What if Your Real Estate Start Up Already Exists?

There’s a new real estate start up called Bid For My Listing promising to save home sellers money by getting agents to compete for their business.

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There are only two problems with this new start up. First, the idea of getting agents to compete for a seller’s listing has been around for over a decade in the form of Hungry Agents. Of course it is hard to get PR for a 10 year-old company.

The other problem with this start up is that their business does not work. How do I know? Just head on over to Hungry Agents. They “brag” about the low commission the user’s of their site receive. With just a quick glance, 4.5% seems to be about the average commission.

That does not save anybody any real money. All a home seller has to do is head on over to Redfin. The agents there will be happy to take your listing all day long for 4.5%. No negotiating, no competition, just sign on the dotted line.

You don’t save serious money letting agents decide what you should pay them to sell your home. You save serious money by telling agents what you will pay them to sell your home and the let interested ones come to you. I cannot wait until I see that start up.

 

 

To learn how to keep more or your hard-earned equity when you sell your home, check out The Intelligent Home Seller eBook and The Intelligent Home Seller eCourse.

Just What the World Needs–Another Ineffective Real Estate “Disruptor”

If I had a dollar for every start up that thinks they will disintermeidate the residential real estate industry I could retire. The latest to throw their hat in this crowded ring is REX, or Real Estate Exchange.

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And what does REX promise? To do away with real estate agents altogether, to use technology to simplify the process, blah, blah, blah and only charge the home seller a 1% commission.

Does it not occur to organizations like REX that there are over a million real estate agents that do not want to be done away with? Does it not occur to them that buyers and sellers are terrified of the process, and with few exceptions voluntarily choose to work with real estate agents? Does it not occur to them that the agents will go out of their way to see to it that they fail? Apparently not.

Did you know “90% of home buyers start their search on line” reads their website popup? Duh. Everyone knows that. It is the most oft quote statistic there is. But what REX apparently doesn’t know is that approximately 90% of home buyers opt to have their hand held by a real estate agent when they get serious about buying. And those real estate agents expect to get paid…3% commission…by the seller.

So, if I use REX to sell my home, I still have to pay 4% commission AND I have pissed off every agent in my neighborhood. Nice.

To truth is, until real estate services get unbundled and sellers are no longer expected to pay for their buyer’s agent, nobody is saving home sellers any serious money. I don’t care how slick is your website, technology or app.

The root of this problem is buyer steering, and so far I haven’t seen a single technology-based solution to solve it. But if someone does, that will be a start up I can get behind.

To learn how to keep more or your hard-earned equity when you sell your home, check out The Intelligent Home Seller eBook and The Intelligent Home Seller eCourse.

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To learn how to keep more or your hard-earned equity when you sell your home, check out The Intelligent Home Seller eBook and The Intelligent Home Seller eCourse.