You have to admire the persistence of some people. Posting almost relevant commentary to a defunct blog, then re-posting nearly the exact same almost relevant commentary to this blog complete with a phone number and a as-of-yet non-functional web address.

Say hello to the newest entrant in the real estate game, FlatRateRealEstate.com.

For those who missed Mr. Davidenko’s not-quite relevant comment …

I am a real estate broker who lives in the year 2007. To be exact 10/07″A time that will be read about” I am starting a New Real Estate Marketing Company called FlatRateRealEstate.com-Interested brokers should call as I will begin with seeds throughout the country. If you live in Tampa Florida your domain would be tampa.flatraterealestate.com THE FUTURE OF REAL ESTATE IS HERE AND COMING TO A TOWN NEAR YOU!

That the “future of real estate is here” in the form of flat-rate listings may come as quite a surprise to Redfin, Help-U-Sell, Assist-2-Sell and the former employees of Foxton’s. In fact, entering listings into the MLS for a flat rate is sooooo 2005. Anyone who has tried to sell a home in most markets, particularly here in the Phoenix real estate market, have come to understand much more is needed than a listing in the MLS.

Does Craig understand this as well? Let’s check out his company’s value proposition.

Oh wait … there isn’t one.

I agree THE NAR HAS A BIG WAKEUP CALL TO ANSWER….The world wide web…has a few more members than the National Association Of “Realtors”…and as far as “ethics” WHAT ETHICS????? agents and brokers are sharks in a tank with no room and no food….guess what happens??

I suppose calling existing agents and brokers “sharks” is par for the course. And it’s a far easier path than actually explaining what value you will provide (or will not provide) for that flat rate you’re going to collect.

Some have argued real estate commissions will drop in a slow market because sellers need to squeeze every penny from their sale. Those who have the slightest understanding of what it takes to sell a home, both financially and basic manpower, understand commissions for the most effective selling agents will rise because they’re proving their value above and beyond the masses.

Flat-rate commission companies are doomed unless they couple that flat rate with a fairly strong service offering. More often than not, they can’t because the finances don’t work. A quality agent will not perform five times the work for one-third the pay when they have a chance to make more elsewhere. It’s basic economics.

At the end of the day, companies such as Flat Rate Real Estate find they have nothing to offer outside of a low price. And as they soon discover, there’s always someone willing to go lower … at least until everyone reaches zero.

Don’t think it can happen? Check some Price is Right re-runs and see how often $1 is the bid. Such a strategy might get you to the Showcase Showdown but it won’t keep your real estate company afloat for long.

Technorati Tags: Phoenix real estate, real estate commissions

Popularity: 3% [?]

Share This