Why I Don’t Like Help-U-Sell and Assist2Sell
August 19, 2006 — Greg 
Look, I’m all for alternative business models and I understand that we’re all just doing the best we can and everyone is trying to make a living for their families. But as far as real estate professionals go, I don’t care for the philosophy that many Help-U-Sell and Assist-2-Sell agents take with regard to the business and their marketing. Of course there are agents at all national brokerages that offer better service than others, and it is not these two companies I don’t like, it’s agents who subscribe to certain business practices.
An example; There’s a home in the next neighborhood from ours that has Help-U-Sell signs all over the place. And this is a nice home and homes in this area are selling fast. But this one isn’t. And the sellers probably don’t realize why.
But I’ll tell you why I think it isn’t selling…
They’ve just paid thousands of dollars to be a FSBO. They are not on the MLS and the websites they are on are only Help-U-Sell sites, not top area sites like Realtor.com, utahrealestate.com, BlueRoof.com, saltlakecityforsale.com, etc.
Not many people go to Help-U-Sell’s awful website in this area to buy a home because they don’t have many homes there. I did a search in my city to find this home I am talking about and it’s the only home that is for sale on their site in the entire city (not to mention I had to register to get any info about it). Nothing wrong with placing the home on the site, but why would buyers register and look there when they could look on thirty other sites and see over 10,000 homes for sale, hundreds in that particular city?
But the sellers probably don’t know this. They paid $Thousands thinking that all these buyers will see their home, but really they just got a few flyers and some signs and their home gets put on a bad website that doesn’t get much traffic. And if they signed an agency agreement- that’s even worse because now the seller doesn’t have the option of hiring a Realtor who will give them additional exposure on the MLS and on websites that get a lot of traffic.
At the very least, they should make an impressive website so people will want to use it for their home searches.
If you’re going to be a FSBO and you want to pay a company thousands of dollars for flyers and signs that’s okay- it’s a choice sellers can make. Of course, you can get flyers from Kinko’s and signs from Home Depot for a whole lot less- and if you want someone to look over the contracts you can hire an attorney for about a grand. But if they feel comfortable with an agent from one of these companies, or any company, that’s okay.
The part that I really don’t like is how many sellers (of many different brokerages) don’t realize that their homes are not being listed on the MLS. They assume that it is because they are paying a real estate agent to assist them. And they don’t realize how it’s actually hurting them to be in this situation. No agents showing their home because they are not on the MLS and most of the people who buy FSBO homes (investors, looky-loos) think they’re listed because of the company signs.
We’re all trying to making our way, but representing our clients means giving them the best marketing exposure possible so we can bring them the highest price possible.
And at the very least, no matter which brokerage an agent works with they should inform the sellers what they mean when they say they “list” a home for sale so consumer do not confuse having someone to sit the open house with a Realtor who will market the home in every possible way, including the MLS.
August 21, 2006 at 8:23 pm
I am an agent with Help-U-Sell in Illinois and I think you need to learn more about how our company works before you start bashing the agents that work there. First of all our clients don’t pay thousands of dollars to be a FSBO!! Our clients don’t pay out a single cent to us UNTIL the house closes. Second, our clients have a choice if they want to go into the MLS or not. Some decide not to because they don’t want to pay out the commission to another realtor. Help-U-Sell is no different from a traditional brokerage company except for the fact that we charge a set fee to list and sell your home depending on how much you list your home for. Again no fees are paid out unless the home sells during the time we have it listed. Should one of my listings get cancelled or expire I made nothing in commissions!! I have 10 listings going right now and only 1 of my listings is not in the MLS that is the clients choice. Also I will show a clients home anytime I get a call for a showing. All of our listings are on about 15 websites plus placed on the local newpapers websites & real estate magazine websites plus many many more. I have received many calls on my 1 listing that is not in the MLS because of our marketing. So I suggest you do some research into our company before you start bashing our company and telling people that they will pay thousands up front for just signs and flyers!!
August 21, 2006 at 11:13 pm
Christine, thank you for the remarks.
This is a post about business models that I don’t like. Not people, but business models.
You obviously believe in what you are selling, and that’s better than some agents (and salespeople from any profession) can say.
About your 1 listing that is not on the MLS- what exactly do you do for them that they couldn’t do themselves as a FSBO? Just curious…
August 22, 2006 at 2:37 pm
I listed with one of these companies (but I won’t say who) and went through the same thing. I was told that they usually found the buyers for their listings and how other agents would say I was priced too high so I would make more money with them because they would find the buyer themselves.
After a few months of other homes selling and my home sitting on the market I was upset and couldnt find my house on the internet as I was also looking to purchase a home. I listed with a different broker and it sold in less than one month to buyers who saw it on the internet where it wasn’t at before.
My recommendation is go with full service!
August 26, 2006 at 11:28 pm
To –christine - August 21, 2006—
Well…Christine…I wish we could have gotten you to sell our home. We are currently using Help U Sell…our agent is terrible. She’s lazy, doesn’t return phone calls…has even gotten into a fight with one of our neighbors because of a sign. Speaking of which it took 4 weeks to get a single directional sign in our neighborhood. The funny thing is, she still has yet to put a directional sign up in the front part of the neighborhood on the main road.
My suspicion is that she has no intention of selling our house. In fact, we’ve had outside agents with other companies show our house more than she. She keeps pushing the MLS. Well…that makes since…especially for lazy sales people. She basically wants some else to do her work so she can make her 3000 dollars. That’s why she keeps pushing the MLS. We are in a nice neighborhood, very sought after location. I’m very, very displeased with Help U Sell, and wouldn’t recommend it to anyone.
Those are my thoughts.
August 29, 2006 at 6:44 pm
People attract people like them selfs.
Discount Commission = Discount Equity.
August 31, 2006 at 4:33 pm
Hello everyone, I am also a Realtor with Help-U-Sell and I am sorry for those few bad experiences. The truth be said, there and Lazy, rude and un-professional Realtors in every company! And how I would love to name a few! But I won’t, since that is un-professional. I have to agree with Christine, that our business plan is misunderstood. Many people think that all we do is plug a sign in the ground and get cash in the pocket, but that is not the case, otherwise everyone would do it!! Our office for example offers several different services and again the sellers get to choose which plan will work best for them. “We do full service for less” This is the slogan and honestly us agents with these companies don’t make 2.5% or 3% on the listing side, we make much less, that said the selling agent (from the MLS will make a full 2.5% or 3% Therefore our service is 100% comparable to other full service companies and we do the same (or better) work for less. That is why I am with this company, we work of volume not high commissions for every listing. If our clients don’t want MLS (so as not to pay a buyers agent) they don’t have to be. If they only want the MLS and no advertising, they can get that. Whatever they want to sell their property we can provide. What other company allows the same flexibility?? To contradict what you say about not being on Realtor.com, you will find if you search Realtor.com for properties in Marco Island for instance, you will see many Help-U-Sell and Assist-2-Sell listings there. Please do your research first next time and realise that consumers like choice, flexibility, Internet presents, and a good agent to work with, and there are plenty of good ones!!
Thanks for reading my point of view.
Realtor with Help-U-Sell
September 7, 2006 at 2:21 am
I stopped reading after you mentioned your Web site in the same league with sites like utahrealestate.com. Give me a break. utahrealestate has all the listings.
September 7, 2006 at 12:06 pm
Tyler- Just FYI, BlueRoof.com has every listing from every brokerage listed in the MLS and it is updated throughout the day, not only once every 24 hours, like utahrealestate. Utahrealestate is owned by the MLS and is a template platform.
