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How much are we worth?

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JayListon | 10 Feb 2015, 04:44 PM Agree 0
We see websites like FeeDuck and other robo-agents cutting in our business, lowering our commissions all the time. What are our options? How do we compete when they're offering clients what seem like cheaper, easier service. Obviously that is not the case, but the perception seems to be the rule at times. Alternative payment structures are becoming more and more common. How can we adjust? Thoughts? Some agents have already started price-fixing! What to do, what to do.
  • Lesley Moll | 11 Feb 2015, 11:54 AM Agree 0
    There will always be services providing discounted rates, and there will always be consumers who are looking for what they perceive to be the "best deal". It is up to us as licensed Real Estate Professionals to explain to consumers what services we provide that they won't get.
    There is a large FSBO company in Ottawa called Grapevine. In 2013, out of all the properties listed on Grapevine, only 11% sold. Granted, only 43% of properties listed on MLS by Realtors sold in the same time frame. When you explain to to a Seller, that by going that route, they may only have an 11% chance of selling their property, the ones who need to sell see the value of a licensed professional. We compete by knowing stats like these and proving our worth.
    The worst thing that ever happened was CREA folding to the privacy commissioner regarding FSBO's on We should have voted to turn off the site and keep the data private. Like in the old days, you want information? Go to a professional. The other option would have been to fight to keep FSBO's off and keep the data clean. There are plenty of other places for FSBO's to advertise, anti-competition didn't come into it.
  • rmxmatt | 11 Feb 2015, 11:56 AM Agree 0
    The response to this is to actually articulate your worth and value to the potential client. I know this has been said before, but it's worth repeating...if you're unable to show someone why you're worth what you charge, then you probably aren't.

    I'm 36 years old, have been in the industry for nearly 8 years, and close anywhere from 35-45 transactions per year. I rarely have someone even ask me to reduce my commission after I've gone through my listing presentation, and I've never had anyone upset about paying the commission after I deliver results.
  • Bill Holdsworth | 11 Feb 2015, 12:01 PM Agree 0
    How do you determine the percentage of homes listed by a discount broker that actually sell?
  • A GTA Realtor | 25 Oct 2015, 09:19 PM Agree 0
    Feeduck is a joke. As an experiment, and to work on getting market exposure in a certain area where virtually all homes are easily 1.5 million dollars. I bid on a listing, and I bid it down to 3% (for both ends)., which is the minimum bid.

    They do not tell sellers that all of the auctions will always end up at 3%, and does not specify what amount is to be offered for a co-op

    The fee is $170 for the "winning" bidder (agent).

    The contact information that was provided (seemed like a pay-as-you go phone) that was never on. I did connect with the seller over email, and she indicated that she wanted to shop around for a deal better than 3%.

    Feeduck does not do a good enough job educating the Sellers. It is a very one sided system (Feeduck takes care of themselves), and does not look out for the people actually paying for it and misleads Sellers. Among many other things, the sellers should leave a deposit to show that they are serious.

  • RealEstateMike | 20 Dec 2015, 12:23 PM Agree 0
    I agree FeeDuck is not not worth it... and really they bring nothing innovative to the market. As A GTA Realtor puts it very well "it's a very one sided system" that really doesn't benefit the industry. I don't think agents should be worried though - these companies will not survive because they don't actually solve any problems (for customers or agents alike).

    I know a lot of agents that tried them with little or no success. I am however a proponent of new technologies. Change is inevitable and there is a lot that I believe will happen in the real estate industry over the next few years. I wish Canada had more companies that were looking to innovate and bring customers to Agents without always being focused lowering the Agent's commissions. I have come across one interesting company but I haven't had a chance to look into them in detail. Anyone has had any experience working with them? As for FeeDuck I would definitely advise against it.
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