The One Real Estate Broker in America Who Gets It

Good news: There’s a real estate broker in America who gets it. They actually have the courage to talk about the “elephant in the room” right on their website. They have the courage to pose the most uncomfortable of questions: Why does it cost so damn much money to sell a home in 2016?

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Who is this broker? Trelora. And they are the future of real estate brokerages. Here’s their crazy idea: one flat fee of $2,500 for both the listing agent AND the buyer’s agent. And while these low fees will undoubtedly incur the wrath of the real estate community and incite serious buyer steering, in hot real estate markets like we have today, it may not matter.

Bad news: Trelora is only available in Colorado right now.

Are they courageous or just plain smart?

As home sellers become comfortable with the newly-available technology and information, they will ask the same question posed above, and more and more of them will find themselves hiring the Treloras of the world.

You see Trelora isn’t so much courageous as they are smart. There is a land grab for highly intelligent and motivated home sellers who refuse to play by the old rules and Trelora intends on getting their unfair share.

Soon, there will only be two kinds of real estate brokerages in America: the Treloras and the out-of-business.

You go Trelora.

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.

Robot Outperforms Realtors Finding Homes Buyers Prefer

In the “nothing can take the place of an experienced realtor” category comes this story from Inman News. Over three days a robot (aka a computer algorithm) competed head-to-head with three highly experienced Denver real estate brokers to see who recommended homes a buyer most preferred. The buyer consistently ranked the homes suggested by the algorithm as their first-choice favorites all three days.

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When the robot can open the door, what will be left for the buyer’s agent to do but collect the commission?

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.

For Sale By Owner: The Missing Ingredient

There must be a hundred new companies exploiting technology to try and do away with real estate agents. And no matter what they call themselves, they are all essentially the same thing: For Sale By Owner (FSBO) platforms. Let our technology help you sell your home without a real estate agent.

FSBOThere is little doubt that the days of real estate agents are numbered, if for no other reason than millennials detest the thought of using them. But until that day, savvy home sellers will try and sell their homes without an agent using these new services. And regardless of how well thought out or comprehensive these new services are, all the home sellers will struggle to sell their home because of one very low tech, missing ingredient: a home showing service.

What is a home showing service? A company that helps For Sale By Owners sell their home by showing it to prospective buyers.

You see, no matter how high tech and online the home selling process becomes, home buyers still want to get inside the home to see it and they want to do so WITHOUT the home owner there. Showing prospective buyers a home, whether at an open house or one at a time, is a job usually performed by the listing agent working for the home seller.

For Sale By Owners don’t have a listing agent to help them show their home so they try and perform that service themselves, but that’s a mistake because it scares some buyers away.

The advantage of a home showing service is that it appears to prospective buyers that the home is represented by a real estate agent. There is a For Sale sign out front with a phone number to call to arrange an appointment to see the home. When the buyer calls that number to arrange to see the home, a person professionally dressed and knowledgeable about the home meets them there to let them in and to answer any questions they may have about the home. A good home showing service can even pre-screen buyers to make sure only serious ones get in to see the home.

The real trick to selling a successful FSBO is making sure it doesn’t look like a FSBO. And unlike a real estate agent, who expects a percentage of the home’s selling price, a home showing service can provide their service for a small, flat fee.

A home showing service is the low tech solution to propel residential real estate into the 21st century. Who wants to start one?

 

 

 

 

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.

Does Your Realtor Expect You to Buy Them a New Lexus?

This is the Lexus RC coupe. It retails for $39,995. And it’s gorgeous.

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This is a starter home in Southern California. It has 1155 square feet, is 60 years old and retails for $800,000. And the crazy thing is, if it’s priced properly, it well sell in about 2 days, the demand is that great.

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If you hire a Realtor to help you sell this home, they will likely try and convince you that the cost for their services is that brand new Lexus. No matter how quick the home sells.

The truth is, if you’re going to sell an expensive home today, someone is going to get a brand new Lexus. The only choice you have to make is who, you or your Realtor?

 

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.

The Great American Real Estate Ripoff

If you sell your $300,000 home in the US or Canada today, you can expect to pay real estate commission of around $18,000 (i.e., 6%). However, if you’re fortunate enough to sell that same home in say the UK or Australia, you will only pay about $4,500 in commission. Have you ever wondered what the American home seller gets for that extra $14,000? After all, homes seem to sell just as easily in other countries as they do here.