The point I was making is that many agents don’t put their listings on sites that get traffic.
Thanks for reading…
September 8, 2006 at 6:33 pm
Help U Sell is a joke. It only takes a couple of experiences with them to see how bad it can get. I am crusading against these types of companies as I have fun and educate on real estate and mortgages. I love your site. Just discovered it today. Lar PS I want to move to SLC
September 12, 2006 at 11:48 am
greg you are so off base about hus …do your home work then ask why are so many major re co’s switching to hus get the facts because ..steve ozonian who is ceo came from remax ,realtor .com,and prudential, b of a as did many others…. sooo the many professionals are either out of there minds or they know something you don’t have a clue about …but please don’t try to insult our intelegience without knowing the facts….say hi to al mansell for me… oh and jim naccarrato too
please do your homework on a national basis not a utah basis. growing with out your uninformed knowledge
September 12, 2006 at 1:55 pm
Rick my post is not about whether your CEO is from a traditional company, it’s about why I don’t like the model.
“…. sooo the many professionals are either out of there minds or they know something you don’t have a clue about…”
If I am incorrect in some fact about your company, let me know what those facts are.
September 12, 2006 at 7:52 pm
Greg, Here are some Actual true Facts about Assist2Sell. I believe that your post about alternative business models requires some additional facts. Assist2Sell offers 3 different programs for their sellers based upon what works best for each one and their particular situation. They offer choices. They do not offer ala-cart services and allow their clients to cherry pick services and make the client pay up front. The Assist2Sell model is an economic consumer driven model in that once a property is exposed to the open market, and when a motivated buyer and seller inter into an arms length transaction, the property sells. Commissions are a by-product of accomplishment and should never enter into the equation of what a consumer wants. As far as REALTOR.com is concerned, I can and will tell you that as far as tracking where my buyers have “found” the property, I can state as a matter of fact that only 1 property out of the hundred plus that I have sold, did the client say they had found it on REALTOR.com If an agent tells me that they will not show a listing because of our so called commission arrangement, (what the seller is willing to pay) I can say that from practical experience, that agents approach is short-sided thinking at best. How can one agent conclude that they. they are the only agent who has a buyer that will buy the home. Get real! How about supply and demand, the dynamics of the Real Estate Market vary from Market to Market and are rarely static. Florida is much different than Oregon etc. The Market shifts daily. Discount Brokerages are CONSUMER DRIVEN. After surveying 10 of my past clients when I was a REMAX agent….all 10 stated the same thing over and over again. “We love the service but 6% is too much to sell a home.” The consumer is demanding a change. Just like Charles Schwab and Goldman & Sachs created alternative business models…I believe they were called “Discount On-Line Brokerages” ie..OptionExpress.com…$14.95 per on line trade?
Here comes Assist2Sell to put the home seller’s equity position back in their pockets. After all, it was the home owner who assumed the risk during the homeownership period!
I believe that somewhere in your research you have failed to realize or point out the RENO NV office of Assist2Sell is larger than the local RENO/SPARKS MLS system when it comes to their own member owned data base. Could there be a reason why home appraisers in RENO want access to the Assist2Sell Data Base for Comparables? Before you start kicking alternative Real Estate Business Models in the ditch, you really owe it to yourself and your blog followers to get the facts straight!
September 12, 2006 at 7:59 pm
First, please note there is a *BIG* difference in Help U Sell and Assist2… We run a Help U Sell in San Diego and have an agent from Assist2.. Help U Sell is Full Service without Full Commission, not a discount or FSBO lookalike. The amount of work, qualifications and education required for a Help U Sell Real Estate agent in San Diego is enormous. We even have mandatory university type training. We are better in marketing than anyone else i know (including Assist2..) and our service is second to none. There may be some offices which did not adhere to our standards but that happens in any company/industry. We have a Full MLS IDX feed(like most full service broker) + Exclusive listings on all our corporate standardized sites. We also have a huge list of ad partners.
September 13, 2006 at 11:34 am
I am a Help-U-Sell owner and made a choice to buy into Help-U-Sell after researching many different companies. We have an awesome system giving the home seller choices at a low set fee. We are full service and more, we are Realtors, we are liscensed and members of local, state and national boards. Our web site is IDX providing all MLS listings. It is the requirement of our local board not our office to sign onto our website before providing all MLS listings.
Our days on market are 10% less than the MLS, We sell a higher percentage of our listings compared to traditional real estate and our list/sell price is closer than traditional realtors. We are honest, ethical and very professional in our business. Come and meet us and see in person what we have to offer.
September 16, 2006 at 9:02 am
greg
do you even know who steve ozonian is and why brad inman and alan dalton realtor dot com president suports everythig that HELP U SELL is doing you must not have a clue to who these people are do your home work and do not try to make excuses for your lack of knowledge….. maybe al mansell or jim naccarado can set you on the right path did you tell them hi for me?
I think Help-U-Sell and Assist-2-Sell are the bottom rung on the ladder. And I think they really hurt the profession as a whole.
rick
September 17, 2006 at 12:29 pm
greg
top speakers and motivators work with Help-U-Sell you might want to contact brad inman or allan dalton if you have a clue to who they are…
rick
September 23, 2006 at 1:40 am
Ok… Help U Sell and Assist 2’s… let’s look at some Illinois facts… (I don’t want to offend anyone from Utah or California) My wife is an agent in Illinois and she has your “give the customers a bargain price” model beat. A $200,000 home @ 2% for the listing agent, comes to a whopping $4,000 commission. CORRECT? And it is to my understanding if you want your home in the MLS you would need to offer a co-op (usually 2.5% or 3% depending on if how urgent the sale of your home is)… CORRECT? So if someone were to list with her it would be safe to say that she would list it in the MLS, place the adds, perform a Realtor walk through, 1 open house per month (at the sellers discretion) for 4.5%… Now if the same seller on an Assist 2 or Help U wanted the “MLS Package” they would have to offer a competitive co-op as well… CORRECT? Not sure here… mathematics might be rusty, but if my calculations are correct, this same $200,000 home with my wife or Assist 2/Help U sell with the addition of the MLS package would be within $1.00? If the seller was also a buyer she would probably negotiate to 3.5% for the listing (1% for her and 2.5% for the buyer)… Now, all the Assist 2’s and Help U’s in the area have been on the market for several quarters (not months). And some are going on to their second year. Would it be safe to say that the owner purchased the “LESSOR” expensive package? Let’s assume for a minute that they did… would this explain the ALMOST 2 YEAR LISTINGS IN THE AREA WHEN ALL THE “PROFESSIONAL MORE EXPENSIVE AGENTS” ARE ACTUALLY SELLING THEIR PROPERTY? I don’t know how it works in other states but the assist 2 sell down the street has not had one walk through, not one open house and not one realtor walk through. Not to mention that they are not on the internet, not on the MLS nor are they even on the local Assist 2’s website… seems like this blog has hit the nail on the head. Why should someone pay $3,999 for a FSBO listing…? Oh and by the way… the Assist 2’s and Help U’s have a different “fixed Fee” for homes greater than $300,000… not sure what those number are? In conclusion 90% of the homes on their website are less than $200,000… that means if you are less than 200k and you use assist 2 or help u… you probably paid more than 2% commission to FSBO your home. You could have used a professional Realtor to sell you home in less than 2 years…
September 23, 2006 at 11:56 am
Greg,
I do not think Help-U-Sell and Assist to Sell are good business models either. How do you feel that Blue Roof is any better than either of these models? It seems to me that all you do is replace traditional services of a REALTOR and personal contact with a fancy website?
