The Property Guys.com or “a la carte” brokerages of the real estate industry are a marketing disguise’s for FSBO’s (for sale by owners). These companies are glorified websites that post your home on the internet, like an auto trader, and require the home owner to setup their own appointments and negotiate their own offers. Is this not a private sale? This is a private sale and these companies are making the general public believe they are adding a new form of real estate process for the informed buyer. Perhaps the competition bureau should investigate these companies to see if there really is added service to the consumer. Does the competition bureau even care that these companies are just websites and offer no protection to buyers and sellers in the real estate process?
Walter Melanson, Director of Partnerships with propertyguys.com states “high-fee real estate agents are a relic of a different world, a different economic reality and a different home owner. In a networked world, where eBay is replacing newspaper classifieds, expedia is replacing travel agents, and netflix is replacing video stores, propertyguys.com is replacing the high-fee real estate agents model. Propertyguys.com is transforming the way people sell their home.” Somebody should give this guy a wake up call.
FSBO’s have been around since the 70’s. All these companies have provided is an alternative platform for private home sales to be advertised. In the past for sale by owners used to advertise in print and now they can advertise on the web. Wow, what a revolutionary idea!
Mr. Melanson states that his company is like eBay, expedia etc… Wishful thinking Wally! You’re not even close. Besides these companies he mentions post products in hundreds of dollars, maybe thousands, not HUNDREDS OF THOUSANDS (like a home).
Your home is the biggest investment people make in their lives, why would they chance by selling or buying private? When you post on propertyguys.com or hire an “al la carte” broker, you are in essence selling your home privately; therefore the pitfalls should be explored.
Studies have shown that FSBO’s, as opposed to hiring an agent, net less money 96% of the time. Putting your home on propertyguys.com will only reach a small portion of buyers, thereby underexposing your property. Underexposing your property will lead to you not getting the market value for your home. There are security issues, where you do not know who is coming in your home. There is the unqualified buyer, where a seller finds out at the last minute before closing that a buyer has no money; a buyer gave little deposit and the seller has bought and is now up black creek. There is also the issues of having your lawyer prepare your offer; issues of getting a hold of lawyers, or what it actually costs. The pitfalls of FSBO’s are extensive, and sellers and buyers should be aware of them before they fool around with hundreds of thousands of dollars.
In a hot market, the discount services always pop up. When the market slows, you will see that these companies will fade away. The realtor is not going anywhere because of their professionalism and experience of dealing. There are builders that will pay realtors 6% (not $350.00) to ring in buyers. Realtors’ work and that is why we are not going anywhere.
The propertyguys.com and “a la carte” realtors paint a pretty picture with commission savings, but beware that they are only a wolf in sheep’s clothing! FSBO’s will always be around, realtors will always be around; the only guy’s that won’t be around is the propertyguys.com. By the way what happened to Mike Bullard (there spokesperson)?