All Forum Posts by: Greg K.

I think you hit it on the head. All these changes may shrink the broker/agent market and force agents to either become elite or go fishing. I for one didn't want a discount broker selling my last house so I sought and found a top agent.

Good points! And yes, that was before my time :)

I find all this fascinating, as I've been considering diving into the RE client-side business as I'm already investing. But, I currently have a lucrative career in the IT space that I'm not ready to give up without first doing my homework. Being in the tech space, and trying to read the writing on the wall, I firmly believe there are BIG changes coming to the RE business in the next five years. 

I get that there may have always been discounts offered and negotiation, but the real issue is the systemic collusion that is often what aims to be disrupted. This MLS class action lawsuit is a perfect example of some of the alleged shady practices that are unwritten laws of the old school RE biz.

Again, look at Carvana, the consumer is no longer at the mercy of a Stealership that will ROB THEM BLIND. Sky-high APR, dealer/doc/undercoating/pinstriping/paint/seat/tire/wheel protection etc. etc. Carvana is totally transparent with what you get and what you pay; a true out the door price. Much of the same junk applies to buying/selling a home; title search/insurance and all those processing fees for one example. All Zillow needs to do is lobby the powers that be to get a title co. license and start using block-chain to disrupt that whole space too; bye-bye thousands of dollars in archaic fees.

Spencer Rascoff, Zillow founder and former CEO said something like "I want to make selling your house a three click process". So, I think the take-away is these companies definitely have loftier ambitions than some folks believe.   

I agree. Most people do need to be guided, but more and more, consumers are doing this by being empowered by data and a perceived unbiased entity or third party. Look at Carvana, they are totally disrupting the Auto Stealership model by empowering consumers with ease and transparency. I think certain clients (luxury especially) will always want and need a concierge service when buying or selling. But, for the average Joe, I'm not so sure a buyer's agent will be necessary. Often times, you can learn more as a consumer about a property via Zillow than the buyer's agent knows or cares to devote the time. It also appears that Zillow could very soon employ agents to list/show properties and almost act as an unbiased third party, ensuring the interests and transparency of both sides and thereby eliminating buyer's agents. 

@Russell Brazil

Most businesses lose money before they are profitable, especially tech companies; Netflix, Facebook etc. Also, we’re it not for Redfin disruption, do you think brokers would offer 5% listing fee and 4% if you buy and sell? Not a chance. RE industry is a dinosaur that has benefited tremendously from hoarding and keeping information vague and secret from consumers. Times are changing and if you want to win, bet on the consumer. All the power is transitioning to them and democratization of industries is upon us.

Its not about credits...its about big data and analytics. Amazon will know if you are moving before you do because you ordered a roll of packing tape. It's a play to capture the buyer and take on Zillow and Redfin. 

I think the margins will become thinner for agents (minus luxury) and it will eventually be unrecognizable as we know it today. Redfin and Zillow are already trying to replace the listing agent and now Amazon is capturing the buyer (likely before buyer even knows they want to move!). Amazon is where America shops and they now incentivize every single customer to BEGIN their RE transaction in Amazon's ecosystem (people love free junk). I think its also possible that these behemoths absorb the independent brokers as well. 

From the rise of the iBuyers, Zillow looking to flip houses, and now Amazon partnering with a behemoth brokerage, is this the beginning of the end?

https://www.wsoctv.com/news/local/amazon-real-estate-giant-look-to-disrupt-homebuying-in-charlotte-elsewhere/969773302

Thanks for sharing! I'm on the hunt for my first BRRRR deal, preferably in the Tampa Bay area!

@Jess White

Baby boomers are retiring on average with less than 100k in retirement funds. They need affordable housing. Change my mind.

He was pitching the "male enhancement" pills on several shows during the ads; it was really weird for a supposed investing show. I deleted him out of my life after the last podcast about law of attraction. So not sure which episodes they are. But here are the "law of attraction" con artists he advised his followers to listen to, a former Amway salesman and his wife who is "channeling a group of non-physical entities called Abraham", as she speaks gibberish in a terrible Middle Eastern accent. You can't make this stuff up!

https://en.wikipedia.org/wiki/Esther_Hicks