Unfortunately, I missed the show, but read the 60 Minutes piece on their website and have the following thoughts……
Is this really any different than what’s happened to the stock brokerage industry over the last 15 or so years? That industry has survived the discounting by developing niche markets and specializing in areas where they add value.
If you look at the makeup of our potential clients there will always be people looking for the “deal”. If someone comes to me and tells me they can sell their home on their own or that they feel comfortable using a discount outfit, I will wish them well. If they don’t see the value in my services, then they should not use me.
It comes down to value.
Those agents that are truly providing great service will know how to demonstrate their worth and value. Just as in the stock brokerage industry there will be those individuals who try to manage their transactions on their own, get burned in some way, or realize they just don't have the time it will take and go back to the services of a Realtor®.
I do think that what I read on the website did not adequately address where the commission monies go, for example, the fact that the broker gets a percentage, that the agent spends on gasoline, the wear and tear on automobiles, advertising costs, health insurance etc. The list goes on, but my point is if you’re going to write a piece such as this one, please represent both sides equally!
7 comments • Burbank Real Estate Agent Ana Connell • May 14 2007 02:31AM
The fact of the matter is that there is plenty of room for alternative real estate models and traditional models to co-exist.
It is expensive to be in the real estate business, but most of the time it's the part-timers who are complaining. So far, I've been able to make a profit by providing a flat fee model to the business. Unlike RedFin.com, I believe that the selling agent is entitled to as much commission as they can get. If you've ever ridden around with buyers for two or three days, showing them homes and then they turn around and buy a listing from another agent, you will agree.
My model charges a flat fee to list, but pays top dollar to the agent who sells my listings. It's my choice to do business this way, and I'm able to provide a high level of service to boot.
Here's the bottom line...the real estate business is a business for full-time professionals who desire to give service to their clients. Whatever your model, when you do this, you'll have a much better chance of being successful.
I'm one of those investors, SMALL time, that utilize an internet investment company. It seems that the money has always been made in that industry by representing corporate entities- 401ks, etc. as opposed to the guy starting out that encourages individuals to use his investment strategy. I can recall another 60 minutes, Dateline, or whomever piece that utilized monkeys to choose investments- they pointed at the paper, and whatever they landed on was chosen as an investment. They were, after a period of a year, even with the return that the "professional" had chosen. I have to say, it compelled me to be my own monkey- why not?
Thank you for your great comments!
I think there's plenty of business to go around and while some people are going to be willing to do the extra work in order to save some money, others are not.