Does Size Matter? In Real Estate Investment Sales, the Answer Varies
Super-sized, mid-sized, mini or bite-sized, brokerage firms run the gamut from global mega giants the size of a small city to as minimalistic as a one-person show.
Bigger doesn’t always mean better and good things don’t always come in small packages.
Let’s peel away the façade and look at the different-sized platforms to see if size truly matters to a seller of real estate. For the purpose of this column, we will assume the property is listed exclusively.
In multi-office firms, it is rare that the entire firm works on one client’s property sale. Usually just one agent or a few agents will work on the deal. Most of the time, they represent the entire sales force that will be marketing the property and sourcing a prospective purchaser. True value comes when a specifically qualified and experienced team is sourced to handle the assignment.
Ideally, a seller benefits most from the full attention of a team pulled together from a deep bench of talent. Having the ability to draw from a wide reserve of experienced mavericks with specialized skill sets and extensive resources best suited to the property is rare in most firms.
The best platform for a seller is where experienced brokers collaborate to bring their specific strengths and expertise to the deal. It is unique and extraordinary to find a firm where a seller has the advantage of a collaborative all-star broker lineup championing for her goals. When an entire sales team is engaged and incentivized to work together on a particular seller’s deal, the seller will achieve the optimum benefit. To achieve this end, every broker should be invited to work on the deal in efforts to source a potential buyer. By triggering its full arsenal of market-penetrating brokers and support staff, a seller can confidently expect that every qualified purchaser has been targeted and engaged.
There should be a fair commission split paid to the broker who sources the buyer. Additionally, the listing broker should not necessarily enjoy a distinct advantage over the process, especially if a higher and better offer comes in over his buyer’s best offer. The goal should always be to source that unusual buyer who stands out from the crowd by offering a higher price than the crowd. The listing broker must be able to put aside his personal desire to double his fee by procuring the buyer. If he is not completely focused on what is in the seller’s best interest, he is doing that seller a disservice.