Are You Challenging Brokerage?
Too often we are asked by real estate pros about why we are challenging the status-quo in real estate. Our answer to this is always the same.
Real estate is huge in the United States, and its also one that hasn't seen true innovation from a technical perspective in years. Sure, we have new tools, new SaaS, new lead generation software, better visibility and much more. However, all these services seek to aid Brokerages, not home owners.
We should ask ourselves why it is that only brokerages and the MLS receive attention? Why not home-owners? As professionals, we are constantly discussing ethics and conflicts of interest, but why would a broker ever want to encourage FSBO?
Of course they won't. Brokers exist to help owners sell their homes. They then receive a large commission in return. There is nothing wrong with this. It is a sevice just like any other.
But... why do brokerages always make owners sign these 'Exclusinve Listing Contracts'? What's that, never heard of this? Well, that's because owners are not encouraged to.
What are you trying to say? Nothing, except this document exists to ensure that brokerages do not double list your property on the MLS, and also to keep control of your listing. In other words, if you as an owner found a buyer on your own, while listed with a broker. They will still be entitled to the commission, even if they played no part in the brokering of the deal.
Ok, well this seems to be a nuance that you are trying to make a big deal of...
Is it? perhaps. However, there are listing agreement clauses that would allow owners to list on a platform like ours, and have it listed in the MLS at the same time. Why wouldn't brokers encourage this method if they are meant to remove conflicts of interests and help owners sell their properties? Just a thought...
But, let's go back to the original question. Do I wish to harm brokers? Of course not. As a rule of thumb, brokers reach out to FSBO sellers as a great way to generate new business. This works because FSBO has very limited exposure and it can be confusing without proper access to resources.
We don't want to harm brokers. We want to encourage them to partner with owners, as inevitably many owners will still reach out to the brokers to assist in contracts, viewings, etc. These can be limited service agreements or full brokerage contract conversions. Not all owners will stick through the FSBO process, which opens lead generation doors for trusted brokers.
We want the real estate profession to view owners as empowered professionals, and for brokers to evolve into new markets in a changing world.