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On 16-Jun-2005, "Grover C. McCoury III" <gcmccoury@yahoo.com> wrote:
> Still, I am hoping that upstarts such as ZipRealty, LendingTree, Foxtons (a
>
>discount broker in the Northeast), and Catalist (a California discounter)
>will soon blow away the traditional realty transaction mode
Rather than posting these ridiculous articles do a little research. I did a
goggle search on Foxtons using "problems with foxtons." Read the results and
tell me if you'd hire them.
http://groups-beta.google.com/groups?hl=en&q=problems+with+foxtons&qt_s=Search
You won't find as many complaints about ZipRealty because they pay the
buyer's agent full commission. Anyone that doesn't is preying on the
public's lack of knowledge of how the business works and how the mind's of
Realtors work. Especially the "old timers."
Sure the public will fall for it. A billboard that say's "pay 2.5%
commission." SAVE $20,000 will get you more leads. Anyone in sales knows the
saying that you appeal to their, "need or greed." But in practice you'll get
less sales, less referals, and a much higher Agent turnover. You'll find
yourself "creaming" the listing leads for yourself and a select few agents
and sending the bulk of your office showing homes. Your resistance won't
come from the seller, being that I have never in my 5 years in real estate
ever had anyone ask what the split will be even though it's written on the
contract. They do not realize the implications of not paying the buyer's
agent full commission. YOU SHOULD if you have any sort of experience and are
being honest with yourself.
Not just discount brokers are guilty. Weak Realtors have been pulling this
long before someone tried to package the concept and sell it to Brokers. If
the Agent gets chopped down to 5% to get the listing, they give the Buyer's
agent 2.5%. For 4% they give 2%. To Realtors I say, If you do not have the
skill or the self worth to convince a seller to pay what's customary, or if
you're too greedy to walk away from the prospective seller, then at least
have the common sense to take it out of your own pocket. And do not take it
out of your broker's pocket either. Get yourself some training and buy some
affirmation tapes or just work with buyers if you do not have what it takes
to negotiate a proper contract. If you cannot even negotiate a standard
commission for yourself, how are you ever going find it in you to negotiate
top dollar for your client?
To the Broker thinking about changing your model and discount Brokers. Open
your eyes! This is just a come-on disguised as a "business model." Don't let
yourself be fooled by these franchisors. It all sounds good in theory. Just
remember their business is to sell a franchise. That's *their* bottom line.
Doing what's best for your client first and Agents second should be *your*
bottom line. Do lots of online research and see what home sellers, listing
and buyer's agents are saying. Speak to agents who've worked at these
places. Consider the consequences of "going against the grain." It's fine to
be a rebel if it only effects you. I am not saying commissions will not come
down as a result of new communication technologies, but it's a long time
away. Nothing can stop an idea who's time has come. But those who were ahead
of their time died pennyless like Van Gogh. Start cutting commissions and
you'll soon find out why Van Gough found the need to cut off his ear. :)
--
Warmest regards,
Steve Horrillo, Realtor | Trainer | C.Ht.
http://brokeragenttraining.com(Advanced training for real estate
professionals)
http://over100percent.com(Realtors earn over 100 percent)
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Re: Why do you still need an agent to buy a home?