Not only that, you allow people to “share” in a REALTORS commissions further de-valuing the services of all Real Estate professionals. I am all for innovated business models that better the industry as whole. However I feel that Blue Roof is another example of a company that sacrifices customer service and professionalism in the name of innovation. You subsitute QUANTITY for QUALITY and lower the standards of our profession.
I am sure you disiagree, so I would love to see how you feel Blue Roof is different.
September 23, 2006 at 1:42 pm
JR, MIKE, AND greg
GUYS DO YOUR HOME WORK ON A NATIONAL BASIS NOT ON A LOCALIZED IL OR UTAH MARKET
you are so off base about hus …do your home work
get the facts because ..steve ozonian FORMER REALTOR .COM PRESIDENT remax ,and CEO/ PRESIDENT prudential, b of a, ETC
they know something you don’t have a clue about …but please don’t try to insult our intelegience without knowing the facts….
do you even know who steve ozonian is and why brad inman and alan dalton (realtor dot com president) suports everythig that HELP U SELL is doing you must not have a clue to who these people are
do your home work and do not try to make excuses for your lack of knowledge….. maybe alan dalton, al mansell, AND brad inman can educate you
as for your statement:
YOU THINK HUS IS AT THE BOTTOM OF THE RUNG OF THE LADDER and THEY HURT THE PROFESSION
When in reality you are unprofessional, uneducated and cluless about help u sell
you might want to contact brad inman or allan dalton if you have a clue to who they are…
FULL SERVICE REALTORS THAT ABIDE BY THE CODE OF ETHICS OF NAR’S ….ASK AL MANSELL
GREG, ARE YOU A REALTOR?
rick
September 23, 2006 at 1:59 pm
Rick
You keep repeating the same points. Okay, we all get it- Alan Dalton, Brad Inman, Steve Ozonian, and everyone else that you respect and admire support your company! Fine…
That doesn’t change our right to an opinion that differs from yours.
I have done my homework and I have my own opinion. Some of the comments left by Help-U-Sell and Assist-2-Sell agents show me a different side, but frankly your constant bitching and whining about the same things don’t shine so well of a reflection on your company.
Yes, I am a Realtor.
September 23, 2006 at 3:16 pm
Thanks I am glad you see a different side…. no more whinnnnnnng and bitching. Thanks Rick
You are on my favorites and I’ll see you at the next social gathering when I am in Uah…Ski Canyons
Rick
September 27, 2006 at 3:00 am
I just had a really bad experience with Help U Sell. At one point I desperately needed my “agent” to respond to an addendum that was fast approaching it’s deadline date. He was nowhere to be found. I found a number for the corporate Help U Sell, (yes, I understand it is a franchise). I called the corporate number and asked them for help. I told them I needed to get someone who could respond to problems with my buyer in a reasonable amount of time. I also wanted to file a complaint against my “agent”. I was told that someone would call me back. No such luck. Now I can’t find that number, or any number to call and file a complaint. Does anyone know if Help U Sell has a process for complaints?
September 27, 2006 at 4:26 pm
Hi,
I just used assist 2 sell to sell my home. I started out with just the basic listing which i was sure would sell my home. it didnt not even a walk through for almost a month. i then updated to the mls package, the pictures got onto the mls and within 3 days had 5 showings, house sold with the first person that came through that made an offer the following day. i cannt say it is a bad model, i think they push it that there going to sell your home using there cheapest package, which simply just aint the case. overall i must say my agent was very nice, it saved us about 1500 bucks going through them with the mls listing, would i do it again i dont know i have a new respect for realators, i see how much it costs them for the advertising they do that assist didnt. when we bought our other home we used a remax as a buyers agent and i must say he blew me away, always available anytime i wanted saturdays sundays friday nights he did what it took, and i guess thats what 6% gets u, to contadict myself one reason i wouldnt use them again is because i would use the guy that was our buyers agent. just my 1.5 cents
October 19, 2006 at 10:22 pm
DALTON GOES “SPRINGER” ON ZILLOW AT C.A.R. SHOW
NEWS AND HIGHLIGHTS AFTER THE RE-RUN OF COPS IS OVER…
http://www.inman.com/blogger/2006/10/who-threw-chair-brad-inman-wont-give.aspx#comments
October 20, 2006 at 6:20 am
TPT,
Thanks for the link-up- it’s about time we get some big call-outs in the industry.
January 15, 2007 at 11:40 am
As an Assist2Sell agent in NH, our company sold 58% of our own listings in 2005, the highest in our area. I was ranked among the top 5% of real estate agents in our area and the owner of the company was the number one non-new construction agent in So. NH. We saved sellers millions of dollars in fees (compared to paying 6%) and we do it ALL–we are different than HelpUSell and should not be grouped with them. We do everything an “old-fashioned” real estate agency does, only for less money. We list the home, advertise it extensively on the web and in newspapers, show it, negotiate the offer, handle all the headaches that come up after the P&S is signed, and get paid at closing. Our motto is “Full Service with Savings”. I would research the difference between HelpUSell and Assist2Sell before lumping them together.
With the changing real estate market, it is more important that ever for Sellers to realize that they can save thousands of dollars and get the same (if not better) service plus the experience of an agency who has handled HUNDREDS of transactions and have the knowledge to make sure the sale actually closes.
I have had offers from EVERY major real estate office to come over to their side, but I can not honestly charge sellers 5 or 6 percent to sell their home when I know there is a better and more effective method out there. I couldn’t sleep at night if I did.
January 15, 2007 at 12:55 pm
Ms. Sarlo,
Saying that you are “Saving” people money is saying that there is a set price from which you are discounting, which I am sure you realize is not the case and legally should not be implied. How do you “save” money from a purely negotiable rate?
Maybe you are actually over-charging because someone in your area will do the same job for $20. Maybe you should advertise that you may have over-charged clients $Millions of dollars (from the $20 rate).
I do not like the business model of Assist2Sell OR Help-U-Sell because in my experience, and in my area, they operate with the same principles.
There are probably good agents with these companies, and there are probably agents that are not as good. Either way- I do not like the idea of a selling thinking their property is benefitting from a full marketing program when, in fact, it is not.
The advertising for Assist2Sell says “We’ll sell your home for $2995″
Well, if the home is listed for $299,000 then how much are they offering to a buyers agent? The answer is NONE- because the property is not going to be placed on the MLS.
So my question is, how does a licensed agent sleep so well at night knowing that they are promising “Full Service” as part of their “Full Service With Savings” without even placing their clients in the one place that attracts more buyers than every other source combined?
Sounds like a load of Hooey to me…
January 23, 2007 at 3:45 am
I must say I found this site very enlightening. Not only from the customer’s viewpoint but from the agents as well. Personally I’m interested in becoming a real estate agent and I’m trying to decide who to work for, a Full Service agency or a discounter. And just based on what I’ve seen and read so far I’m leaning more towards a Full Service company. Why? After reading these posts I conducted my own although limited investigation. I went over to a home for sale in my neighborhood with an Assist-2-Sell sign out front and I talked to the seller myself. He told me he was going through a divorce and only used them because he knew someone in the office. I told him his house was only 1 of 2 listed for our entire area on their website. First strike, limited exposure. Note: our area’s population is well over 50,000 I even checked Realtor.com, no listing. He told me to check today (Sat.) and I’d see it, I told him I already did and it wasn’t on it. He looked surprised. Lastly, he confided to me if his house didn’t sell soon he was going with Name Witheld Realty. Didn’t sound like he had a lot of confidence in Assist-2-Sell.
