Has anyone looked at faira.com? Looks like its trying to eliminate the real estate agents or atleast squeeze down the commisions. Another profession falling victim to technology?
What do agents think?
What do non-agents think?
@Hersh M. Another in the long list of web companies that think they can re-wire the real estate market and human behavior with a spiffy website and an appeal to saving a buck.
Sure, they'll siphon off some business, but companies like these are not a long term play. Sellers who don't get proper representation will end up leaving money on the table. They'll get out-negotiated by professional agents like me, who do this all day, every day.
That word will spread and they'll eventually fade away like last weeks sunset - and so will their investor's cash.
What kind of agent do you think will go to work for a discount brokerage - especially one that claims to charge 1% for their "full service" when most agencies charge 5% - 6%?
Let's do the math - presuming a 50/50 split between the brokerage and agent (my best guess)
Their model: a $400,000 home generates $4,000 in gross commissions and $2,000 for the agent.
A conventional brokerage model: That same property sells at an average commission of 5% , it generates $20,000 in gross commissions and $10,000 for the agent.
So again, I ask you what kind of agent will work for 20% of what he could make elsewhere? A top producing, heavy-hitting, master negotiator who is raking in mid-6 figures or more?
No. Companies like these will attract agents who couldn't make it in the "real world".
When I'm representing a buyer and I'm up against one of these agents, I walk all over them - and my buyers love me for it.
The fundamental issue is that home sales are simply not mechanistic and predictable.
They involve personalities, emotions, finances, legalities, changing goals and dreams and too many moving parts to reduce the transaction to slapping a bar code on a house and selling it on Amazon.
But hey, what do I know? I just do this for a living.
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