Consumer-Choice Real Estate Agents
Delivering What Consumers Want
Today's real estate consumers want four things: consolidated listing information, guidance in synthesizing that information, professional handling of their transactions for a successful close, and an option, if they choose, to transform their in-kind contributions toward the transaction into some form of savings.
We have left the “more information” aspect of the equation to the data aggregators, and focused exclusively on delivery of the latter three needs. The result is reConsidered. It is our innovative consumer-choice strategy in which we let the consumer choose what works for him or her. It’s fair, simple, and straightforward.
We believe consumer-choice will drive the next generation of real estate services.
Articulating the Commission Risk
In offering consumers a choice for how they pay for their representation, it allows traditional, full-service agents to present the real estate commission for what it is: a risk premium; shifting the discount burden from the agent to the buyer or seller.
The commission has remained a fixed percentage of the sales price because it is a risk premium, not the promise of formulaic service. The risk in the traditional practice of real estate is that a client may walk away from representation for any reason, at any time, thereby yielding no return on the agent’s investment of time. The correlated premium, in a successful transaction, is the market rate commission charged by the agent to the buyer or seller for a guaranteed result under no-money down terms.
reConsidered leaves the commission savings dilemma squarely in the consumer’s hands, not the agents.
Repackage Full-Service for the Future
The challenge now, as agents and brokers, is to stop presenting the commission in terms of level-of-service and presenting it for what it is: a risk-premium. Like any risk-premium, if minimized or eliminated altogether, benefits should accrue. In real estate the benefits translate to a lower commission fee for the consumer, and reliable income to the agent.
While our approach is simple, we do believe that our time-accountable real estate transactions® model has the makings to revolutionize the real estate industry, especially as we emerge from this economic downturn.