RealTown's RealTalk

Anyone else see this in U.S. News and World Reports? It's kind of like a supplier going into Walmart and using their shelf space to sell their products without paying a cent to Walmart! Or is that a lame example?

Here's the link to the story (I hope you haven't eaten recently!):

http://www.usnews.com/blogs/the-home-front/2008/11/12/fsbos-get-agent-free-access-to-realtorcom.html

Anyone else find this nuts?

Lawrence
 

I'm sure Saul or John will weigh in on this, but

It seems to me that this violates the operating agreement between NAR and Move Inc. (Homestore) regarding display of FSBO listings on Realtor.com

Of course, they have a history of violating the agreement, then when they get caught they just throw their hands in the air and say "We didn't know".

Editor's Note
Hi Fred,I have a call with Errol Samuelson, President of REALTOR.com tomorrow and will get back to RealTalk with a response. I have also talked to NAR and will draft my findings and post over the weekend. I am currently on the road.Saul

Anyone else see this in U.S. News and World Reports? It's kind of like a supplier going into Walmart and using their shelf space to sell their products without paying a cent to Walmart! Or is that a lame example?

_____________________________________________________________________

Actually if you go the the forsalebyowner.com site you will find out that this is part of a couple packages they sell starting at over $500...for a 6 month "listing"  And if you dig a little further into the site you will learn that in order for the home owner to participate thay have to offer the Selling Agent a minimum of 1%. 

This may be perceived as bad...but who is it bad for?  Yes, 1% is probably NOT going to generate interest from the Selling Agents...just like it would not generate much business for a Listing Agent if the agent offered a coop of 1% thru the MLS to Selling Agents.  But eventually homeowners will learn that they are not getting that much traffic directly from Realtor.com.  (Hasn't that been commented on many times here?  There have been many discussions about paying for the Enhanced Listing service and the consensus here seems to be that it is money being thrown away.)  And most likely they will realize that they need to raise their 1% offer to a more realistic level to attract SELLING agents. 

In fact, this could open the market for home owners to deal DIRECTLY with SELLING agents and redirect a part of the fees now being paid to the Listiing Agents into the pockets of the Selling Agents.  Some smart sellers will figure out that if they pay 4% or 5% to the SELLING Agent instead of 6% to the Listing agent that they just might get their house sold faster.  (Again many discussions here have focused around agents charging higher commissions and offering more than a 3% coop to induce Selling agents to present those Listing first to their buyers. )

So if you are a Listing Agent then yes...this is very very bad news.  But if you are a Selling Agent this could be the begining of a new way of doing business.

Oh...by the way...the forsalebyowner.com site differentiates listing on Realtor.com and listing in the local MLS as different services...so unless the FSBO pays for both services their listing will only show up on Realtor.com...and not wind its way thru the IDX feeds from your local MLS system into your website.  And you should also remember that Realtor.com is NOT a part of NAR.  It is operated by Move Inc...with an operating agreement given to them by NAR to use the Realtor  trademark. It is not YOUR website...it is simply a commercial website ALLOWING NAR to publish its listings on it under the operating agerment.  The DOJ had good reason to tell NAR they could not restrain Move, Inc. from accepting listings (paid listings only for now) from other sources. 

With more and more focus being put on syndication of listings on more and more websites (Saul is one of the major supports of this movement) now is the time to be studying how this will affect your way of doing business and not just "get sick" about the fact that things are changing.  Shifting business models are a part of the world now.  The turmoil in the real estate market right now is creating the perfect storm for new business models to be tested and to grow.  This step by Move Inc to start taking FSBO listings clearly provides an alternative to the Listing/Selling Agent "traditional" real estate business model.  It opens up much greater direct access by home owners to Selling Agents without having to pay a Listing agent.  It will be interesting to see what effect this has on the industry as a whole over time.

Steve Ervin
President/Owner
24Seven Marketing System, LLC
www.24SevenMarketing.com
727-320-5436 Direct

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Editor's Note
I have a call with Errol Samuelson, President of REALTOR.com tomorrow and will get back to RealTalk with a response. I have also talked to NAR and will draft my findings and post over the weekend. I am currently on the road.Saul

We have just opened a new company, so had to renegotiate with Realtor.Com. I JUST got off of the phone with them to rearrange our exposure. I agree with some of the others when they ask what are WE paying dues for, if FSBO's can get on for FREE and take our business!!?? Every day the industry seems to plunge deeper into more ways to cut out the Realtor.

With this said, we all know that this industry is changing and is doing so quickly and with a heavy hand. Instead of trying to figure out how we can still make our commission, I think we should examine what role Buyers and Sellers NEED us to play in the coming new real estate industry. The more tools that go 'public' that Realtors have depended on to get business, the more we have to look in a different direction.

For instance, our new company has the sellers contribute a marketing and advertising fee upon listing. Now I know all of you are thinking how awful an 'upfront fee' is, but they are truly getting value for their money. Last year we took 80+ listings that did not sell. If it just cost me $500 each to market these homes, I went into my pocket and spent $40,000 WITHOUT making a profit. So, I had the pleasure of doing all of the work of listing and marketing 80 homes and it cost ME $40,000. Never mind that I did not make a red cent!. I'm sorry, but this is NOT 'a cost of doing business'. In Arizona, we are in for 5-10 years of overwhelming inventory. MOST of it won't sell, so why is any Realtor offering to put it on the market, pay all of the expenses involved up front, without any guarantee that they will see a dime in commission?

