iPayone just happened to be in the wrong place at the wrong time. When they are only working for 1% commission, it’s hard for them to make a profit when the market is so slow. Besides, it costs a lot of money to build a company, and you have to pay computer programmers, web hosting companies, etc to get your infrustructure built and in place.
Ultimately, I think iPayone is a great idea. They are going against the grain, and trying to break down the traditional 6% real estate commission model. In yesterday’s market, where the average price of a home was in the $200,000 range, the 5-6% commissions were more apropriate, but in today’s market where homes are selling for half a million to 1 million bucks, 5-6% is way too much to pay to sell your home, especially when you consider that many people owe more then what their homes are worth with the decline in the real estate market.
