Boutique real estate companies are gaining momentum in real estate markets that were once filled with large brand name corporations only.
At one point in time a small real estate office would be considered a “Mom and Pop” shop. Meaning it is a family owned, small business without the bells and whistles traditional real estate companies looking to hold most of the market share have.
Increasingly over the last few years we have seen realtors break away from brand name brokerages either on their own completely, or by opening their small independent real estate firms.
Reasons for this can only be assumed as there really isn’t factual evidence supporting the ever growing shift. Some will suffice it to say that the average age of a real estate agent has dropped significantly in recent years. The industry seems now to be attracting young professionals just starting their careers rather then the aging population looking for something to do in their retirement.
The Millennial real estate professional isn’t as easily swooned by brands or “packages” but rather flexibility and independence.
Most boutique real estate firms are independently owned there for have less corporate restrictions when it comes to marketing, commission structures, floor time and quota’s. Opening up creativity and the ability to build one’s own brand while under the brokerage umbrella that is a requirement to trade in real estate in most provinces in Canada and also across the world.
Another attraction to boutique real estate brokerages is a smaller population. This can offer a more close knit community and opportunity to work towards success collectively.
The way home buyers and sellers view small real estate firms is changing as well. Previously there was concern of not having the recognition or support behind them. With the powers of internet, social media traditional marketing has forever changed. In addition home buying and selling has become more relationship focused versus transactional. Meaning, it’s more the person who helped them rather then the company they hired.
Overall cost to the consumer has not seemed to be impacted too greatly by this shift however cost to the professional has frequently come into question.
Supporting local businesses has also become a growing trend with millenials which may be a contributing factor to the shift.
The bottom line is, it depends on each individual consumer (buyer or seller) as well as the real estate agent or professional and how each option works for them in their lives or business.
To learn more about boutique or smaller real estate companies in London Ontario and where we are in the London Ontario real estate market place drop us a line!
note: millenial professional photo credit here