BTW, he also mentioned there weren’t any open houses scheduled and there hasn’t been anybody to see his house yet. Although the house has only been up for sale for 2 and a half weeks I’ll be keeping track of its progress. I’ll update this board on any changes.
January 24, 2007 at 8:11 pm
I practiced traditional real estate for 19 years before buying a HUS franchise. I have never met a seller who was happy for paying THIRTY THOUSAND DOLLARS etc. for the sale of their home. 3 years ago I bought my franchise. Though no system is perfect, at HUS, we offer the consumer choices and options for savings. Selling a home is not rocket science, especially finding the buyer. Believe it or not, consumers who shop on Realtor.com are also driving neighborhoods, going to open houses, and buying my non-MLS listings with great savings to my clients.
And, Greg, as far as the $20 business model? Grow up. I don’t have to charge triple my currrent fee to offer full service. Know how I know I do a great job? 70% of my business is referred to me!
Last but not least, there are good agents and bad agents at ALL companies. I know agents, we all do, who dont know how to return calls, service clients etc.
January 25, 2007 at 4:57 pm
We just hired an agent from Help U Sell. Our home is on acreage and is in a growing community north of SF. The agents in the community are lazy and do not know how to have a normal conversation. We had our home listed with an agent in the Biz for over 30 years, he did not have a showing. We hired (what we thought) was huge exposure from a RE company out of SF. NOT again another 6 months and nothing! We even had current (very conservative) appraisals in which we paid for. LAZY CALIF agents! To many of them!!!! We were very impressed with the Help U sell Broker and her incredible marketing backround! Don’t knock em folks!!! Has she sold our home? you ask? OH SHE WILL! I have the utmost confidence she will!!
January 30, 2007 at 5:53 pm
I worked for a HUS office doing the advertising. That specific office advertised on about 39 websites, about 3 of those websites were popular sites. The other sites received about 1-5 combined hits per listing over a 4 month period. When it came time to do a listing presentation, the Agents in my office pulled out all of the advertising they had done in the past so that it would look like they did a lot of advertising. In reality, they were sending one mailer out to about 10K people every two months. I would recommend HUS if you plan on selling your home through the MLS. You would pay a 3% co-broke plus the HUS fee which would still save you money. If you don’t plan on going on the MLS then you are better off selling the home yourself. There are lots of websites that will let you advertise your home free of charge. Ask your local Title Company or Mortgage Lender for help with filing out your Purchase contract and other necessary forms and you’ll be surprised at how much free help is out there.
February 11, 2007 at 6:41 pm
Vanessa,
Saying that you are “saving” people money implies that there is a set price from which you differ. So if an agent charges 7% commission they could also claim to “save” people $Thousands, by assuming that some people could be charged 9% commission.
Some brokers charge $99 to place someone on the MLS and Craiglist (and BlueRoof.com) will let people market their homes online for free- does this mean that Assist2Sell is over-charging people thousands of dollars?
By your definition it appears so.
My beef with some companies has nothing to do with the cost of their services- it has to do with their business practices. Any agent, broker or company that convinces people to list a home with them by insinuating that they will be on the MLS but in fact, the sellers are not on the MLS. That is deceitful and borderline fraudulent.
I am not saying that all Assist2Sell agents do this or that some people from other brokerages don’t- I am saying anybody who does is misleading people.
February 13, 2007 at 4:10 pm
My title expresses an opinion. The marketing from these two companies is similar in my area, both claiming to “Save” people thousands while providing the same service.
This post is talking about how sellers do not always know that they will not be put on the MLS for the lower cost.
But there is the additional issue of claiming that you “save” people money, when there is no set commission rate. Claiming that,
“nationwide, Assist2Sell has saved their Seller-clients almost 1 BILLION DOLLARS since 2000″ is completely misleading because you are telling the consumer that there is a set rate of 6%, which is simply not true. Every agent and broker, from every brokerage negotiates their commissions differently from one another.
If a seller can be placed on the MLS and several websties for $99, and have a real estate agent help them with their negotiating and do the openhouses- then aren’t you overcharging for your services?
Does Assist2Sell also market how they overcharge based on this scenario? If you are concerned about the consumer being misled, start with being truthful in your marketing.
There is no “saving” when there is no set commission rate- period.
February 14, 2007 at 6:26 pm
We also state that all commissions are negotiable, by law, and that 6% is used for comparison purposes only. Most real estate agents do charge a 4% commission or more to list a home. We are saving most people money who do use us “compared to paying 6% ( or 4% or 5%)”.
We do, in fact, mention that there are other “discount” models out there–some that cost more than we do, and some that cost less. By your definition, though, “discount” should not be used to describe any type of real estate practice, since it implies a lesser cost, and no commissions are set, per se.
Just an FYI, all Sellers in our company must explicitly sign off on placing their home in the MLS within the listing agreement, and they have the option to utilize the MLS at anytime. They still save thousands of dollars (compared to paying 4, 5, or 5% since all commissions are negotiable, by law).
I respect your right to an opinion. My opinion is that traditional agencies “screw” Sellers everyday by charging them too much. And, while some Sellers may think we do the same thing (overcharge) based on your above reasoning—most do not.
By expressing your “opinion” on a mostly-public internet space, you are blatantly MISLEADING consumers based on one specific example of a HelpUSell company/listing in your specific area. You have no right to continue to mislead them by including Assist2Sell within the same classification as HelpUSell if you have no direct experience with them on a national level. It doesn’t appear you have much experience with them on a more local level either since you failed to answer my question as to whether or not you have ever worked with them before.
February 14, 2007 at 10:37 pm
Im a RE/MAX agent and us full service Realtors dont like hus or assist2 very much. Being that we are in one very over saturated market and at one point we were the 6th fastest growing county in the US, its hard to make money because theres so much on MLS and so little buyers. Sellers know this and know that in order to sell in our market they’re going to have to be very competitive in price. So they hire hus or assist2 to save on commission. What they don’t know is that most of the hus & assist2 agents are using their discount rates to fish for these desperate sellers, so they can later lock them in on ” traditional full service fees “. They tell these seller that they’re going to sell their house for $2995 and save them thousands ( knowing that it wont sell unless its in the MLS ). They slap in a $500 cancellation fee to lock them in for a # of months then approach them at a later time selling them the ” full service package “. This is how they fish for our clients and when I say our clients its because they eventually go full service. In the long run, it would of been cheaper to go with a traditional real estate firm when you consider the time they wasted before being up sold ( i dont know about you, but my time is worth money; on or off the clock ).
-Nick
February 15, 2007 at 11:26 am
Greg,
1. The $3995 is all that they pay if another agent sells the home. They do not have to pay a co-op fee.
2. For homes priced less than $150,000, our flat fee is less. We make sure everyone “saves money”. You must not have read our disclaimers.
3. No comments on blog because our web hosting plan won’t allow it. People are encouraged to email or call with comments or concerns. I do have another blog: http://www.bigbadv.newsvine.com that has all my articles posted that does accept comments.
4. The owner of the company was ranked as the #1 agent in closed sales transactions during 2002 and 2004. I was number 13, the other listing agent was number 17. Each year, we are within the top 5% for closed sales. I guess by your definition, I am worth a lot more than what I charge, but I am OK with that.
