of one of the big real estate brands. This could include things like relocation companies, asset management companies, iBuyers, and so on.

Those are the main reasons that I've found value in working for one of the big national brands, which wasn't really offered or available working for a mom-and-pop style, local brokerage. Good luck!

Lien Vuong · Answer

National brands for better recognition, reputation, and international network for sure!

Steven Foster Wilson · Answer

It sure is, my father owns his own construction company. I have defiantly seen how hard it can be. I think it is great that you are pursuing now what you want to do. I would write down both pro's and con's, meet with both brokerages,and go from there. Wishing you the best of luck! If you ever decide to start investing in the Midwest, let me know.

Christian Ehlers · Answer

Hey @Ian Meyer. One thing that makes me wonder is if Mr. Lynam is willing to really take you under his wing, would you have an opportunity to help him/take over his book of business when he is done selling Real Estate? You Mentioned he'd been in the area his whole life so if he is older/looking to retire in the future that could be a huge foot in the door if you could be his right hand man!

Obviously this is an important decision, but from what I've seen the agents who are self driven to succeed will usually do so regardless of where they hang their license. Since you've got your own business and grew it to the point that it nearly runs itself, I have no doubt you have the work ethic and capabilities to do well with any broker you choose.

I am biased towards bigger brokerages since that's where I am and it helped me a lot, I can't say for sure about smaller ones other than 2nd hand experiences.

Good luck!

Nationwide or Local Brokerage?

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