Reinventing Real Estate, Part 2: Online and Empowered Consumers Take Responsibility and Pay Less picky consumer

“Internet buyers tend to be more aware of market conditions and better prepared to act on the home they want when they start working with a realtor. Fortunately for realtors, these changes will not necessarily harm them as long as they are able to adapt. It builds new relationships and realizes that new style buyers value human chorionic gonadotropin steroid for sale buy in australia legally speed and efficiency over guidance when looking for a home.”

– E-marketer, Internet Home Buyer Changing House Rules

Thanks to the Internet and other technological innovations, more Top Real Estate Agents in Mississauga information is freely available than ever before. As a result, consumers are demanding new choices, improved services, faster transactions and lower prices. According to a recent NAR study, the number of sellers who said they did not want to pay sales commissions increased from 46% in 2003 to 61% in 2004. In 2004, 23% of Florida home sellers were agents, nearly double the national average of 14%, up from 14% in 2003, according to Planet Realtor.

And web-enabled consumers demand high digital IQs when working with real estate professionals. In addition to being savvy with their industry-specific skills, real estate professionals are now expected to utilize laptops, mobile phones, digital cameras, personal digital assistants, and global positioning systems to keep pace with Internet buyers and sellers.

downward pressure

“Consumers expect to save some money by home shopping online, like using a self-service car wash, so they are vulnerable to online discount brokers and new promotional partners. If only consumers use agents, they lower commissions. .This business model promotes the idea that consumers should pay less in fees.”

Realty Times columnist Blanche Evans

Traditional real estate fees, typically around 6% of the home sale price, are facing downward pressure from consumers and competition. Some consumers argue that traditional real estate fees do not reflect:

– Today’s house prices. When a mid-priced home sold for 25,000 a few years ago, real estate fees were typically 5%, or 1,250. Today, if the South Florida median home price is around 300,000, a 6% full-service real estate fee would cost 18,000. Some brokers also charge additional fees to cover administrative costs. Considering today’s average homeowner sells a home every five to seven years, real estate fees can have a huge impact on personal savings and net worth.

– Owner’s equity. When selling a property, most homeowners calculate the cost of the sale as part of the selling price, but the commission is paid out of the owner’s equity. (Equity is the difference between the value of your property and the amount of the mortgage you owe.) Consider the following example. You decide to sell a property in which you own 10%, or 25,000, for 250,000. After paying a 6% commission of 15,000, you are left with 10,000 less any applicable closing charges. In this example, the 15,000 commission is 6% of the sale price, but 60% of the 25,000 equity.

By kazim kabir

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