It all started when Lindy Chapman thought how she knew the business of the real estate. Previously, she and her husband have moved for eight times.
So, how it all looked like for this couple in the last few years? For example, buying a house in 2015 wasn’t that problematic as it is now, according to Lindy. She didn’t have to spend much time on choosing their new and perfect beloved home.
Yet, in the 21st century and with the highest technological achievements, we were all able to expect how things will change. Lindy realized that as well.
Are people satisfied with the algorithms that help them buy their new home? Not at all. Although technology helped people a lot in this process, a huge amount of them has also suffered a lot.
For example, when the wave of disintermediation came, we were all able to see how it literally squeezed all those margins in numerous advisory and sales professions.
Let’s talk about that famous 6% model that has endured for so long. What is it all about? How it affects new home buyers? How it affects touristic and sales industry?
Listing agents were the ones who set this amount for buyer’s agents even back in 1800! But, why have they done that? Probably because all those brokerages that have listed so many homes to new home buyers most of the times have their own buyer’s agents. Of course, they have seller’s agents as well. Overall, they needed to get paid from somewhere, right?
Numerous people claim how it all happened because of the Internet and how it needs to ‘take its piece of cake’, yet, that is not the truth. This practice became live more than 25 years ago.
Unfortunately, numerous shoppers still believe how the seller is covering the agent’s costs. We believe how that will end up soon.