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Rainmaker
1,046,944
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

The problem with discount models is and always has been that they need volume to make money. When there's volume, there is often a lack of personalized service. When there is a lack of personalized service, business drops off . . . and so do they.

Jan 31, 2017 12:10 PM
Rainmaker
5,583,173
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

you get what you pay for....It's horrible...they do "squat" in my area...

Jan 31, 2017 12:09 PM
Ambassador
3,582,249
Anna "Banana" Kruchten
HomeSmart Real Estate - Phoenix, AZ
602-380-4886

You get what you pay for......

Jan 31, 2017 01:06 PM
Rainmaker
707,292
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

During boom times, we see discount brokerages enter the market - and typically they go out when we get the next recession. Real estate professionals can counter discount brokerages by answering, what part of my service should I not do on your behalf? Does a discount brokerage take professional photos? Meet buyers and their agents? Show the property? Negotiate terms? Handle inspections? Meet the appraiser? Open escrow? Keep track of the loan? Be proactive on any issue? Or do they just put the home in MLS? 

Jan 31, 2017 12:00 PM
Rainmaker
1,045,440
Dave Martin (703) 585-4687
Fairfax Realty - Fairfax, VA
Making Realty Dreams a Reality #WeWillGetYouHome

They provide a fixed service have little or no ability to work outside the box.. they simply are discount brokers providing discount service and discount level client results

On top of that the buyers know these home Sellers are paying a discounted fee and they WANT to lower their offers accordingly just as they tend to with FSBO's

Jan 31, 2018 06:29 PM
Ambassador
2,679,629
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

   I cannot discussion commission amounts with other Brokers, per Federal anti-trust laws.

  I can say that consumers should have choices.  And, if a business does not charge enough money for its services, that business will ultimately fail.

Jan 31, 2017 10:19 PM
Ambassador
1,447,069
Susan Emo
Sotheby's International Realty Canada - Brokerage - Kingston, ON
Kingston and the 1000 Islands Area

Walmart & Tiffany - room for everyone

Jan 31, 2017 02:38 PM
Rainmaker
1,466,207
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

HOMEiZ.COM HOMEiZGROUP I've been in this business a long time. I haven't seen a discount broker make it yet with any longevity.

Jan 31, 2017 02:15 PM
Rainmaker
1,840,346
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

There will always be different business models & there always will. It all depends if you want to work for those different groups. I personally do not as I know my own value. They are sold a bill of goods about how much 'more' they will sell then the rest of us. 

Poor buyers don't know that many of them just had the ink dry on their licenses.  

They also tout working for the consumer but the consumer doesn't know they don't have a clue. I've seen Redfin in the flesh say some pretty stupid things to buyers & they just shake their heads in agreement.

Jan 31, 2017 12:25 PM
Rainmaker
3,071,489
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Candice A. Donofrio  nailed this one!

Feb 01, 2017 04:45 AM
Rainmaker
921,504
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

Does it really serve the consumer?

Of course it does.

However, your question does not provide any qualifying details.

I would compare your question to, "Is Grandma well served,, who only drives to church on Sunday, by driving  a GMC Danali LX?"

The answer is, "It depends."

Todays home buyer, who feels they are increasing more capable and have access to volumes of information and who may have bought and sold homes previously, may find the empowerment of such programs very beneficial. Such services are in the best interest.

Or we could be talking  about a socially inept, undereducated, naive citizen who will find the race to the bottom regarding fees will prove EXPENSIVE.

If real estate professionals don't start looking for their PLAN B, to be liberated from the oppression of NAR, local MLS, the collusion among brokers to limit agent choices, they may well find themselves in the same predicament as Block Buster. They kept selling the same old stuff but customers were buying from someone else.

Dear agent, "Are you selling the same old stuff?

What hurts the industry is irresponsible recruiting of agents without a meaningful commitment to their success.

 

 

Jan 31, 2017 01:27 PM
Ambassador
1,074,421
John Meussner
Mortgages in AZ, CA, CO, DE, FL, GA, IN, MD, MN, MT, NC, NJ, NV, OK, OR, PA, SC, SD, TN, TX, UT, VA, WI - Fair Oaks, CA
#MortgageMadeEasy Fair Oaks, CA 484-680-4852

I think it hurts the industry - you get what you pay for, and knowing redfins business model does not have consumers best interest at heart would make me avoid ever using them

I know some great agents that use them though, and I know some great agents that use things like Zillow ------- but there are good fish & bad fish in that pool, and I don't think these companies do enough to notify consumers of that risk, and that is unfortunate.

Jan 31, 2017 12:26 PM
Ambassador
6,357,580
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

They know that there are always plenty of agents out there who will work for free, and they are there to help them keep busy working for free.

And much of the public does not understand the value of a good agent so they go with cheap instead.