Again, get your facts straight.
Nick, in most cases I am the 3rd or 4th agent my clients hire to sell their home. After working with our company, they will never go with a traditional agent again. Our service meets or exceeds theirs, and we cost less, on average. You may hate A2S or HUS all you want because you think they are “stealing” your listings, but good agents–and by good, I mean top agents–have no problems working with us. It is the bottom-feeders and less successful agents who whine and complain that we are hurting their business. Maybe you should consider joining one of their offices. Of course, it is a different mind-set to adapt to, but once you do, you will probably make MORE money than the average agent makes in your office.
During our high season, my commission checks have been as high as $30,000 for one month (and I was only 21 and still in college). Yes, I probably had to work a little harder to make that money since my volume of business is larger, but I’d rather close 8-10 deals a month instead of just one or two. There is more stability in income that way.
February 15, 2007 at 11:41 am
Vanessa- your numbers don’t add up. If someone sells a home for $150,000 and you place them on the MLS and pay a co-broker commission of 3% ($4500) you would be losing money.
If you offered a commission of even 2% (which would hurt the seller’s chances of selling) you would only make $995 and if you are offering “full service” as you claim, then you are spending almost all of that in marketing, and you would not be making any money.
And I am sure you have some brokerage costs associated with doing business. If you work in an office there is a lease or mortgage payment, paper, electricity, and a staff… these are all expenses that must be paid.
So educate me…
I am a seller with a $155,000 home to sell. How do your fees and marketing work- what are my options if I list with A2S ?
February 15, 2007 at 3:25 pm
Greg, our business model is based on volume, not commission per sale.
Why do you think only giving out a 2% hurts a Seller’s chance of selling? 78%+ of Buyers find homes they want to see on the internet. Even those who are working with agents are receiving email updates that do not disclose the agent’s commission and are doing more and more of the “searching” for homes on their own. Agents no longer hold information under lock and key, as they did in the past. Buyers have instant access to ALL homes that meet their needs, regardless of commission fees behind the scene.
Are you actually insinuating that a buyer-agent would ignore their fiduciary duty to their clients and *not* show them a home based on the commission being offered? That would also violate the Code of Ethics all Realtors must adhere to. Besides, any agent who does not show clients homes because they are not making a 3% commission or more on the sale is MISLEADING, DISHONEST, and should not be in the business. Do you really think a Buyer would NOT question their agent as to why a certain home was not shown to them? Or, even better, call the listing office and see it directly through them? I would hate to think you tell your Sellers that this happens since, to me, it makes me think that 1. you are doing the same thing on the buying side and 2. that this is a common situation, thereby helping to decrease the publics perception of a Realtor even more. (FYI, we do not have a great rep in the industry. Most buyers and sellers think agents are after one thing: to get a commission. You basically spelled out that same sentiment in your above comment to me).
Also, Greg, while I am not going to go into inside information about “how” we can charge so “little”, I will say that you should educate yourself more regarding how Buyer-agency works.
You can try to nit-pick and make unsubstantiated claims against my company all you’d like, but you are only proving how valuable we are to the marketplace and the consumer, and confirming my belief that traditional agencies and models are soon to be a thing of the past. The more you provide bogus and unjustified “facts” and examples, the more I am convinced that this business model is the ONLY way to sell real estate.
Just an FYI, in our market, most homes are priced well above $250,000, so the lower end prices don’t usually come into play, however, our lower-priced Sellers still see significant savings in commission fees compared to paying 4, 5, or 6%.
Greg, Have you ever “discounted” your commission, or in other terms, negotiated your commission to a lesser amount than you first stated you charged, or normally try to get? If so, you are a discounter. You just do it under the table so that all of your potential clients won’t know how low you went to list one home vs. another. Are you going to deliver the lesser-commission client with the same service and value that you give your typical-commission client? Why not? You say yourself that Sellers get what they pay for. I would expect you will do less for any client who doesn’t pay what you initially wanted up-front.
February 15, 2007 at 3:48 pm
[...] been almost six months since Greg posted Why I Think Help-U-Sell and Assist-2-Sell Suck Why I Don’t Like Help-U-Sell and Assist2Sell, and the discussion still hasn’t calmed [...]
February 15, 2007 at 5:06 pm
Vanessa,
I appreciate your energy and passion.
I do think there are agents who are less likely to show homes with a 2% commission rather than a 3% commission. That is a harsh and sad reality of life. I do not agree with the practice, but it is there.
Do you show your buyers every single home for sale when they look? Do you drive them around street by street, making sure you see every For Sale By Owner out there. Do you actively search FSBO websites looking for homes for them, or are you less- incentivized to show homes where you will not make money?
My guess is that many people, probably including you, want to earn a living and would rather show homes on the MLS where they will be compensated.
You say,”That would also violate the Code of Ethics all Realtors must adhere to. Besides, any agent who does not show clients homes because they are not making a 3% commission or more on the sale is MISLEADING, DISHONEST, and should not be in the business.”
And I agree. It should not, and is not always the case.
Does that mean it doesn’t happen? Of course not…
And I am sure you have reasons for charging $3995 instead of charging $99 like some agents do in my area. Maybe your services are worth more than $99 or maybe you have decided that you can maintain a profitable business charging that fee but only charging $99 would not be enough, even though your business is based on volume and not price.
I list homes at the rate I feel I am worth. As I said- my opinion about any company or agent has nothing to do with the commission rate they are charging. It has to do with business practices.
Again, my post, and my opinion is not about commission rate, it is about business practices.
I understand you don’t like my post. I will tell you that I have edited my post, including the title of it, to be more sensitive.
I support you having your business and I think it is good that buyers and sellers have the choices they do when selecting a real estate professional to represent them.
And I understand you and I may not agree about some things and that’s not a bad thing. The dialogue helps people understand choices and allows us to see our differences.
Good luck to you in 2007.
February 16, 2007 at 2:58 pm
Same to you–I think your website is great, btw.
February 16, 2007 at 7:24 pm
Most agents have no idea how Help-U-Sell works. They have many ideas, most of which are wrong. I have owned my Help-U-Sell office for 3 years, and have sold 73% of my lsitings without the MLS. Thats reason enough for competitors from coast to coast to be intimidated and uneasy. It doesnt take much for any agent at any company, if a house is priced properly, to place a house in the MLS and let hundreds of other local agents show the home, sell the home. Where is the skill there, having 95% of the time an agent other than the lister sell the listing? When I sell my own listing, I don’t get DOUBLE like most traditional agents. As for anonymous agents who take pot shots at our system (on this blog), that speaks for itself too. They’re probably the same people who steal my for sale directional signs in the middle of the night. I love helping hundreds of clients per year, saving them money, while doing a great job.
February 16, 2007 at 7:35 pm
Mike,
If you sell over 70% of your own listings then you are obviously doing something right. I’ve never heard of such a high rate of personal listings sold by an agent.
I have no criticism of anyone’s commission rate. People will charge what they feel that they are worth and what it takes them to run their business. And whether an agent has a commission rate of 8% or $99- we all have our own reasons for it.
I do not subscribe to the philosophy that just because someone charges less commission they must do less, just as I do not believe that charging less means you are worth anything at all. There are agents who charge very low rates and are not worth what they charge, and there are some agents who charge high rates and are worth every penny to their clients.
It comes down to what value the client feels they receive.
