Home : Blogs : <i>Mike Stankewich, MBA, e-PRO - ZipRealty, Inc.</i> : Mike's Huntington Beach, CA Real Estate Blog

Correction of a False Statement about ZipRealty, Inc. Made by an AR Member in Their Blog

Someone from my company read an AR blog, and asked me to address a false statement made in it by one of our AR members.

An AR member posted a blog about the contraversial Redfin and cited ZipRealty as another discount firm in their blog. ZipRealty is a full service brokerage. Our business model is completely unlike Redfin's.

On the listing side, we offer full services plus a featured listing on our national website. Services include professionaly printed brochures, professional photographs and virtual tours, open house advertising in the local papers, syndication of the listing to other real estate sites, open houses, for sale sign, inclusion on the MLS, as well as full representation all the way to the closing. We provide as much as, and probably more than most traditional brokerages. Our commission fee may be a little lower and varies with the market we are in. In Southern California we try to get 5%, although other brokerages may try to get 6%, I read that the national average is about 5.2%. We offer the buyer's agent competitive market rate commissions.

On the buyer's side, we get most of our leads from the ZipRealty website. To have these leads stay with us, we offer them 20% of our commission on the buy side as a rebate, which is acceptable and legal in our markets. Again we offer buyers full service and full representation. This includes showing them properties and whatever other assistance they need. We attend the inspections with them and assist with the loan process if they wish.

If you take the time to review what we do, you will not associate us as a discount firm. We take pride in our full service and customer care. We have one of the highest customer satisfaction rates in the overall industry.

ZipRealty is a publically traded national real estate company which a presence in most of the major US metropolitan markets. We are continuing to expand into other metropolitan markets. We are Internet based, however we offer personal local full service to our clients.

We are also members of the NAR, the state associations, the local associations, and the respective MLS's in our markets.

It is an insult to call us a discount brokerage and to associate us with Redfin.

I hope this AR member will correct the blog, since he or she must have misunderstood what ZipRealty is about. We should not deride the legitimate real estate brokerages on AR. I would never post a blog taking pot shots at another agent or brokerage. That is just unethical and unprofessional.

Posted by <i>Mike Stankewich, MBA, e-PRO - ZipRealty, Inc.</i> on 05/15/2007 08:37 PM

Comments (18)

ziprealty, brokerages, full service, rebate

18 Comments on Correction of a False Statement about ZipRealty, Inc. Made by an AR Member in Their Blog

MAY

2007

I am awaiting our member to respond and correct his post. It is the only right thing to do.

Mike, at least you know someone not on AR reads the blogs. shame when someone makes an error, good luck getting this changed.

Mike,

I am sure anyone who puts as much into things as you do would not associate with a firm that was anything less than professional.

Rita

I had no idea how your business model worked. That's interesting to know how you do it. And based on the professionalism of your blogs, I wouldn't put you in the same category as some of the ones I've seen in our area-I won't mention any names.

Thank you Lisa, Rita, and Gary.

It sure hurts when someone bashes our company online.

MAY

2007

Mike,

Great post. I think it really points to the confusion that is out there about the different business models in the real estate sales world. While each company has the right to choose what it thinks is its unique selling proposition it is important for those of us who are not perfectly clear on the facts to double-check them before loosely clumping companies and their service offerings together.

I think it is incumbent upon all Realtors, regardless of the company that they are at to take a stance such as yours and clearly identify the unique selling/value proposition that your company brings to the table.

Thanks for sharing what makes ZipRealty unique.

Mike I went out and searched for the blog you were speaking of - I am not sure if I found the one that was insulting but if it was the one I read it was based on an former executive of ZipRealty - anyway- I do not understand your rebate as I see if from our rules and regulations what you do is not allowed here - but if it works for you great -

Mike thank you for telling us what ZipRealty is about. I agree that others should not be making broad claims without a basis in fact. It is clear from your blogs and from interacting with you online that you are a professional agent that any client would be thrilled with. Service is not to be confused with commission.

