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If the goal is to improve the house buying experience like uber did with taxi business. Let's go Opendoor, for too long the real estate agents took advantage fr

If the goal is to improve the house buying experience like uber did with taxi business. Let's go Opendoor, for too long the real estate agents took advantage from system

uptown 11y ago
The transition to that model is tricky. In the United States, buyers don't directly pay the realtor commission. The seller generally pays ~6%, but sometimes that's negotiated down. This commission is split between the buyer's agent and the seller's agent, with their brokerage typically taking a percentage. But a buyer wants to use an agent because their perception is that they're not paying for it, and most buyers aren't well versed with the house transaction process, which is complex. You could certainly make the case that a transaction without agents would mean either more profit for the seller, or a lower house price for the buyer, but I think it will take many years until that is the norm. There are a huge number of laws built around real estate transactions, and the NAR is a major major lobbying entity.
- goodJobWalrus 11y ago
  > The seller generally pays ~6% This is gross. We just put our London place on the market, and the total commission we will be paying (to a normal high street agent) is 1%
  - uptown 11y ago
    I agree. And it's particularly insane given the degree to which the tasks traditionally performed by the realtor are now handled by more-informed buyers and sellers. Information used to be locked in physical listing books. It then moved online to disparate MLS's. Now you can view most listing data using a combination of Zillow, Realtor.com and regional localized brokerage websites. Good realtors still add some value, but framing it as a percentage of the transaction is entirely the wrong metric given how the industry has evolved in the past decade.
- jdross 11y ago
  This is astute, and most RE startups don't understand the importance of buyers "not paying" and also needing to sign with a buyer's agent in order to visit and view homes for sale. NAR's stated purpose is to protect the commissions of the real estate agents. In some ways it's nice that they're so forthcoming about that, versus other lobbying orgs.
jdross 11y ago
We believe moving homes should be as easy as trading in a car. The buying experience is a key part of that. If you're in Phoenix (or Dallas soon), check out our homes anytime. It's fun.
- deleted 11y ago
  [deleted]

If the goal is to improve the house buying experience like uber did with taxi business. Let's go Opendoor, for too long the real estate agents took advantage from system

uptown 11y ago

The transition to that model is tricky. In the United States, buyers don't directly pay the realtor commission. The seller generally pays ~6%, but sometimes that's negotiated down. This commission is split between the buyer's agent and the seller's agent, with their brokerage typically taking a percentage. But a buyer wants to use an agent because their perception is that they're not paying for it, and most buyers aren't well versed with the house transaction process, which is complex. You could certainly make the case that a transaction without agents would mean either more profit for the seller, or a lower house price for the buyer, but I think it will take many years until that is the norm. There are a huge number of laws built around real estate transactions, and the NAR is a major major lobbying entity.

goodJobWalrus 11y ago
> The seller generally pays ~6% This is gross. We just put our London place on the market, and the total commission we will be paying (to a normal high street agent) is 1%
- uptown 11y ago
  I agree. And it's particularly insane given the degree to which the tasks traditionally performed by the realtor are now handled by more-informed buyers and sellers. Information used to be locked in physical listing books. It then moved online to disparate MLS's. Now you can view most listing data using a combination of Zillow, Realtor.com and regional localized brokerage websites. Good realtors still add some value, but framing it as a percentage of the transaction is entirely the wrong metric given how the industry has evolved in the past decade.
jdross 11y ago
This is astute, and most RE startups don't understand the importance of buyers "not paying" and also needing to sign with a buyer's agent in order to visit and view homes for sale. NAR's stated purpose is to protect the commissions of the real estate agents. In some ways it's nice that they're so forthcoming about that, versus other lobbying orgs.

jdross 11y ago

We believe moving homes should be as easy as trading in a car. The buying experience is a key part of that. If you're in Phoenix (or Dallas soon), check out our homes anytime. It's fun.

deleted 11y ago
[deleted]