February 16, 2007 at 8:07 pm
There is room in the industry for different models and different rates.
Mike, I’m sure that many of the brokers who only charge $99 to sell a house would feel the same way toward your business model.
Commission rate does not equate value.
February 17, 2007 at 6:53 pm
Bravo for them and for you for pointing that all out. Now, get in your car, go to their local office, get the broker of record to answer your questions, order your virtual tour and your post sign, get them to print you an extra 100 flyers, change the Talking House message, alter the scrolling text on their Realtor.com showcase ad, while they’re at it, have them make your house a feature home on Realtor.com, engage the broker in a 45 minute conultation about the changing market conditions, get a full disclosure of feedback from the past several showings, and oh, can you get them tto give you an extra 3 directional for sale signs leading buyers to the home?? By the way, that picture with the snow on the ground- can they replace that wnow that the snow has metled, give me a lockbox for broker showings, WAIT….THEY DON’T HAVE A LOCAL OFFICE OR DO THOSE THINGS…NEVERMIND. ARE THEY EVEN REALTORS? LICENSED? Do they have a track record of local expertise? Just what I thought. So, Greg, here’s what I believe: it’s usually not necessary to pay 5% or 6% to get a home sold, but $99-$399 gets you none of the above. But to get thorough, professional representation, four hundred bucks gets you a “do it yourself kit”. At Help-U-Sell, I professionally guide my seller every step of the way, and much to the chagrin of my family, 7 days a week.
February 18, 2007 at 7:46 am
Greg:
I remember when I thought I knew everything. I bow down to you. You know it all.
I never said I had the biggest, best, lowest, highest, most, of anything. All I said is that your pompous arrogant post here is erroneous. I am independently owned and operated . What happens at HUS in Montana may be different than here in New Jersey. You were the one who attacked our model. You were the one who made us defend ourselves from your slanderous, erroneous babble. Isn’t your entire post a violation of the National Association of Realtors code of ethics? Are you aware of this? Perhaps I should send them a copy.
You go out of your way to knock my model, then when I defend it, you knock my opinions. Your company name should be changed to Blue Blowhard. You are indeed a blowhard.
Now for the record: I know the costs of things, and I know what you can get for four hundred bucks. Don’t go telling me they do more for four hundred dollars than I do for my fee. Don’t insult my intelligence.
It’s slanderous.
February 18, 2007 at 3:13 pm
I don’t see how Greg is making slanderous attacks I think he is simply stating his opinion. I interviewed an agent from HelpUSell and they had the same demeanor as Mike Elliott, basically that every other brokerage was a rip off and if I didn’t list with her than I was stupid or something. Well, I listed with an agent from a different company and they did a fantastic job for me. It was worth it for me to pay for the service I wanted and to work with an agent who I felt was more professional.
March 3, 2007 at 10:51 am
Greetings to all,
I have been in the real estate business for over 21 years.
I spent the better part of 2 years looking into various real estate franchises. I chose Assist-2-Sell because of their no nonsense, straight up approach. WE ARE FULL SERVICE! Period!! The only thing I do diffreent now from what I have done in the previous 20 years is NOT charge 5 or 6%. Think about it. IF your honest about it, you have to admit our job in many ways has gotten easier. However, due to home values rising, real estate agents have gotten a big fat pay raise. In reality (forgive the pun), agents have turned into equity partners. “The more valuable a home becomes, the bigger the agents paycheck” WHY?
Too many times I have seen the agent get a bigger check at closing then the seller did.
It’s the seller who has made all the mortgage payments, paid for repairs, regular maintenance and property taxes.
There is not one company that can say they do more then we do to get a home sold. We work with many other agents and, once they ‘got it’, we are fully accepted and respected by our fellow Realtors. I have thank you letters that attest to this fact.
Some agents have stooped to making up stories and lie about us in order to compete, instead of just simply being competative with pricing. But that’s OK. It works to my advantage. They end up looking bad once the truth is known.
Sorry folks, the gravy train is coming to a stop. The public, the clients we SERVE, are seeing the light.
I love what we’re doing and so do our clients.
March 3, 2007 at 1:17 pm
Realtors are service providers and charge what they are worth for the service they offer, as all service providers do. People who act high and mighty because the price they charge is less have no integrity, in my opinion.
My guess is most of the people who are saying how all the other brokers are over-charging were each at other brokerages once and tried to charge a higher commission but could not earn it or justify it. So then why did they charge it back then?
Price is simply another marketing strategy. Some compete on price, some on service, some of integrity, some on service after the work is done.
Greg makes a good point- if it were all about price- then you are over-charging compared to brokers who charge $399.
It is no different in my profession- some want to compete only on price, but the service they offer is not the same. I do not compete on price. My customers want the best service and they refer friends to me because of my integrity and the work I perform.
March 3, 2007 at 3:36 pm
Competeing on price only is a sure fire way to going out of business. We are above most and at least on par with any other company in regard to service. With no integrity I don’t believe you’ll last long either.
The company that only charges $399 is not spending any money on advertising. We spend at least that much if not much more, per listing. So that argument, like all others, is flawed, to say the least.
I love it when the only thing folks can say are untrue, periphial things that have nothing to do with the real world or the subject at hand. Things like “high and mighty” and “no integrity”. It proves my point. When people have nothing true to say or no valid argument, they make things up and go on the attack.
We compete on price, service, integrity, and service after the work is done.
It makes me laugh to think that some think that the more they charge the better they must be. Would you pay $500.00 an hour for a plumber when you can get the exact same service for $125.00 per hour? Or would you buy into the argument that “I charge more therefore I must be better.”?
Thanks for the laugh. I wish you great success.
March 3, 2007 at 5:57 pm
Jim Petracht:
I spent 19 successful years in traditional brokerage, and bought my Help-U-Sell franchise because consumers are begging for something different. I get 70%+ of my business referred to me because people love us.
Assist 2 Sell Jim:
Well Said!
March 5, 2007 at 11:56 am
And a hush fell over the room……..
C’mon guys and gals !! Don’t quit now!
I love a good healthy debate. It’s great stimulation for the brain….
March 5, 2007 at 12:06 pm
…And a hush fell over the room…..
C’mon guys and gals!! Don’t give up now!!!
I love a good healthy debate. It’s good stimulation for the brain… (And I need all the brain strain I can get)
Look I’m not the sharpest tool in the shed, however, I firmly believe the Real Estate business, as we know it, is changing. Assist-2-Sell’s phenominal success speaks to this truth. I heard of another well known, conventional franchise that is currently trying to do the same thing we are.
I saw the wind change and just wanted to be on the forfront.
The gravy train may have come to a stop, but a new train is ready to take off…. ALLLLLL ABOARD !!!!
March 5, 2007 at 12:10 pm
oops….sorry to be redundant…. I didn’t think the first one got sent…… I got a server error message….
By the way…
GREAT blog Greg!!!! Well laid out and easy to follow….
March 5, 2007 at 12:14 pm
Thanks Jim.
If you want to keep the conversation going, what is your opinion about the debate. Obviously you are with Assist2Sell so you probably have some experiences to share…
March 5, 2007 at 12:16 pm
The nice thing about the passionate debate is we all seem to really believe in what we do. And if we didn’t then we shouldnt be doing it.
March 5, 2007 at 1:07 pm
mmmm My opinion about the debate? Would that be like debating the debate???