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The answer to the question, what does the American home seller get for that extra money is simple. Nothing. It’s con, a fraud, a ripoff. Chang-Tai Hsieh of the University of Chicago has another name for it: social waste. Whatever.

Economists are generally at a loss to explain why this ripoff persists in the Internet age with unrestricted access to home information, but I think the explanation is pretty simple. A long time ago someone got the idea that American home buyers are so clueless and scared about buying a home, that they should have a real estate agent help them AND the seller should pay for that hand-holding. Brilliant.

How much would a buyer’s agent make if the buyer had to pay? Nothing. We know that because in countries where the buyer is expect to pay for their own agent, there are almost no buyer’s agents. Hey, if a buyer has an extra grand in their pocket, it’s going to a bigger down payment on a nicer home, not to some real estate agent. If they have to pay for an agent themselves, somehow buyers figure out how to buy a home on their own.

To make matters worse, what’s become abundantly clear in this age of high tech home buying and selling, is that buyer’s agents don’t even need the commission that the sellers pay. Buyer rebates, where the buyer’s agent gives half or all of their commission to the buyer, are all the rage today.

Never give a sucker an even break

So, why do home sellers continue to pay for buyer’s agents who clearly don’t need the money? For the same reason Bob the baker pays Vito protection money: extortion. You see, the buyer’s agent may not need the money, but if you don’t offer it, they’ll work like hell to keep their buyer from buying your home. They call this little move buyer steering and according to some Yale economists, it’s very real.

Of course this is not a real estate industry problem, it’s a home seller problem. If I’m a buyer’s agent and a home seller voluntarily offers me money, I’m keeping it. So, what can a seller do to extricate them self from this decades-long ripoff? Alone? Nothing. If you put your home up for sale and request the buyer pay for their own agent, your home will likely sit on the market forever.

But, working in concert, home sellers together can put an end to it today. If all home sellers refuse to pay for the buyer’s agent, homes are still going to get bought and sold, just like they do in every other country where sellers don’t pay. Buyers still want homes, and whether they pay for their own agent or do it themselves, they’ll find a way to buy a home. And then the buyer’s agent’s commission will end up where it rightfully belongs: in the home seller’s bank account.

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.

Another Realtor Spewing BS

Back in the 70s Robert Ringer wrote a book titled Looking Out For Number One. My favorite part of the book is where he talks about the Tend-To Theory. The theory postulates that people who BS a lot eventually tend to believe their own bull as if it were the truth. I think the Tend-To Theory applies to a lot of people in the real estate industry. Perhaps it’s a survival mechanism.

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Case in point. My newest least favorite real estate agent is someone named Sam. He posted an article on Real Estate How titled Why You Should Hire a Home Buyer’s Agent? Yes, yes, I know the title is not actually a question which makes him look like a dope for having a question mark. That’s not the point.

In the article Sam points out three reasons why home buyers should use a buyer’s agent. And what’s the very first one? Because it’s free, of course. He goes on to say, “As the buyer, you will not have to pay your agent’s commission. It is the seller’s responsibility.”

That makes for great copy and I’m sure most buyers (and sellers) believe it, but it’s a lie. It is NOT the seller’s responsibility to pay for the buyer’s agent.

It would be far more honest (and accurate) to say that sellers in the US have been conned into believing they should pay for the buyer’s agent and like lambs being led to the slaughter, most home sellers have neither the wherewithal nor the backbone to question it, so they just pay it. Plenty of homes change hands without the seller paying for a buyer’s agent.

This little custom that’s been adopted in the US and Canada needlessly costs home sellers thousands while leaving buyer’s with compromised representation. When are sellers going to stand up and refuse to pay for buyer’s agents? No other home sellers in the world do, and homes seem to sell just fine everywhere else. I’m waiting.

 

 

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.

The Surprising Reason Why Real Estate Commission is So High in the US

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Selling a $300,000 home in the US costs about $18,000 while selling that same home in the UK costs about $4,500. Did you ever ask yourself what the American home seller gets for that extra $14,000? After all, homes seem to sell just as easily there as here.

Why are commissions so high in the US? Because home sellers pay it.

 

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.