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Agents react to Zoocasa closure

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Real Estate Professional | 12 Jun 2015, 11:30 AM Agree 0
The closure of online brokerage Zoocasa is drawing strong reaction from agents, including from those who supported it.
  • T. S. | 12 Jun 2015, 12:28 PM Agree 0
    This is what happens when you build your business on bull sh!t
  • Your Buddy | 12 Jun 2015, 12:37 PM Agree 0
    “I did not mind paying back a referral fee. It's business that I wouldn't have had otherwise. There were mostly qualified leads, and now some of these people will be my clients and friends for the rest of our lives. I have Zoocasa to thank for that, and [on that front, they were] worth every penny.”

    Yeah? What if a good chunk of your existing clientele told you they would not want to deal with you because Zoocasa offered them "cashback" (aka part of your referral fee)? All of a sudden, you have to cough up cash to "match the deal" when you least expect it.
  • Chris | 12 Jun 2015, 12:58 PM Agree 0
    The 35% referral fee might sound fare, but those who accepted it were being very short sighted. Once Zoocasa gained market share, who could stop them if they demanded 50%, 60%, 75%?

    Would that seem fare to you also?
  • matt | 12 Jun 2015, 01:27 PM Agree 0
    Chris, that's really speculative, and there's no way of saying that's what they would have done. I'm happy that they're not involved in real estate anymore too, but I didn't ever feel that they were a danger to my business. I get quite a few referrals from agents around the province that have clients that would like to move into my area, and I offer a 25% referral.

    As far as a "referral company" is concerned, I didn't have a problem with them. I've seen and been solicited by many companies offering "referrals", and the vast majority of them ask you to pay upfront for each referral (which is nothing more than a scam). If it's a legitimate referral, and the fee is payable only if a deal is put together, I don't see a problem with it. I've heard that's how Zoocasa works, but I can't speak from experience, as I've never worked with them.
  • Bruce Dougall RE/MAX Kelowna | 12 Jun 2015, 01:30 PM Agree 0
    I had two good leads from them that resulted in deals. All the rest of the leads were a total waste of time much like the flakes that one gets off the internet. I had a tough time getting past that 35% referral fee in my head. We do a lot of work and 25% is fair....35% was over the top.
  • Suckers | 12 Jun 2015, 02:08 PM Agree 0
    Consumers I wouldn't waste ur time and money with any of these full price or slightly discounted agents. There are agents out there that will sell ur house for $1,000-$2,000 and you can buy a house through one of these great agents and they will only charge $1,000-$2,000

    They are tour guides who took a 3 month course!!! They say call when u need direction!!! ?? They say that is worth their outrageous fees they expect?? Call when u nned a plumber, electrician, lawyer..that is their justification for the fees they ask!!!!???

    Just look on the interent and you find a great agent and keep ur money for ur own kids!!! Don't pay anymore than 1000-2000 for any transaction. Agents will kick back 95% of their commission and only charge 1000-2000 to list.

    Stop being suckers to the tour guides.
  • Sigmund | 12 Jun 2015, 02:16 PM Agree 0
    Bruce, you are absolutely right! Their 35% referral fee, out which they paid a" cashback" to the client, was one of my issues with Zoocasa!
    Another issue was, as Chris reasoned, that they would have eventually demanded exorbitant ( did someone mention extortionist) referral fees as their market share grew. It's the lack of imagination or foresight that cause some Agents to ignore the verboten signs in order to get a deal!
    Debbie Wilding earlier summed up the Zoocasa episode correctly!
  • Jj | 12 Jun 2015, 02:28 PM Agree 1
    Buyer and Sellers are not stupid, and don't just look at saving a few dollars. Real Estate is about relationships and trust. ZC forgot that. I don't show or sell properties that don't offer me a fair living like 2.5% , online brokers comfree etc. I don't show them due to my insurance risk. I aught to know they are not professional when it comes to representation. Sellers make mistakes all the time. I don't!
    Furthermore, in Europe its 7% no sharing. Destroyers of our business gets no sympathy from me. Good they are!
  • | 12 Jun 2015, 02:42 PM Agree 0
    You are quite proud of yourself and seem to have found a solution, worthy of telling every one... who'll listen! But, let me ask you, why not...sell it yourself? Why spend the 1-2000?

    YOU, may get your discount agent they say, even a blind squirrel will find a nut...once in a while!

    Most people, and you... clearly aren't like most people want a proven professional to handle the most important transaction of their life.

    One more quick question...who closed the deal? Did your Lawyer charge 5% of his usual fee too? OR...did you use xcopper? Nah, what am I thinking...someone as brilliant as you probably closed the deal learned all you needed to know, from the internet, right?
  • Rod | 12 Jun 2015, 02:59 PM Agree 0
    As to Rogers no longer being in the real estate business. AMEN TO THAT! They can't even run their telecommunications company properly, how would you you expect them to run a real estate company. Was a joke from the get go since at least 50% of the country hates them and would never give them another red cent. Me included!

