Real Estate the Amazon Way

By
Real Estate Broker/Owner with Cam Realty and Property Management

Real Estate the Amazon Way

I read a great post written by Endre Barath, Jr. yesterday, if you haven’t read it, here’s the link. Whether you’re just a bit concerned about these type of companies or not at all, it’s always good to know what’s happening in the world of real estate.
For the past couple of years, companies like Z, T are popping up all over the place. Mortgage companies going into real estate business, real estate companies are now offering mortgages and the list keeps growing. Again, if you don’t care to know what they’re up to, that’s fine as well.


Do you remember when you were first introduced to Amazon? Talk about convenience. You can just type in what you’re searching for and voila! It’s convenient, it saves time, some prices are lower, you can read reviews about the product, saves money since you don’t have to go from store to store. Amazon also put many mom and pop stores out of business, that’s a fact.
Times change but change is not always good nor beneficial to all.

So, this real estate takeover frenzy..what are these companies offering home buyers and sellers? Let’s talk about the company Endre Barath wrote about. There are many home sellers who would have to sell their current home in order to buy another one. They step in and remove all the stress of listing. If you think for one minute the company isn’t in it to make money, think again. I’m certain there are and will be home sellers who would use the company just for the convenience and they will be able to buy their new home.
There are some things I will not buy on Amazon..you know, the big-ticket items such as jewelry. I can’t imagine spending a couple of thousand dollars without seeing a piece of jewelry, trying it on to see how it looks on me or purchasing a car without ever sitting in it.


Some of these companies that purchase homes for cash actually cost more money than a traditional home listing. When it comes to listing and selling a home, what is that ONE thing home sellers wish didn’t exist? Commission! Well, these companies who promise to list your home for NO Commission have fees with different names that are higher than traditional listings. They don’t buy every home, your house must meet their criteria and you most definitely pay them to list your house. In all fairness, they do offer something which you won’t see in a traditional listing. Convenience! You won’t have to worry about selecting the right agent, no worries about communication with one agent, no fixing up, no more mowing your lawn, staging your home to appeal to potential buyers, you won’t have to worry about when you will receive an offer.

Before you decide to list your home with a company that offers to list it for FREE, NO Commission, please, please, please, read the fine print and compare their offer against a traditional listing with a local REALTOR®. At the end of the day, when it’s all said and done, what is your home worth to you? This is one of the biggest investments in your lifetime. Is it worth paying more just for the convenience?
Amazon is great for finding items as you can just search, you won’t have to go store to store but a home? One of my seller clients actually contacted one of these companies and received their “offer” package. Their offer was less than fair market value at a higher commission(technology fee). They didn’t even consider, luckily, they were brilliant to do their homework, many home sellers do not.


It’s your home, your money, your life, be sure to have all the facts before signing on the dotted line. Once your house is sold, it’s gone forever, no turning back.

Real Estate the Amazon Way

 

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Rainmaker
2,643,273
Debbie Gartner
The Flooring Girl - White Plains, NY
The Flooring Girl & Blog Stylist -Dynamo Marketers

Excellent perspective. Sometimes we only look at things from 1 perspective. But the truth is that there are different types of sellers out there that need different things and place higher values on some elements vs other.  It's really all about segmentation.  Love this article.

Jan 23, 2019 03:12 PM #25
Rainmaker
1,444,553
Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info

I'll head over to Endre's post to see what he has to say on this matter.  I think there will always be room for the traditional business model.

Jan 23, 2019 06:46 PM #26
Rainmaker
370,291
Matthew Klinowski, PA
Downing-Frye - Naples, FL
Golf Community Real Estate Specialist

Good morning Beth, nothing is free. It's unfortunate sellers do not realize it may be costing them more in the end. Although it creates an opportunity for us to help provide them with more information so they are clear on the differences.

Jan 24, 2019 04:54 AM #27
Rainmaker
1,930,601
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Southlake, TX
Selling Homes Changing Lives

Beth Atalay - Congratulations on the very worthy Feature! You explained things very clearly! Now, it's up to us to educate the buyers and sellers. 

Thank you.

Jan 24, 2019 05:31 AM #28
Rainer
121,743
Anne Corbin
Long and Foster - Lake Anna - Spotsylvania, VA
Serving Lake Anna & Central Virginia

I would love to have one of these clients looking for a free sale to walk in our shoes for a week. They would then learn that we earn every penny of our pay and then, sometimes, more. I have a new respect for agents that I didn't have before I became one. The general public doesn't understand what our jobs entail.

Jan 24, 2019 06:18 AM #29
Rainmaker
430,046
Scott Seaton Jr. Bourbonnais Kankakee IL Home Inspector
SLS Home Inspections-Bradley Bourbonnais Kankakee Manteno - Bourbonnais, IL
The Home Inspector With a Heart!

They will say it forever, we are here to disrupt the system. Technology is awesome but it does not replace face to face relationships. 

