Comments on: Boston Goes Flat Fee (for some) http://thefrontsteps.com/2008/01/19/boston-goes-flat-fee-for-some/ Real Estate, Insight, Statistics, Gossip, & News...With a Twist and Some Flavor Mon, 21 May 2012 00:11:30 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: TRE http://thefrontsteps.com/2008/01/19/boston-goes-flat-fee-for-some/comment-page-1/#comment-3779 TRE Mon, 28 Jan 2008 02:32:56 +0000 http://thefrontsteps.com/2008/01/19/boston-goes-flat-fee-for-some/#comment-3779 My money is already with David ;) My money is already with David ;)

]]> By: ResortAtSquawCreek http://thefrontsteps.com/2008/01/19/boston-goes-flat-fee-for-some/comment-page-1/#comment-3758 ResortAtSquawCreek Sat, 26 Jan 2008 12:02:31 +0000 http://thefrontsteps.com/2008/01/19/boston-goes-flat-fee-for-some/#comment-3758 David will win. Rates are coming down, which is great for buyers and sellers. David will win. Rates are coming down, which is great for buyers and sellers.

]]> By: Anthony Longo http://thefrontsteps.com/2008/01/19/boston-goes-flat-fee-for-some/comment-page-1/#comment-3760 Anthony Longo Thu, 24 Jan 2008 22:40:18 +0000 http://thefrontsteps.com/2008/01/19/boston-goes-flat-fee-for-some/#comment-3760 David & Goliath? David & Goliath?

]]> By: John K http://thefrontsteps.com/2008/01/19/boston-goes-flat-fee-for-some/comment-page-1/#comment-3761 John K Wed, 23 Jan 2008 18:06:19 +0000 http://thefrontsteps.com/2008/01/19/boston-goes-flat-fee-for-some/#comment-3761 One of the big barriers to the variety of pricing schemes is the big agencies. Try telling your boss at Coldwell Banker that you'll be rebating your next buyer client 95% of your commission. "Don't let the door hit you in the butt on your way out the door." If agents started rebating all their commissions, the big guys would be out of business. Coldwell Banker takes 50% of a new agent's commission, PLUS a 6% marketing fee. Right off the top. Sotheby's, not much better. Keller Williams - 70% off the top, until you make them 30k. That's insanity. Especially if you're a buyer's agent. One of the big barriers to the variety of pricing schemes is the big agencies. Try telling your boss at Coldwell Banker that you’ll be rebating your next buyer client 95% of your commission.

“Don’t let the door hit you in the butt on your way out the door.”

If agents started rebating all their commissions, the big guys would be out of business.

Coldwell Banker takes 50% of a new agent’s commission, PLUS a 6% marketing fee. Right off the top. Sotheby’s, not much better. Keller Williams – 70% off the top, until you make them 30k.

That’s insanity. Especially if you’re a buyer’s agent.

]]> By: TRE http://thefrontsteps.com/2008/01/19/boston-goes-flat-fee-for-some/comment-page-1/#comment-3763 TRE Wed, 23 Jan 2008 15:16:02 +0000 http://thefrontsteps.com/2008/01/19/boston-goes-flat-fee-for-some/#comment-3763 ps. real estate cafe, sorry i didn't mention you in my previous email ... i have known of your biz and am impressed with your niche and ideas :) we should meet up sometime and talk shop! ps. real estate cafe, sorry i didn’t mention you in my previous email … i have known of your biz and am impressed with your niche and ideas :) we should meet up sometime and talk shop!

]]> By: TRE http://thefrontsteps.com/2008/01/19/boston-goes-flat-fee-for-some/comment-page-1/#comment-3762 TRE Wed, 23 Jan 2008 15:12:15 +0000 http://thefrontsteps.com/2008/01/19/boston-goes-flat-fee-for-some/#comment-3762 exactly ... They are still % based so their representation is almost identical to traditional brokers they are just charging less. Not to mention they still have a relation with the sell side - they take listings - so, they can't ever be a true niche agency as long as there is that conflict of interest. They were born from the tech end of the business - trying to deliver the best online search tools - and have now switched gears and really focused on the agency side. All the press comes from the VC $ they took very early. i believe over the course of the last 2 years (?) they have raised (and almost spent) somewhere close to 10 million and that = large ad pockets. redfin is a good company ... i love the introduction of change within this business but their idea isn't unique and it is certainly easy(ier) to duplicate. exactly … They are still % based so their representation is almost identical to traditional brokers they are just charging less. Not to mention they still have a relation with the sell side – they take listings – so, they can’t ever be a true niche agency as long as there is that conflict of interest. They were born from the tech end of the business – trying to deliver the best online search tools – and have now switched gears and really focused on the agency side. All the press comes from the VC $ they took very early. i believe over the course of the last 2 years (?) they have raised (and almost spent) somewhere close to 10 million and that = large ad pockets.

redfin is a good company … i love the introduction of change within this business but their idea isn’t unique and it is certainly easy(ier) to duplicate.

