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Amazon to shut down its Amazon Restaurants business in the U.S.

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Re: Amazon to shut down its Amazon Restaurants business in the U.S.

#51

Post by dagw »

sokoloff wrote: post #29
civility wrote: post #13

Earlier quoted context omitted.

Redfin looks like they're trying to be a "discount agent". Here is a quote from their front page: > We're full-service, local agents who get to know you over coffee and on home tours, and we use online tools to make you smarter and faster. This isn't what I had in mind at all, and I'm not surprised they have trouble getting traction with that approach. If they save you 1.5% on your half, but the other agent still get…

> There is no reason home sale paperwork should cost thousands of dollars to process. Someone like Amazon could eliminate agents altogether. It’s a mistake to think that the real estate commission is primarily for paperwork or executing transactions that would have happened anyway. I brought my house to our agent and pushed the sale through. That’s probably a rarity when I think about all the time friends of mine hav…

In Sweden agents that help with house hunting basically don't exist outside the very very top end of the market. Everybody finds their own houses via ads, book their own viewings with the sellers agent and handles the bidding process themselves. When it comes to paper work the buyer and seller "shares" the same agent who has a fiduciary duty to both parties (even though they're paid by the sellers). With the internet being what it is people should be able to "hunt" their own houses and set up their own viewings.

Re: Amazon to shut down its Amazon Restaurants business in the U.S.

#52

Post by sokoloff »

dagw wrote: post #51
sokoloff wrote: post #29

Earlier quoted context omitted.

> There is no reason home sale paperwork should cost thousands of dollars to process. Someone like Amazon could eliminate agents altogether. It’s a mistake to think that the real estate commission is primarily for paperwork or executing transactions that would have happened anyway. I brought my house to our agent and pushed the sale through. That’s probably a rarity when I think about all the time friends of mine hav…

In Sweden agents that help with house hunting basically don't exist outside the very very top end of the market. Everybody finds their own houses via ads, book their own viewings with the sellers agent and handles the bidding process themselves. When it comes to paper work the buyer and seller "shares" the same agent who has a fiduciary duty to both parties (even though they're paid by the sellers). With the internet…

Not everyone is internet savvy. Not everyone knows what they want. Not everyone knows what they can afford. Not everyone comes from a history of property ownership. Some people need assistance on things that others can self-serve.

Re: Amazon to shut down its Amazon Restaurants business in the U.S.

#53

Post by civility »

sokoloff wrote: post #29
civility wrote: post #13

Earlier quoted context omitted.

Redfin looks like they're trying to be a "discount agent". Here is a quote from their front page: > We're full-service, local agents who get to know you over coffee and on home tours, and we use online tools to make you smarter and faster. This isn't what I had in mind at all, and I'm not surprised they have trouble getting traction with that approach. If they save you 1.5% on your half, but the other agent still get…

> There is no reason home sale paperwork should cost thousands of dollars to process. Someone like Amazon could eliminate agents altogether. It’s a mistake to think that the real estate commission is primarily for paperwork or executing transactions that would have happened anyway. I brought my house to our agent and pushed the sale through. That’s probably a rarity when I think about all the time friends of mine hav…

I've bought 3 homes now and sold 2. There was no "house hunting" process. I went online, looked at photos, and made an offer - same as you.

On my second home, I told the realtor exactly what I wanted and where. She failed to find it in her search (she did a zip code search instead of looking at the map), so I showed her the listing I wanted to see. There was no extra value to justify 3% of a sale for hundreds of thousands of dollars.

As for the seller's agent? They put the listing on MLS and have a token "open house" for a couple hours on one day. If you're lucky, they get a professional photographer and print a few brochures for the walk throughs.

> People seeking to disrupt the “fill out the final transactional paperwork” part of real estate need to figure out how to disrupt the whole value chain, not just the part that looks outrageously overpriced.

Why is that? Why not focus on fixing the worst part of the problem?

Re: Amazon to shut down its Amazon Restaurants business in the U.S.

#54

Post by civility »

sokoloff wrote: post #52
dagw wrote: post #51

Earlier quoted context omitted.

In Sweden agents that help with house hunting basically don't exist outside the very very top end of the market. Everybody finds their own houses via ads, book their own viewings with the sellers agent and handles the bidding process themselves. When it comes to paper work the buyer and seller "shares" the same agent who has a fiduciary duty to both parties (even though they're paid by the sellers). With the internet…

Not everyone is internet savvy. Not everyone knows what they want. Not everyone knows what they can afford. Not everyone comes from a history of property ownership. Some people need assistance on things that others can self-serve.

Yes, not everyone can read or use a computer. And yet almost everyone pays for all those realtor services they don't need or even use.

Re: Amazon to shut down its Amazon Restaurants business in the U.S.

#55

Post by ezzaf »

chrisseaton wrote: post #48
bobthepanda wrote: post #38

Earlier quoted context omitted.

The main problem is that kitchens operate with dirt cheap labor costs. In a market like New York, all those cheap hole in the walls are paying their workers cash under the table and running with razor thin margins. It’s one thing to target a cushy market like bookstores, but restaurants are cutthroat, and on top of that meal kit customers are fickle.

> a cushy market like bookstores Haven’t book stores been in a perilous position for decades?

Yes, and Amazon started selling books in 1995. Ie when it was still a cushy market.