    "Suckers" it costs $1000 to list and market a property effectively to get top dollar. I don't know what planet your living on, but don't know an agent that would only charge $1000-$2000 to sell your home when you have to pay at least that to your broker, before the agent will see any of it. That is the equivalence of working for free or even worse the agent paying to sell your home. Sorry but I don't work for free. Do You? 3 Month course? I spend more than 3 months and I spend many days learning new things and upgrading my skills, making sure I have all the knowledge to do my job effectively and work for my clients best interests. I can't see an agent working for $1000 working in your best interest ever, why would they, your not paying them.

    When people ask me what my commission is and balk at my 5% response I politely let them know that I would rather not work with them, before they get the chance to. I work hard for my clients and deserve my commission and the one's who won't pay can go to 1 of the 1000'S of agents that discount. Not worth my time and those people sound like they are just going to be difficult to deal with, and for what.

    Discount agents are great to work with when I'm representing my buyer. They were manipulated by their seller to cut their commissions, so they can be easily manipulated for a lower price of their clients home. Did a deal last week where my clients saved $15,000 on a $400k home and it was well worth it's original asking and only on the market 11 days. The smaller house on the same street sold for $20,000 more with less features than the one my client got. LOL My buyers were very satisfied.

    The old saying goes you get what you pay for and it couldn't be more right.

    PS. Suckers not every house sells like hot cakes many still expire even in the hot market of the GTA. Not to mention the last person I would want to "tour" with is you and the other cheap trolls on here.
  • JC | 12 Jun 2015, 03:20 PM Agree 0
    "Much to do about nothing". There will always be alternate style business plans in the Industry. I received 8 listing referrals from other agents last years and paid 25 % to 50% referrals fees depending on the situation. Made $44,458 in commission from these referrals.
  • judy | 12 Jun 2015, 03:37 PM Agree 0
    What alarms me more in this article is that the Feds want to decide what we do with information we collected for out work in a system we designed, maintain and pay for!
  • EddieN | 12 Jun 2015, 06:10 PM Agree 0
    Zoocasa model worked for me wonders and I am not a discount broker. There is nothing wrong with paying a referal fee for a qualified lead. If another agent sent you a lead, wouldn't you pay a referal. Yes, you would. The only ones bitching are the agents who don't produce and couldn't get into the program. Jealousy! The only reason Zoocasa failed is because the money they spent on advertising and staffing couldn't be recouped. Period.
  • Brian | 13 Jun 2015, 06:59 AM Agree 0
    Could not have said it better.
    Discount Brokers come and go and never last.
  • smarterthanthat | 13 Jun 2015, 08:43 AM Agree 0
    Mr. Sucker has been ranting on this forum for a very long time. He/she knows nothing of business. Biz 101 would tell him/her/it that a fee of 1-2k is not sustainable. E.G. Zoocasa, too many expenses no revenue.
    Don't waste your time and the space on this page replying to this pea-brain.
  • $1,000 Transactions | 13 Jun 2015, 10:26 AM Agree 0
    3 Month Course Tour Guides,

    I work hard ,everyone is a pea brain,knows nothing, 1,000 is not sustainable..that is the TOUR GUIDES argument!!! ?? Plenty of realistic great agents that charge 1,000-2,000 are thriving and doing a great job!!! Consumers look online ,do a little homework and you will save ur money for ur own kids schooling etc..

    Home values have risen not the value of TOur Guides...Condos have walls,windows and status certificate what else do the TOUR GUIDES TELL YOU?? They don't have crystal balls(MOST THINK THEY ARE FUTURE/fortune TELLERS)!! Semi/detached are selling themselves with supply and demand!!
    No wonder tour guide applications are rising all seeking that easy money
  • Peter B. | 14 Jun 2015, 02:25 PM Agree 0
    Learn to spell you tool.
  • Peter B. | 14 Jun 2015, 02:26 PM Agree 0
    I was referring to the "comment" from Suckers, not the above few last ones.
  • 3 month coursers | 14 Jun 2015, 02:48 PM Agree 0
    Tour Guides,

    peter b the poet tour guide who 's only fight is name calling ...he's so cute!! he must have finished looking up new listings or comparables and was exhausted and resorted to name calling in his weak moment..

    Rain days are a good time for tour guides to clean their taxi ...
  • richard | 14 Jun 2015, 05:11 PM Agree 0
    Hello wake up realtors those who cannot generate their own leads depend on companies like this and real estate boards should protect and innovate new technology and systems that realtors can benefit and that they can pass to their value clients.
  • 3 month coursers | 14 Jun 2015, 05:55 PM Agree 0

    Ricky there are 60,000 tour guides in Ontario and they need any help they can get
  • Lawren. | 15 Jun 2015, 11:46 AM Agree 0
    Realtors are amazing! I would never buy nor would I ever sell a property without a Realtor. Even if someone came up to me and offered to buy my house, I would contact a Realtor to do the transaction.

