One of the main arguments that the traditional real estate company is doing against discount, fixed fee and online real estate company is this
Your business can give money back to the consumer, but the consumer loses money overall because you do not know how to cost his home.
Basically, traditional real estate says that discount and discount companies do two things
We recommend our buyers to overpay for the home they buy
We recommend our sellers to sell their home for too little, ie. we list them at a lower price that a traditional real estate agent should
So traditional real estates main argument against the new line of discount and discount based real estate companies is that the consumer ceases to lose money. What?
This argument is so insulting to the average real estate consumer, and so insufficient from a logical point of view that it is difficult to choose a place to start my own criticism.
Lets start with point 1 above our buyers pay for the home they buy. Lets say I represent a buyer to buy a house in Denver. Traditional property would make you think our agents recommend you to submit an offer at its very high just to be accepted and that it does not matter that our buyers get an average 8,000 discount from us because they probably overpaid by more than 8,000 to start with. Good God. This argument requires a few things
That you, the consumer, are not that smart
That I, the agent, is completely dishonest
Traditional property accuses you of being unsophisticated by saying that you would be so clueless when it comes to pricing that only a traditional real estate broker read a real estate agent who takes out 6 percent and does not give a buyer discount has the incredible skill, honesty and Negotiating ability to talk to you to offer a lower price for the home you want to buy. Traditional real estate would make you believe they have a corner in the market for pricing information data and that you better used a traditional real estate agent or you never really know how much a house is worth.
Can you see the incredible dishonesty here? Can we all agree that the Internet revolution has brought something to the public ready access to much information. Do you think you can go out now and find out which homes have been sold in your area? You probably say yes. Many people use websites like Zillow, Cyberhomes, or even their county records to get comparable statistics. I know that many of my clients who are interested in Denver real estate have already done this type of research when they come to me.
But you do not even have to go to these places yourself. You simply need to know that residential data is available. Would not most of you want your real estate agent to present latest sales data before making an offer? Traditional property would make us believe you do not even know enough to request this information.
They would make us believe you are so unsophisticated that unless a traditional real estate agent tells you that you should base your offer on newly sold information that you risk letting a dishonest discount broker write myself an offer that ignores this basic information. Is the typical homeowner uninformed, or is the traditional propertys argument as insufficient and insulting as I previously suggested?
Lets look at item 2 Im dishonest because Im not a traditional real estate agent.
Where do you start with this argument? This indicates that the public image issue of real estate agents is a new development caused by discount and discounted companies trying to lower property costs for consumers. Did you understand that? Traditional property would make you believe that traditional real estate agents were respected by the public until the discount companies came along. Do you think so?
In order for me to execute real estate with this level of dishonesty forcing my customers to list their homes at prices below market value and guide my buyers to buy homes for surplus values, most customers should be completely clueless see paragraph 1. The truth is that most of my customers find me because they do not trust traditional real estate or because they have gone through buying and selling before and realize that there must be a better way than the traditional method.
The truth is that my typical customers know more than the average real estate customer. So point 2 is ridiculous on many levels.
The truth is that traditional real estate is afraid of competition from discounts and discounted companies because they know we are at something. We also know we have this too. And all our satisfied customers can certify our own honesty and incredible cost savings.