711,852
I firmly believe you get what you pay for. If you go for discount fees, expect discount service.
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Sandy Padula & Norm Pa...
, CA
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Ryan Huggins - Thousan...
Thousand Oaks, CA
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Debe Maxwell, CRS
Charlotte, NC
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Mary Yonkers
Erie, PA
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Nina Hollander, Broker
Charlotte, NC
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Doug Dawes
Topsfield, MA
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Candice A. Donofrio
Fort Mohave, AZ
3,587,960
Now why would I do that after 30 years in the business with a good working business model. It just doesn't make sense to me.
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Debe Maxwell, CRS
Charlotte, NC
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Candice A. Donofrio
Fort Mohave, AZ
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Mary Yonkers
Erie, PA
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Nina Hollander, Broker
Charlotte, NC
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Doug Dawes
Topsfield, MA
1,052,221
No, no, no. Our fees are determined by the amount of work and time involved in the project.
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Debe Maxwell, CRS
Charlotte, NC
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Nina Hollander, Broker
Charlotte, NC
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Doug Dawes
Topsfield, MA
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Candice A. Donofrio
Fort Mohave, AZ
2,684,109
In the minds of most consumers, real estate commissions are too high. Should it really cost $40,000 to sell an $800,000 house in a market that will bring multiple offers in the first few days?
The Public is looking for cheaper alternatives to Listing Broker/Selling Broker/NAR/MLS.
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Tony and Suzanne Marri...
Scottsdale, AZ
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Debe Maxwell, CRS
Charlotte, NC
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Doug Dawes
Topsfield, MA
5,104,931
Why should we? Do you really believe these companies provide the level of service and expertise that those of us who are not discount brokers do? Let's call a spade a spade here... these are discount brokers regardless of how they pretty it up with terms like "flat fee." Do the numbers and see if you can provide a full complement of services at a flat fee. As I often tell clients who have had a poor experience with one these "at the end of the day you get what you pay for."
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Mary Yonkers
Erie, PA
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Doug Dawes
Topsfield, MA
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Candice A. Donofrio
Fort Mohave, AZ
921,504
IF the agent and broker are feeding the 'devil' flat fee is the predictable outcome and the goal the devil has advocated. Even stated $2,500 as the fee yet agents hand over $1,000 a month thinking it's a joke.
There looms in the near future a evolution that we hear coming but deny it reach will affect real estate. Tweaking the existing models will not delay the irrelevance of an industry trying to recreate the problem they initially solved. If you look beyond the cloud brokerage, the tinkering with compensation structures and realize the empowerment of the consumer it is but one vision away from NAR, Realtors and Franchises sharing a bin with VCRs, Blockbuster, Kodachrome and the Princess Phone.
This was actually the basis of my question this morning.
What you need to be considering is how at some point in the future you will make money without the MLS. Without being the middle man.
Today consumer has more information. IS more empowered. Comfortable with making their own decisions. They WILL demand a change and that change is only one visionary broker or attorney investing in an existing platform and real estate as we know it will be over.
To answer your question, most will not change their business model but will fade into the sunset.
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Deepak Advani
Tampa, FL
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Fred Griffin Florida R...
Tallahassee, FL
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Doug Dawes
Topsfield, MA
7,836,431
I see no need for that model in our current market.
You have to make your own business decision.
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Mary Yonkers
Erie, PA
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Nina Hollander, Broker
Charlotte, NC
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Doug Dawes
Topsfield, MA
3,071,489
Fred Griffin nailed this one!
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Deepak Advani
Tampa, FL
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Fred Griffin Florida R...
Tallahassee, FL
1,466,207
Deepak Advani A flat fee may sound good from a consumer perspective; however, from a business perspective it will be your down fall. The only way to make it is by sheer volume. Otherwise your fees will have to be rather high to cover overhead and hopefully a profit. I personally don't think it is a good business model.
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Mary Yonkers
Erie, PA
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Nina Hollander, Broker
Charlotte, NC
1,196,798
Interesting thought. There may be a niche place for it but I do not see it as a mainstream venue
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Mary Yonkers
Erie, PA
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Nina Hollander, Broker
Charlotte, NC
5,217,243
Every brokerage should develop a model that works for them!
