Real estate franchise vs independent agency , here is the question. Choosing between the innovative model of being part of a group of agencies and having the solidity of a brand or taking risks with an individual project without the ties of a franchisee, is the eternal dilemma.
To make the best decision, it is convenient to know the difference between a real estate franchise and an independent agency , in addition to the characteristics of each one.
In this way, we can make the best decision as entrepreneurs to open a successful real estate business.
Difference between what is a real estate franchise and an independent agency
As far as the real estate sector is concerned, a franchise is an agreement between two parties , called the franchisor and the franchisee, in which the latter benefits from the use of a commercial brand, learning its work methodology and receiving support and advice under the umbrella of the signature.
For its part, an independent real estate agency is a business model in which a real estate agent provides management and intermediation services in different real estate operations without depending on a larger entity.
Something like a commercial that mediates in services of sale, rental, exchange and transfer of real estate independently and without belonging to a professional real estate entity under which it is governed.
Broadly speaking, the difference between a real estate franchise and an independent agency is, substantially, whether or not they belong to a consolidated real estate firm in the real estate sector.
Real estate franchise vs independent agency
In the real estate franchise model there is a symbiosis between both parties, an agreement in which the franchisee benefits from the franchisor’s income in exchange for a sum of money payable in monthly installments.
For its part, the real estate agency does not have a larger coverage, but neither does it have to pay any royalty payment .
Although this is the difference between a real estate franchise and an independent agency in economic terms, there are other aspects to take into account that make them two very different models of real estate services.
Between a real estate franchise and an independent agency, the differences, such as the weight of the well-known brand, are very significant aspects to consider.
While it is true that a prestigious brand generates trust, in the real estate sector the reputation of the sales agent is also taken into consideration .
However, immediately benefiting from the peace of mind of working under the umbrella of a well- known trademark is not a minute sin .
real estate website
Every real estate agency must have a web portal in which to give visibility to its services.
The difference between a real estate franchise and an independent agency with regard to the professional website is that an independent must hire a website and whoever manages it.
In the case of the real estate franchise, in addition to this, the web portal and the software are already included in the franchise agreement.
Real estate portfolio and Real Estate CRM
In addition, an independent agency must obtain a management program , while the real estate franchise will provide a Real Estate CRM or give options .
Through the franchise you will have access to a portfolio of properties from the real estate network to work from minute one.
The task of the independent agent is more difficult. The real estate offer is initially scarce and is limited to a few properties of acquaintances and friends, while a real estate franchise offers the possibility of enjoying agreements .
These beneficial real estate franchise deals allow access to banks, insurance agencies and appraisers, property managers or financing that facilitate work and immediate capture, as well as success in transactions.
Transaction management, marketing and branding tools
It is a bundle of benefits. The difference between real estate franchise and independent agency in terms of resources is significant… and juicy!
Having contracts and agreements adjusted to current regulations and correctly updated, in addition to contracting a digital signature service , is one less headache when starting a business through a real estate franchise.
In addition, this type of agreement allows you to have a professional brand image , with a department of advertisers who have developed the appropriate marketing strategies and put a careful brand image in your hands to manage the real estate.
Training and advice
With regard to other differences between a real estate franchise and an independent agency, it is the content of the training and the access to continuous professional advice that marks a turning point.
If you choose an independent real estate agency, you can choose the training you consider necessary, although some Autonomous Communities require a specific qualification that you must take into account and you will have to manage it yourself.
In this regard, the difference is that the franchising company offers continuous and constant training , in addition to the necessary advice before, during and after each transaction.
The different training courses and the work methodology taught by the real estate franchises allow you to save costs on professional consultants, lawyers or managers related to the sector and ensure you are updated in all the necessary areas as necessary.
Now that you know the difference between a real estate franchise and an independent agency, which one is best for you? Your choice is what will mark success in this business adventure. And if you don’t know where to start, we invite you to consult our real estate franchise model, to know all the advantages, conditions and prices here. Any doubt, we are at your disposal to clarify it and so you can make your decision.