]]> By: Intrigued http://thefrontsteps.com/2008/01/19/boston-goes-flat-fee-for-some/comment-page-1/#comment-3780 Intrigued Wed, 23 Jan 2008 04:46:48 +0000 http://thefrontsteps.com/2008/01/19/boston-goes-flat-fee-for-some/#comment-3780 So what RE Cafe, TRE, and Condodomain are saying is that what Redfin is doing is hardly unique? Then why all the press? So what RE Cafe, TRE, and Condodomain are saying is that what Redfin is doing is hardly unique? Then why all the press?

]]> By: RealEstateCafe http://thefrontsteps.com/2008/01/19/boston-goes-flat-fee-for-some/comment-page-1/#comment-3781 RealEstateCafe Wed, 23 Jan 2008 04:18:51 +0000 http://thefrontsteps.com/2008/01/19/boston-goes-flat-fee-for-some/#comment-3781 Historical footnote: The Real Estate Cafe has offered a menu of fees and rebates in Boston since opening in 1995. When we first opened, I believe we offered two flat fees, plus our preferred method of compensation: hourly fees paid as services are rendered with a 100% rebate of the buyer agency fee! See WSJ article: Cutting the Commission http://webreprints.djreprints.com/1010850475994.html Over the past 12 years, our fees RARELY exceed $5,000 but we respect a consumer's right to OVERPAY us, so we reintroduced that flat fee, plus a $3,000 plus performance bonus option in March 2007 with a "cause marketing" twist. We let buyer select from our current Menu of Fees & Rebates... http://tinyurl.com/yp9kug ...or propose their own fee / rebate combo! Like Burger King, we think home buyers should "Have it your way!" Historical footnote: The Real Estate Cafe has offered a menu of fees and rebates in Boston since opening in 1995. When we first opened, I believe we offered two flat fees, plus our preferred method of compensation: hourly fees paid as services are rendered with a 100% rebate of the buyer agency fee! See WSJ article:

Cutting the Commission

http://webreprints.djreprints.com/1010850475994.html

Over the past 12 years, our fees RARELY exceed $5,000 but we respect a consumer’s right to OVERPAY us, so we reintroduced that flat fee, plus a $3,000 plus performance bonus option in March 2007 with a “cause marketing” twist. We let buyer select from our current Menu of Fees & Rebates…

http://tinyurl.com/yp9kug

…or propose their own fee / rebate combo! Like Burger King, we think home buyers should “Have it your way!”

]]> By: TRE http://thefrontsteps.com/2008/01/19/boston-goes-flat-fee-for-some/comment-page-1/#comment-3783 TRE Tue, 22 Jan 2008 21:59:01 +0000 http://thefrontsteps.com/2008/01/19/boston-goes-flat-fee-for-some/#comment-3783 Chantel, just because your client left you for another agency has no bearing on the flat fee buyer brokerage or even discount brokerage operations. The real estate industry is plagued with unethical behavior, most of which stems from the way traditional agents get paid ... the stories are endless and they have no relation with TRE's new business model. We are buyers' brokers, not just independent contractor real estate agents. So, the question is, what will you do about it? How will you earn your full commission (whatever that may be) with these new flat fee models slowly infiltrating and changing (for the better) the industry? Chantel, just because your client left you for another agency has no bearing on the flat fee buyer brokerage or even discount brokerage operations. The real estate industry is plagued with unethical behavior, most of which stems from the way traditional agents get paid … the stories are endless and they have no relation with TRE’s new business model. We are buyers’ brokers, not just independent contractor real estate agents.

So, the question is, what will you do about it? How will you earn your full commission (whatever that may be) with these new flat fee models slowly infiltrating and changing (for the better) the industry?

]]> By: TRE http://thefrontsteps.com/2008/01/19/boston-goes-flat-fee-for-some/comment-page-1/#comment-3782 TRE Tue, 22 Jan 2008 21:50:09 +0000 http://thefrontsteps.com/2008/01/19/boston-goes-flat-fee-for-some/#comment-3782 Condo domain is not the first flat fee buyer agency in MA. TRE was the first movers - WWW.Territoryre.com - proving there is definitely room for a flat fee buyer brokerage in all markets (except those states that consider rebates illegal, which will change soon). CD and TRE business models offer a better and cleaner way to represent home buyers, it's really the ONLY way to truly represent a home-buyer ... Coming to your town next .... Territory Real Estate Condo domain is not the first flat fee buyer agency in MA. TRE was the first movers – http://WWW.Territoryre.com – proving there is definitely room for a flat fee buyer brokerage in all markets (except those states that consider rebates illegal, which will change soon). CD and TRE business models offer a better and cleaner way to represent home buyers, it’s really the ONLY way to truly represent a home-buyer …

Coming to your town next …. Territory Real Estate

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