What might actually disrupt the current real estate brokerage model (mortgage, mortgage)
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Location: Cary, NC
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Quote:
Originally Posted by Silverfall
Start with indies.
At least in my market, they are much more flexible on the negotiation of fees than big brokerages. Those huge buildings that house large brokerages have large overhead which has to be made up somehow. I know some brokerages don't allow their agents to accept less than a certain commission which is what it sounds like you ran into.
The benefits of talking to an independent broker include talking directly to the policy maker.
Much less multilevel corporate fat to support financially and better responsiveness to policy queries.
The benefits of talking to an independent broker include talking directly to the policy maker.
Much less multilevel corporate fat to support financially and better responsiveness to policy queries.
We live in a free market economy. It's not a perfect system but it's the best we have and that won't change. Being 'good' at a dinosaur trade is not 'good enough' when change rolls around as it will in this industry. One must have to adapt to change. Plenty of 'good' travel agents went on to other things. A few had the talent and foresight to lead the industry into the new world.
It's not my problem to solve but, for example, very, very few buyers will shell out several thousand dollars for a vaguely defined service that's offered today. So once the artificial model is broken up, buyer's agents will need to figure out how to service the buyer and provide what he needs at the price he's willing to pay.
The easy ride enabled by leading the buyer to believe his agent is 'free' (so low expectations and low accountability) and making the seller pay to access buyers under buyer's agent ownership will not last forever.
Yup, it's so free the buyer can choose to hire an agent or go it alone or even somewhere in between! Amazing! A seller can hire a full service agent or sell by owner or somewhere in between. They can negotiate whatever commission they want and the agent can take it or not take it. Amazing! So what's the issue with the free market you have?
The benefits of talking to an independent broker include talking directly to the policy maker.
Much less multilevel corporate fat to support financially and better responsiveness to policy queries.
I wouldn't exclude some franchises from your statement. As a small, locally owned RE/MAX office we are free to make our own policies. I'm not saying...I'm just saying.
I wouldn't exclude some franchises from your statement. As a small, locally owned RE/MAX office we are free to make our own policies. I'm not saying...I'm just saying.
How much do you pay for association with the 'killer' RE/MAX brand. It's very powerful in the market and consumers know when they hire a RE/MAX agent, they are getting the best. So I'm sure all those franchise fees are worth it. Do you still pay the balloon fee? Maybe this is the 'fat' that Mike is talking about???
There should be no sales commission for services related to helping a buyer. Period.
Maybe part of the problem is that nobody can even agree on who pays for something. That's hardly what I would call 'straight forward'.
You can get "nickled and dimed" for the services you want or you can get "18 thousand dollared" for a bundle of services, most of which many buyers do not want or need. If most buyers knew how much being driven around and given bottled water costs them, they'd just drive themselves....or they could hire a chauffeur driven Roller for cheaper and replace the bottled water with champagne.
Both buyer and seller have sign something that says they understand exactly how much we will be paid IF we complete our work. It's not a mystery. That's pretty straightforward.
Perhaps I'll start offering champagne. Or at least a good bourbon... more my speed. Sounds good.
Both buyer and seller have sign something that says they understand exactly how much we will be paid IF we complete our work. It's not a mystery. That's pretty straightforward.
Perhaps I'll start offering champagne. Or at least a good bourbon... more my speed. Sounds good.
I'm all about the margarita myself. Not a fan of champagne.
I wouldn't exclude some franchises from your statement. As a small, locally owned RE/MAX office we are free to make our own policies. I'm not saying...I'm just saying.
If the franchise is small. Even large indies often don't have the ability to negotiate. Really small brokerages offer the most flexibility, I think.
If the franchise is small. Even large indies often don't have the ability to negotiate. Really small brokerages offer the most flexibility, I think.
Fair statement.
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