In reference to,'ForSaleByOwner" trying to wrestle their way onto
Realtor.Com:
I don't think anyone is looking at the true motivation of this move. Sellers do not want to pay the high commissions/fees that are charged by Realtors - whether on a 'fee for service' basis, a contingency commission basis, a flat fee, or anything else offered. What part of 'Realtor compensation, as we know it, is TOO HIGH, doesn't everyone understand?
Doesn't it make sense ( not taking ANY real estate model into consideration )
-
For Sellers to advance to the real estate marketing company the costs of advertising, marketing and KNOWING where to place such? As an alternate example, you want your home painted, so the painter agrees to a price, but collects the cost of his EXPENSES up front. If the owner changes their mind about getting painted, the painter has not paid for paint that he cannot use.
We all know that many Realtors promise the moon and the stars at the listing presentation just to get the listing, only to do far less than promised once listed. In a good market, this allows them to 'sell and close' the property before the seller catches on. But, in the market we are experiencing today, sellers need to know EXACTLY what is going to be done to advertise and market their home, and the result demographics of each media selected.
Once offered this 'informed' marketing and advertising package, why should the real estate marketing company PAY FOR IT?
Doesn't it make sense for the seller who wants to get his home sold, pay the expenses, whether it sells or not?
The real estate marketing company can now REDUCE the usually expected 'contingency commission', because a great risk has been removed from the equation. The Buyer Agent commission should remain the same as typically offered in any given area. Why? Simply because the home will be shown and sold at a competitive commission rate. It has been shown that lower offered rates, have a much lower showing rate.
The way most real estate models are today, just does not allow for a reduction in fees. There are just too many hands in the pie. My personal opinion, is that they will rapidly begin to fail as commissions and fees are reduced by DEMAND. Other, not as yet identified, models, will rise to the surface.
By the way, I tried the 'menu' type model, and found that sellers feel 'baited and switched' when they do not get it all for one price, in one package. I certainly do not have the answers, but ForSaleByOwner is trying to lead sellers to believe that they can get coveted coverage in
Realtor.Com, and not have to pay for it.
(market rate contingency commission).
The bottom line is that THEY want to pay less and WE want to be compensated. Discussion?
Deede Wockenfuss
Marketing Manager
480-248-9500
CybrSold
A Frugal Virtual Real Estate Company
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