Each year hundreds of thousands of motivated and highly-inspired individuals across America and throughout the world choose to become licensed real estate agents for legitimate reasons: HIGH PROFIT FOR LITTLE WORK. Over the years millions have invested thousands of dollars each in education, membership dues, tools, and communication expenses to compete for clients. However unbeknownst to many the agent attrition rate continues to climb 70-80% each and every year. What this translates into is that most consumers will place trust in real estate agents who will not be around in 1-2 years due to extraordinarily high competition.
The 20% agents who survive the two year period are well-known and trusted by communities. Unfortunately they are entangled in a system that is s-l-o-w and costly. The cycle will never end until consumers make better choices.
In his book HOW TO BUY OR SELL YOUR HOME IN 1 MINUTE Founder/Broker Kosol Sek explains why the industry has been hungry for change but systemic contraints, whether directly or indirectly, continue to stifile innovation to benefit consumers.
One of the main constraints is that almost all real estate agents operate as independent contractors. This means brokers may not require agents on how and when to conduct business. And to maintain distance from anti-trust ( break federal and state laws ) scenarios real estate companies are prohibited from discussing or requiring how much commission agents charge.
So what is the one piece of fact that all real estate agents already know?
Despite routine excersises by high profile agents to promote figurative values using open houses, online tools, expensive billboards, bus benches, and neighborhood mailings the real value is in the indisputable fact that 80-90% of buyers are exposed to properties in the first 12 days. This statistic has been around for nearly 20 years and continues to drop with increasing smartphone adoption. While the trend should be central to industry innovation, billions are invested and lost in high cost tools to prolong the slow and costly ways of selling real estate.
A quick search on Google or any search engine for “real estate lead generation” provides empirical evidence that real estate agents are being sold facebook and social media tools to make clients think they are working hard. There is no focus on helping agents to sell properties faster and cheaper to benefit consumers but rather to continue the currently high cost and slow real estate business.
In recent months the hesitation by industry titans to change has invited disruptors to enter the market with billion dollar innovations that do not benefit consumers. One such innovation, the instant iBuyers, singularly promises to remove the home selling headache and frustration by selling to them at a discount. The promise is a quick sale and flexible closing date in exchange for a discount off estimated market values.
What they do not disclose is that millions of real estate agents know that home selling today doesn’t require weeks or months like they did 5-20 years ago. A well-listed property can receive the maximum offers in just 12 days. In fact a quick search of public records of properties sold to instant cash buyers show closing dates to average 21-45 days whereas to retail buyers 21-60 days. The marginal difference between selling to an instant buyer at a discount in 7 days vs. comparing the full market offers in 12 days is miniscule that consumers have been sold a litterally “non-existent” fear that cost $10,000 to $50,000 — OR MORE.
Between the traditionally hesitant real estate companies and today’s tech-heavy “new ideas” not much have changed.
For nearly 17 years we’ve been perfecting a system to create demands for properties by focusing on the initial 12 days. The internet accelerated our efforts by automagically compressing buyers in just days. While millions of real estate agents already know this the systemic nature of the business makes it nearly impossible for them to fix. Because the current independent contractor nature of a centralized business model ( where every agent offers the same ) keeps everything s-l-o-w and costly.
To innovate would require each of the millions of agents to simultaneously invest tens of thousands to implement new ways to benefit consumers. This is likely never to happen since many enterred the business on the lure of high profit with little work.
NoDiscount® is proud to recognize the 12-day aspect of home selling and dedicate our innovations to delivering more offers, higher offers, and faster offers during the initial days on market.