Re: Amazon to shut down its Amazon Restaurants business in the U.S.

#56

Post by akcreek »

chrisseaton wrote: post #50
hbosch wrote: post #27

Earlier quoted context omitted.

I thought about this a lot during our home buying process. Our agent, too, wasn't asked to do much... because we found the house we wanted online, and had our financing, so the agent didn't have to show us any houses or help us along in any way. She just submitted our offer and that was that. I have heard that realtors, like for instance car dealers, simply have a vested interest in middleman-ing the inventory by way…

> so the agent didn't have to show us any houses or help us along in any way. She just submitted our offer and that was that. Why didn’t you submit it yourself and save all that money?

Offering without an agent doesn't necessarily save money. It depends on the details of the seller's listing agreement. It could require dual agency or even without dual agency the listing agent could retain the full commission if there isn't an agent representing the buyer. The commission amount and split details are set in that agreement and the laws vary per state.

Re: Amazon to shut down its Amazon Restaurants business in the U.S.

#57

Post by civility »

prostoalex wrote: post #30
civility wrote: post #4

I wonder if Amazon would ever dive into the home real estate market. With modern day search, realtors provide very little value above doing the paper work, and that seems very automatable. There's just no reason to pay 6% of every house sale to middle men, but that's the way it currently works. A large company like Amazon or Google could make a ton of money at a much lower rate. I think this makes a lot more sense th…

It's expensive to have boots on the ground in every zip code. RedFin hires their own agents full time. OpenListings and Zillow refer online buyers to their affiliated agents who cut them a deal on commission in exchange for leads. You can always list a place with photos and all on Zillow or CraigsList and mention that seller will not pay an agent's commission. End of the day there's a "For Sale by Owner" sign for tho…

> But considering that in the US it's the seller who pays both agents, there are no immediate savings for potential buyers [...]

This is all part of the scam, and I'm surprised more people can't see through it. Five people walk into a room at closing. There are two agents, a title agent, the seller, and the buyer. Only the buyer brings any money - so it's pretty clear who is paying.

Put it another way - if the seller goes with a lower percentage agent, then the buyer keeps more of the offer price, and should therefore accept a slightly lower offer. This saves the buyer money too.

> Among some not so obvious valuable tidbits that the buyer's agent can provide: [...]

And you think that's worth 6% of a house that costs hundreds of thousands of dollars? I think that's insane.

This all sounds like a pitch from a realtor.

Re: Amazon to shut down its Amazon Restaurants business in the U.S.

#58

Post by civility »

prostoalex wrote: post #34
ralph84 wrote: post #32

Earlier quoted context omitted.

Theoretically agents could do these things, but most don't. They want deals to close. Giving you reasons not to buy doesn't close deals. If it turns out you don't like the house they'll be happy to sell it for you later.

It probably varies by the agent, but I have had good experience with a real estate agent being on the buying side. His reasoning was that the seller's agent was on the clock to close the deal on that one property he got assigned, whereas the buyer's agent would make roughly same amount of money on any property I would end up purchasing, so he had no reason to pressure me into closing.

A good conman leaves you feeling that you weren't cheated.

Re: Amazon to shut down its Amazon Restaurants business in the U.S.

#59

Post by C1sc0cat »

solidasparagus wrote: post #43
alaskamiller wrote: post #39

Earlier quoted context omitted.

Yeah it did, and restaurants actually put up stickers for it on their doors! What you're describing is what Travis Kalanick bought and have been building in LA and San Jose since last year. There are other commissary kitchens that's now doubling as virtual kitchens with half a dozen brands sharing utility, equipment and even staff. I'll do you even one better, here's the real future in less than three years: Restaura…

I'm doubtful. No service, low-cost restaurant setups are not a new thing (quick service/counter-based) and full-service restaurants are still everywhere. I don't know if that's because profit isn't overwhelmingly the most important driver when running a restaurant or because restaurants make most profit off of aspects that don't translate to counter-service/delivery, such as drinks. But I would expect these type of v…

Yes where I live in the UK this has been a thing for years one of the oldest Indian's in my town has had a delivery only kitchen for over a decade.

Re: Amazon to shut down its Amazon Restaurants business in the U.S.

#60

Post by r_singh »

solidasparagus wrote: post #43
alaskamiller wrote: post #39

Earlier quoted context omitted.

Yeah it did, and restaurants actually put up stickers for it on their doors! What you're describing is what Travis Kalanick bought and have been building in LA and San Jose since last year. There are other commissary kitchens that's now doubling as virtual kitchens with half a dozen brands sharing utility, equipment and even staff. I'll do you even one better, here's the real future in less than three years: Restaura…

I'm doubtful. No service, low-cost restaurant setups are not a new thing (quick service/counter-based) and full-service restaurants are still everywhere. I don't know if that's because profit isn't overwhelmingly the most important driver when running a restaurant or because restaurants make most profit off of aspects that don't translate to counter-service/delivery, such as drinks. But I would expect these type of v…

100% agreed. I look at these cloud kitchens / no front facing kitchens to only be an efficient, cheap, clean food option like for office lunch, etc. I would much prefer a fine dine / full service front facing restaurant for celebrations and special occasions (even if I'm just ordering in).

However, I can imagine a subset of full service restaurants to be affected because of losing users that are on the fringes.

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