LOL, talk about backhanded compliments. To clarify, there are VERY VERY FEW 3% guys. The discount brokers talk about the savings over 6% listings which are virtually non-existent in the marketplace and I find that very deceptive. They should be comparing themselves to what is really going on in the market TODAY (Most full service agents, charge 4 to 5% today) not what was going on 3+ years ago. Full service guys aren’t threatened by 1% guys because their business model wont work in the long run on a large scale. Personally, I dont like working with them because every time I have, they disappear as soon as we go into escrow and I end up doing their job for them. Conducting a RE transaction properly requires a huge amount of communication and coordination. I would estimate that I speak with a seller by phone an average of at least once a day during the transaction. With todays sales taking over 100 days, that is 100+ phone conversations with the seller and at least another 100 calls with everyone else.
Sure there will be some success stories but I have seen many reports and market share among full service brokers is increasing over the last few months. In my area, several of the flat fee brokers have disappeared, are looking to sell their business or already have turned over a couple times to a greater fool.
BTW, The 3% model has already gone the way of the buggy whip since around early 2004.
