Real Estate Agent Interview Question:

Do Name-Brand Firms Matter?

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All member agents have access to the Multiple Listing Service, so bigger does not necessarily mean better when it comes to your agent's firm. Supply and demand in your market, the property itself, and the initiative and energy of the agent will determine how quickly your home sells more than whether an agent runs a one-person shop or is affiliated with the local office of a giant national chain.

At the same time, one key factor for any agent is his contacts. If you are a buyer and you hire someone from the firm that has the most listings in the area, you are likely to get a chance to see those houses before they appear in the Multi-List. In a tight market, that can be an advantage.

There is no guarantee that the bigger firm does more business in your area than the mom-and-pop shop, so the agents there don't necessarily have more pull with local bankers. They may have more pull with the local media, however, if they have a big advertising budget; that can lead to better display in the paper, access to television shows spotlighting area homes, and more. And although no one at a big firm would ever admit this, it's no secret that some big firms encourage agents to show prospective buyers the firm's listings first, meaning that a pool of prospects may see your property only after all of the alternatives have been reviewed.

The brand-name shops establish their reputation in your region not because of what happens at the national office, but because of what happens right there in your town. In the area where I Iive, for example, Century 21 seemed to handle half the listings when I moved to town, right up until its primary agent hung out her own shingle with a different firm. Now that firm which had no local presence when I moved to town is a big deal. The moral of the story? It's about the people more than the firm.
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