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 RE: FSBOs Get Agent-free Access to Realtor.com

Created by:
Judi Bryan, Licensed Real Estate Broker,  Carol Stream,  IL

Date: November 13, 2008, Number of Replies: 7


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Steve Ervin writes:
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.
____________________

I'd suggest that one effect it will have is to encourage agents to start using Buyer Agency Agreements including the minimum fee for which they will work...particularly since, as you pointed out, the Seller only has to agree to 1% payout to Buyer's Agent to participate.
What if every listing on Realtor.com offered a 1% commission to buyer's agent? I suspect NAR enrollment would TANK!

JudiB
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Robert King Licensed Real Estate Broker,  Saint Petersburg,  FL

Date: November 15, 2008

JudiB are you saying that 1% is the fee that is required to list a property or gain access?

"I'd suggest that one effect it will have is to encourage agents to start using Buyer Agency Agreements including the minimum fee for which they will work...particularly since, as you pointed out, the Seller only has to agree to 1% payout to Buyer's Agent to participate. What if every listing on Realtor.com offered a 1% commission to buyer's agent? I suspect NAR enrollment would TANK"!
 

 I was not aware of any 1% minimum standard fee!  Is there a mimimum fee to participate?  I was under the impression that selling fees were not advertised over the net!  I've never seen a listing on the net that advertised a selling fee.  Very interesting, this is all new to me.  Are we now disclosing fees over the net?   Sounds like a Paradigm Shift if you ask me. 

I got an idea, what if the listing agents offered $50 as a selling fee over the net and through the MLS!  That might not attract a selling broker but it may be of interest to a buyer.  You could advertise, that if a buyer comes to the listing broker directly that the seller would contribute the selling fee as a token of appreciation for a successful transaction.  That sounds pretty innovative, don't you think.  That way you could "eliminate" the selling agent and save the seller some equity in a down market.  The listing agent could raise the listing fee side of the equation in exchange for such a novel idea, the buyer gets a tip for being cooperative.  I think I'll try that on my next marketing campaign.  I'm going to offer a $50 selling fee and advertise that the seller will contribute the selling fee as a token of appreciation for a successful transaction.  You can do anything on the NET.  You just got to think outside of the BOX.  LOL  Now the only problem the buyer has will be their loyalty to their buyer's agent.  But then again LOYALTY is only enforceable if the buyer's agent has the ***** to litigate the buyer's best interest.  Maybe the time has come for another Paradigm Shift in the Market?  Maybe it's time to eliminate the buyer's agent from the deal in order to consumate the transaction in the interest of the parties.

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Carolyne L Licensed Real Estate Broker

Date: November 15, 2008

Who wrote the paragragh, below in the post, that begins with:
===I got an idea, what if the listing agents offered $50 as a selling fee over the net and through the MLS! That might not attract a selling ====
It is getting more and more difficult to figure out who posts what. Is there a way to clarify? Perhaps a different color use for responses maybe? or a set of stars or some such... no wonder folks are mis-quoted. Just a thought. Carolyne
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Re: RE: FSBOs Get Agent-free Access to Realtor.com
Robert Licensed Real Estate Broker Saint Petersburg, FL
Nov 15, 2008
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JudiB are you saying that 1% is the fee that is required to list a property or gain access?

"I'd suggest that one effect it will have is to encourage agents to start using Buyer Agency Agreements including the minimum fee for which they will work...particularly since, as you pointed out, the Seller only has to agree to 1% payout to Buyer's Agent to participate. What if every listing on Realtor.com offered a 1% commission to buyer's agent? I suspect NAR enrollment would TANK"!

I was not aware of any 1% minimum standard fee! Is there a mimimum fee to participate? I was under the impression that selling fees were not advertised over the net! I've never seen a listing on the net that advertised a selling fee. Very interesting, this is all new to me. Are we now disclosing fees over the net? Sounds like a Paradigm Shift if you ask me.

I got an idea, what if the listing agents offered $50 as a selling fee over the net and through the MLS! That might not attract a selling broker but it may be of interest to a buyer. You could advertise, that if a buyer comes to the listing broker directly that the seller would contribute the selling fee as a token of appreciation for a successful transaction. That sounds pretty innovative, don't you think. That way you could "eliminate" the selling agent and save the seller some equity in a down market. The listing agent could raise the listing fee side of the equation in exchange for such a novel idea, the buyer gets a tip for being cooperative. I think I'll try that on my next marketing campaign. I'm going to offer a $50 selling fee and advertise that the seller will contribute the selling fee as a token of appreciation for a successful transaction. You can do anything on the NET. You just got to think outside of the BOX. LOL Now the only problem the buyer has will be their loyalty to their buyer's agent. But then again LOYALTY is only enforceable if the buyer's agent has the ***** to litigate the buyer's best interest. Maybe the time has come for another Paradigm Shift in the Market? Maybe it's time to eliminate the buyer's agent from the deal in order to consumate the transaction in the interest of the parties.

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John Dupriest Licensed Real Estate Broker,  Penryn,  CA

Date: November 23, 2008

"the traditional Real Estate Model has to change - we have to Cross The Chasm, adapt or die. Most FSBOs I talk to don't need to be sold on offering a commission to the Realtor bringing a buyer - they're already doing it".

