demanding consumers

“Internet buyers tend to be better informed about market conditions and better prepared to act on the home they want when they start working with a real estate agent. Fortunately for real estate agents, these changes don’t necessarily make badly, as long as they can adjust to the new relationship and realizing that new-style buyers value speed and efficiency over advice when looking for a home.”

– E-marketer, internet home buyers changing house rules

Thanks to the Internet and other technological innovations, more real estate information is available for free than ever before. As a result, consumers are demanding new options, improved services, faster transactions and lower prices. According to a recent NAR survey, the number of sellers who said they did not want to pay a sales commission rose from 46% in 2003 to 61% in 2004. In 2004, 23% of Florida home sellers chose to sell independently without an agent, up from 14% in 2003 and nearly double the national average of 14%, according to Planet Realtor.

And web-connected consumers demand a high digital IQ when working with real estate professionals. Besides being well versed in its specific technology of the industry, it will be hoped that the professional inmobiliarios using portable computers, mobile telephones, digital cameras, personal digital assistants and global positioning systems for maintenance and maintenance of the compradors and vendedores of internet.

Low pressure

“If consumers are going to do their own shopping online from home, they expect to save money, just as they would if they were using the drive-thru lane. That’s why they’re sensitive to online discount brokers and associated startups.” they promote lower commissions if only consumers use their agents. These business models promote the idea among consumers that they should pay less money in commissions.

Realty Times columnist Blanche Evans

Traditional real estate commissions, typically around six percent of a home’s selling price, are facing downward pressure from consumers and competition. Some consumers say traditional real estate commissions don’t reflect:

– House prices today. Years ago, when median-priced homes were selling for $25,000, real estate commissions were typically 5%, or $1,250. Today, with median home prices in South Florida hovering around $300,000, the cost of a 6% full-service real estate commission becomes $18,000. Some brokers even charge additional fees to cover administrative costs. When you consider that the average homeowner today sells a home every five to seven years, real estate commissions can have a huge impact on your personal savings and net worth.

– Property of the owner. When selling properties, most owners calculate the cost of sale as part of the sale price, although commissions are paid from the owner’s equity. (Equity is the difference between the value of your property and the amount of mortgages owed.) Let’s take this example: you decide to sell a property for $250,000 of which you own 10% of the equity, or $25,000. After paying a six percent commission on $15,000, you are left with $10,000 before applicable closing costs. In this example, the commission of $15,000 is 6% of the sale price, but 60% of the principal of $25,000.

– Services provided. Under the current commission structure, selling a $100,000 home at six percent typically costs $6,000, while selling a $500,000 home costs $30,000. Does selling the most expensive house really take five times the effort? Your cost is the same whether the agent spends one hour or 100 hours marketing your home. This is one of the reasons many real estate consumers find fee-for-service real estate so appealing.
Development of alternatives

“Consumers want what they want, when they want it, and they’ll turn to the most cost-effective source to get it. Why? Because our ‘one size fits all’ approach to working with sellers and buyers is antiquated and won’t work.allow consumers.