The business model does not work because RE brokerage is very expensive top operate. You cannot support the business with 1% and never will be able to. The business is being sold because they arent making money, never will and need an exit to save face with prominent investors. My bet is that the acquirer will essentially takeover the debts of the Ipayone with very little if any cash exchanged. There are lots of deals like this going on. I spoke to a manager today at one of the largest brokerages in town. They have over 30 offices and only 3 are squeaking out meager profits.
PC, I dont disagree that alot of RE can go online but that doesnt mean it can be done profitably for alot less than it costs today. Every home is unioque and presents unique challenges. In contrast every pill in the bottle better be identical and there is virtually no difference between seats on a plane in the same class of service. RE is a labor intensive business and always will be.
