People 55 and older own 53 percent of U.S. owner-occupied houses, the biggest share since the government started collecting data in 1900, according to real estate website Trulia. That’s up from 43 percent a decade ago. Those ages 18 to 34 possess just 11 percent. When they were that age, baby boomers had homes at almost twice that level.
Public policy contributes to the generational standoff. Property-tax exemptions for longtime residents keep older Americans from moving. Zoning rules make it harder to build affordable apartments attractive to senior citizens.
“The system is gridlocked,” says Dowell Myers, a professor of urban planning and demography at the University of Southern California. “The seniors aren’t turning over homes as fast as they used to, so there are very few existing homes coming online. To turn it over, they’ll have to have a landing place.”
There is one solution that would solve everything – start a new club.
It was probably no accident that Mauricio ran this again on his Instagram yesterday, and it is a fantastic idea:
They are advertising it as a pocket-listing website, but it could go big and offer the industry a viable alternative to the current MLS system.
A wanted and needed alternative!
It might take a few months to catch on, but think of the effects:
Privatize the marketplace, and force consumers to work with agents who are club members.
Privatize the market data, so only the club members have the comps.
No listing feeds to Zillow or other real estate website, resulting in no public access to listings.
Brokers could only charge agents a reasonable admin fee, instead of big splits because all agents need is to be in the club.
The N.A.R. and all other blood-suckers are eliminated.
Club members in full control of market, with no rules or ethics.
Only agents can join, and let’s make club membership extremely expensive so only the top agents could afford it, which would eliminate the lousy agents. If the cost was $2,000 per month, it would cull the herd immediately.
The only reason there are so many pimps making millions off agents is because we let them. We should take back our listings, and control our own destiny!
All it would take is a celebrity realtor to create it, and off we go! Revolution!
Zillow Group CEO Spencer Rascoff isn’t worried about the threat of newly-public Redfin — but he thinks the rest of the real estate industry should be.
He made that clear during a conference call associated with Zillow’s second-quarter earnings Tuesday in which he went so far as to say that Redfin is a “threat” to the traditional real estate industry.
“Undoubtedly, one of Redfin’s goals is to obviate the buyer’s agent,” Rascoff said on the call. “I think they have stated, quite publicly, that they aim to acquire more listings inventory in given markets, and then have no buyers’ agents on the other side of those listings. And that is a threat to organized real estate, and that’s one of the many reasons why brokerages are so concerned about Redfin.”
With N.A.R. on the sidelines, traditional realtors won’t mind somebody taking up the fight against Redfin – and Spencer could wind up being the hero!’
In this era of fake news, we can expect both sides to continue their bending of the facts too, which could get ugly. Who will consumers believe?
Hat tip to reader MF who sent in a note about this latest 3.0 release. If it wasn’t already obvious, our industry has more information on you than ever:
With PropertyRadar 3.0, you can have unlimited, always up-to-date contact information with your subscription, including:
40 million phone numbers for property owners and their spouses.
Spouse Owner/Joint Owner Contact Details
Links to Social Media Profiles
Profile Pictures from Social Media
Gender, Age & Date-of-Birth
Ethnicity & Language
Household Income & Household Net Worth
Presence of Children & Age of Children
Interests & Affiliations
We’ve known about your mortgage history for years, and now it’s really getting personal. Realtors are building teams of people to help process this data, and seek out those who are most likely to move. Don’t be surprised if you see realtor marketing that feels a little creepy!
I agree with Rob that the real-estate-portal battle could be a two-horse race between Redfin and Zillow – the others just don’t seem to be interested in spending enough advertising money to get ahead.
Rob called his post ‘Part 1’, so he’ll have more on the topic as we go. I’m not sure where he’s going with it, but I’ll add my two cents:
Redfin will help retire the old guard. The median age of all realtors is 53 years old, according to the NAR, which means 600,000+ realtors nationwide are in their mid-50s and older. They will struggle to keep up.
