Brad Inman recently told CNNMoney, 'You`re now doing 90 percent of the buy side work yourself....That should reduce the 3 percent of the commission that goes to the buyer`s agent.'
It seems to me that there is a real leadership gap in this industry. All the producers are so busy making money they are allowing way too many pundits to speak for them.
He said new Web sites -- with free home appraisals, neighborhood information and advice to sellers on how to market their properties -- may cut into the work of real estate agents.. More discount or fee-for-service business models are becoming more popular.
Really? And when the home seller or buyer finds they under priced or over bid based on faulty evaluation systems will they sue the realty broker? Whose fault is it?
Really? 90% of the buy side work? Hmm. All that part is horse manure until it comes time to get into the house (which will take an agent on a listed property), and in the end, proper value will come down to an expert opinion.
I have personal friends whom have lost out on $30,000 commissions because they have told a client to back off. When I was in the business, in a declining market I walked away from several thousand dollars many times to save a buyer or seller from a bad deal.
As far the flat fee guys. I gotta tell you, I ran one of the first flat fee websites for years.
I don't know anyone who has made profit from this business model. Yes, lots of money passed thru their hands, but look at the P&L's and it bleeds with red ink.
There is only one licensed entity and the new fangled players online are not it. They may get licensed in order to "play the game" with regulators, but in the end they bring no experience to the table.
Hey, I am the first to bash the industry, but I am sorry, a machine will not replace competent, ethical, licensed agents.
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