Jan 31, 2017 12:07 PM
Rainer
408,804
John Duke
Staging By John - Burlington, NC
We stage your home to show it at its best!

I am afraid I can't help you with this as I don't deal with commissions for sales

Feb 10, 2018 10:02 PM
Rainmaker
4,854,437
Richard Weeks
Dallas, TX
REALTOR®, Broker

Looks like you got some grat answers.

Feb 07, 2018 06:53 AM
Rainmaker
5,850,312
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

We are seeing this on occasion around here too, but agents don't stay with them for the low pay.

Feb 03, 2017 10:08 AM
Rainmaker
1,498,708
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

They've been around for a lot longer than you think.  There are some out here who work for half a percent.  The clients that are solely concerned with "a deal" are not the clients I'm interested in working with.

Feb 01, 2017 03:48 PM
Rainmaker
4,902,727
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

I see tv commercial on all the time with them.  Not a fan of the model

 

Feb 01, 2017 06:22 AM
Rainmaker
1,723,026
Sandy Padula & Norm Padula, JD, GRI
HomeSmart Realty West & Florida Realty Investments - , CA
Presence, Persistence & Perseverance

These services are just buying the business. The moment they realize that they are pursuing a failed business model, they will raise their rates and people will quickly forget about them

Feb 01, 2017 06:17 AM
Rainmaker
5,193,999
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Everybody has a value for their efforts! Mostly, you get what you pay for! Consider the factors and choose wisely!

Feb 01, 2017 05:54 AM
Rainmaker
5,096,466
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Not having a discussion on commission rates in a public forum.

Feb 01, 2017 05:17 AM
Rainmaker
849,841
Brenda Mayette
Miranda Real Estate Group, Inc. - Glenville, NY
Getting results w/ knowledge & know-how!

They serve a purpose and there's room for all kinds of business models.  In my opinion, it offers minimal consumer service.  I was on the buyer's side of one of these transactions...  All was fine until we got to an appraisal issue.  The poor seller didn't have an ounce of support on his side.  My client is enjoying the house quite a bit.  :)

Feb 01, 2017 04:44 AM
Rainmaker
7,794,034
Roy Kelley
Retired - Gaithersburg, MD

Local consumers will make their own decisions.

Feb 01, 2017 04:15 AM
Rainmaker
4,319,419
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

HOMEiZ.COM HOMEiZGROUP - discounters were there then, too!

Jan 31, 2017 11:12 PM
Rainmaker
3,986,196
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I hurts our porofession.  they cheapen our industry and their client do not get the service they deserve.

Jan 31, 2017 09:33 PM
Rainmaker
599,124
Nathan Gesner
American West Realty and Management - Cody, WY
Broker / Property Manager

I don't know how anyone can survive with these low rates unless they're churning out the closings.

Jan 31, 2017 09:05 PM
Rainmaker
3,988,007
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

Consumers are always looking for ways to get by on the cheap. I believe you get what you pay for and limited service brokers give limited services.

Jan 31, 2017 08:10 PM
Ambassador
5,204,760
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

The different discount models come and go but, looking at the data year-after-year, their market share is not even worth worrying about. There's room for a variety of business models but, for me, I prefer full-service. There's simply NO WAY a discount broker can provide the service that I do for my clients so, to echo others' comments, you get what you pay for!

Jan 31, 2017 07:53 PM
Rainmaker
4,976,070
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

You definitely get what you pay for and usually end up missing out on a home you want.

Jan 31, 2017 07:04 PM
Ambassador
3,339,734
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

There is a huge difference between shopping at Walmart and shopping at Nordstrom.  In quality of service and the products consumers buy. I am not concerned about the discount model. I have more to offer. 

Jan 31, 2017 06:53 PM
Rainmaker
4,272,524
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

I know some of these companies continue to deal with venture capital thus they are not having to run on the proceeds. I applaud different business models that don't run on life support...

Jan 31, 2017 05:13 PM
Rainmaker
2,776,061
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Many ways to get the job done saving money being one of them. I am more interested in what money can buy and the outcomes. People who come cheap remain suspect as a rule....With stakes so high, I wonder about this

Jan 31, 2017 03:44 PM
Rainmaker
1,157,785
FN LN
Toronto, ON

There are lots of business models that can be used in our great nation.  Great choices for the consumer.

Jan 31, 2017 02:49 PM
Rainmaker
2,170,850
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

This instant market is causing this thinking

Jan 31, 2017 01:47 PM
Rainmaker
5,772,353
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

There all types of consumers out there.  Some like these types of companies, and some don't.  Like shoes for instance there are less expensive ones and the very high end, where a shoe is priced like caviar by the ounce.  To each his own.  A

Jan 31, 2017 12:33 PM