They will help drive down commissions. Redfin is, and always has been, a discount brokerage. In an environment where you never hear agents talking publicly about their commission rate, Redfin is now advertising theirs on TV (and it’s higher than it used to be). The non-Redfin agents who have little else to offer the consumer will be forced to match.
They have helped to create and expand the team concept. For better or for worse, the agent-teams are here to stay; with the most-experienced agents back in the control room, and the new agents in the field. The jury is out on whether this approach is what’s best for the consumer, but it is the future of home sales.
They can process an order. If consumers are satisfied that they don’t need expert help, and only want help closing a sale, then Redfin can handle the paperwork. So can every other agent.
They have the killer instinct. Their version of ‘Instant Offers’ has the potential to be a good seller-lead generator, if sellers don’t mind the bait-and-switch. I expect they will also offer a Coming-Soon Club too, which could really rock the boat.
What Redfin is not:
They haven’t changed the service. The day-to-day business of selling homes hasn’t changed. Listing agents market their homes to a wide audience, and buyer-agents help their buyers find the best fit – Redfin or otherwise.
They aren’t neighborhood experts. They send out their least-experienced agents to show houses, which is treacherous for the buyers who are in unfamiliar territory.
They aren’t angels. Redfin agents do the same ‘sold before processing’ tricks that other agents do. One day, a district attorney is going to have a field day with this topic, and agents will be shocked to find out the real definition of fiduciary duty.
They’ve never made a profit. They offer mortgage, title, and escrow services now, and it’s the way most brokerages can add to the bottom line – if they can get good help.
Their model/brand is untested in a tough market. Once the market turns, we’ll see how they do.
You could probably accuse all agents, to some degree, of the ten items above. I’m not down on the individual Redfin agents – the experience I’ve had with them has been mixed, just like with non-Redfin agents. We are probably more alike than different – I’m an employee, with medical benefits, of a non-traditional brokerage with a consumer-facing website used to create business. Maybe I should IPO? 🙂
In fact, the actual Redfin agents are pretty far down my list of concerns. If we ever have a realtor revolution, this is who we should be fighting:
NAR, CAR, and local associations – they refuse to provide us quality assistance, won’t enforce the rules, and won’t battle those below:
Glenn Kelman, Spencer Rascoff, Warren Buffett, Rupert Murdoch, venture capitalists, and everybody else who is making a killing off us without ever selling a house themselves. In many cases, we are paying them to disrupt us. We could get along fine without them.
MLS companies who already have our listings, but don’t even try to compete with independent real estate portals. Insane!!
Major franchises who don’t provide industry leadership or real help.
These are the people who are the real threat to the 1.2 million realtors in America. Unfortunately, like politicians and other rich people in power, they will be allowed to pick us apart from their mansions on the hill.
Zillow has uploaded my Caminito Vasto listing! The MLS remarks didn’t pull through – but the photos did, go figure. They also called me a Premier Agent, and eliminated the three-headed monster.
We had two offers on Vasto, and I marked it pending on Monday, but they still show it as an active listing – but at least it’s on their website.
They are still having trouble with the listings that go pending, like the one below where they remove the list price and listing agent and just call it off-market, which isn’t accurate either for people who may have seen the for-sale sign or who are checking out the listing agents. I added the first couple of sentences in the remarks to help:
When my Caminito Vasto seller saw her listing finally appear on Zillow today, she said, “I used to use Zillow all the time but I never realized how crappy and slow they were until now….”.
It doesn’t take much to lose your stature in the marketplace when there are plenty of similar alternatives available!
You may have seen that they announced today that they are going public, and those who bet the farm will be amply rewarded, not because they provide a better service, but because they offer the sexiest disruptor.
I have followed Jim’s BubbleInfo blog from the early days of the bubble when “real estate could only go up in value” and I knew him to be a straight shooter who would not sugar coat properties nor gloss over their faults.
