Why do some r.e. companies charge more than others?

Real Estate Companies are businesses just like plumbing companies, electrical contractors, stores, and all the rest. As a property manager, I remember seeking bids to tear down the Motorparts building on Brainard, and Hillgrove Avenues. When we accepted bids, I noticed a huge swing in pricing. Some companies would only charge $12,000 while others were as high as $30,000. Why? Well, the lowest priced company owned their own trucks, and were local. The highest priced company had to lease their trucks, and were a little bit further out. This difference is amazing. So why would a person pay more for services? Maybe people pay more because they have enough money, or perhaps for sport! I don't think that is it. Shopping for real estate services may be confusing. When I worked for Coldwell Banker, the corporate version we focused on marketing. At the time, I was almost hypnotized thinking that they had the supreme marketing, and thought because of their size nobody else could have the marketing. Not true. There are variations in the marketing, yes. Like a big corporate company may not have any other ads on the web page a person is looking at. Thats like me bringing up my goldfish in this blog post. My goldfish does not matter. Neither does slight variations on advertising. Like if the company above who charged so much less to tear down the building. If they had a red truck or blue truck. Who cares?
When I was at Coldwell Banker Residential Brokerage their office was beautiful! Still is. Who pays for that? Does the office do anything for the home for sale? No! Does having an administrative staff help the home for sale? No! Does paying 5% make sense over paying 3%? No! When choosing a real estate company, pay attention to their commission rates, and consider their massive overhead costs. We charge based upon many factors like market conditions, and location, and difficulty to sell. If you live in the 60525, or 60558, you should never over pay for real estate services. Buyers are sophisticated. They find brokers to work with who show them everything on the market. Simple. Save your money, avoid over priced real estate companies. Big real estate corporations expect you to pay big dollars to keep their big offices open. They may even ask you to pay administrative fees. To me, administrative fees are like the end of the car wash where you are expected to tip the guy to dry your car even though they promised to dry it when you first entered.
Adam Butusov (708)415-1432