I’ve been anxious to finally be able to say that. Our website launched this weekend, although it is still far from being a finished product. Hopefully consumers will see the value in the model we have developed.
I’ve been researching and designing the model for a while now and it’s been interesting to see how the industry has been evolving this year. I think the industry is finally going to go through a revolution, and it’s really an exciting time to be in the business of real estate.
I think that the consumer wants to have the help of a professional Realtor when they buy or sell property. Having someone with real knowledge and expertise to guide you through the transaction and ensure the correctness of it- that is important. But the consumer is starved for choices and value. The historical commission structures don’t appeal to most people and haven’t for a long time, but they only had two choices- either go it on your own and try to sell “For Sale By Owner”, which means being unrepresented and having all the buyers who are working with agents not see your home, or they could pay very high commission rates of 6% or more to have an agent represent them.
And if it were that simple the choice would be much easier. But then consider that most agents are horrible service providers and spoil the experience for their clients and the fact that most brokers lock their clients into contracts for months that not only guarantee that the broker will be paid, but also prevent the consumer from hiring a better agent to help them.
It only makes sense that consumers are tired of the old guard of Realtor and want a fresh alternative. Enter BlueRoof to give the consumer better technology that can add more value to their experience, and the first use of GoogleMaps for real estate search.
The BlueRoof business model is to connect buyers and sellers together in one place with a Realtor coordinating the transaction so everything goes smoothly. Sellers can list their home and have full representation and a complete marketing plan for 1%. Buyers receive a rebate of any commission received, and when a buyer buys a home that is for sale by owner we’ll help them coordinate the transaction for $1000.
Buyers can find their new home on their own and make an offer on BlueRoof.com and receive half the commission or they can have an agent help them find their new home right from the start and still receive a commission up to $3000 (plus an additional rebate of up to $3000 if they use BlueRoof mortgage).
The website having “For Sale By Owner” homes on it hopefully can help local agents as well by providing a search for these FSBO homeowners that are willing to pay a buyer agent commission. Also appraisers can benefit from having a source to find comps when the MLS can’t provide them with homes that will help with their appraisal.
I’m sure we’ll learn a lot as we go, but it’s exciting to see it begin, finally.