I’m sure you caught the Dallas Morning News‘ recent declaration that the start-up discount brokerage Door, while on a tear, is not yet really fully disrupting the buying and selling of real estate.
At least not here, not yet. I’m off to Inman in San Francisco, so let’s talk next week.
But it’s interesting that the DMN even wrote about a topic that once might have seemed too “B to B” for a consumer newspaper. This confirms the vibes I got at NAREE last month: the consumer is now keenly aware of the changes in the Real Estate industry, which means they could be selling their home in a different manner: traditional agent commission split; flat fee brokerage, 100% commission model; a discount broker, like Door; sell the place outright to a cash buyer like OpenDoor or Zillow’s Instant Offer for less than they’d make if they messed with marketing, but get the deal done quickly.
There are many disruptors jolting the real estate marketplace, and we are finally feeling it in Dallas/Fort Worth:
The liquidity or iBuyers/providers: OpenDoor and Zillow’s Instant Offer. benefit to consumer: quick cash.
100% virtual brokerages: eXp Realty, out of Bellingham, Washington. Benefit to consumer: happy, motivated, well compensated agent
100% commission models like JP & Associates, Realty One Group, HomeSmart, etc. Benefit to consumer: happy, super motivated, well compensated agent
Tech brokerages: Compass and Redfin. Benefit to consumer: happy, motivated agent, commission rebate (Redfin) traditional split (Compass)
Flat fee brokerages such as UK’s Purplebricks, Door, OpenListing and ListingSpark. Benefit to consumer: flat fee for selling, savings to consumer
But don’t you “get what you pay for”? As Brad Inman puts it, “For a bigger part of the decade, Keller Williams was beating up on Re/Max, the Realogy brands, Berkshire Hathaway and the big indies. But now all of them are lifting their horns for new fights, with some well-funded challengers proving to be ferocious competitors.” Should we be afraid?