Seller's Choice: Separating Boutique and Franchise Agencies Thinking about selling your property? We outline the points of difference you can take advantage of in an independent or boutique agency.

Ownership of property is high on the list of lifestyle priorities for most Australians and, whilst perhaps deemed increasingly unobtainable for the much maligned Millennials, it remains at the forefront of our culture and is constantly a hot topic up for discussion. 

Due to the booming nature of the property market, Australia boasts some of the best and most progressive real estate agencies, largely categorised into two types; the boutique agency and the franchise. Over the last decade Sydney, Brisbane and Melbourne have seen the emergence of more boutique agencies, as real estate operators have started to question the franchise model and its associated fees.

A boutique agency is a company that trades under their own name, and has complete ownership of that brand despite often having multiple offices. Larger boutique Sydney agencies include BresicWhitney, Codben & Hayson and N G Farah. Each of these are well established in their respective markets and have a close affiliation with the local communities they serve.

Some of the advantages of working with a boutique is that they offer a tailored, personal service with flexible marketing, and often have more intimate ties with the local community that has directly influenced their brand and shaped their company values over time. There are no franchise fees connected with a boutique agency, therefore the costs of running their businesses are less. This, in most instances, allows them to offer a superior service to their clients at the same cost as their competitors. A boutique brand is dependent on achieving consistent results for their clients, whilst maintaining their identity and reputation as a market shareholder.

The franchise agency model started to take off in the 1980’s and quickly dominated the Australian real estate landscape. From such humble beginnings as Toowoomba, Queensland, companies such as Ray White have extended their reach beyond 1000 offices within the APAC region. Similarly, Maroubra-born L J Hooker has been fostered by Les Hooker into a business over 600 shopfronts strong. Though these are household brand names, the key detail consumers and prospective clients often miss is that franchise businesses are individually owned and operated. Each franchise operator applies their own signature to the office they oversee. While some maintain close ties with the operator, others prefer not to have direct links with the hundreds of offices whose brand they share, in an effort to create a boutique style of differentiation.

The advantages for a real estate agent in franchise is the instantly recognisable brand name, which can be attractive to an agent starting a new business as their marketing material and branding is all supplied by head office and they can leverage off the multiple offices within their network. This helps give the consumer a sense of strength, stability and teamwork, and relies on the trust that has been built in the larger business over time.

Ultimately, there is room for both real estate agency types in the market. When a consumer eventually picks an agent to sell or manage their property, they will consider the brand, its reputation and, what the agency can offer them. Ultimately, though, it is worth remembering that regardless of the type of agency you choose, the sale performance of your asset relies most heavily on the skills and experience of your particular agent.