Will the future of real estate include more unrepresented buyers
There are a lot of commission models in real estate today besides the traditional co - broker commission offered in the MLS. There are flat fees for menu services provided, commission rebates, retainers, service fees and others.
But since some people might not know, here is a brief explanation of how real estate commissions work and who pays. The seller of a home negotiates with the listing agent who agrees to share the agreed upon commission between the listing broker and the selling broker.
And you might think that the buyer doesn't pay to use a real estate agent except that the seller pays the commission from the proceeds of the sale brought to closing by the buyer and the mortgage.
Now to the story.
Ardell wrote about a savvy home buyer who saved 83% of the buyer agent fee by using Trulia Voices.
I plan on making a $1M offer on a home in Queen Anne. I found the property myself. Was shown the home by the listing agent. She does not have a claim for procuring cause, as I told her I was working with an agent when she showed me the property. I am looking for an agent to write up my offer and take the transaction through closing. The offer will be cash, with only the standard inspection contingency. At closing, you will refund the entire 3% co-broker fee to me minus a flat fee of $5K. We will be asking for closing within 2 weeks. Who wants to make an easy $5k?
Ardell's bottom line
For anyone wondering what “The Future of Real Estate” is going to look like, this just might be a peek into the future. The possibilities are endless. It’s a great time to be a participant in the changes afoot for consumers in the real estate arena.
And a final comment from "Patrick", the buyer
And for those of you who continue to tell us buyers that “you don’t pay the commission” and “commissions are not negotiable,” this thread alone has proven otherwise. Most agents get it, some still do not, and may never.
Read all the comments on Trulia Voices.
OK, I get it.
Some people seem to think that real estate agents are an overpaid breed who do nothing to earn a commission and want to eliminate them from the real estate equation. Some want to do it themselves. Some want to deal directly with the listing agent and not bother using a buyers agent. Some people don't care if they get involved in single agent dual agency (don't get me started on that one) where neither party is effectively represented.
But in the end, it's all about the home and the job of a real estate professional is to help their client either buy or sell successfully and earn an agreed upon amount of compensation for the effort that they put forward.
I've been asked to perform limited service for a fee and I've been asked to rebate commissions and I'm agreeable to either depending on the scope of time and services required.
But I would suggest that if this is the future of real estate, it's not for everyone and in some cases, it will result in some unhappy DIY consumers.