So when we decided to move back to California after 7 years in the more “
Jim met with us prior to listing – provided guidance on preparation, detailed information and stats regarding local market conditions. He was invaluable for providing contacts for repair and improvements that would provide return on investment. Our combined efforts, strategy and his attentativeness more “
Jim and Donna Klinge are an impressive team. They work extremely well together and back each other up, as well as their clients, along every step of the way. Their expert guidance made a tremendous difference in the experience we had, both buying a new home and selling our previous home of 40 more “
Since Zillow only allows me to write 1 review per real estate transaction, per team of agents we worked with, this is going to be a super long review.Review on Jim Klinge:
Jim Klinge is the quintessential real estate agent, the “broker’s, broker” of real estate agents. My husband and I reached more “
by Louie and Tim Cook
Jim and Donna are the BEST of the BEST! Their knowledge, professionalism, work ethic, and devotion to their trade are unrivaled. It was refreshing to have worked with a pair of professionals who truly understand the meaning of customer service, a lost art in our opinion. Despite living over 3,000 miles away on the opposite coast, Jim and Donna were with us every step of more “
Jim found me a multi family property that we purchased as an investment (Please see my review of Donna Klinge for details on how it went). But the bottom line is this: I never would have found this property, which cash flows right out of the gate, if it weren’t for Jim pointing me toward that house. It just was not on my radar, even though I consider myself a savvy real estate troll. Jim is giving of his time, and his intelligence. And he is also transparent and truthful. And I think he is funny, which is helpful in stressful situations like RE transactions. Jim and Donna have earned every last penny they made from our deal — and in fact they deserve more. And that is why I will use them for my RE transactions the rest of my life. Thank you, Jim and Donna! more “
I can’t say enough about Jim and Donna. Jim got a great price for us and negotiated well. Donna walked us through escrow, handling vendors, and negotiating everything we asked for in the request for repairs. They are know exactly what they are doing and I’ve already recommended them to two other people. more “
I followed Jim’s blog for several years and decided to contact him (along with several other realtors) when an out-of-state work relocation required me to sell my home in San Marcos, Ca. At our initially meeting, Jim spent a significant amount of time discussing pricing options, strategy, as well… more “
Honesty. Integrity. Professionalism. Dedication. Commitment. Jim and Donna Klinge hold these attributes in abundance. They have acted as both our buyer agent and our seller agent delivering highly relevant insight into local market conditions, spot-on advice to maximize the home’s value, and unparalleled management of the transaction process… more “
I cannot imagine a better experience! Jim was our broker when my husband and I bought our first house. Jim never pressured us or glossed over anything. He was patient, knowledgeable, and helped us buy our dream home. His office was detail-oriented, always responsive and we closed in 30 days! The excellent service didn’t end when we bought our house, either, the Klinges have given us excellent and fast referrals along the way. We feel privileged to have worked with such a consummate professional and appreciate how rare this level of skill is. Jim is simply the best in the field. more “
Jim and his team are top flight. He knows the market better than anyone, and his team ensures the deal goes through without a hitch. There’s always something at the last minute, but you’d never know it with Jim and his crew. I’ve bought and sold houses with Jim as my agent over the years, and I wouldn’t use anyone else. Save yourself the headaches and potential costly mistakes… more “
Buying a house is one of the most emotional,exciting, and sometimes confusing milestones you’ll reach for in your life! Being a buyer in this market can make it even more interesting! My husband and I have been looking to buy for a year, and when the time came we wanted a realtor team that would be on our team! Being that I’m a business woman and was 7 months pregnant, I wanted, NEEDED, communication, dependability, and consistency! The Klinges went so far above and beyond … more “
Jim was recommended to me when I bought my first house here in the US five years ago. He and Donna explained the whole process and it was a great experience to work with them. Not surprisingly, when my company asked me to relocate my first choice was to work with them again… more “
I have followed Jim’s real estate blog for years and by the time I got ready to sell my townhouse I felt I knew him both personally and professionally. At our first meeting he was prepared with recent comps and listings for the area… more “
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