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Gena Riede, Real Estate Pro in Sacramento, CA

Do you think that Real Estate discounters are affecting the Real Estate market?

Asked by Gena Riede, Sacramento, CA Thu May 17, 2007

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They are having a marginal affect on the market, far out of proportion to the press they receive. An interesting event just occurred wherein Redfin was fined $50,000 and ordered to alter the reporting on their blog. The story is below:
2 votes Thank Flag Link Thu May 17, 2007
Roberta Murp…, Real Estate Pro in San Diego, CA
MVP'08
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"Discount" real estate firms have been around forever. There are many different models in this business and there have been for a long time. Both sellers and buyers have lots of options for different types of service from real estate professionals. I don't really like the term "discount" because there are no set prices in this industry. Each brokerage sets its own fee structure, including the 'discount' brokerage.
2 votes Thank Flag Link Sun May 20, 2007
Maureen Fran…, Real Estate Pro in Birmingham, MI
MVP'08
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well, sure they are, but I bet you'll get different answers on whether they're changing it for the better or worse. I think we'll look back one day and see that they forced our industry to reevaluate what and how we answer the needs of our clients. The competition of the marketplace has brought forth technologies and services that would never have existed were in not for innovative responses to the demand for a variety of fee structures. I vote yes, they are affecting the market and I say for the better.
Web Reference: http://LivingCharlotte.com
1 vote Thank Flag Link Thu May 17, 2007
No. like the answer below, it makes my job easier. Once a prospect lists and expires with them, it's easy for me to get even 7%.
0 votes Thank Flag Link Wed Sep 26, 2007
Personally, I love the limited service brokers because they make my job easier. When I go on a listing presentation and the sellers are also talking to one of those guys, I bring market statistics with me. The statistics have always showing longer time on the market, a lower average sale price, and more expired listings than full-service firms. They're not eroding my market share, so it works for me.
0 votes Thank Flag Link Tue Jul 17, 2007
What most people don't understand about "discount" brokerages is that they are not full-service providers. Many people want the services of a full-service brokerage but want to pay discount prices. It just doesn't work that way. Discount pricing also means limited services. Let's take the extreme, a home-owner pays someone to list his/her property on the MLS for a flat fee. The responsibility to hold open houses, advertise, print up flyers, buy and install a For Sale sign, make appointments to show the property when the buyers are available, sit open houses, etc, etc, etc, NOT TO MENTION THE LIABILITY ASSOCIATED WITH PROPER DISCLOSURES, falls squarely on the home seller's shoulders. Think of it this way, if you were going in for surgery, would you ask for a discount doctor? Or ,if you were being sued by someone for everything you had, would you want to be represented by a discount lawyer? More to your point about discount brokerages affecting the real estate market...no, not in the way you may think. Discount brokers typically do well in a hot sellers' market because it doesn't take much to sell a home. However, they tend to close up shop in a buyers' market because it takes a marketing plan to effectively sell a home. Something discounters are not prepared to do.
0 votes Thank Flag Link Mon Jul 16, 2007
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