Welllllllll, I guess it would be that so long as name calling is kept out of it, it’s a great thing. I have many, many friends in the business that are with other companies that thought I was a traitor when I first bought into A2S. In fact, I was on the board of directors for our local MLS. (Imagaine how fun that day was when I made the announcment),
Anyway,
Now that they “get it”, I’m their friend again. They have all gotten paid selling our non-MLS listings and see that we really are full service. That seems to be that biggest misconception, that we are not full service. We are.
I too am against limited service companies. I feel those folks my be setting up their “clients” for a world of hurt.
It, (A2S), is a relatively new concept and us ‘ol timers need to adjust. When I first got into the biz, I was happier then a pig in mud on a hot summer day with a $1,200, after the split, check. Now that same house brings an agent a $6,250, after the split, check. And their not running around showing 20-50 houses like they used to do. mmmmmm
Mary and Lyle, the founders of A2S, and I’m not just saying this, are absolutely 2 of the finest and foreward thinking people that I have had the pleasure of meeting. They saw this coming years and years ago. I guess the proof is in the puddin’
Make a great week folks, the pleasure has been all yours…
I MEAN MINE !!!!
I’ll be looking for ya and ….
I’ll keep the light on.
Jim
March 5, 2007 at 1:44 pm
Jim:
Offering sellers options is where it’s at. It seems to me that you palce all of your properties in teh MLS–with no OPTION for the seller to stay out. Many sellers call me here at Help-U-Sell because they dont want MLs–they dont want to be forced into paying higher fees just because the buyer driving by the signs works with a part-time agent at the State of New Jersey or wherever. CONSUMER choice is where it’s at. if you are only “saving” 33% of your sellers the MLS fee, then you’re clearly missing the boat. being the friend of my fellow real estate broker is not my mission. being the advocate for the consumer is. And, YES, there are many ways to serve the clinet other than FORCING them in the MLS.
March 5, 2007 at 2:59 pm
Hi Mike,
Sorry, but you have at allllllllll wrong.
EXCEPT, it is all about CONSUMER choice. Which we give.
The CONSUMER is my boss.
We do not FORCE anyone into the MLS.
We have many.many, many clients. Some are in the MLS and some are not. It’s the CONSUMERS choice.
Being a friend of my fellow real estate broker is not my mission either. But it is on my to-do list. Some do make it difficult. But that’s the way it’s been for over 20 years. Even when I worked for C-21……… People are people no matter what career you’re into. God made us all different for a reason…..
Now, if He would only have made them all like me…….
Naw,,,,scratch that idea…. Variety is good……
Sorry gotta go….. Listing another property…..
Got a buyer for the Whatcom County area???
March 5, 2007 at 3:30 pm
Jim:
It’s funny, you say on one hand that agents don’t dislike you because they CAN get paid on all of your listings, but on the other hand, sellers dig your program because they dont have to pay another broker. You speak with forked tongue.
March 5, 2007 at 4:07 pm
Mike,
I’m trying my best to be tolerent. Now you’re accusing me of lying. I am not.
You really have no idea what you’re talking about.
Have you ever heard the saying:
It’s best to keep your mouth closed and let people think you’re an idot then it is to open it and remove all doubt?
Go ahead and memorize this saying. You really need to take it to heart.
I don’t mind a thought provoking discussion. But you’re just provoking and have no real thoughts.
Unless your next tirade starts out with an apology, my discussion with you is finished.
I wish you well.
(Greg, I’m sorry that it fell to this level.)
March 5, 2007 at 8:17 pm
Jim:
A2S / Discounting is a relatively NEW concept? LOL. I just caught that. You’re a riot. Also funny how ASSIST-2-Sell
copied the Help-U-Sell name. Couldnt they be more creative?
March 6, 2007 at 1:58 pm
Greg,
How is the market in your area? We’ve seen a slow down but not at all like was foretold. I have noticed the phone ringing more, which is kind of a de-facto thermometer.
I live up in the NW corner of Washington State. I was talking with an agent from Windermere and they have seen the same thing.
If the interest rates stay low, maybe we’ll end up with more buyers in the market since prices have softened, or as “they” say, ‘corrected’
Jim
March 6, 2007 at 3:35 pm
Jim,
The Salt Lake market is strong, all three offers I got accepted last week were in multiple counter situations. They were all under $300,000, which explains part of it.
Homes that are priced well are selling fast. Homes that are priced high are taking longer. We have a lot of demand, but a good inventory also.
This is the best market to be in as far as I’m concerned. Sellers are getting good prices and buyers are buying into a market that is still rising and get them appreciation.
I thought Washington was pretty strong right now also?
March 6, 2007 at 4:42 pm
Hi Greg,
Campared to some markets, we are very strong. Just not where it was last year. I would call this more of a “normal” market. We have people looking at properties for the Winter Olympics. That’s not for another 3 1/2 years. I’m thinking it will get even better.
We have about the same thing going on. Some buyers and lots of inventory. Which, of course, is great for buyers.
March 8, 2007 at 1:40 am
I gotta thank all of you. I am about to put my house in the market and decided to research Assist2sell and HUS today before I met with anyone. From what I gather, it seems that if I go with HUS they will charge 6,900 dollars for a $500,000 home here in California, that’s about 1.4%. BUT it seems that if an agent finds the buyer I will pay that 3% plus the 1.4%. It looks like going with the HUS will total up to 4.4% worst case scenario. If the buyer has no agent, than the total fee would be 1.4% (yes that’s including MLS, I called and asked). So I could go with a reputable company and pay 5 to 6% because they claim they can’t go any lower since the umbrella company does not allow anything lower than 5%. hmmmm I can’t decide, it seems that I would get complete service for just .6% I might just end up going with the reputable company. It seems like nickle and dimeing when it comes down to the real numbers.
HUS can promise that they’ll find a buyer who doesn’t have an agent, they actually quoted “60% of our buyers are with out agents” so that sounds like a really good number.
But what if the worst scenario did occur, then what? I would have done all this work that as a homeowner I am just not familiar with. I don’t know what to say and what not to say at an Open house. I guess I’ll decide tomorrow. Still trying to do the FSBO stuff for now.
-Maria
March 8, 2007 at 1:46 am
Maria,
Thank you for the update. If you have time, please let us know what you decide to do and keep us updated as to the progress of your home sale. It would be great to hear from yo uas you go through the process, whichever company you decide to go with.
March 8, 2007 at 5:07 am
Maria:
Most Help-U-Sell offices, like mine, provide training before you do your first open house. Holding an open house, when done properly results for the sale of approximately 70% of my listings. Remember this: The buyer buys the home, you can’t sell it. It’s not a presentation you are making. After the open house, your HUS broker will follow up with you about the results. In my office, our sellers fax us the results Monday morning, then we call ALL buyers for feedback. If a buyer is interested, we either schedule a 2nd showing or take their offer.
If the buyer “has an agent”, if you decline to pay them, our diilaogue to the buyer is just that. We can handle the rntire process for a fraction of what your “reputable?” company may charge.
With the “reputable” comapny, there is NO CHANCE for savings.
March 8, 2007 at 12:26 pm
Mike,
When a seller lists with HelpUSell- that owner has to do their own open houses?
March 8, 2007 at 1:03 pm
Hi Mike & Greg,
Yes, this office of HelpUSell says I have to do my own open houses and the secretary knew nothing of training….Also I have to pay $250 dollars- non refundable as a deposit, up front. They said if the house sells with them they will rebate me the money but if not, they keep the $250. It’s only $250 but it says no up front fees everywhere. The flyer says no upfront fees that I got right then and there. But that’s the first thing they asked for…can’t say that didn’t make my husband and I feel a little weird.
