This guy popped off at the DOJ hearing a couple of weeks ago, and the story has kept making the rounds:
So you think things don’t get rough in real estate and feathers don’t fly when agents’ commission money is at stake? Ha. Listen to what Joshua Hunt, founder and CEO of discount-fee realty brokerage Trelora recently said here at a meeting of the Federal Trade Commission and Justice Department.
Trelora, which is based in Denver, charges home sellers a flat $2,500 to list their home and allows them to pay agents another $2,500 for bringing in buyers, no matter the price of the house. Hunt told the meeting, which was organized to examine the present state of competition in the real-estate market, that competing brokers and agents loathe his firm’s business model because it reduces the total commissions they receive.
“We’ve had bricks thrown through car windows,” he said, “we’ve had our cars egged, we’ve had hate mail sent to our sellers” — all because Trelora clients don’t pay enough in commission dollars, split between the listing agent and the buyer’s agent.
Many competitors won’t even show Trelora-listed homes, said Hunt. “I’ve got a list here of 719 brokerages in Denver” that will not show Trelora properties unless the seller agrees to pay the buyer’s agent 2.8 percent to 3 percent of the sale price as commission. On a $500,000 house that’s a big difference — $2,500 versus $14,000 or $15,000.
Hunt has also fought pitched battles with local Multiple Listing Services insisting that they allow consumers — not just agents — to see the full commission splits on listings. That means disclosing the buyer’s agent’s cut of the pie — which many buyers don’t know and don’t ask about — as well as the listing agent’s.
I called the Denver Metro Association of Realtors today. They have a little over 500 real estate offices in Denver. So every single brokerage – including those that charge less than Trelora – won’t show his listings, plus another 200 phantom brokerages.
Virtually every agent in the state hates him?