The End of the Brick & Mortar Real Estate Companies - Part 1
Its official, 100% Commission flat fee virtual online real estate brokerages are here to stay - and they are growing lickity-split ! And now the big box companies; Coldwell Banker, ReMax, Century 21, etc, are dying and no longer able to keep their younger tech savy agents, as these agents know that these brokerages are not able to give them anything that they can get themselves online. Therefore there is no longer any reason to cough up a big chunk of their commission for some free business cards.
In a vacum a need is filled, hence the influx of the one hundred percent commission online brokerage model. The flat fee virtual companies are essentially the same as the storefront real estate companies with all the exact same services, only without the parking lot and office politics. I'm actually quite surprised it took this long for the real estate business to finally go the online format.
The big winners in restructuring of this new business model is of course the agents, in being able to keep all their commission. When agents can keep all their commission and not have to sacrifice broker support, what's not to like about it ? If I was an agent I couldn't get on board fast enough. That being said, there will still be the old school agents who have gotten accustomed to giving away 10% ~ 50% of their commission where they can feel secure sitting at a cubicle.
As the 100 percent business model picks up steam those brokerages that even offer a building, yet alone a cubicle, will be as hard to come as a travel agency where you sit down and buy a plane ticket (remember that?). Who woulda' thought ?
Ronny Santana - Broker / Owner
CURB
California's Premier 100% Commission Brokerage
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