A Real Estate Business House-Cleaning

Posted by Steve Vincent on Sep 8, 2015, 10:17:20 AM

In High Commissions, low cost real estate, real estate horror story, Sellers

Inman News is a big real estate industry portal.  It’s not the National Association of REALTORS, but carries a lot of weight in Realtor circles.  Recently, Inman surveyed real estate brokers and agents along with a smaller group of “industry insiders” about the biggest challenges and opportunities in real estate.  

The results were strong enough that the published report bears the title:  Why and How Real Estate Needs to Clean House.  The respondents put much of the responsibility for the industry’s tarnished image on their own shoulders, citing lack of professionalism, ease of entry, part time agents, and poor supervision as issues.  

Here is a smattering of comments from respondents:

  • “Inexperienced and uneducated agents intentionally or unintentionally commit ethics violations and give the industry a bad reputation.”
  • “As technology becomes better and faster, the relevance of agents in the next three to five years could be in trouble.”
  • “Customers are already finding homes without agents, can process a loan online.  The next phase is title search, inspections, closings, etc., without leaving your desk.”
  • “Technology is watering down the personal touch consumers need to feel confident the agent is taking care of their need.”

I admit it:  I chuckled.  Not to downplay the professionalism issue (the industry could probably shed half or more of all licensees and better serve the public), I am amazed that nowhere in the report did anybody ever question the pricing structure of traditional real estate brokers!

There’s all of this chatter about consumers using technology to marginalize agents and yet no questioning of why they're doing it. And yet the reason is so simple: real estate sales commissions are way too high. Consumers no longer see the value return for those high commissions and are opting to go it alone.

Over the past 50 years there have been huge changes in the way real estate professionals transact business.  Think about it!  We've got lock boxes and talking signs, websites and the MLS, Facebook, email and blogs, mobile phones and tons of technology that didn't exist a few decades ago. Every bit of it has made real estate easier and less costly to sell.  But what has happened to commission pricing?  Nothing.  Traditional realtors charge home sellers exactly as they did 50 years ago:  6% (or 7% or 5% or any other %).  It makes no sense.

It made no sense 10 years ago when I made the decision to become a GreatNest broker, and stopped charging consumers like everyone else.  At The Vincent Group and GreatNest, we charge a Low Set Fee for our service and consumers save thousands of dollars over what they'd likely pay an ordinary Realtor.  It’s logical and fair;  and it’s like a breath of fresh air in a stuffy room.

Nobody has a problem with the service we offer because it is at least as comprehensive and complete as what our competitors offer (and in some ways it is far superior).  We don't cut service.  We just charge differently and we charge less.  At GreatNest, the fee you pay is a bargain for the service you receive.  

You don't have to be fed up with the poor service and high commissions typical of regular real estate to call us; you just have to be curious about how we can save you thousands when you sell your house.  Make the call today:  (336) 790-5210.

GreatNest and The Vincent Group is a full service real estate company charging a low set fee instead of a percentage commission. We serve buyers and sellers in Greensboro, High Point, Winston-Salem , Summerfield, Oak Ridge, Jamestown and surrounding areas. You can reach us at (336) 790-5210 or by emailing Steve Vincent. Visit our website: greatnest.com.