The buzzword these days you can hear from big players tends to be like Redfin’s “1.5% fee”, Opendoor’s “buy and sell house with no hussle”.. which give consumers an impression that they address the key issue in industry namely the high commission rate from agents, or the strenuous effort involved in selling and buying. It might be true that they do reduce some commission for consumers, or make the process easier, however, they are hiding the key issue in the industry which is a deciding factor for general public’s unhappiness with realtors, which is, realtors do not feel their best interest to take the effort and locate the best properties for buyers, or sell for the best prices with best terms for sellers, resulting in many consumers not happy with realtors taking commission not catering to their best interest.
In 2008, the Bank of the West did a survey on home buyers, reaching an astonishing result showing 68% of buyers have remorse factor, which is, these buyers mostly millennial regret after moving in their new house realizing this is not the best for their needs. The realtors orNAR (National Association of Realtors) will sure not like you to hear this, thus this survey result is not well publicized by real estate industry and professionals. However, it is for the best interest of consumers to realize that to protect themselves, they need to know the real estate market well, obtain enough information on it, and figureout what is the possible scenario of their needs in the near future, whatmight be the factors they have not considered yet, get enough information and advice on it, before they get an agent and proceed onthe transaction process.
The big issue in the industry now is the disconnect of consumer interest with realtor interest. Many consumers do not like agents, yet can’t proceed on their buy/sell without them, and here comes Opendoor yet basically Opendoor is functioning as the broker instead as a result, are consumers happy with Opendoor? This is a big question mark!
To reduce the remorse factor, the industry needs a proper system that can help consumers obtain the necessary information, advise and guide consumers to find out their ultimate needs as well as best solutions, and what the best choices can be in the current market...besides getting a realtor for consumer. Of course, if the consumer meta top caring agent with enough time and resources, consumer might be able to obtain these support, however, with the work load and current market situation, it is hard for consumers to get these kinds of support from realtors.
REAI is working on this field to provide innovative platform and information to help and guide consumer in their transaction needs. Come check out reai.co and tell us how we can help you in meeting your real estate needs, we can sure guide you to the optimal solution and thus you will no longer feel remorse.