{"id":613,"date":"2006-11-07T22:29:10","date_gmt":"2006-11-08T05:29:10","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=613"},"modified":"2006-11-07T22:43:43","modified_gmt":"2006-11-08T05:43:43","slug":"a-horrifying-thought-experiment-elaborating-on-a-brokerage-business-model-that-could-completely-disintermediate-buyers-agents","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/613\/a-horrifying-thought-experiment-elaborating-on-a-brokerage-business-model-that-could-completely-disintermediate-buyers-agents\/","title":{"rendered":"A horrifying thought experiment: Elaborating on a brokerage business model that could completely disintermediate buyer’s agents . . ."},"content":{"rendered":"

I wrote this this morning<\/a>, and it’s been bugging me all day:<\/p>\n

Here’s a thought: The $99 divorce. It only works where the split is unclouded by children or property. But imagine a $999 FSBO package: The usual MLS-only marketing package with a buy-back guarantee for the buyer. Quoting me<\/a>:<\/p>\n

“From the buyer’s point of view, the buyer’s agent’s compensation can be thought of as a risk premium. An important benefit the agent brings to the transaction is a reduction in the risks the buyer takes on in purchasing a home. There is certainly a value to this, but that value cannot possibly be infinite — nor even terribly elastic.”<\/p>\n

If, by using something akin to insurance, a Realty.bot can drive the risk of limited service buyer’s agency to something approaching zero — then what?<\/p><\/blockquote>\n

This is a business model. I’m not saying anyone will — or should — do it, but it is a workable answer to marketing objections.<\/p>\n

Consider: Nu-Way Realty<\/a> is a low-ball lister in the Phoenix market. They’re very big on promoting their listings — big newspaper ads and flyers distributed door-to-door. Taking account that MLS search is ubiquitous by now, they have that as promotion of their listings, too.<\/p>\n

Do you see why this matters? Buyer’s agents don’t control what houses their buyers know about. As long as buyers can log onto an IDX system, they can say, “What about this one?”<\/p>\n

A brokerage like Nu-Way could leverage all of this.<\/p>\n

First, let’s do a limited-service listing — but with stipulations. Part of the listing contract is a full inspection of the property, with the seller agreeing to correct any identified defects prior<\/i> to the MLS listing.<\/p>\n

The listing brokerage now has a listed home in which it has a high degree of confidence. This is why it can offer a Money Back Guarantee — because it will never be in a position where it will have to honor it.<\/p>\n

The MLS listing carries a $1 co-broke, which is the ultimate joke on all the NAR posturing about price-fixing. Probably, most buyer’s agents won’t show these homes voluntarily<\/i>, but there is nothing to prevent buyers from Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

I wrote this this morning, and it’s been bugging me all day: Here’s a thought: The $99 divorce. It only works where the split is unclouded by children or property. But imagine a $999 FSBO package: The usual MLS-only marketing package with a buy-back guarantee for the buyer. Quoting me: “From the buyer’s point of […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4,6,5],"tags":[],"class_list":{"0":"post-613","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-disintermediation","7":"category-marketing","8":"category-real-estate","10":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":611,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/611\/election-day-links-the-essence-of-liberty-now-is-out-running-those-who-would-enslave-us\/","url_meta":{"origin":613,"position":0},"title":"Election Day Links: The essence of liberty, now, is out-running those who would enslave us . . .","author":"Greg Swann","date":"November 7, 2006","format":false,"excerpt":"I know a lot of people who don't vote. Not because they're lazy, but because they're philosophically opposed to the whole business. For my own part, I vote for just about the same reason I go to Mass, and about as often. Since 1848 or so, the main objective of\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":144,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/144\/the-buyer-can-and-should-negotiate-the-buyers-agents-compensation\/","url_meta":{"origin":613,"position":1},"title":"The buyer can — and should — negotiate the buyer’s agent’s compensation . . .","author":"Greg Swann","date":"July 28, 2006","format":false,"excerpt":"My phone hasn't rung yet, but my ears are already burning. My column in today's Arizona Republic: Buyer should negotiate compensation for agent. (A more-permanent link.) This is Ardell's turf, of course, although my take on The Big Picture is somewhat different. In any case, I expect to have my\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6137,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/6137\/the-deathless-prose-of-the-bloodhounds-against-advice-of-broker\/","url_meta":{"origin":613,"position":2},"title":"The deathless prose of the Bloodhounds: Against advice of broker","author":"Greg Swann","date":"December 15, 2008","format":false,"excerpt":"This is a form I wrote for a house that Cathleen may or may not have in play. The details have been fictionalized, but the underlying situation -- a house trashed so badly that it becomes a menace to safety -- will probably only become more common. Caveat lector: I\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":519,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/519\/the-seller-really-pays-for-the-buyers-agent-definitely-not-when-the-buyer-pays-out-of-pocket-but-what-if-the-buyer-really-did-pay-for-the-buyers-agent-from-the-buyers-side-of-the-hud-1\/","url_meta":{"origin":613,"position":3},"title":"The seller really pays for the buyer’s agent? Definitely not when the buyer pays out of pocket. But what if the buyer really did pay for the buyer’s agent from the buyer’s side of the HUD-1?","author":"Greg Swann","date":"October 7, 2006","format":false,"excerpt":"There's a lot of discussion of Buyer Broker compensation going on around the RE.net, and I want to draw attention to it while I can. I have some further thoughts of my own, but I'm not sure I'll be able to get to them today. It's Saturday, after all. One\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":368,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/368\/more-buyer-agency-email-the-quality-of-representation-is-not-strained-by-full-disclosure\/","url_meta":{"origin":613,"position":4},"title":"More buyer agency email: The quality of representation is not strained — by full disclosure . . .","author":"Greg Swann","date":"September 22, 2006","format":false,"excerpt":"No hostile phone calls today, which is not usually the case. But here is another email from another testy real estate broker. For what it's worth, I think these brokers deserve credit for standing up for their opinions, rather than hiding behind anonymous phone calls. But: I think the argument\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2181,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2181\/a-consumers-guide-to-the-divorced-real-estate-commission-will-the-negotiating-their-buyers-agents-compensation-make-buyers-more-practical\/","url_meta":{"origin":613,"position":5},"title":"A consumer’s guide to the divorced real estate commission: Will the necessity of negotiating their buyer’s agent’s compensation make buyers more practical?","author":"Greg Swann","date":"November 8, 2007","format":false,"excerpt":"Part II: How buyers can finally take a seat at the grown-up's table When a potential home-seller calls me to set up a listing appointment, very often the first question I will hear is, \"How much do you charge?\" A motivated seller is done with the house, and now all\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/613","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=613"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/613\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=613"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=613"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=613"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}