Mike, I had vagely heard of ziprealty out in MI. Had no perception of it all. I have had a few California clients that asked me to credit back some of the commission. I said 'no'. It is not standard practise at this time in Michigan. But, I guess in California it is. IN fact at the closing, our buyers sign a statement that they were not helped with any rebates etc, from anyone.

I'm sorry someone posted mis-information. There is a place for all business models in real estate.

One question ? You commented on my blog about me making top 25, I have no idea what that is, or what it meant. Can you explain ? Feel free to email me, off line if you want to.

Mike, I am surprised that someone would dare post something without confirming the information. I certainly don't (didn't) know about the workings of Zip Realty. I wish you the best in getting that cleared up.

Thank you, everyone, for your supporting comments.

I did receive a nice reply from the author of the blog I mentioned. Although he praised our company's website, he said he still considered us a discount brokerage.

Here is my reply to him:

"Thanks for the reply. I still think there is a difference between offering a rebate and being a discounter. I recently went to Bloomingdales Home Store and bought a Cuisinart coffee maker that they had on sale and which had a manufacturers rebate. I don't think most people would consider Bloomingdales as a dicounter nor Cuisinart as a discount product. I could have gone to K-Mart and bought a Mr. Coffee product. I think there is a difference.

Thanks for pointing out that we have an exceptional website that offers the consumer a lot. That is one of the key unique part of our business model.

I have only been with ZipRealty for a year and a half although I have been doing real estate for 7 years. Therefore I cannot speak on what they did years ago. It is a relatively new company started in 1999, so I am sure there has been an evolution over the 8 years.

As for commission splits they are relatively low but in line with starting splits at most other brokerages. I worked at two other conventional brokerages in the past. However the lead generation provides us more business. I would rather sell 3 properties at a 50% split than one at an 80% split. You do the math and you will see I am grossing more money. In addition we get bonuses for customer satisfaction based on closing surveys of the buyers.

Technically we are employees, although we do not receive a salary and our compensation is by commission. However we get reimbursed for some expenses such as association and MLS fees, cell phone costs, ISP costs, milage, etc. The company also pays for signs, business cards, professionally printed brochures, marketing materials, and professional photographs and virtual tours of listings. Thus our operating expenses are low which increases the net amount we make from our commissions.

We work from our homes, thus the company does not have the overhead expense of maintaining agent offices. This combined with technology allows us to offer the rebates to buyers and a slighty lower commission to sellers.

As for turnover, there is a lot in our industry. In my district I do not see the turnover to be any higher than with the previous two companies I worked for. I cannot comment on RE/MAX, since I have not worked for them. They are a franchise so it may depend on the individually owned offices.

I hope you now have a better understanding of our company."

MAY

2007

Mike - thanks for explaining how Zip works - i for one learned a lot.

MAY

2007

Mike- We don't see much of ZipRealty in our market .. I don't think I've seen more then 2 listings and was curious as to how it works.. looks as if you charge the same as the rest of us .. and many of us give rebates to repeat clients.. so from my view I would say you are definitely not a discount company..

Anyone who does anything "outside the box" always runs the risk of someone sensationalizing any news about them.

You can't prevent it, so you might as well continue to educate the public and forget about the industy "Experts". They are going to say what they are going to say; get over if and move forward.

Obviously the "ZIP" on your name doesn't refer to getting "zip" when it comes to service! Just kiddin', nice post. By the way I am working with a Zip Realty agent on a referral right now.

JUN

2007

Mike - we have a great relationship between my company and yours here in Northern California. We work with many of the Zip Realty agents up here. I have never considered your company as a discount brokerage, or seen it represented in that way. You guys are a class act!! Nice to see someone like yourself step up to defend the plate as you have done here!

OCT

2007

Hi Mike, ZipRealty is "another discount firm" because ZipRealty discounts commissions and as an extension discounts the value of the ZipRealty agent in the process. Take care, Jon

OCT

2007

This is a good post. Members should not slam others on Active Rain. This should be a place to share ideas, and learn from others.

Leave a response…

Name:

Email:
(optional)

Comment:

What does the graphic say?