Who's after us now?

By
Services for Real Estate Pros with Howard Hanna Real Estate Services

I'm thinking that with the DOJ lawsuit, "settled", we are gonna be looking at a different fight. Commissions....with virtual online companies claiming they can provide full service via the Internet, are we looking at getting paid less? Most are  "one from column A and one from column B" type of operations, that the consumer will end up getting burned before they realize it's too late. I'm all for a better mousetrap, but this is still a "people business" the last time I looked. At the end of the day....it's still you and me looking each other in the eye, asking...."do we have a deal?"

Comments (11)

Konnie Mac McCarthy
MacNificent Properties, LLC - Cobb Island, MD
Broker/Owner - VA & MD "Time To Get A Move On!"
I agree..they are trying to marginalize us Real Estate agents..when at the end of the day....are expertise is needed...
May 28, 2008 04:05 AM
Eric Kodner
Wayzata Lakes Realty: Eric Kodner Sells Twin Cities Homes - Minnetonka, MN
Wayzata Lakes Realty: Twin Cities, Madeline Island

DOJ likely isn't done with their vendetta against the real estate industry.  NAR needs to prepare for the next attack before it arrives.

May 28, 2008 04:11 AM
R. B. "Bob" Mitchell - Loan Officer Raleigh/Durham
Bank of England (NMLS#418481) - Raleigh, NC
Bob Mitchell (NMLS#1046286)

Being the owner of one of the country's oldest discount/full-service real estate companies, I'm kind of in the middle on this one.  I agree with you Marc on this being a people business and don't see how it can be properly done without getting out there into the field with the customer.  That said, I do think that the traditional commission structures that have been in place are out of touch with the times.

When the average price of a home was $75,000 6% or 7% was probably fair, but now that the average is over $200,000 it seems to be getting a bit pricey!  Also, no one has ever been able to answer this question for me....why should I as a seller pay three times as much to sell my $600,000.00 house than if I were selling a $200,000.00 house?  Is there three times as much work involved?

PLEASE NOTE:  This is not in any way to be constured as attempting to "set" real estate commissions! 

Bob Mitchell

ValueList Real Estate Services, Inc.

May 28, 2008 04:18 AM
Terry & Bonnie Westbrook
Westbrook Realty Broker-Owner - Grand Rapids, MI
Westbrook Realty - Grand Rapids Forest Hills MI Re

Fees and service are sold and I would guess the fees have to be justified or they will be lower.

May 28, 2008 04:22 AM
Anonymous
Anonymous

 

I agree..they are trying to marginalize us Real Estate agents..when at the end of the day....are expertise is needed...

Well provide a service I can't find at a cut rate.  As it stands I find the houses I want to look at (using the internet), I research the county records what these houses sold for (and the houses around it sold for) on the internet. I look up what kind of development is going on in the area, the kinds of schools there are, the quality of education, the taxes and the crime rate. 

I do all this, not my Realtor -- when I've asked these things in the past they didn't know.   For all this she/he points out the granite counter tops and some forms.  Really? Those are countertops? Wow, I've never seen such a thing.

Am I missing some kind of service that's worth 6%?  Like are you going to wash my windows for the rest of my life or something (I know you split it with a bunch of middle men)?    The houses I look at are around 750,000 -- I'd rather the owner post it to google (which they're doing now, be afraid) and use a lawyer for the paperwork and lop off50k from their price than go through 3-5 middle men, each taking their cut and driving up the price of the house. 

Realtors need to look at travel agents.  This is the way the industry will go.  A few will survive because they  provide a useful service to people with complicated sales or unusual transactions; but for the run of the mill home sale -- people are going to use google and some kind of standard form and some cut rate service like Redfin.

 

 

May 28, 2008 04:43 AM
#5
Eric Kodner
Wayzata Lakes Realty: Eric Kodner Sells Twin Cities Homes - Minnetonka, MN
Wayzata Lakes Realty: Twin Cities, Madeline Island

Why the courageous unsigned comment? 

May 28, 2008 04:49 AM
Marc Hustek
Howard Hanna Real Estate Services - Rocky River, OH

As with all things for sale....the consumer is the one who bears the brunt of the costs for doing business. However, I feel that even though today's consumer has information at their fingertips, it doesn't make them the expert. Are the traditional commission models old fashioned? I would think not. Look at pricing for gas, airline tickets, cruise tickets, the cost of an automobile....does anyone even know how to figure out how their gas or electric bill gets calculated? Value has to be created before someone will pay for a service....agents need to continue to create that value before they will get paid.

May 28, 2008 04:58 AM
Eric Kodner
Wayzata Lakes Realty: Eric Kodner Sells Twin Cities Homes - Minnetonka, MN
Wayzata Lakes Realty: Twin Cities, Madeline Island

To the sarcastic unsigned commenter:

I've met sellers of $750,000 houses who dream of selling "by owner", but in that bracket, most of them don't how to get the job done.  They tend to overprice, which makes the anonymous fellow's boast about "saving 50K" pretty inaccurate.  And many such sellers don't know how to get their upper-bracket home in front of someone who can actually afford to buy it.  Unless the seller is unemployed and has lots of free time on their hands, most won't make the effort required.

Using a lawyer for the paperwork?  I've seen many, many lawyers screw up the execution of an offer to purchase.  Their work isn't free either.

You obviously have your own agenda here.  The statement "I know you split it with a bunch of middle men" (by the way, middlemen is one word in the context you use it) is preposterous.  You have ESP?  I question your motives and your agenda.  Sorry, but I'm not afraid of you.

You can find all sorts of services at a "cut rate" and you'll get what you pay for.  Best of luck in your quest to save a nickel.

May 28, 2008 05:12 AM
Anonymous
Anonymous

Why the courageous unsigned comment?

 

Do you not add anything to the transaction other than middlemen fees?  If you feel you genuinely add something that I (the buyer or the seller) need and is worth $45,000+ in fees then what do you have to worry about.  Heck you should be happy to see the amateurs fall by the wayside! You could charge more, 10-12%!  Think of the possibilities. 

As to the unsigned comment, I don't log into websites. I'm sure the owner of the site has logged my IP address, if I have written something criminal I'm sure they'll contact me over it.  Otherwise, look up the term: ad hominid. Seriously, I could log in as: Purplepeopleeater,  would that make you happy?

May 28, 2008 05:13 AM
#9
Eric Kodner
Wayzata Lakes Realty: Eric Kodner Sells Twin Cities Homes - Minnetonka, MN
Wayzata Lakes Realty: Twin Cities, Madeline Island

It's "ad hominem"..you might want to look it up yourself.

May 28, 2008 05:18 AM
Anonymous
Anonymous

Best of luck in your quest to save a nickel.

 

 

Considering all you and your compatriots can muster are ad hominid arguments think I'll take my chances. 

“Oh no! He/She used the space key needlessly! Horrors!”

 

 

May 28, 2008 05:19 AM
#11