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Zillow CEO: startups trying to disrupt real estate commissions will fail (2012)
111–120 of 329 posts
Re: Zillow CEO: startups trying to disrupt real estate commissions will fail (2012)
#112Real estate agents have three things they offer that until recently you could not get on your own. The first is listing on the MLS. The second is the MLS lockbox so other realtors can easily show the listed house. The third is access to the negotiated forms. All of these you can now get from a startup called Savvy Lane for a flat fee. We listed our house in Portland, paid Savvy Lane $495, and it sold 11 days later. I paid a full 3% to the buyer's agent (the buyer's agent actually plays a bigger role in selling your house than your agent), and still saved like $18k. I'm a big fan of Savvy Lane and hope they do well. Realtors are paid way too much for what they do, particularly on the seller's side.
Re: Zillow CEO: startups trying to disrupt real estate commissions will fail (2012)
#113Over the last two years I've bought a couple of properties and I see the value of realtors as professional negotiators and experts on real estate laws and contracts. That being said, the National Association of Realtors (NAR) and their local branches are the definition of a cartel. My parents owned a real estate agency when I was growing up in the 80s and 90s. Back then, the cost of selling and marketing real estate…
> "That being said, the National Association of Realtors (NAR) and their local branches are the definition of a cartel." NAR was actually investigated by the federal government (FTC i think? ), who concluded much the same, but lobbying buried the report and nothing came of it. MLS's maintain power by strictly controlling access to information. they have the most up-to-date and the most detailed information about prop…
Part of the problem is that most realtors want it that way. I live in Austin, and the push for a few years now has been to have a "silent market" where a buyer picks a "full service" realtor (AKA full commission), and gets a week or so jump on properties being listed in the MLS. This gives them a better chance to get the property before the MLS hordes descend and start bidding it up.
The part I've never understood is, as a seller, why wouldn't I want my property to have the largest exposure and the most interested buyers. Presumably, having people getting into bidding wars for something i'm selling is a benefit.
Re: Zillow CEO: startups trying to disrupt real estate commissions will fail (2012)
#114Earlier quoted context omitted.
I think this is pretty misguided. 3% of $100,000 is $3,000. Many housing purchases will be more than that, but let's just talk over $3k. Some people will be very comfortable with dealing with negotiations, pricing their house (the quasi-ethical can even talk to a few realtors before hand to get their opinion), and doing the paper legwork. Just because someone chooses to use their time and effort rather than forking o…
When you're buying, a realtor will never tell you that you are overpaying -- it would be less commission for them and greater chance the seller will reject or counter the offer which creates more work for them. When you're selling, they will always tell you that you are priced too high. They want a quick sale with minimal work. I've used realtors on the buy and sell side of the first house I owned. I was disappointed…
A good realtor will tell you if you're overpaying, because they want repeat business and referrals. Same for selling.
Re: Zillow CEO: startups trying to disrupt real estate commissions will fail (2012)
#115Earlier quoted context omitted.
> "That being said, the National Association of Realtors (NAR) and their local branches are the definition of a cartel." NAR was actually investigated by the federal government (FTC i think? ), who concluded much the same, but lobbying buried the report and nothing came of it. MLS's maintain power by strictly controlling access to information. they have the most up-to-date and the most detailed information about prop…
Looks like you've got a lot going on but I'd love to learn more about your thesis and thoughts on RE. I'm working on some projects in the area.
i'm a bit rusty on the details, but happy to help how i can. we were looking at the auction model as a potentially viable alternative to the commission model predominant in the US. we found this stranglehold by NAR & it's MLS network to be a key barrier to entry.
Re: Zillow CEO: startups trying to disrupt real estate commissions will fail (2012)
#116That's a bold statement. Still, the NAR has data that suggests realtors are more likely to be involved in transactions than 18 years ago: 87% of buyers purchased their home through a real estate agent or broker—a share that has steadily increased from 69 percent in 2001. Source: National Association of Realtors ( https://www.nar.realtor/research-and-statistics/quick-real-e... ) ... But I'm curious if the definition o…
>I also think realtors have a demographic tidal wave about to hit them, consisting of first-time young home buyers and some slightly older home sellers who are used to online transactions and want nothing to do with realtor-mediated transactions. What platform will facilitate these transactions?
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Re: Zillow CEO: startups trying to disrupt real estate commissions will fail (2012)
#117Over the last two years I've bought a couple of properties and I see the value of realtors as professional negotiators and experts on real estate laws and contracts. That being said, the National Association of Realtors (NAR) and their local branches are the definition of a cartel. My parents owned a real estate agency when I was growing up in the 80s and 90s. Back then, the cost of selling and marketing real estate…
30 years ago in the UK 2 or 3% was the norm one has to ask why it was double
Re: Zillow CEO: startups trying to disrupt real estate commissions will fail (2012)
#118Over the last two years I've bought a couple of properties and I see the value of realtors as professional negotiators and experts on real estate laws and contracts. That being said, the National Association of Realtors (NAR) and their local branches are the definition of a cartel. My parents owned a real estate agency when I was growing up in the 80s and 90s. Back then, the cost of selling and marketing real estate…
Those who are persistent can always eventually find someone willing to sell their property for 3%. That isn't some online discount scam, that's a local realtor with local billboard ads, regular newspaper inserts, and a respectable web presence who is will to take half to do this job. Maybe you're in a hurry, maybe you like gold-plating, maybe you have to use your sister-in-law as a realtor, but if none of those circumstances apply then a 50% discount is well worth pursuing...
Of course it's because of all the efficiencies you mention. Their job is significantly easier than it used to be. They can afford to charge less; they just forgot to tell the general public about that.
Re: Zillow CEO: startups trying to disrupt real estate commissions will fail (2012)
#119"Agents are entrenched, and they will put up a damn good fight to protect their margins" is how I read this. Also this is a PR move for Zillow to tell agents that they're on their side.
Note that this is a 6 year old article. So we really should be discussing how that PR move worked for them. :-)
Also note that a lot of agents, at least in our area, HATE Zillow. I guess I haven't been to a Realtor conference in a couple years, but there were well-attended talks about "how to keep your property out of Zillow". Some Realtors wanted to work with Zillow, but quite a few were trying to keep Zillow out.
Re: Zillow CEO: startups trying to disrupt real estate commissions will fail (2012)
#120I've bought and sold on separate occasions through Redfin and saw no difference between their service for 1% and my previous transactions with a traditional realtor for 5%. They both took me around to see properties, provided neighborhood and property insights, acted as my negotiating proxy, and guided the closing process. I don't understand how Redfin can charge so little, but as it stands today I wouldn't dream of…
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