Greetings,
On July 3, 2019, the day before independence day, a public company discount broker based in the UK announced they would be leaving the US Market, this is after losing 75% since starting operations in 2017. Additionally, they pulled out of Australia to "focus on the UK market", aka, they are circling the wagons.
Without delving too much into their business model. This is a good example of what happens during 'transitional' years in real estate. Cut rate brokers offer their value proposition as a 'lower fee' or 'rebate commission' rather than knowledge and skill. Based on the price point of real estate being transacted, as well as the increasing costs for materials and labor, the rebate offered can easily be made up for by a competent agent.
Oftentimes, 'commissions' are given other names, such as 'service charge' or 'marketing fees', which, unlike commissions, are due whether or not the home sells. Things to watch out for our industry continues to consolidate, Wall Street money continues to pour in and the buyer base continues to change.
#askGene #anotheronebitesthedust
Yorba Linda, CA-TRREG DRE#01843673-RP100 DRE#02059058-P:714-831-1800-E:info@theresultsrealestategroup.com-W:www.theresultsrealestategroup.com-Facebook - Twitter - Instagram - LinkedIn
On July 3, 2019, the day before independence day, a public company discount broker based in the UK announced they would be leaving the US Market, this is after losing 75% since starting operations in 2017. Additionally, they pulled out of Australia to "focus on the UK market", aka, they are circling the wagons.
Without delving too much into their business model. This is a good example of what happens during 'transitional' years in real estate. Cut rate brokers offer their value proposition as a 'lower fee' or 'rebate commission' rather than knowledge and skill. Based on the price point of real estate being transacted, as well as the increasing costs for materials and labor, the rebate offered can easily be made up for by a competent agent.
Oftentimes, 'commissions' are given other names, such as 'service charge' or 'marketing fees', which, unlike commissions, are due whether or not the home sells. Things to watch out for our industry continues to consolidate, Wall Street money continues to pour in and the buyer base continues to change.
#askGene #anotheronebitesthedust
Yorba Linda, CA-TRREG DRE#01843673-RP100 DRE#02059058-P:714-831-1800-E:info@theresultsrealestategroup.com-W:www.theresultsrealestategroup.com-Facebook - Twitter - Instagram - LinkedIn
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