Saturday, November 11, 2006

Slow Market Equals Sell Side Competition

Keep in mind that...

"By nature, blitzes are risky endeavors for the defense. Since the defense is taking away coverage defenders that rush the QB, there necessarily are holes in pass coverage. The defense does not and cannot cover all offensive players... Source:

The real estate industry's commission-based sales structure is undergoing a strong linebacker blitz from the increasing group of low-cost online business models to attract consumers. In addition, the Listing Agent (Sell-Side) landscape is even more competitive because most real estate markets are slowing. Owners are now focused on how much money they will recieve after the house is sold and the transaction closed. With a response to the sellers concerns - the playbook of sell-side discounters is continuing to grow with examples listed below:
  • Posting houses in the local multiple listing service for a flat-fee with exposure to (if the local MLS sends feed to the site) ... hmmmm
  • Menu of services such as negotiation of contracts, advertising help, and showings - the seller pays only for the services selected.
  • Yard Signs, Lockboxes and Brochure Boxes
  • Property Profile Webpage with several top Internet classified listings.
  • Offering varying levels of service for fixed fees
Still, owners who are busy and pressed for time or do not want to handle part of the work usually will go with a traditional brokerage. On the other side of the ball, owners who purchased a house at the top of the market really cant afford a 2.5 or 3 percent commision to the sell-side. The house hasn't raised enough in value to cover the expense to offer 6-5% to a Realtor to sell the house.

No comments: