Want to sell your home and avoid the 6%? In the not-too-distant-future, I'd predict you'll just list it on Ebay at your fixed minimum price. You'll add the photos and also a virtual video tour (thank you youtube), plus you'll enclose a link to your certified appraisal as well as zillow.com, and any other pertinent records. You'll also post your open house hours for potential bidders.
You'll print out your own lawn sign (Ebay will help you with that) or have a nice one ordered directly from Ebay to put up out front. Eventually it'll be more important to have your house on the Ebay list than the MLS.
And Ebay will simply charge a flat rate, say $99 to list and $99 to sell. Seriously. For autos today they simply charge $40 to list and $40 when it sells.
If you put it out at a great price and more than one person wants it, then they get into bidding more than your asking price. If nobody wants it at that price, they can enter a lower price just so you'll have it to consider. Ebay will offer links to local appraisers, title companies and movers as well, and a checklist of what both sides should do to complete the transaction.
Ebay Motors is already the #1 seller of used autos in the world, selling over 2 million cars since launch. You know a roomful of smart people there are planning their attack on real estate. My only question is what's taking so long.
Get ready six percenters. Your days are almost over.
October 09, 2006
Will Ebay be the one that eventually crushes realtors?
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Great idea,
I'll contact Meg Whitman. You know, eBay already has a make offer feature built in!
brilliant!
when they announce this their stock will pop 10% in other words it's a $4 billion idea
I have the feeling that Zillow.com was intentionally designed to be an acquisition target of Google's.
It fits in so well with what Google does.
If the 6% fee goes away, then what about all that other BS like title insurance {Do I really need it if I previously financed 2 years ago?} and those huge broker fees??
Keith,
You're a little late. Ebay already tried it and back away. Too much policital BS to deal with.
Certainly, the 6% seems expensive but when I last looked at a house, the realtor was great and convinced me not to buy the property since he pointed out both good points and bad points about it.
If your spending hard earned money on a house, you really want to buy the right one and if realtors go away, I still suspect that buyers will use "some sort of counselor" to help them buy.
The only problem I see with the commission is that it makes the realtor want to sell you something regardless if it's good for you.
In my case, I let my realtor know that I was going to hire an inspector, etc..., and he instantly realized that he better not embarass himself....
"I'd predict you'll just list it on Ebay at your fixed minimum price."
Cool - Keef makes another prediction...
honey come over here - look a our little boy Keef - he just made another prediction
you are such a big boy keef!!
lol!
I just drove through the neighborhood that I'm going to buy in someday. I do this often so I can see How many are for sale and how many have price reductions. This hood is only 2 yrs old. Anyhow, Three used houses went up for sale this month and two new. From the 3 used ones, I looked up the stats and They were all purchased 2 years ago. (to the month) Coincidence? So I say's to myself, DAVE, Most of these people are only going to stay here for 2 yrs and then sell it. Why would I want to buy in this neighborhood If everybody is only here to make a quick buck and move on? Dave didnt respond.
I hope so. The transaction costs (financing, realtors) are a huge put off for me to own. If I can reduce that transaction cost to under 1%, it's much easier to justify owning.
Advertising services similar to the one envisaged in Keith's post already exist in certain local markets.
For example check out www.saskhouses.com.
According to the Saskhouses website:
"Since we launched our web-site on June 18, 1999 we've helped thousands of Saskatchewan residents sell their own homes. We have built up a reputation as the place to look for homes in this province. We have steadily increased the services we offer and have seen a huge increase in the use of our web-site. We average well over 10,000,000 hits per month. Typically a listing receives between 600-1000 page views on their first day of posting. With this growth, we have strived to keep up the level of our service, keep our operating costs down, and our advertising rates low for home owners. Our commitment is to help you get maximum exposure for your home. Our rates are reasonable - our success is outstanding!"
With this kind of service available and becoming ever more popular, the six percenters know that their days are numbered. To keep themselves relevant they are currently using fear tactics like:
"Buying a home is one of the largest business transactions most of us will ever make. Canadians buy homes for any number of reasons -- from romance to relocation. But no matter how emotional or rational your buying decision, the purchase of a home is a business transaction of tremendous complexity....REALTORS® are experts. Doesn't it pay to use an expert when you are making one of the biggest purchases of your life?" - http://www.sreb.com/Buying.html
Sure, real estate is tremendously complex; too bad the six percenters will have helped propel millions into becoming FB's.
Of course it will happen. If I want a house in a cookie-cutter neighborhood, a realtor brings ZERO value to the transaction.
Example-I want the XYZ model with maple cabinets and the bonus room option A. All I need to know is who has one for sale and how much they want for it. 6% or even 1% is ridiculous.
Zillow is still appraising homes way above what they are worth. I wouldn't use their data.
Just like the glut of unemployed I.T. people after the dotcom bubble burst, the realtors will see quite a bit of job loss, but should eventually stabilize back to pre-bubble levels, similar to what the I.T. industry is seeing today.
anon said...
>>Of course it will happen. If I want a house in a cookie-cutter neighborhood, a realtor brings ZERO value to the transaction.
Example-I want the XYZ model with maple cabinets and the bonus room option A. All I need to know is who has one for sale and how much they want for it. 6% or even 1% is ridiculous>>
You can avoid paying a realtor commission right now, just go negotiate with the builder. Or just go house to house and collect flyers. Or just check the county records. There are many quick ways you can get this information... right??
What many of you all simply do not get is that as a buyer, you pay all the commission on a home. Without your funds at close of escrow the seller can't pay a realtor. Just come in an negotiate a reduced asking price more than 6% and you are getting the service of at least one realtor (on a listed home) for free.
If you really want to stick it to a realtor, then only attempt to buy from an unrepresented seller. Otherwise the seller has already agreed to pay the listing broker a negotiated fee fromt he proceeds of the sale (being flat fee or percentage of the sales price).
This year I'm messing around with an idea to rebate the buyer a good portion of my side of the commission (think 3% and from that I'm rebating more than half that amount). Why would I?? because it is the buyers money and I won't work for them unless they know how much money I charge for my fees (my fees may be lower than what is posted on the MLS).
Now some will still say that you don't need my services. Some will say they'll use ebay or some other outfit like redfin.com. I say have at it, pay for the services YOU need. It's not hard to buy a home these days.
You can already buy and sell real estate on eBay... am I missing something...
http://pages.ebay.com/realestate/
I do not disagree that Ebay will make a go of it and be a factor, but Ebay Motors is a joke. I have sold and bought cars on it, and there are alot of issues with it. It is an unregualted exchange with fake bidders etc...I cant imagine what a mess it would be with all the fake bidders playing around pretending to buy houses.
I bought a $5 razor from a bald headed bitch on Ebay. Your nuts if you think I'm gonna buy his house
There are too many legal and regulatory isues involved. No way in hell would this every fly. BTW, a local auction business has stopped doing RE auctions. The reason? They were hit by lawsuits from both buyers and sellers when the deals went sour or the sellers didn't get what they expected.
Who needs eBay?
We have Property Guys north of the border.
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