Who Got Me A Little Iggy Today???

By
Real Estate Broker/Owner with 3:16 team REALTY ~ Locally-owned Frisco TX Real Estate Co. #9001154

Written and copyright © of Loreena Yeo 2007

I have discuss Limited Service in the past and I finally concur that others are right. Different strokes for different folks. And "full service" does not necessarily mean that clients get tthe best expertise available to them. It is true that some agents do disappear after the sign is in the front yard.

I remember that I got agitated because there was a different opinion between limited service offered by this specific broker (known in town) and minimum service as required by the State (of Texas, at least). I felt horrible for the client - whether the broker did or didnt represent. I dont know which.

Today, I received a phone call from a Seller who needed help. Unfortunately, he is represented with a so-called national brokerage firm. Free listing on the MLS!!! Feeds to Realtor.com!!! And ABSOLUTELY NO CATCH!!! When I checked the agent representation, it was a broker registered in Florida. Hmmm..... raised my red flag. When I searched for the house, I could find it one way but not another on the MLS. The garage was not correctly entered into the MLS system. The instructions say call Seller for information/ questions. The Seller only took advantage of sending 2 of the same photos for the MLS system - photos with weed in the front yard. When I interviewed the Seller about how he came up with the price, he said he found it on Zillow - another free site. For those not familiar with Texas, it is a non-disclosure state. We do not publish sale prices as public record.

It gets better. On the buying side, the company pays a buyer 75% of the commission, guaranteed. They professionally state that this program is for homebuyers who do not need services of a "traditional" professional. They call them self-directed homebuyers. The buyers find the house themselves, then use their services for completing the transaction. Sounds simple, after all, buying and selling real estate is not rocket-science.

Sounds promising? I would think that this is the answer a Seller - then- turn Buyer is looking for. How brilliant!

The Seller called me to evaluate the home price. His intuition told him that he had it priced a little higher. Hence, no showings after 45 days on the market. (Actually, it is probably about 20-30% higher). To make matters worst, the Seller is not local. By that I mean, thousands of miles away.

This truly left me pondering..... Is it the Company's fault for inefficiencies? Probably. But that has nothing to do with the business model. Where there is a demand, someone will fill the need. Basic economic principle. According to some consumers, it is the best thing ever !!! Perhaps. Perhaps not. This just got my Iggy juices flowing: Different strokes for different folks. Each to his own.

Moral of the story: You do end up paying what you get for (most of the time).

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Rainmaker
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Robert Smith
Preview Properties, PC - http://www.RealEstateMich.com - Brighton, MI
Search for Homes, Brighton-Howell-SE Michigan

Loreena, let me say first that some of these new business models for our industry are worth looking at.  And there are are some limited service brokerages that are doing what they tell the client they will do.  All too often, I've seen this model work better for the brokerage than for the consumer. Why? It appeals to everybody's sense of greed.

"Gee, I can save a ton of money by selling my house this way", says the home owner.  That may be okay for somebody that has sold 5 or 6 homes and knows how things work, but there are so many 'gotchas' out there that even if they close, odds are good it won't be a clean ride.

Agents, too, are quick to jump at the 'easy fix'.  Collect $600 for a multi-list only listing, $1000 flat fee for a limited service listing. Heck, it's cash flow, right?  And less hassle.  I still believe that full service is the best way for the majority of home sellers to proceed.

The real question is of value. Do we provide the value to equal our fees? In some cases, yes. Perhaps in most cases, yes.  It's the few times that we don't provide that value that sticks with the consumer.

Oct 01, 2007 06:44 AM #1
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Loreena Yeo
3:16 team REALTY ~ Locally-owned Frisco TX Real Estate Co. - Frisco, TX
RealtorĀ® | Frisco TX Community Ambassador
Robert, I do feel that points are well-received from over here. This business model is great for those who knows what they are doing. Absolutely right. There must be the demand before anyone can supply. If selling the house is seen as "anyone" can do it, it dilutes our value.
Oct 01, 2007 08:32 AM #2
Rainmaker
151,461
Amanda Hall
DFW Living - Fort Worth, TX
Real Estate Broker - Fort Worth Texas

I've been wondering how Iggy is managing to do business in Texas from Florida.  I recently made the change from franchise to independent and I could have sworn that MetroTex (our local board) requires the office to be in state. 

As far as the business model, I agree--to each their own but we do have some locally owned flat fee brokers here in town that appear to do a great job and I wonder why any seller would go out of state.

Iggy does charge a listing fee--I think it's around $250 according to a recent listing I picked up from them.

Oct 02, 2007 08:52 PM #3
Rainmaker
46,013
Sarah Nopp
South Sound, WA
I am curious- how was the property seller planning on opening the house to show it to potential buyers?
Oct 04, 2007 04:31 PM #4
Rainmaker
151,461
Amanda Hall
DFW Living - Fort Worth, TX
Real Estate Broker - Fort Worth Texas

Lockbox or combo.  In the case of my seller, it was a combo and our local showing appointment service provided the code to the BA when they called in to schedule up.  Unless you know who IGGY is and catch the fact that they put the seller's number in the private remarks for any further questions, it all appears normal in MLS.  The offer goes to IGGY, but can also be delivered to the seller. 

 

Oct 04, 2007 05:05 PM #5
Rainmaker
46,013
Sarah Nopp
South Sound, WA

Intersting... In our MLS, the Listing Office name shows up in the listing- that is Iggy'sHouse. And the seller's contact information is not allowed to be shown anywhere the public can find it. Also, I believe an agent is required to accompany clients through the property. We don't have appointment services here either. I imagine companies that are trying for a National Model are having to learn all sorts of local issues and MLS rules... Glad it isn't me.

Oct 04, 2007 10:38 PM #6
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Loreena Yeo

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