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Old 02-13-2017, 02:25 PM
 
Location: Portland OR
2,647 posts, read 3,826,734 times
Reputation: 4820

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Quote:
Originally Posted by MikeJaquish View Post
Is Uber still losing 50% on every ride?
https://en.wikipedia.org/wiki/Uber_(company)#Finances

That is not productive long-term disruption. It is just ruinous pricing, as long as the cash holds out.
Ruinous pricing to disrupt an industry will not result in long-term price reduction. At some point, Uber will need to turn profit, or raise prices significantly. When they burn their cash, where will pricing be?

Where is the IPO? Or, will that only happen after the venture money boys figure out that the Uber Emperor is nekkid?

Real estate brokerage has its issues, and there are plenty of folks pumping money to get their spoon into the soup. But, an "Uber-like" resolution is nearly immoral, IMO.
Compete with an eye on profit, whether ride-sharing, selling widgets, or offering brokerage services, not just because you have billions of dollars to burn to destroy a targeted industry.

Mike, your going to throw around words like morality??
There is plenty of illegal and immoral activity within the realtor world and you know. it.
This is about business.

People should not have to pay more than necessary for a service.
Realtor pricing only exists through collusion and monopoly. it does not exist on fair play and competition

The industry fights tooth and nail against what the industry terms as "discount" brokers. Those of in the real world of actually buying and selling homes don't view it as a vable option.

I could care less if Uber makes money or not. I only know I pay 1/3 to 1/2 what a taxi charges. Thats ALL that matters for the commodity of going from pt A to pt B.

I would think good realtors (i.e. those that truly add value for their customers) would be happy with tiered pricing. Why would they be afraid of that?


All your comments above are really just about maintaining the status quo.
Good luck with that. The world can change pretty fast these days.
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Old 02-13-2017, 02:42 PM
Status: "Made the Retirement Run in under 12 parsecs!!!" (set 2 days ago)
 
Location: Cary, NC
43,067 posts, read 76,614,383 times
Reputation: 45393
Quote:
Originally Posted by ccjarider View Post
Mike, your going to throw around words like morality??
There is plenty of illegal and immoral activity within the realtor world and you know. it.
This is about business.

People should not have to pay more than necessary for a service.
Realtor pricing only exists through collusion and monopoly. it does not exist on fair play and competition

The industry fights tooth and nail against what the industry terms as "discount" brokers. Those of in the real world of actually buying and selling homes don't view it as a vable option.

I could care less if Uber makes money or not. I only know I pay 1/3 to 1/2 what a taxi charges. Thats ALL that matters for the commodity of going from pt A to pt B.

I would think good realtors (i.e. those that truly add value for their customers) would be happy with tiered pricing. Why would they be afraid of that?


All your comments above are really just about maintaining the status quo.
Good luck with that. The world can change pretty fast these days.



BS.
You know nothing about economic markets and finance. And nothing about me and my business practices. Sheesh, you didn't even read my posts in this thread, or you wouldn't have posted such bilge in regards to my outlook.


The Uber model is only about destroying an industry with unsustainable pricing as long as the capital lasts, or the targeted business goes away.
If Uber survives elimination of regular taxi services, they will have the ability to leverage pricing to sustainability, to workable profit levels, which apparently will be in the range of current taxi rates. (They lose 50%, you ride at half price. Easy math.)
That is ruinous monopolistic practice, no matter how cheaply you ride in the short term.

I am in no way defending real estate brokerage status or operations.
Clearly, amassing money to burn to provide ruinous monopolistic opportunity with no ability to maintain prices long term is not moral or ethical, and may be illegal.
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Old 02-14-2017, 02:19 PM
 
Location: Columbia, SC
10,907 posts, read 21,868,550 times
Reputation: 10539
Quote:
Originally Posted by ccjarider View Post
Mike, your going to throw around words like morality??
There is plenty of illegal and immoral activity within the realtor world and you know. it.
This is about business.

