Real Estate Companies Iowa City

How are Real Estate Companies Different?

Trying to find the best real estate companies Iowa City, Iowa has to offer requires fully understanding the different types of firms available. Not all companies are made equal, after all, and have benefits and disadvantages that make them different from each other. Thankfully, it is relatively easy to understand these firms without a lot of difficult work.

Single Practitioner

The simplest types of real estate companies are those that go by the name of a single person or which are run by one person. Often called “mom-and-pop” companies, these firms typically have a relatively small staff. Though there may be more than one person selling real estate – often up to 20 people or so – they are often not much more than one individual. These companies don’t have any franchise affiliation, making them genuinely independent when compared to other options on this list.

There are several advantages to working with this type of company. First of all, you get more personalized care because you’re working with a smaller group of people. Rather than getting lost in a franchise or getting your case forgotten over and over again, you’ll typically get one or two agents who work on dealing with your property. As a result, you often know these people by name and might even see them on the street during your average day, which creates a very positive and friendly atmosphere.

However, there are disadvantages to this approach as well. For example, you may end up having fewer chances to sell simply because your company doesn’t have the same kind of sprawl. Franchise companies often have more openings and more contacts, which makes it more likely that you’ll sell more quickly. Some mom-and-pop shops also have a harder time pushing a hard deal because they rely so much on close interaction. However, this option is a great one if you want a friendly and homey experience.

Larger Independent Professionals

The next step up on the corporate ladder of real estate companies is the larger and more independent businesses. These dealers are similar to single practitioners because they are independent and not affiliated with any franchises. However, they are also much larger than a mom-and-pop operation. They will have well-over 20 individual agents and may have a minimum of 100-200 people on their staff. Some very large companies may even have as many as 10,000 employees, though that is relatively rare.

The benefits of these businesses are that they have a more extensive potential base to draw on than single practitioner companies. In a sense, they have more people to work on your case and provide you with the help that you need to make deals. They also have a broader advertising range and the ability to reach out to more potential buyers or sellers. As a result, they are often a great choice if you haven’t been able to make a deal with your mom-and-pop companies and want to make more cash.

The downsides of these companies lie in their “middle of the road” approach. In essence, they are often too large to create a friendly atmosphere – though this isn’t always the case – and may be too small to have the same spread as a franchise – again, though, this may not be true. These companies are, therefore, a good choice if you want somebody who can spread the name of your property quite quickly and who has a broad spread of agents. Just don’t expect the same personal atmosphere that you’d get from mom-and-pop stores.

Franchise Dealers

Higher up on the list of independent contractors are the various franchise real estate companies available around the nation. These are often the biggest names in the real estate world and have a name recognition that makes them immediately visible. For example, Century 21 is a company that most people have heard of or even worked with in the past. Their name creates immediate recognition in most people and helps to make them more visible and obvious to many individuals.

That name recognition is often a big part of the reason why people work with these companies. Simply put, they are better known than independent companies and often more trusted. They work within a corporate ladder that makes sure to double and even triple check each of their transactions. In this way, they are often safer than other companies for many types of deals. They also include better training and education for their agents.

There are downsides to franchise companies. That friendly atmosphere and personal experience you get with independent companies disappear entirely with most franchise companies. Getting lost with these companies is common and frustrating for many. Even worse, they have more substantial commissions because a portion of this money goes to advertising their company – not good if you want to maximize your profits.

100-Percent Broker

The last category of real estate companies worth discussing is the 100-percent broker. These businesses are franchise companies that work a little differently than most franchise agents or sellers. When working with standard franchise companies, you have an agent and a broker who both get paid through the commission charged on your sale. Typically, they split this cost in a variety of ways – often 50/50 – which means that your agent gets less cash than you might expect in their deals.

However, this type of dealer gives 100 percent of the commission to the agent, rather than splitting it with the broker. Instead, the broker charges agents rent for working with their company or using their license. As a result, agents under this type of company get more significant commissions but often have to work harder to make deals to pay their rent correctly and on time. Therefore, they typically have to hustle and work multiple deals at once.

As you might expect, this approach has benefits and drawbacks. The benefits include an agent who gets more money – and who is, therefore, more committed to your deal – and less confusing paperwork. Agents often work harder for these companies because they need to pay rent to stay in business. However, you may also find that your agent charges more expenses to recoup their costs.

Let Us Help You Find Great Deals

So if you’re looking for the best real estate companies that Iowa City, Iowa has to offer, please contact us at Jill Armstrong Real Estate to learn more. Our professionals have years of experience working with individuals like you and have dealt with many types of real estate options in the past. We will fight for you and get you the best possible outcomes.