Ok, so I’m totally prepared for the backlash from Realtors on this post.
So please, if you’re a Realtor, just bear with me for a minute...
We are all guilty...
We're guilty of not challenging the status-quo; tending to always choose the path of least resistance.
After all who can blame us? Our lives are extremely busy.
We're so busy that we really don't have the time to challenge someone's opinion of the way something should be done.
After years researching home sellers, I've spoken with maybe 4 or 5 who actually had the time to devote 100% to the process..
So by my accounts, that puts the majority at the will of trusting someone else to at least advise them on what to do.
Before I continue, let's have a look at this "process", shall we?
According to the National Association of Realtors, the typical home seller over the past year was 55 years old, had a household income of $103,300.
Having a household income of that level is substantial and would no doubt require a significant amount of time sustaining employment to maintain that quality of living.
Now, what happens when these home sellers are ready to put their home on the market?
Let’s break down the common methods used by real estate agents to list a home for sale.
1. Get you (seller) to sign an exclusive listing agreement.
Despite what you've heard, this is the MAIN focus of any real estate agent.
Making an appointment with you to enter your home and provide "helpful" information has one main objective - to get the listing.
This ensures that the agent will be paid a commission (by you, the seller) for their efforts, or be paid even if someone they did not refer to you buys your home.
Remember, most agents do spend a substantial amount of money and time on a listing, so they do deserve to be compensated for this time.
However, as we all know, not all agents are created equal and the exclusive listing agreement ensures that these bad agents get paid as well.
Not only this, but this agreement is more or less an insurance policy that states they WILL be paid regardless of what price your home actually sells for.
So beware of agents who over-promise on the asking price to get the listing signed, then ask for multiple price reductions later.
2. They promise to utilize a variety of marketing strategies to bring exposure to your listing
In relation to getting the listing signed, your agent has a responsibility to deliver on all the marketing promises made to you.
Most top agents are really good marketers and can do a great service to your home.
However, you are taking a risk in trusting the agent will follow through with their marketing promises and not under-deliver.
Remember, you are super busy...do you really have time to monitor what they are doing on the marketing front?
3. They coordinate and host Open Houses and Broker’s Open events
This is viewed as necessary to allow for potential buyers to view the inside of the home and neighborhood.
Let's revisit the "typical home seller" data for a moment..
According to the National Association of Realtors the typical seller year was 55 years old and has a household income of $103,300.
Now I ask you: Do you think a person who is 55 years old with a household income of $103,300 would have some nice possessions in their home?
How about a savings account, a nice car, jewelry, high-end devices/electronics, etc.
Trusting that your Realtor will uphold strict confidence and proper security measures when opening up your home to strangers, is.....well......it certainly poses a risk.
Enter the Uber-ification of Real Estate
Compass, Redfin, Open Listings, HomeLight, SideDoor, DoorMat (just kidding), etc.
There has been an explosion of real estate related startups within the last 3-5 years.
It's nice to have a breath of fresh air in the industry and some of these ideas are remarkably good for sellers.
- Flat rate commissions
- Reduced commissions
- Not centrally located
- Technology driven
However, like everything else, they do have their flaws..
- They are backed with venture capital and are aggressively entering markets by incentivizing real estate agents (using cold-hard cash)to join their brokerages.
- They are sometimes inexperienced in the areas in which they are attempting to dominate.
- They have a non-recognized brand name (especially to older home buyers).
So, what's the point of all this?
What is the point of listing agreements, real estate marketing, open houses, broker’s opens, fancy drone videos, etc?
I'll tell you…
TO FIND BUYERS...That’s it.
It’s not to chit-chat with the neighbors..
It's not to entertain a bunch of looky-loos who come into your home and eat all the food at your Open House..
It's to locate highly-qualified, motivated home buyers. Period.
When we set out to build Duvora, we had only one mission we wanted to accomplish:
"To cut out all the bullsh*t and deliver qualified home buyers directly to home sellers, at zero cost."
We are on a mission to empower sellers with the tools they need to find buyers with just a few clicks, and make it as easy as shopping on Amazon.
Here's how it works..
Search for home buyers on our site who are looking for homes which best match yours. You can search by price range, neighborhood, desired bed/bath count, desired square footage and more. You can even search for buyers who are purchasing with Cash, Bank Loan, 1031 Exchange, etc.
If the buyer has an agent, you can contact the agent directly. If the buyer is not represented, then you can send your property details directly to the buyer!
If the buyer is interested in your property, they (or their agent) will contact you privately to set up a private showing.
While most of the buyers on our site are working with an agent, there are a growing number who are not..
This means that you are free to submit your home details to them and they will reach out to you if they are interested.
In this case, there would be zero commissions paid by you, the home seller.
Real estate is changing.
It's changing almost by the minute as technology makes us more connected and more empowered to make our own decisions.
Duvora® is a real estate matching engine that adapts to your style, needs and personality while connecting buyers, sellers and agents together in seconds.
Learn more at http://duvora.com