I have a new approach. Mr. and Mrs Seller, if you are SERIOUS about selling your home, you are going to contribute towards the expense of marketing and advertising YOUR HOME. No, this is NOT refundable. Afterall, it was spent advertising your home. BUT, if and when your home does close, I will reward you with a much, much lower commission than you are used to paying. If I do not have the risk of spending advertising dollars to get you a contract, THAT YOU DON'T LIKE, then I can easily afford to make your commission more affordable in the long run.

You are not going to believe this, but the seller's who put their money when their mouth is, have a much deeper respect for the job that I do and are much more REASONABLE when they get an offer. After all, THEY PAID to get that offer - not me!

If we continue to 'give away' our services, including the expenses of marketing and advertising to sellers, we will continue to be treated as if we are second rate citizens. I say, "Make them responsible for their irrational behavior when selling a home". Honestly, if they have a financial stake in the process, they are less apt to blame you for everything. I give them a full listing plan of what I WILL do. Then, I do it, emailing confirmation. If I do everything we agreed that I would do, and the house still does not sell, then discussing price with them tends to be more reasonable. They can decide to reduce or take it off the market. It was a good investment for them to pay to 'try it' themselves. I, as their agent, STILL did not make a commission for all of my work, but at least I did not pay their expenses, too!

Deede Wockenfuss, Marketing Manager
CybrSold, A Frugal Virtual Real Estate Company
480-248-9500 Office
602-291-2368 Mobile
www.CybrSold.Com

ForSaleByOwner.com's press release is not true and Move.com has asked them to retract it.

There are no FSBOs on Realtor.com...................................yet.

http://budurl.com/d4uc

Jim Lee, Realtor.com watcher

See below:

NAR released an email today stating that the claim made below is false.

A press release distributed Nov. 12 by ForSaleByOwner.com erroneously and
misleadingly claims that REALTOR.com is allowing FSBOs to be posted on its
site. That claim is false. REALTOR.com and the NATIONAL ASSOCIATION OF
REALTORSR have asked ForSaleByOwner.com to retract its incorrect press
release immediately.

http://www.realtor.org/RMODaily.nsf/pages/News2008111301?OpenDocument?LID=RO
Nav0021

Jim Clauser
Your Real Estate Consultant For Life
RE/MAX Associates Athens, Inc.
706-714-1181 Direct
706-433-0542 Fax
http://www.JimClauser.com to view over 3000 homes!
mailto:Jim@JimClauser.com
Check out my Blog at
http://www.VisitJimsBlog.com

Whoa!!!! I think Deede is finally getting a CLUE!

"We have just opened a new company, so had to renegotiate with Realtor.Com. I JUST got off of the phone with them to rearrange our exposure. I agree with some of the others when they ask what are WE paying dues for, if FSBO's can get on for FREE and take our business!!?? Every day the industry seems to plunge deeper into more ways to cut out the Realtor".
 

It's a Brave New World out there everybody!  What did we all think was going to happen, once we mixed the MLS with the WWW?  Did we all think that the dessimination of information was going to sell more houses at higher prices with higher commissions?  Come on folks, get a clue, our precious NAR, that we all pay dues to, folded in the middle of the storm between "Freedom of Information" and what's good for the Country.  I'm still asking the same old question, how does a Realtor represent a BUYER?  Please please tell me that it's something other than overcoming objections.  Because if it is more than overcoming objections, then what IS IT that we are suppose to overcome?  Because as I see it, the MLS was never designed to be an Open Book for the amateur to browse through at his or her will.  But with the Freedom of Information and the DOJ, it has become just that.  Why use a Realtor to Market your property when you can pay an Internet Rouge a paltry fee for ACCESS to all the "so called" INFORMATION?  I'd say we have opened up Pandora's box and can't get it closed again, wouldn't you agree?  So what should we as professionals do?? 

TAKE BACK OUR MLS, AND TAR AND FEATHER THE GOONS AT N.A.R?  We need to replace the old guard with new recruits.  N.A.R. is no different than Washington DC.  We need a street level "get out the vote" campaign and get rid of these thugs that say they are representing our best interest.  The only interest these thugs represent is the AFFILIATIONS they have with INTERNET ROUGES!  There may be some in here who may not like my message but when all the "bloodletting" has passed us by in the name of AFFORDABILITY, I'll be the guy in the back of the room who told you so. 

What we have here is a failure to communicate, between Realtor needs and NAR.  What we have received for our dues for the past 20 years is a bunch of high tech nonsense that has failed to produce because of BIPARTISON POLITICS between NAR, DOJ vs MLS,WWW.   We've compromised our values in the name of VALUES.  Now we have information flowing at the speed of DSL!  With the simple click of a mouse it's all on our desktops.  All the information you ever wanted, but were affraid to ask.... from geography to pornography it's all there, free for the surfer to browse through day in day out!  We all want change but what do we get, the same old crap, just at a higher rate of speed with more volatility,  As marvelous and as powerful as the Internet can be, It can also be just as destructive in the hands of the greedy and opportunist who manipulates the information for their best and highest interest.  We better re-think what we are doing before there is nothing left but misery and an impetitent central command that could care less about your commissions and welfare.  I'm preaching to the choir and the choir needs to learn a NEW TOON!