Zillow and Trulia sell advertising to realtors. They will be in full support of the status quo, as seen below in the video. They want the full-commission model to stick around so agents have more money for advertising!
The R-team brokerage is a solo operator who relies on their whiz-bang website to generate customers. But that makes them potential enemies with Z&T. Glenn takes a shot at both in this piece, while doing his usual touting his company:
But his company’s formula has a weakness. The agents showing the houses are just part-time door-openers, while the agent who writes the offer is back at the office – they have never seen the house.
They are hoping that reduced commissions and fancy tech talk will overcome this structural flaw. But without expert advice in the field, buyers will hedge a little on price, and as long as there are multiple offers, they will struggle to compete. Plus, in a bidding war, will a listing agent select an offer from the red team in a close race? I have done so, but I’ve also heard grumblings from other agents about doing the opposite.
Then you have Harcourts, who announced this week that they are bringing their auction expert from Australia to show America how to do it. If they and auction.com could get some traction, maybe the industry will head that way. But the reserve prices and auctioneers bidding against buyers will be a turnoff.
Zillow seems to be leading the way, so status quo will probably win out.
What do you think?