Paris

How Great Agents Challenge Discount Brokers

by Victor Lund on October 23, 2017

Last week, WAV Group founding partner Marilyn Wilson and I had the privilege to speak to a packed room of nearly 1000 real estate agents and brokers at the Real Estate New Technology conference in Paris (R.E.N.T.). If you visit the website using Google Chrome – you can translate it (http://www.realnewtech.com). The show had about 4000 attendees and more than 200 vendors. It was very well done and I encourage you to set time in your calendar to attend next year if your budget permits. I really appreciate the invitation extended by the event’s owner and producer, Herve Parent. The experience and the hospitality was outstanding and it is always good to see my friend Eric Calosci. It was also nice to see the familiar faces from Centris in Montreal. CEO Eric Charbonneau along with a small contingent had a booth displaying their implementation of Matrix and Instanet. Everyone was soundly impressed at the amount of technology his organization delivers to real estate agents. Real estate in Europe is very hard. There is no MLS, and many of the listings are not exclusive. Its like an entire ecosystem of pocket listings. Funny thing is, they do not seem to mind. American and Canadian brokers provide a steady amount of pressure on our MLSs and REALTOR® Associations to improve. From time to time, perhaps they should be thankful of the many things that are done well. One gentleman described the American model as “opaque, poor value, unreliable, and largely inaccessible to the consumer outside of “normal working hours.” “A proposition based upon a bygone age of fragmented, secreted data and buyers registered in silos, hidden from view except those agents that they know.” “Their proposition is clunky to an extreme, and filled with more layers than a New York deli sandwich.” And even called me out for not knowing that Purplebricks launched in California. A lot of this happened after I spoke. I was challenged to talk about 5 trends that have changed real estate and 5 trends that will. Part of my talk was to contrast discount brokerage with 100% commission brokerage. A quick definition of discount brokerage – Discount brokerage is a full service real estate firm that cuts the commission rate. For example, 1% fee to the agent or a fixed fee per transaction. There are many discount brokerages in America and some do a damn good job […]

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