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Old Today, 08:19 AM
 
Location: Columbia SC
9,353 posts, read 8,091,682 times
Reputation: 13071

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Opinions please.
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Old Today, 09:21 AM
 
Location: Columbia, SC
9,188 posts, read 18,283,255 times
Reputation: 6876
Quote:
Originally Posted by johngolf View Post
Opinions please.
Never heard of them, so I looked at the website.

They claim, paraphrasing here, they market directly to buyers using predictive analytics. They don't pay a co-broke and I don't see anything about them listing on MLS which means very little exposure to potential buyers compared to a traditional broker. They also claim they save you money by only charging 2%. The fewer buyers that aware the home is for sale, the less likely a seller is to get top dollar.

My questions initially:
Are they really reaching your best or even that many buyers? How are relocation buyers finding about your home? Can they really save you money if the home gets less exposure to potential buyers?

In a market like Columbia, SC our average price is 175,000. 6% commission would be $10,500 and my sellers on average negotiate off 1% of price which which is $1,750. My sellers are netting 162,750.

Their formula would, IMO, average a lower sales price and probably longer days on market in many areas. I also see they are mostly in high dollar bubble markets that high appreciation and limited inventory. Let's say they get 95% of asking price and charge $9,000 commission (minimum, remember). Net is 157,250.

I find their claims dubious, but I also understand they are trying to appeal to what people want to believe.
Ex - "We work for you, not commission." I'd say not true, they are indeed working for commission, apparently 2% with a minimum of $9,000 based on that slide chart.

Probably works out alright for some people based on the markets they are in, not as well for others. I'm skeptical it would work well outside of the low inventory markets. If I were a seller/buyer, I would want to see them succeed on a larger scale before I tried it I think. I realize that comes across with bias since I'm an agent, but I did my best to put myself in the shoes of a customer. I admit as a customer their claims sound appealing, but as someone in the industry I see through the ads.
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Old Today, 09:46 AM
 
Location: Just south of Denver since 1989
10,982 posts, read 29,671,037 times
Reputation: 7230
They advertise heavily on fb and radio here, but they are not members of the mls.

They rely on unrepresented buyers, finding the property via website or sign.
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