I was reading an article about a new company in California which advertises that you can "Shop Without and Agent" and assures the buyer "We've got your back". Shoppers can make offers online and should they want to see a particular home, they are allowed to do so via demand showings. The company then contacts the listing agent to arrange for this to be done with one of their people (a non commission employee), and the client crafts their own offer online for the purchase of the home. The company rebates the excess commission over $5,000 to the buyer.
I can see this working for an experienced investor, but for the average person on the street, there is much to lose with this strategy. I begin with the fact that we do not charge buyers to assist them in the first place, so why add risk when there is no benefit to do so?
Additionally, This process ignores the emotion, the details, and the reality that simply looking at a picture online do not tell. It misses out on the opportunities for negotiation on matters that are not readily visible on a picture and the details that we consider (such as type of financing FHA, VA, USDA, when we decide on a showing of a particular house or area, and how we submit the offer) that the consumer is completely unaware of and which can kill their deal or cost more money than necessary. Adhering to the dates of a contract? Who is monitoring this for the buyer and assisting with the inspections and renegotiation of any items found on inspection? And this is going to replace us?
I know that this type of competition will always be coming our way because it is such a large component of the GDP in this country. I also know that there might be a place for this type of business in the industry. As one who has been around for a number of years, I definitely know that for the average consumer, we are a very necessary commodity. And for that reason, there is still a level of job security.
