Room for Tech Companies In Real Estate

I am going to open here by saying, there is room for the tech companies in real estate, we just don’t have room for their, we’ll call it, “Misleading Information”.

They are good if you are in a situation where you simply must sell, and losing money in the end is a non-factor. For example, maybe you inherited a home from a relative that passed and you don’t have the time, or don’t live locally to deal with it. Fine, quick sell it and move on.

Maybe you got a job out of state and have to get out fast, OK…sell it to them and move on.

Just understand, that they are in the business to make money, and that money comes from YOUR equity.

Recently, I saw a sign for Opendoor go up in my neighborhood. Being that this is my business, and that sign is on my neighbors house, I was very curious about the price they let the home go for. As it turns out they sold for about $5,000 below a recent comp on the same street (loss of money to the seller), and Opendoor is now asking $20,000 more than the same comp. Assuming they get their price, that’s a $25,000 LOSS for the seller.

But that’s not what caught my eye when on the Opendoor website.

Below is a chart that they put together comparing using them to buy a home with a “Discount Brokerage”  where in many cases you do all the work for viewing, negotiations, contracts, inspection, etc., and they simply file the documents.

The 3rd column is how they compare themselves to using a traditional agent, like me. The notes in red are my rebuttal, if you will, to their mis-information.

Here’s a summary:

1) They say that they “Give you a refund on a home purchase” and traditional agents do not.    

  • The Truth: Most lenders will not approve of a “Refund” to a buyer. They will, in many cases, allow a contribution to closing costs, likely NOT $3000.
  • Personally, I have contributed to closing costs many times where needed to ensure my client can get the home they want. For them to leave that blank, as if your agent will not contribute, is disingenuous to say the least.

2) They offer “Online support”.

  • Why is that better than “In-Person Support”? Need help? Call your agent…we are here to help, and happy to do so,

3) Free Property Reports!

  • I have never heard of an agent that would charge to give you information about a property. To pretend that we do, again, disingenuous.

4) Free On Demand Tours.

  • When you schedule showings with your agent, you not only gain access to the home to view it, you have an extra pair of eyes that have experience in looking for signs of issues that may be present, information to pass on to an inspector to further investigate. You have area information, neighborhood comps, offer price suggestions, the ability to negotiate with the seller, and someone who knows the contracts to review, advise, and protect you in your transaction.

5) They “Manage Offers Online”.

  • We manage your offer In-Person.

6) Top Rated Buying Agent.

  • They have the same Arizona State Real Estate License that we do. If you want to know how good your agent is, ask to speak to their former clients. Or, better yet, get to know your agent on a more personal level, have them buy you lunch!. That will determine how they will care for you. I guarantee it will be more personable than a computer.

7) Option to work Directly.

  • Why in the world is it an “Option” for you to work directly with the individuals that are responsible to protect you in your biggest life investment? You are spending Hundreds of thousands of dollars! Direct attention should be required, and expected.

8) Finally, did you see the disclaimer?

  • I have never used, nor will I ever use a disclaimer. My duties to you are clearly spelled out in the first disclosure I give you. They are Fiduciary. They are governed by Ethical Rules. No disclaimers, no surprises.

Bottom Line:

Whether you are buying or selling a home, you deserve the one on one, honest, ethical support of a traditional real estate agent.

Don’t be fooled when the tech companies try to make the word “commission” dirty. In the end, many sellers pay MORE in a lower sale price plus “Fees” than they would in commission. I can demonstrate that to you if you are interested in learning more.

You simply cannot beat the one on one, personal attention you get from a professional real estate agent. Technology is not always to your benefit.

I have an awesome team of professionals in our corner to ensure a smooth transaction.

If you’re not ready yet, we can help you set a plan to get there with free advice and guidance.

I would be honored to earn your trust, your business, and your referrals. Give me a call, let’s get started today! (602) 818-6065 or Kevin@GiantAgent.com

Posted on July 15, 2019 at 7:30 pm
Kevin Jacobs | Category: Market Information, Real Estate Industry News | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

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