Discount brokerage ZipRealty to shutter offices in 11 markets
Inman News is reporting that discount brokerage ZipRealty is closing offices in 11 markets and will emphasize agent expertise over discounts.
"ZipRealty Inc. is closing company owned and operated brokerages in almost a dozen markets, and will begin emphasizing personalized service and the experience of its agents over the commission rebates and discounted listing fees the company was founded on." (emphasis added) Read more from Inman News (article may be behind the subscription firewall)
While Zip does not operate in the Charleston real estate market, it's interesting to me that seemingly, it's not possible to make money when you give much of your commissions away. Redfin is the last best hope for the discount model but even they are moving toward a more profitable model by using "partner agents" rather than company employees for transactions of less than $300,000 and only rebating 15 percent of the commission rather than 50 percent.
While nobody wants to pay more than they have to and buyers and sellers would like to save money on a real estate transaction, most buyers and sellers seem to rely on finding a quality agent to help them with what is usually referred to as the largest financial decision they will make, namely buying or selling a home.