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Mary Yonkers
Erie, PA
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Doug Dawes
Topsfield, MA
2,781,273
Go with the flow...change if required and being proactive recommended
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Mary Yonkers
Erie, PA
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Doug Dawes
Topsfield, MA
1,239,901
Some like RF are discounted brokerage charge a reduced rate.
But in such competitive environment the top US volume brokerage by a US newspaper is a discounted brokerage. Work a few hours wanting $5000 an hour by a realtor? Never mind the quality service, airplane tour.. What is their bottom line fee vs. second top brokerage?
Similar to full stock broker who used to charged 2-3% per trade, with better search technology on devices with AI, machine learning, more and buyers and sellers are much more sophisticated and if top brokerage firm now charges $4.99-$6.99 per trade. What makes the full service realtor think they can not to follow the low cost model trend?
Another trend in CA lately is fewer sellers want to pay regular commissions to buyer agents as most owners search homes on their own. I have seen 0, 1%, 1.5% to be paid to buyer agent and home close just as quickly. They skip the buyer agent and go direct to listing agent.
We are going through a transition from traditional to technology based service. I think RF ipo will shed some light where we are heading.
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Doug Dawes
Topsfield, MA
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Fred Griffin Florida R...
Tallahassee, FL
4,800,082
I'm not a fan. But, some will embrace the concept.
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Deepak Advani
Tampa, FL
1,574,666
Its a business decision.... and my business is targeted toward folks willing to pay for my services - not get them for pennies on the dollar!
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Deepak Advani
Tampa, FL
989,652
3,416,038
No!!! it is a trend and as with all trends they come to an end when aother trend hits. The hard truth is the majority of buyers and sellers want service, not discounts
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Debe Maxwell, CRS
Charlotte, NC
4,272,548
I applaud people for thinking outside the box however the strongest ideas do survive
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Debe Maxwell, CRS
Charlotte, NC
1,231,853
Ditto Lynnea Miller and Nina Hollander Let me add this question, "Would you use a flat-fee heart surgeon?"
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Nina Hollander, Broker
Charlotte, NC
5,868,565
We have seen the flat fee or discount brokers go by the wayside, except Trelora. They rely on LOTS of listings to make money. I would never go that direction.
6,767
Change is never always good or bad, but it’s real.
So in acknowledging the muscle of technology, the Internet, mobile and the cloud we must accept that it will change the existing paradigm. For example more companies in the real estate vertical have, in the last two decades, become owned by a public entity or have followed the IPO route than in any other period in history. In addition, a large number of new players (portals) have entered the industry and have quickly created billion dollar enterprises.
The concern is, whether existing companies will restructure and readjust sufficiently to remain the industry’s largest and most powerful players. Or will they move too slow and allow the new players to grab a disproportionate market share and/or redefine the rules and/or reslice the pie? If history is anything we should learn from, then the latter is the more probable. So the question poised was deliberately very general along wide interpretation so that when you read it, it kindles your own thinking.
Thank you Friends for being a Part of this Discussion.
900,228
Everyone has that choice, but personally I don't endorse that model as it is generally associated with a lack of professionalism, service, etc. It basically becomes a FSBO that is listed on the MLS; agents don't like taking buyers to those.
6,393,609
You generally get what you pay for, save a dime throw away a ten dollar bill.
1,726,096
We will not. This is not how we are able to continue offering the very best service to clients. In this business like all others, "You Get What You Pay For!"
2,182,552
We learn in Pre-Licensing Classes that all commissions are negotiable! But upon obtaining our license we act offended when a consumer wants to lower our fee
4,319,419
Deepak Advani - well, these models were there and will come up!
The consumers still look at the full-service models.
3,986,258
1,502,998
Yes, pay me $60,000 per transaction up to $1mil. LOL! Like has been said by others, you get what you pay for. "Help-U-Sell" (aka "Hope you sell") is the only flat fee company out here (that has any business) and like the name says, good luck!
Until the day when buyers agents no longer exists, the traditional model will still be needed.
5,230,130
Absolutely not - you get what you pay for and I've experienced that on the other side of a transaction on many occasions. Those discount brokerages are not even on my radar here in Charlotte - they're not targeting my clients, nor will they ever get them!
4,936,716
No, No, No, we should all have the right to charge what the market demands and what we are worth!!!!!
1,712,676