    If Realtors were paid what they were really worth, their rates would be above lawyers. What lawyer ever came to your home and explained everything that you need to know about buying or selling. What lawyer answered your call every time you came across a listing that you're interested in AND THEN, drove you around for free only to find - it wasn't the one. A Realtor will still drive you back to your house eventhough he didn't make a nickel for their time, gas, insight, research and honesty about the property they've just shown.

    Realtors deserve every cent they earn. Sometimes they get it right the first time for the buyer and sometimes it takes a while. My Realtor once told me how hard it is to sell a property. If it sells to quickly, the price was too low, if it sits on the market, the price was too high. Sometimes you just can't win. I have no problem paying my Realtor the full commission, I do like to try and get her to negotiate the closing fees with the seller though. A great Realtor can often negotiate a great price, repairs to be done before closing, refer their connections for a house inspector, give some general (learned) legal advice and it's a drop equal to or greater than their commission.

    So for all the things that you do, every day, all day long - Thanks. Don't ever discount yourself.

    A satisfied buyer and seller of several properties.
  • Dick Brady | 15 Jun 2015, 12:19 PM Agree 0
    Talk of 50, 60 or 75 per cent is ridiculous - nobody would accept a lead with those kinds of referral fees. However, because the ZooCase leads were very strong (I turned all but one into a sale) they were worthwhile and after all, the 35% is only 5-10% higher than a normal Agent to Agent lead anyway, and these don't always work out. Plus I'm not sure what the representation talk is all about as they only referred Clients/Customers to establish Real Estate Representatives who supply proper services.
  • 3 month coursers | 15 Jun 2015, 09:20 PM Agree 0
    Lawren seems confused and little naïve and if her agents can sucker her to paying 20,000 -50,000!!!!!! Big spender

    Tour Guides should be Payed more than a lawyer!!??? lawyers make 1000 approx. per tansaction !! tour guides want 20,000-30,000 to answer questions by looking up comparables!! Please let the world know what questions and answers ur tour guide provides for 20,000-50,000??
  • Troll's back!!! | 17 Jun 2015, 03:50 AM Agree 0
    Ohhhh your back???

    Lol @ "Suckers, 3 month coursers, Tour Guides, 1000 Transactions, Commission Wars"... etc etc etc and yada yada yada!

    Folks! This is the same TROLL you find in all the articles here! Don't bother! It's not worth your time!

    As always, the TROLL will resort to saying that I have nothing better to do with my time then to write this (2-3 minute) response after reading this article.

    He/she is angry at the world for being in the same situation day after day! He/she has a degree in Conflict Engineering and Envy! He/she will make fun of the same education that he/she clearly failed to complete (as noted in previous comments!). I guarantee you he/she has friends/family in the real estate business, and it eats at their soul every day!

    Hey TROLL you'll use judgements, making-fun-of (or at least trying to!, and extreme examples to judge people you know nothing of! And, yet after all of these comments, it's the same ole wine and cheese song! You haven't even changed your tune to make it a little more exciting!

    Like usual. I realize you've started your day by checking these responses (such as mine!) and with a grin and shaking of your hands due to your anger issues and excitement to reply, you will prepare the same repetitive insecure comments!

    My apologies though! I won't be taking the time to read your well thought-out and meticulous comeback!

    1... 2... 3... Let it begin!

  • | 26 Jun 2015, 07:42 AM Agree 0
    Love it, couldn't have said it better myself!!! Well done!!! This is the perfect scenario of someone who got lucky and thinks it's the norm to buy cheap with no adverse consequences. It's not! A genius until the deal starts to go sideways, then scramble to save themselves. Next time could cost 10s of thousands out of their pocket, when there sellout broker/agent misses a vital element of the transaction. Ooops!!
  • | 26 Jun 2015, 07:51 AM Agree 0
    Great for you, next time you may not be so lucky when the deal that your 1000$ agent is working on for you goes crappy and it cost YOU thousands to fix it! Good luck!!

    I'll use an professional agent every time (one who doesn't discount themselves - if they drop their income so quickly how much will they fight for MY financial best interests? I GLADLY pay for their professional service, slight discount sure but they are entitled and worth every penny for peace of mind.
  • Dinasour | 26 Jun 2015, 09:08 AM Agree 0
    The old dinasour talk you get what you pay for, how hard will they work for that feee/wage... that is the argument?

    Of course when u pay full price commissions problems don't happen and you don't lose ?? Naive !!!! There are great tour guides that will do a amazing job,work triple hard and great results for the $1,000-$2,000!!!

    I could argue the same thing each way pay more and you don't get great service .
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