It seems like companies are throwing darts trying to figure out the next best way to Buy and Sell Real Estate.

Maybe my opinion is based off seeing the houses in and around my market double in some cases. So that is something more than "inflation." But taking inflation into account...Back in the day Realtors were doing a bunch of work to receive 3% of a $100,000 house. Now we (yes I'm a Realtor) are searching online, and doing all paperwork virtually for 3% of a 1,000,000 house.

Just like most other industries, technology has simplified the Realtors work load...yet we are still being paid the same commission percentage as if we were thumbing through the newspaper. Companies and business professionals see the gap in the industry and are trying to fix it. I'm curious to see how this pans out in the next 10 years.

I certainly do not think a Realtor should receive 3% across the board whether it's a $300,000 or a $16,000,000 house. I've had my license for almost 12 years and I own a marketing company that represents brokers and agents, one of which is one of the top 1% producing agents in the US. So I do see the work load between $300,000 listings and $16,000,000 listings (our current most expensive listing)...and it is pretty much the same. Why wouldn't it be the same? I've never told a client "Well...I would market your home more but your home is only worth $300,000."

Aside from ibuying I do see a company in my area that is charging $5,000 upfront + 2.5% (for the buyers agent). I actually like the idea but I think it should be more like $1k to list your house, $4k if it closes then 2% for the buyers agent. And if there is no buyers agent then maybe the listing company works out a facilitator deal where they get an additional $5k at closing. Then the seller is only out $10k. And the seller should be responsible for hiring / paying a photographer off the Realtors recommendation. Meaning "here's a list of photographers I use based on price."

I'm curious if anyone else has seen a company in their area have success using another model for a real estate transaction, because it doesn't seem like one has really taken off yet.

Side Note: I pitched a show to HGTV about this whole topic and called it "Real Estate Rehab" and they passed....shocker lol

submitted by /u/forallthesleep
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source https://www.reddit.com/r/RealEstate/comments/r51ok2/it_seems_like_companies_are_throwing_darts_trying/