Jan 24, 2019 06:42 AM #30
Ambassador
3,877,875
Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

Hi Beth

I love this post and it's such a good analogy! We certainly are seeing all sorts of real estate models out there these days under the guise of making home selling easier (but perhaps NOT less expensive). Wonder what will happen as the market shifts!

Jeff

Jan 24, 2019 07:24 AM #31
Rainmaker
360,076
M.C. Dwyer
Century 21 Showcase REALTORs - Felton, CA
Santa Cruz Mountains Property Specialist

All the sellers I've ever met want to squeeze every dollar out of their house, so it will be interesting to see the market share these innovators can obtain.

Jan 24, 2019 08:35 AM #32
Rainmaker
1,494,911
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

Those companies are definitely not offering a public service. They wouldn't be doing any of it if they couldn't smell the big dollars.

Jan 24, 2019 04:12 PM #33
Rainmaker
778,192
Kevin Mackessy
Blue Olive Properties, LLC - Highlands Ranch, CO
Dedicated. Qualified. Local.

People should definitely be more scrupulous these days.  There are a lot of bad items in the world all competing for your attention and money.

Jan 25, 2019 01:01 PM #35
Ambassador
3,109,475
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

You nailed this one, Beth! It truly is something to think about - we LOVE Amazon and would never consider buying a high-dollar item there. Clothing, I want to touch and feel it...and try it on - and that's not even really high dollar! Imagine buying a home the Amazon way - NO WAY!

Congrats on the feature!

Jan 25, 2019 09:34 PM #36
Rainmaker
489,607
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Experienced Agent in Kansas City Metro area

It all sounds good to the consumer up front--but yes, buyer beware!  Will be interesting to see how popular these type of companies become

Jan 26, 2019 06:35 AM #37
Rainmaker
1,270,120
Wayne and Jean Marie Zuhl
Samsel & Associates - Clark, NJ
The Last Names You'll Ever Need in Real Estate

Common sense advice. If it sounds too good to be true, it probably is!

(I buy nearly EVERYTHING on Amazon now.)

Jan 27, 2019 11:29 AM #38
Rainmaker
1,364,004
Jeffrey DiMuria 321.223.6253 Waves Realty
Waves Realty - Melbourne, FL
Florida Space Coast Homes

Hey Beth, the approach really comes down to illusion. They pretend they are doing it over the Internet without evil salespeople...the entire time they rely on our info and expertise. Question is, which Realtors are dumb enough to give it to them.

Jan 28, 2019 09:12 AM #39
Rainmaker
1,207,370
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

A large part of my clients/borrowers are confused when as they enter the financing process.  They're not educated regarding financing or credit ... they're a bit scared ... and definitely tight on funds.  Even small amounts of expenditures/savings or downpayment/escrow payments ... can make a huge difference as to whether they find approval or not.  The professionals they choose and work with offer needed and valuable services that directly correlate to the success they find (or don't find). 

The thought of them entering into the services you describe worries me greatly, Beth Atalay.  I don't think it bodes well for them ... or their finances.

Gene 

Jan 28, 2019 01:24 PM #40
Rainmaker
3,136,164
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

I don't think that we have to worry about being taken over by convenience...that is what they said about the internet...as soon as that "came to be " we were all supposed to disappear.

Jan 28, 2019 06:15 PM #41
Ambassador
3,003,252
Paul S. Henderson, REALTOR®, CRS
RE/MAX Northwest. - Tacoma, WA
Tacoma Washington Agent/Broker & Market Authority!

 Big companies like Amazon and Walmart really scare me when it comes to taking over other businesses Beth Atalay 

Jan 29, 2019 07:07 AM #42
Rainmaker
1,115,080
Sheri Sperry - MCNE®
Coldwell Banker Residential Brokerage - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Great blog Beth Atalay  - I follow Endre Barath, Jr. - so I probably would see his blog as well.  I agree with you.  Not all change is for the better.  Also, we still have free choice. I won't make big purchases sight unseen either.  I still can't believe these online car dealers who will drop your "new" car off right at your door!  That will never happen for me.

I remember a client who used another agent at a well known company and found out he had to pay $1200 for his photo shoot. That has always stuck in my mind. They didn't tell him that until he signed the contract. My client was expecting that "hidden" fee from me and was shocked when I said that is all included as well as all the marketing I do.  I am on my 3rd home with this client!  

Jan 29, 2019 08:25 AM #43
Rainmaker
5,175,755
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Congratulations on your feature recognition.

This is excellent advice to share with prospective home sellers.

Jan 30, 2019 02:07 PM #44
Rainmaker
93,453
Peter Mark SEO Services
PeterMarkSEO - Holiday, FL
Full Time SEO

Thanks for posting this. Reading Endre's post now.

Feb 20, 2019 02:19 PM #45
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Beth Atalay

Cam Realty of Clermont FL
Sell or Buy Homes in Clermont FL
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