Real estate contemplatives couldn’t help but notice SNL saved the best for last. “Donna Lazarini”, a metaphor for the relentless, shameless Realtor millions can relate to. Satire aside, this cute skit exposed an issue, just one of many that will ultimately lead to the extinction of Realtors in the coming years. The Lazarini joke is as relatable as she is ubiquitous. …
Zillow recently made a switch to an IDX feed, to consolidate the thousands of MLS’s they were integrating with.
www.REXhomes.com is not a member of any MLS, nor do their sellers offer the buyer agent any commission. As a consequence, their listings are only displayed on Zillow and Trulia who built a custom bridge to accept their feed, Realtor.com and Redfin do not.
The National Association of Realtors is a trade group, like the American Bar Association, American Nurses Association, or The National Auto Dealers Association (NADA).
Associations use dues from their members to lobby, to protect the industry. It gets questionable when politicians start passing bills that undermine a free market, by preventing competitors or innovative business practices. This is called crony capitalism.
For example, NADA lobbied successfully to prevent car manufacturers from selling direct to consumers in Texas. …
On a Tuesday, Mike McCann, Berkshire Hathaway’s #1 agent, can be seen in a Berkshire Facebook advertisement, enthusiastically praising the firm for its back-end support, incredible culture, etc. Next Tuesday, he is with Keller Williams.
Over millions of generations, precarious environments selected for cognitive attributes that were advantageous to our australopithecine ancestors, but are not at all helpful when encountering 21st century snakes and bad deals. Perhaps you’ve noticed the banks own the tallest buildings in our cities. They are making a fortune that would not be possible without these cognitive glitches. For example, studies show you and I spend more when we swipe a credit card than when we hold the cash. A simple piece of plastic is enough to outsmart us and anesthetize the feeling of paying. Its pretty dumb, but far more…
1. The national presence effect
No flat fee brokerage has a national presence yet. The category isn’t officially installed in the minds of consumers, they are stuck in the introductory phase, only appealing to early adopters, not the mass market.
2. Flat fee firms salary agents, traditional brokerages don’t pay their Realtors.
Traditional brokerages don’t pay Realtors anything, so they can begin doing business before doing any business, allowing them to scale way faster. Flat fee firms have to grow and scale in proportion to profits gained.
3. Only the listing fee is a low flat-fee, these firms still recommend…
Can you identify the issue with the following reasoning?
Realtors when working with sellers:
“Sellers should really leave the house for showings.”
The same Realtors negotiating their commission when working with buyers:
“I deserve a 2.5% commission as the buyer’s agent because I had to show them a bunch of properties before they settled on yours.”
The issue is, Realtors created the very problem they then point at to justify their steep fee. Requiring sellers to leave also requires Realtors open the door.
Bundling is when the consumer is charged for what they want and what they don’t…
Its super cliché to refer to a startup as the Uber of this or the Airbnb of that. If you currently have or can create a shared workspace in your house or building, you can confirm appointments with people who’d like to use it on the codi platform. Although I pay them the compliment of developing something that looks like what Chesky would create for workspace, codi isn’t like Airbnb so much as they are both two-sided marketplaces that create cost and time savings by facilitating peer-to-peer transacting. By undermining middle-men delays and fees you create flexibility and efficiency. …
Airbnb penetrated the short term rental space without having to hurdle over hundreds of thousands of Realtor leasing agents. There is no money in short term leases, therefore there are no middle-men flocking to it. Leasing agents don’t exist in response to a market need, consumers and homeowners are quite capable of transacting directly, as they do on Airbnb’s platform. Sales agents and brokerages show up where there is money to be made, and then crowbar their way in-between transacting parties.
You can stay in an Airbnb for a year, people do it all the time. Its a month-to-month feature…
I used to add miracle grow to data-analytics firms, today Im a Realtor who estimates 5/6% fees will be extinct <5 years. Founding a 2021 alt-brokerage.