Like in any business model if you operate on thin to almost no profit margin you must have a large volume of business. This is how a company like Wal-Mart can come into small towns and basically force out smaller family owned businesses. There is a high expense to running a business in this nature which is why few companies like this exist.
Now let's talk real estate.
Our current market (buyers' market) is one in which houses are staying on the market and often times expiring, this hurts the discount brokers that are out there because they do not have the high volume of sales that a sellers' market offers. These are most certainly hard times for discount brokers as they have to cut expenses in order to stay open for business.
This isn't the case for companies like Keller Williams whom I am a part of. The foundation of Keller Williams was built upon a model of a "tough time." By keeping overhead low and to a minimum Keller Wiliams agents are able to provide supperior marketing and not feel forced to cut expenses related to overhead. That just isn't how we operate.
If you are looking for a Realtor I would strongly urge you against going with a discount broker...sure when it is a sellers' market this might seem the way to go, but it is absolutely not the way to go in a buyers' market (quite honestly I don't feel it is the way to go ever...but...). Go with an agent/broker that doesn't feel the need to cut expenses...that deals with this market because it is the only market to work in...the agent that takes on the market as just a day at the office.
Our team has taken on so many listings in the past few months of people that originally listed with a discount broker and ultimately relist with us and we get them under contract on average in 35 days.
That's why we have...THE POWER TO MOVE YOU!
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