---------------------------------

I know I am not unique but I enjoy high loyalty from my clients some of whom have been with me for 20-25 years and have sent countless referrals. And they tell me (and the and the people they refer me to) that it is because of the service I have given them especially on the listing side. For instance our MLS listings allow 12 still photos of the property but many listings have fewer than 12. Some only one. There are even fewer Virtual Tours.

Here are a few of the other things I do:

  1. Property Description - Our MLS allows 500 characters in the description. I utilize every character. I don't short-cut it because what I leave out could be exactly what the potential buyer is looking for
  2. Blocks for Directions and Agent Confidential Remarks - Allow 500 total characters, any leftovers go to marketing.
  3. Attachments - Attach key documents (TDS, Parcel map, Prelim, unique features, termite report, etc.) to the listing. Give the Selling agent all possible tools and assistance.
  4. Direct mail - As soon as the ink dries on the listing agreement I order an Excel csv printout of the 200 properties surrounding the subject and send "Just Listed" postcards. (Total cost including high quality, coated postcards AND including 1st class postage - $105!) Numerous sales and referrals over the years.
  5. We have been using mass E-mail for over fifteen years and during that time have accumulated a list of hundreds of clients, past clients, friends, prospects, agents, brokers and homeowners. Within five days of signing up a new listing we send the full MLS printout to every one of those people. Why all of them? Because almost everyone knows someone who is looking for property or has a friend or acquaintance who knows someone who is looking. And our new listing just might be the one they want.
  6. Craig's List - In addition to an Enhanced listing on Realtor.com, Zillow, Trulia and others we enter every listing on Craig's List every Thursday. You have to reenter due to the movement toward the bottom of the list. We have had successful hits on CL.
  7. Open Houses - We hold two open houses within the first 45 days; one for agents, one for prospective buyers. We will advertise both; to the agents via E-mail, via promotional mention at the Realtor Association meeting, to prospects via our E-mail database and a 2nd color postcard to the surrounding neighbors. It is not unusual for a neighbor to have a friend who "would love to move up here."
  8. Custom Sign Rider - We create a custom rider for each property that simply says; "For details, photos & Virtual Tours email: EnglishColony@DuPriest.com". Go ahead, try it. (BTW it's Pending)
  9. Follow Up - We never underestimate the value of following up on Realtor showings and calls. We do this by collecting Realtor business cards left at the time they show the home. But we do more - We utilize the Supra Lockbox system that records electronically the data of every person that opens that lockbox. That data is transmitted to our computer for follow up to ask the Realtor for their comments/thoughts.

We do more but don't want to take up too much bandwidth. Feel free to plagiarize

John F. DuPriest, Realtor®, e-PRO Certified Internet Expert

Direct: 916/933-2185, FAX:916/663-9366

Email: John@DuPriest.com, Website: www.DuPriest.com

Full time Real Estate Broker in the greater Sacramento area

and the beautiful Sierra foothills since 1972.

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jhuther@gmail.com Licensed Real Estate Agent

Date: November 24, 2008

 

 This has been talked about lots last week.  I thought the conclusion was that FSBO must be with a flat-fee broker to be on realtor.com?

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Jim Lee Licensed Real Estate Broker,  Knoxville,  TN

Date: November 24, 2008

After much discussion and back and forth that is the exact conclusion we arrived at Jon.

There are no unrepresented sellers (FSBOs) on Realtor.com. That would be a violation of the operating agreement NAR has with Move to operate Realtor.com

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Steele Propp Licensed Real Estate Agent,  Minneapolis,  MN

Date: November 24, 2008

This has been talked about lots last week. I thought the conclusion was that FSBO must be with a flat-fee broker to be on realtor.com?

Why presume that? There are any number of companies that now offer menu services as well as "full service".
This could be offered by any company. Literally.
Steele

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Deede Wockenfuss Licensed Real Estate Agent,  Chandler,  AZ

Date: November 24, 2008

John DuPriest writes:

I know I am not unique but I enjoy high loyalty from my clients some of whom have been with me for 20-25 years and have sent countless referrals. And they tell me (and the and the people they refer me to) that it is because of the service I have given them especially on the listing side. For instance our MLS listings allow 12 still photos of the property but many listings have fewer than 12. Some only one. There are even fewer Virtual Tours.

Here are a few of the other things I do:

John, the way you service your sellers is very commendable. Obviously, you are a professional and real estate is your career. I also do most of the items you listed, as well as a few that were not listed. I consider myself a professional and real estate IS my career.

The problem is not with us, but with the UNprofessionals out there that make all of us look like we are not earning our keep. I SO hope that in today's economy, that the UNprofessional agents will be weeded out and that the true cream of the crop remains. I also know that these UNprofessional agents will attempt to crawl back when times are better, just like termites who have been treated. We, professional and career agents should develop and insist on greater education, and accountability for the privilage to be a member of this profession. I am not at all offended to compete head to head with you in this business. However, I strongly resent being forced to compete with UNprofessional agents (and we all know who they are). It really hurts our reputation as an industry, and I hope that after this 'shake down' in the industry, professionalism with reign.

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