Can real estate agents increase rates without losing clients?

Key quotes:

• "The calculation is based on variety of public data records, market information, user data points by using Big Data analysis formula developed in-house."
• "Additionally, they encourage consumers and homeowners to expand online data by doing other investigations such as comparing market prices for around areas, working with a real estate agent, getting an appraisal from an expert and visiting the house."
• "The analysis combines several main components, including property characteristics in the area, crime rate, quality of life, pollution, race and ethnicity, population growth, family household, house value, business field, employment, schools and future home value."
• "Latest Big Data collections made it all possible for real estate website to provide that information to potential buyers."
• "Based on the data visualization, population size in Tarzana is higher by 3,000 residents than in Calabasas, as shown in Figure 6."
• "Real estate agencies, such as Zillow, estimate values based on Big Data collection tools and using their algorithm.They combine information from variety of sources and provide insightful information to buyers, sellers or brokers."

Key quotes:

• "I asked her about the biggest mistakes homebuyers and real estate investors make and about her worst experiences with clients (everyone loves gossip)."
• "What are some tips for real estate investors looking for investment properties? Horror Story #1 Something a lot of people were doing when the market was up was paying above the asking price."
• "Unfortunately, the couple decided to get another agent and sure enough, the market crashed, and they ended up paying $10,000 above the asking price, per their agent’s advice."
• "I think at least with real estate, you have rental income tax deductions, you have the opportunity to recover if the market crashes, and you can touch and see your investment."
• "A lot of investors decided to diversify their investments by getting into real estate after the market crash."
• "Although there are different ways to buy homes or investment properties unconventionally, you have to consider everything that comes with the territory, like the extra costs and regulations."

Key quotes:

• "This provides even more incentive for real estate agents to pressure their clients to close a deal, even if it’s a bad deal for the client."
• "My point is the way the structure is set up provides realtors with one financial incentive: close as many deals as possible."
• "I do not invest in actively managed mutual funds because I don’t see any value for the fees I pay."
• "The 6% commission structure Realtor fees have been rising artificially with the price of houses and the industry’s power to steer client’s way from discount brokerages."
• "The flat 6% commission structure needs to change as the incentives it provides the agent do not always align with what is in the best interest of their clients."
• "Having real estate agents get paid a flat rate to sell your home or a per hour basis would align the incentives of the agent and their client."

Key quotes:

• "We’ve seen this before in South Africa, with Property24 testing out their success based fee (SBF) model: no upfront fees, you pay a fixed fee when the sale is made."
• "The performance based advertising model is just another way of securing more of the commission split and working with agents who are happy to part with higher fees, in exchange for minimizing upfront advertising fees and getting better exposure."
• "Zillow’s main challenger will be other technology first real estate companies and we will most likely see some top ‘commodity’ real estate brands fail, while others will re position themselves."
• "Big franchise brands are fighting back with acquisitions too: Keller Williams bought SmarterAgent and infamously said that they aren’t a real estate company anymore."
• "To get back to the question “Can performance based advertising fees work in real estate (for portals)”."
• "I agree that for a portal in the #2 or #3 position, such a JV with Facebook could be very lucrative."

Transcript: How to attract clients in real estate I got a great question from one of my newsletter readers love you guys Harrison who wrote in to say hi Evan please how can i track client and real estate marketing kind regards and thanks here's the thing ok real estate is one of the most competitive businesses to get into if you're a real estate agent it's so hard to send out because you're all selling the exact same product there's tons of people out there and you're all selling the same thing you're being crunched down by online resources by agents who would just sell on like 1% commisioner or flat fee so how do you stand out the way to do it this is really important the way to do it is to make it personal and combine your passions it's funny all the real estate agents that I know nobody does a good job with this real estate agents are so happy to put their face on business cards and put their face on signs and put their face all over their website and yet nobody tells their story who are you people need to know who you... See more →