This is a Serious Situation for Realtors
Anyone with nothing to lose can join a class action lawsuit. Do they understand the mechanics of companies like Zillow and how they aquire listings? They don’t earn the commision!
I think its important for home sellers to understand that valuation tools using only quantitative data, not qualitative information, such as location (hyper-location, home site situation), condition, amenities, updates, floorplan effectiveness, even the smells surrounding an area. These qualitative features are crucial. My favorite new Zillow example is my new listing at 11562 Seafan Court Indianapolis, IN, which Zillow estimated at $896k before I listed it at $949k. Now they’ve changed the value to $1,001,682. Wow. Check that out. Using an agent on the ground increased Zillow’s estimate by 11%?
My point is that anyone using an online valuation tool to justify their expectations after the fact is just plain irrational.
So, if this passes, this should then open the door to sue for another services the public has paid for and realized later it was cheaper somewhere else??
You discover your local financial planner has charged much more commission for his services over the years compared to an online provider, you realize your local insurance agent has been charging you much more over the past several years for the same insurance compared to an online company, You paid a Lawyer 200 bucks an hour for his services and find out later an online lawyer was only a 100… can we now sue them? When does it end.??
Looking at this as an outsider (Not a Realtor), it appears that certain people are wanting to socialize the MLS and dictate what commissions can be bartered for a real estate transaction. What these idiots are not looking at; The ground work the listing agent does to obtain, market and provide comps, and other services. Not to mention having commission splits if another agent provides a buyer, and broker/desk fees. Do these morons think that this comes all free? Who are the ones that can show this negatively impacted their lives? Did the home sell? Did they pay for all of the marketing, contract negotiation, leg work for all of the closing procedures including the amount of time involved? In my opinion, the people that have merit in this are the real estate agents that provided all of the aforementioned services.Looking at the ROI of some of the transactions I have seen, it is amazing that Realtors are willing to work so cheap… As a home inspector of 22 years, I see all of the work that goes into the process. This looks and smells of a national takeover attempt by a few “Discount and Internet” companies that already take the Realtor’s MLS listing for free, and then sell hot leads back to the same agent for a fee. Just my 2 cents worth
Its about time. It goes just about hand in hand when the comp laws came out for the mortgage industry. It did not make any difference how great your service was, how hard you really had to find a lender for your borrower or how many hours you put into working the loan. You could make at most (after fees, attorney fees etc…) about $500 to $1000 for a 50k loan, but a 500k loan would pay you at least 10 times more with a WHOLE LOT LESS work. Which fee was fair? Well it does not matter what FAIR is to us, like Brian said, its the perception…and perception is reality. So Realtors, Brokers, Real Estate Agents you will now have to work even harder, participate in more transactions to make the same amount of Revenue. Welcome to the new world!
Real Estate is Not Sales…Its consulting.. yes we get paid when a sale is complete; however, truly we are guiding them through a sale that they are unaware of the rights, laws, and ways. Anyone who hires an online real estate company is truly not being guided and could run into many issues that are costly.
The country depends upon us… and going online for everything is a loss to America. America is selling out to lawsuits, saving pennies and not thinking about the future. I pray we all wake up
The “Guys” do not want to go back to what was. What I hear them say is take this seriously and make sure you educate everyone about what we do. Stop focusing on how great we are and focus on the service you provide to buyers and sellers.
We have issues with “discount and internet” brokerages for some time now. Not only is their information grossly wrong on their sites (values for example) but they misinform the public. Periodically, I will see one pop up in our MLS and it will state that the buyer’s agent must call the seller directly to schedule appointments and negotiate. This is a huge liability for agents. This puts us at risk for an accusation of breaching confidentiality even if it never happened. Seller’s trying to save a buck often don’t even realize that they can’t ask the buyer’s agent questions about the contract, process or even updates. This makes us look bad because they think we’re just being difficult but in truth, even answering one tiny question implies an agency relationship with the seller that we do not legally have. These discount companies do not offer any valid services except to place a home in the MLS. There is so much more to a transaction than that. Using a discount brokerage for any service is like having one’s family member to use a butter knife to perform an appendectomy on them. It may be free or less expensive but, believe me, it will be far more painful and expensive in the long run!
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