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It is an article that talks about a new business concept to remove buyer agents from the equation. I just thought you would guys would find it interesting as it relates to your discussion. I'd link but I'm not sure if it violates the TOS or not.
It is an article that talks about a new business concept to remove buyer agents from the equation. I just thought you would guys would find it interesting as it relates to your discussion. I'd link but I'm not sure if it violates the TOS or not.
Interesting...it will work for some but I doubt it will displace buyer agents anytime soon.
I agree - you can never fully displace a buyers agent....I know everyone thinks I am anti agent, and out to quash all commissions, but I am not....Lots of buyers need lots of help...The alacarte part is good, but out of town buyers could end up making HUGE mistakes if they rely entirely on the internet to tell them where to live.
It is an article that talks about a new business concept to remove buyer agents from the equation. I just thought you would guys would find it interesting as it relates to your discussion. I'd link but I'm not sure if it violates the TOS or not.
I had seen that web site before and see so much wrong with it that I can't envision something like that happening. There is just too much wrong with it: using Zillows Zestimates as comps; submitting 7 day active offers, getting the listing agent to show the house, or getting a buyers agent to show the house. If they get a buyers agent, then why would they need that site? They have a link that sends the person to realtor dot com to find an agent, instead of tutoring them on how to properly select an agent.
To me, that site is another "Realtors will become dinosaurs, or go the way of the travel agents" theory, and a scheme to make money by eventually selling advertising.
It's a real possibility that people who don't know what they're doing will get duped into thinking that site will save them money; but what it will most likely do, by using Zillow Zestimates, and 7 day active offers without having any idea of the local market condition and trends, will cost them much more money, and possibly get into legal trouble by not having proper representation to explain the contracts and required disclosures, and much more.
My biggest question, and it may have been covered in there but I didn't see it, is how does it save the buyer a commission? If there is no buyer agent the listing agent is entitled to keep it. What happens when a listing agent says no?
My biggest question, and it may have been covered in there but I didn't see it, is how does it save the buyer a commission? If there is no buyer agent the listing agent is entitled to keep it. What happens when a listing agent says no?
It was addressed....it said that you can send an email directly to the seller through the system letting them know that you are unreprsented and encouraging them to reach a matching reduction with their listing agent.
Basically the web site does for you what CaptainBill in a previous thread said (and I disagree) was third-party interference with contract.
My biggest question, and it may have been covered in there but I didn't see it, is how does it save the buyer a commission? If there is no buyer agent the listing agent is entitled to keep it. What happens when a listing agent says no?
That was brought up in discussion too. The site works on a huge assumption that the buyer agent commission will be credited in some way in the transaction.
I do think it is a good idea though. I personally think about 20% of buyers are more than capable of representing themselves (assuming they aren't relocating to a new area). I also think those buyers are a very vocal group of consumers that haven't felt that the real estate industry recognizes that they are capable. I think this is a good outlet for that group of consumers. I actually think that we will have less agent bashing if people that are capable are given an outlet to manage things themselves.
CaptainBill, it has been my experience with unrepresented buyers that once you hand them the paperwork and tell them to fill it out, those that aren't savvy get that they don't know what they are doing right away. Those that are savvy know how to fill out the forms and what to put in them. These are just offers and not binding. I think what will happen is those that think they know what they are doing will quickly find out they don't. Especially as many markets are in recovery. I think letting the consumer try and fail is better than telling them they don't know what they are doing and should't even try. Who knows...they might gain some appreciation for agents along the way.
I also think it will force agents to really demonstrate their value. 74% would use their buyer agent again so we aren't going anywhere, but I think it is an interesting idea. They aren't in Oregon so I couldn't mess around with the offer process like you guys can. We have limited rep service for sellers that don't want full service representation. This just seems like the flip side of that for buyers.
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