People should not have to pay more than necessary for a service.
Realtor pricing only exists through collusion and monopoly. it does not exist on fair play and competition

The industry fights tooth and nail against what the industry terms as "discount" brokers. Those of in the real world of actually buying and selling homes don't view it as a vable option.

I could care less if Uber makes money or not. I only know I pay 1/3 to 1/2 what a taxi charges. Thats ALL that matters for the commodity of going from pt A to pt B.

I would think good realtors (i.e. those that truly add value for their customers) would be happy with tiered pricing. Why would they be afraid of that?


All your comments above are really just about maintaining the status quo.
Good luck with that. The world can change pretty fast these days.
Yes, the cost of homes has risen, but so has the cost to be in real estate. Any business regardless of the industry must be profitable to remain in business. Unfortunately it is fairly costly so to run a profitable real estate business with the overhead so I don't have much room to work with the commission. If I worked for much less than what I do it would get to the point where real estate wouldn't be profitable enough for me to continue in the business.

I realize the consumer doesn't care about profit margins but you would care if companies you liked went out of business and your product was no longer available. It doesn't matter if it's taxi rides, twinkies, or real estate services. I offer tiered pricing. I have choice A which is flat rate pay in advance which about 5% of people select and standard pay at closing percentages which almost every consumer selects. I used to offer a few more tiers but I found that people either went flat rate or standard for the most part so I dropped the others because I also discovered that too many choices confuse or lock up people with indecision.

If there were fewer agents then cost could perhaps be reduced because of the volume increase. Does that information provide any insight for you at all?
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Old 02-14-2017, 07:40 PM
 
8,540 posts, read 12,284,680 times
Reputation: 16442
People need to get out of the notion that there are "discount" commissions. It simply bolsters the concept that commissions should be at a certain level. All commissions are negotiable, so look for the best deal with the desired level of service.

A 1% listing commission on an upper-end, easy-to-sell house sounds like a very viable business model. Plus, a 2.5% Buyer's agent commission on a $900,000 house is a healthy commission whichever way you look at it. I'd handle those deals without hesitation--as would many others. The OP shouldn't be dissuaded from using a 1% listing brokerage if the expected service measures up.
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Old 02-14-2017, 10:52 PM
 
3,770 posts, read 6,711,872 times
Reputation: 3019
As long as it's an in demand house, priced right, on MLS, remodeled and staged, it makes absolutely no difference if you pay 1% or 3% to the selling agent. You will get multiple offers in weeks. Would you as a buyer care who the selling agent is if you really wanted the house and were bidding against 10 other people? And as the selling agent, would you mind taking 9k for a house that gets an offer accepted in 3 days? That's like $1,000 per hour.
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Old 02-15-2017, 04:54 AM
Status: "Made the Retirement Run in under 12 parsecs!!!" (set 2 days ago)
 
Location: Cary, NC
43,067 posts, read 76,614,383 times
Reputation: 45393
Quote:
Originally Posted by FelixTheCat View Post
As long as it's an in demand house, priced right, on MLS, remodeled and staged, it makes absolutely no difference if you pay 1% or 3% to the selling agent. You will get multiple offers in weeks. Would you as a buyer care who the selling agent is if you really wanted the house and were bidding against 10 other people? And as the selling agent, would you mind taking 9k for a house that gets an offer accepted in 3 days? That's like $1,000 per hour.

9 hours work to sell a listing? Hardly.

On a tangent....
Unfortunately, "Selling agent" is the term for the buyer's agent.
That is a vestige of the time pre-buyer's agency when buyers had no representation and all agents worked for the seller, by law. One listed. One brought the buyer and sold the house. The term remains in use, confusing as it is.
I prefer to say "Listing agent" and "Buyers agent" for clarity.

Last edited by MikeJaquish; 02-15-2017 at 05:20 AM..
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