March 8, 2007 at 1:23 pm
Greg:
Our sellers do not have to do their own open houses (or show their own home). I have licensed staff to provide that service if needed. For a slightly higher fee, we can do their open houses for them. Most of our sellers expect and prefer to show and do open houses. Some of my sellers are unable to do them due to health-schedule issues.
Mary:
Talk directly with the owner- I am sure he / she provides guidance and training in order to make you comfortable. If their upfront fee was the FIRST thing they asked for, I would feel weird too.
March 8, 2007 at 1:24 pm
sorry…Maria…
March 8, 2007 at 1:38 pm
Hi Mike, the owner just called me and said yes, they will council us as to the various conversations we might have during the open house. We’ll see what happens, I can’t wait to sell this house!
March 8, 2007 at 1:42 pm
Best of luck!
March 19, 2007 at 11:35 pm
I dont know if anyone is still following this blog. I do find it fascinating that there could be one devoted to a “Why I hate….”. There are so many different business models in use throughout the USA for real estate sales that I am wondering why these 2 were called out. I am in SW WA and in just my area alone, there are over 20 different business models (most local companies), along with the traditional fee brokerage firms.
I purchased an Assist2Sell in Oct of last year after being with RE/MAX for 3 1/2 years. My first year with RE/MAX, I was Rookie of the Year and have been in the Top 1% of Realtors nationwide every since - not to mentioned ranked in the Top 25 in our area for all real estate agents. Clearly I had success as a traditional fee realtor and that hasnt changed because I have embraced a new business model. I am still the same top agent and my marketing is still the same great program - the only thing that has changed is my fee structure. We have been received very well by the public and our fellow realtors (in part because of my reputation prior to opening the franchise).
Let us remember that our country is built on free enterprise and the cool thing is that business is infinite in the real estate field. When we stop looking at it as finite, folks will not feel threatened and realize it is okay for each business owner to run their business as they see fit - with this thinking, there doesnt need to be a “Why I hate..”.
I know that the Assist2Sell I own offers the best marketing and representation available in my marketplace. I wont ask anyone on this forum to defend their customer service so I dont expect to have to do this myself. I know from past experience that there are many RE/MAX agents for example who offer subpar service and representation as is the case with any company I am sure. However, on forums like this one, I never see those folks having to defend themselves and the bad reputation they give our industry.
It is the feeling of scarcity in the amount of business that drives others to despair different business models. We should all accept that there is more than one way to successfully run a business and be more concerned with the quality of professionals in our industry, regardless of company affiliation. Heres to a great 2007 for all!
March 21, 2007 at 9:32 am
Wow, this post has been seriously edited. It barely resembles the original article. Even the title has been changed. I guess having angry “discounters” all over this post helped accomplish that, but I think they real reason it was changed was to paint the author in a better light. I am young, internet savvy, and professional…I would be all of this if I weren’t a real estate agent as well. I have never hired anyone who has talked badly about their competition to do work around the house, my taxes. etc. Instead, I call the company/person who was bad-mouthed and see what they have to say—most of the time, I then hire them instead of the “other guy”.
I have actually “won” listings by saying one simple line: Even if you choose to work with another company, by sitting down with you today, I am saving you money.
The Sellers say: How?
Answer: If you mention me to another agent you may interview from a traditional company, they will most likely do two things: cut their fee to list your home and talk badly about me/my company. Now, if we didn’t work and the bad things they said were true, why would they lower their fee? Why not just let you learn for yourself and offer to list the home after it doesn’t sell with XXX Discount Company? Because we sell 99.6% of our homes at 98% of the asking price on average 30 days less than traditional agencies do. They know we work, they have seen us work, and they know our model is a huge threat to their income. We’ve all heard the old saying “you get what you pay for”, but at Assist2sell you get much more than you pay for.
Seller: Where do I sign?
March 21, 2007 at 10:20 am
Vanessa, that was one of the best commenst / dialogues I have ever seen. Very cool. I am buying lunch.
March 22, 2007 at 1:45 am
I am fascinated to watch this debate. I am a home owner that wants to sell his first home in order to pay for the second home I just bought.
What amazes me is the fact that most of you are quite illiterate actually. I worked hard in school and many of you - regardless of whehter you are are HUS agend or a full whack commission barron - just have a hard time constructing a decent sentence. It has given me new inspiration to buy a book and learn the ropes related to my local laws. I am a marketing manager and I sell products that require far greater complexity in understanding than any of you really could probably grasp and am saddened by the fact that people that profit from the sale of homes, are all escaping a small stake in the nugget we call reality. No I didnt say REALTY.
God bless and I wish you all a fat commission on that house that your grandmother’s best friend used to occupy.
March 22, 2007 at 6:07 am
Eric:
It’s a blog, not a toast to the Queen.
By the way, you have a typo (agend) and definitely a run on sentence tucked in the back of your soliloquy.
March 22, 2007 at 5:22 pm
I have no clue what that rant was for from you Eric, but I hope it wasn’t directed at the discounters—you know, the “good guys”. ; )
March 22, 2007 at 11:45 pm
When I was selling a house a few years ago I interviewed several agents from different brokerages, including one that I was referred to by a friend. Two of the agents (one was a broker) told me that they were with “discount” brokerages and I would save money by enlisting their services. One of them showed me a beautiful bar graph which proved that his listings sold in an average of something like ten days while the average agent’s listing took around thirty days to sell.
The values these two agents placed on my home were between $520,000 and $540,000, which I told them I thought was low. You know what one of them told me? He said that buyers don’t care what price I want and he would not take an over-priced listing. The agent I decided to list with (the one referred by my friend) listed my home for $594,000 and we settled with the buyers for $589,000.
By “saving” with the discount agents I would have lost $50,000 or more. I have no doubt they would have sold my house quickly and used it as an example of a successful sale with the next seller they met with, but I’m sure glad I wasn’t their next “success”.
March 23, 2007 at 5:43 am
Bruce J:
Ahhh, the market of 3 years ago. Yes, crazy times when folks would throw out a crazy prize, then just month(s) later would be shocked to get asking price.
As for your discount broker = under pricing, I know MANY agents who charge 5-6% who under price just to blow out a listing and look the the hero in the neighborhood. Many agents, including myself, made pricing mistakes in 2004.
In a stabilized market, pricing becomes much easier, since it is not a wildly moving and changing target.
March 27, 2007 at 9:35 pm
I have worked in real estate for 5yrs. and I have seen good and bad in all types of companies. It is the agent that makes or breaks your home. If your agent doesn’t know how to price your home correctly your can loose 1. time (if priced to high) 2. money ( if they priced way below market value just to make a quick sale) and 3. RESPECT for that agent. I would alway suggest an interview w/3 agents, have in writting (like a good faith) of what they will do for you and if they don’t do what they promise have it in writing that you can CANCEL. Whether discount or traditional brokerage they can only be good as the work their agents do!
As for those innovators who want to change the industry, I say why not. Take our code of ethics, it is a living document which is changed as necessary to meet the challenges of new business concepts which has developed during its history. Our real estate industry changes all the time, some things stay constant, others change permanently, and other go back to the way things were.
April 9, 2007 at 6:57 pm
I’m late to the game but wanted to share something.
I worked for a board of realtors for 2 years. Near the end of my time there, most brokers did not want HUS to be allowed on the board. This was illegal. As were all the negative statements realto