Are Large Corporate Real Estate Brokerages Serving Themselves Over Their Clients? The real estate industry has seen significant shifts in recent years, with large corporate brokerages growing in influence. While these firms provide extensive resources and branding power, many in the industry—and more importantly, many buyers and sellers—are questioning whether these large companies are prioritizing their own liability and profit margins over truly advocating for their clients.
For those navigating the real estate market, it's crucial to understand this shift and determine whether your chosen brokerage is genuinely working in your best interest—or just protecting their own. When I was granted a license to practice real estate I knew it came with a legal responsibility, a fiduciary one, to do the best for my clients best interests as my client directed. Regardless of any lawsuits or settlements our industry has seen, the North Star hasn’t changed, at least for anything I lead!
The Shift Toward Risk Management Over Client Advocacy
Large brokerages employ extensive legal teams and/or in-house counsel whose primary focus is not necessarily helping agents better serve their clients but rather reducing the brokerage’s exposure to lawsuits. While protecting against legal risks is essential, an overemphasis on self-preservation can lead to:
· Overly cautious, one-size-fits-all approaches that limit agents’ ability to be flexible and strategic.
· A focus on disclosures and disclaimers over tailored advice and personalized representation.
· Reluctance to advocate aggressively for clients in negotiations where risk is perceived, even when it may be in the client's best interest.
The result? An industry more focused on playing defense than fighting for clients' best deals and they’ll do it in the name of some self-justified rhetoric to make other independent brokerages question their direction. The first question should always be, “what’s the motivation behind the policy or stance?”
The new changes in business practices have come at an inopportune time for the big box, stock exchange dwellers. Many have had to write settlement checks while at the same time transactional volume being reduced by 35-40% in some areas. Many of those are becoming loud voices looking to control more of the market inventory while keeping transactions ‘in-house’ rather than providing seller clients max competition for their home. Of course, they veil these strategies and sell them to sellers as well as the general public as enhanced discretion or privacy for the homeowner. Then, they plaster it all over social media during and/or after the sale. How is that an emphasis on privacy and discretion?
Standardization at the Expense of Personalized Service
Corporate brokerages thrive on scalability and uniform processes, ensuring that transactions can be handled quickly and with uniformity. However, real estate—especially in the luxury and high-net-worth markets—is not a one-size-fits-all business.
This push for standardization can limit an agent’s ability to:
· Customize marketing strategies to fit the unique attributes of a luxury home or specialized property.
· Provide independent pricing guidance when company-approved valuation models are required.
· Negotiate creatively and aggressively when internal policies restrict flexibility.
For sophisticated buyers and sellers who expect a bespoke, concierge-level experience, this corporate approach often falls flat or simply limits clients without their understanding or knowledge. Boutique brokerages and independent agents often have more freedom to craft truly tailored strategies with an ear for their clients desired outcome.
Agent Loyalty to the Brokerage vs. The Client
Many large brokerages operate on a brand-first philosophy, meaning the brokerage's interests can take precedence over the individual needs of the client. Some common conflicts of interest include:
· Mandating in-house services such as mortgage lending, title, or escrow—even when better options exist for the client.
· Encouraging agents to push affiliated businesses to generate revenue rather than focusing on what’s best for the buyer or seller.
· Restricting certain negotiation tactics in order to maintain internal risk policies, rather than allowing agents to fully advocate for their clients.
What does an agent do if their brokerage will not allow for the agents to convey an offer of compensation to get their home sold? Do they simply ignore their seller’s directive? Do they hedge how they communicate what they’ve been told to communicate by their own client or do they simply tell a client “they” can’t do that? The question consumers should ask is “who are ‘they’ in their statement?” They as in the client or they as in the brokerage?
If an agent is restricted in how they can serve you because of corporate policies, who are they really working for—you, or the company’s liability team? Keep in mind, most of that legal team would struggle to do what good agents do with the limitations they direct.
The Changing Landscape of Commissions & Buyer Representation
With recent legal challenges to traditional commission structures, corporate brokerages have become more focused on defending their business model than on educating and protecting clients.
Some firms have redefined their internal messaging from "we fight for our clients" to "we follow legal best practices to protect ourselves." There is less emphasis on strong buyer representation, as large brokerages seek to avoid legal scrutiny over commission discussions. Agents are trained more on defending brokerage policies than on empowering clients to make informed financial decisions.
The best agents are true fiduciaries, focused solely on helping their clients secure the best deal, with or without corporate influence or mandates.
Where Does That Leave the Consumer?
If you’re buying or selling, ask yourself:
Is my agent truly advocating for me, or are they limited by brokerage policies? Do I have access to creative, client-centered strategies, or just corporate-approved tactics? Is my agent’s loyalty to me, or to their company’s brand, policies, and bottom line? Is this your brokerage policy or a true industry-wide directive?
A real fiduciary in real estate isn’t just about following the rules—it’s about actively working in your best interest at all times, even when it requires stepping outside of rigid, risk-averse corporate policies.
Why 1912 REALTY Is Different
At 1912 REALTY, we believe real estate representation should be about the client, not the corporation. That’s our commitment! Our focus is on:
Fiduciary-first representation – Your best interest always comes before brokerage convenience. Tailored marketing and negotiation strategies – No pre-set formulas, only custom approaches designed for success. Transparency in every step of the process – Clear, open conversations about commissions, negotiations, and transaction details. Freedom to fight for your best deal – No corporate barriers, just strategic, results-driven representation.
If you’re looking for a real estate experience centered around your success—not corporate policies—let’s talk.
Lloyd Fox | 1912 REALTY
Territorial About Real Estate
The industry is changing. Don’t settle for representation that protects the brokerage more than it advocates for you.
