The Changing Industry
For over 100 years, the agent/MLS system has been the primary way of selling homes. Licensed agents provided local, professional expertise and the MLS provided unparalleled listing exposure. The Internet changed everything. Today, all homes on the market, whether listed on the MLS or not, are shared on public websites so buyers can find and access them directly. Listing exposure is a problem of the past and the value proposition of the traditional real estate agent has also been significantly reduced.
Has the MLS Lost Relevance?
Many agents will often emphasize the necessity of being on the Multiple Listing Service (MLS). The MLS was created 100 years ago to help homeowners market their homes for sale. Before the technological advances we have today, the MLS was the only way potential buyers could find homes for sale.
Would you Give Anyone a $15,000 Check for no Reason?
The average homeowner moves every 7-9 years. Every homeowner has a handful of agent friends and family members in their sphere of influence - siblings, in-laws, cousins, neighbors, or even a parent from your kid's soccer team. Each is hoping to be at the top of the list when it comes time for you to sell again.
Do Flat Fee MLS Listings add Value or Just Cost?
How many hours do you work each year to make $10,000? Flat fee MLS companies charge anywhere from a couple hundred dollars to 1.5% of your sale price to list your home on the MLS. But this is just the upfront fee. The total cost of using the outdated MLS system is MUCH higher.
The Dollars Don't Make Sense
You got an offer! However, the buyer wants to get the best deal possible and assumes you might be overpriced, so they come in $20,000 below listing price. Ouch!
The MLS is the Phonebook
The MLS system held way more value prior to the Internet. Back then, if you can imagine this, the MLS was an actual book. It was printed in black and white and only showed one picture of the home. It was updated every two weeks as a tool for agents so they had access to the most accurate list of all the available homes for sale in their local market.
Are Real Estate Agents the Right Professionals?
The existing broker/agent business model has been in place for over a century as the National Association of REALTORS® (NAR) was originally founded as the National Association of Real Estate Exchanges back on May 12, 1908. The broker/agent model brought value to the industry for many decades, but today it's simply an old-economy business model that is broken and struggling to stay relevant. It's outdated, expensive, and no longer serves the consumer's best interest.
The Revolving Door of Real Estate Agents
At one time, a real estate agent was the local expert with years of accumulated experience. They were the people you trusted to help sell your home and find a new one. They were a necessary piece of the puzzle in helping people transition from one home to another.
Will Someone Buy Your Home if they Don't Love it?
Buying a home is often the single biggest investment that a person makes over their lifetime. That being said, how likely is it for someone to buy a house they don't love? Inconceivable.