Written and copyright © of Loreena Yeo 2007
I have discuss Limited Service in the past and I finally concur that others are right. Different strokes for different folks. And "full service" does not necessarily mean that clients get tthe best expertise available to them. It is true that some agents do disappear after the sign is in the front yard.
I remember that I got agitated because there was a different opinion between limited service offered by this specific broker (known in town) and minimum service as required by the State (of Texas, at least). I felt horrible for the client - whether the broker did or didnt represent. I dont know which.
Today, I received a phone call from a Seller who needed help. Unfortunately, he is represented with a so-called national brokerage firm. Free listing on the MLS!!! Feeds to Realtor.com!!! And ABSOLUTELY NO CATCH!!! When I checked the agent representation, it was a broker registered in Florida. Hmmm..... raised my red flag. When I searched for the house, I could find it one way but not another on the MLS. The garage was not correctly entered into the MLS system. The instructions say call Seller for information/ questions. The Seller only took advantage of sending 2 of the same photos for the MLS system - photos with weed in the front yard. When I interviewed the Seller about how he came up with the price, he said he found it on Zillow - another free site. For those not familiar with Texas, it is a non-disclosure state. We do not publish sale prices as public record.
It gets better. On the buying side, the company pays a buyer 75% of the commission, guaranteed. They professionally state that this program is for homebuyers who do not need services of a "traditional" professional. They call them self-directed homebuyers. The buyers find the house themselves, then use their services for completing the transaction. Sounds simple, after all, buying and selling real estate is not rocket-science.
Sounds promising? I would think that this is the answer a Seller - then- turn Buyer is looking for. How brilliant!
The Seller called me to evaluate the home price. His intuition told him that he had it priced a little higher. Hence, no showings after 45 days on the market. (Actually, it is probably about 20-30% higher). To make matters worst, the Seller is not local. By that I mean, thousands of miles away.
This truly left me pondering..... Is it the Company's fault for inefficiencies? Probably. But that has nothing to do with the business model. Where there is a demand, someone will fill the need. Basic economic principle. According to some consumers, it is the best thing ever !!! Perhaps. Perhaps not. This just got my Iggy juices flowing: Different strokes for different folks. Each to his own.
Moral of the story: You do end up paying what you get for (most of the time).