Does Brand Matter in Real Estate?

I thought I would start off this Monday by starting a debate... does brand matter in real estate?

If you are a Realtor does the name of your brokerage matter? If you are a lender does the name of your company matter. Is a national name helpful to your business or is it all about you?

I hear people say it does not matter as clients hire them. Lenders say it does not matter if you are with a national bank or a small local 5 man shop. Realtors say clients don't care about your broker.

I was lured into this discussion the other day and found it fascinating... I admit I see both sides of the issue. So I went to a top producing agent who has been on both sides of the issue to get his thoughts and I think he has the right answer.

"Friends and family may not care about the brand on your business card. They know you and hopefully want to use you so in this case I don't think their is a huge benefit of the bigger brand. Asa Realtor I definitely don't think buyers care if they know you... but I think there are sellers that prefer a known logo on the sign out front.

Where I believe the big brand matters is with strangers. A couple moving from out of town have never heard of you, so you need to sell them on using you and your services. If you are with a broker they have heard of that makes them more comfortable and is one less thing you need to convince them of. So yes, I believe brand matters if you want to grow your business beyond your sphere of influence.

From the lender side... I am sure that people care about brand. They are trusting you with their loan and having a known name has to matter.

I started with a big brand and was successful... then I switched to a small local broker who no one had ever heard of... and my listings dropped by close to 50%. I was the same person, doing the same marketing and same presentation, but I was losing listings on a regular basis for the first time in my career. The difference was the brand. So from first hand experience I can say it matters.

I would say if you are going to depend on strangers at open houses and online marketing to strangers then the brand does matter.

If brand does not matter why do so many people wear Levi's versus lesser known brands? Why do people bank with lenders they know? Why do chain restaurants with inferior food keep packing people in? Why do companies spend so much money promoting their brand?

Of course brand matters to a percentage of the market... to ignore that means you are letting that market go elsewhere."

I know I have benefited from my years with 5/3. Everyone has heard of us so I never have to deal with the "I have never heard of your company" objection. I know it helps me close more loans every year. I do believe brand matters.

Now I am not saying everyone should run out and join a big brand. We each have our own business model and our own way of running our business. But if you are not cognizant of the impact your brand has then you may be losing out on business. What do you think?