Traditional agents are fighting to keep market share
In 2002, flat fee MLS listings and discount MLS listings represented less than 2 percent of the market share. 2005 showed a marked increase as 11 percent of home sellers utilized the services of an "alternative" provider to sell their home. As market share has increased for such service providers, full service-traditional agents and brokers have pushed back actually forcing the intervention of the Department of Justice. As litigation continues surrounding the alternative listing models and "minimum service requirements" traditional brokers have found other business models to attack. 2005 has marked the arrival of Zillow and Zestimates, Redfin, BuySide Realty and other alternative models to the outdated real estate transaction process. While flat fee MLS and discount brokers have been a topic of debate for some time now, new models focusing on the buy side of the transaction are coming under scrutiny. Redfin and BuySide Realty have both recently been in the news because agents are boycotting their buyers and refusing to show them homes.
In one case an agent is trying to refuse commission payment to BuySide because it was she who showed the home to the purchaser - even though the purchaser had a buyer agency with BuySide and disclosed such information before seeing the home. In another case involving Redfin, an agent would not take an offer written through the Redfin buyer program.
The bottom line is full-service agents are going to do everything in their power to dissuade customers from using any alternative model, whether a buyer or a seller. But it seems as hard as they push, they are only drawing more attention to the existing commission structure that consumers are growing more and more tired of paying. As a home seller you could be forfeiting $30,000-$40,000 in realtor commissions, the equivalent of a brand new luxury vehicle. You are PAYING that much to SELL your home, sounds weird right?
