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Deepak Advani, A Boutique Real Estate Company (Melange Real Estate Inc)

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Rainmaker
711,852
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

I firmly believe you get what you pay for. If you go for discount fees, expect discount service.

Jul 26, 2017 11:37 AM
Ambassador
3,587,960
Anna "Banana" Kruchten
HomeSmart Real Estate - Phoenix, AZ
602-380-4886

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.

Jul 26, 2017 01:07 PM
Rainmaker
1,052,221
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

No, no, no. Our fees are determined by the amount of work and time involved in the project.

Jul 26, 2017 01:00 PM
Ambassador
2,684,109
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

       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.  

Jul 26, 2017 11:59 AM
Rainmaker
5,104,931
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

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."

Jul 26, 2017 10:35 AM
Rainmaker
921,504
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

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.

Jul 26, 2017 12:54 PM
Rainmaker
7,836,431
Roy Kelley
Retired - Gaithersburg, MD

I see no need for that model in our current market. 

You have to make your own business decision. 

Jul 26, 2017 11:38 AM
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

Fred Griffin nailed this one!

Jul 27, 2017 06:14 AM
Rainmaker
1,466,207
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

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.

Jul 26, 2017 01:25 PM
Rainmaker
1,196,798
Doug Dawes
Keller Williams Evolution - 447 Boston Street, Suite #5, Topsfield, MA - Topsfield, MA
Your Personal Realtor®

Interesting thought. There may be a niche place for it but I do not see it as a mainstream venue

Jul 26, 2017 01:16 PM
Rainmaker
5,217,243
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Every brokerage should develop a model that works for them!

Jul 26, 2017 01:00 PM
Rainmaker
2,781,273
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Go with the flow...change if required and being proactive recommended

Jul 26, 2017 11:06 AM
Rainmaker
1,239,901
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

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. 

Jul 26, 2017 10:38 AM
Rainmaker
4,800,082
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

I'm not a fan.  But, some will embrace the concept.

Jul 27, 2017 05:52 AM
Rainmaker
1,574,666
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Eighteen Years Experience in Brevard County

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!

Jul 27, 2017 03:05 AM
Rainmaker
989,652
Jennifer Mackay
Counts Real Estate Group, Inc. - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

Oh that's easy.... NO!

Jul 26, 2017 04:57 PM
Rainmaker
3,416,038
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

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

Jul 26, 2017 03:32 PM
Rainmaker
4,272,548
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

I applaud people for thinking outside the box however the strongest ideas do survive

Jul 26, 2017 01:45 PM
Rainmaker
1,231,853
Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor

Ditto Lynnea Miller and Nina Hollander Let me add this question, "Would you use a flat-fee heart surgeon?" 

Jul 26, 2017 01:28 PM
Rainmaker
5,868,565
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

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.

Jul 29, 2017 07:46 AM
Rainer
6,767
Deepak Advani
Melange Real Estate Inc - Tampa, FL
A Boutique Real Estate Company

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.

Jul 28, 2017 07:04 PM
Rainmaker
900,228
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

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.

Jul 28, 2017 04:06 AM
Ambassador
6,393,609
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

You generally get what you pay for, save a dime throw away a ten dollar bill.

Jul 27, 2017 08:41 AM
Rainmaker
1,726,096
Sandy Padula & Norm Padula, JD, GRI
HomeSmart Realty West & Florida Realty Investments - , CA
Presence, Persistence & Perseverance

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!"

Jul 27, 2017 05:47 AM
Rainmaker
2,182,552
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

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 

Jul 27, 2017 05:40 AM
Rainmaker
4,319,419
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Deepak Advani - well, these models were there and will come up! 

The consumers still look at the full-service models.

Jul 26, 2017 10:44 PM
Rainmaker
3,986,258
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Go right ahead, but I will stay traditional

Jul 26, 2017 08:25 PM
Rainmaker
1,502,998
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

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.

Jul 26, 2017 07:31 PM
Ambassador
5,230,130
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

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!

Jul 26, 2017 07:11 PM
Rainmaker
4,936,716
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

No, No, No,  we should all have the right to charge what the market demands and what we are worth!!!!!

Jul 26, 2017 04:59 PM
Rainmaker
1,712,676
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

One size does not fit all. 

Jul 26, 2017 02:51 PM