Industry News

That was then: Real estate discounters evolve

Low-cost brokerage models adapt to changing times
Published on Sep 5, 2006

IPayOne.com, a San Diego-area real estate company, launched in March 2004 with a 1 percent total commission program for sellers and offered $1 to agents from outside companies who brought in buyers. Its sales force of real estate agents and loan officers were employees. That was then. The company still offers its 1 percent program -- it seeks to represent both the seller and the buyer in a transaction for this reduced commission rate -- and has added higher-commission options through which outside agents can earn more traditional commission rates for bringing a buyer to the table, Also, ipayOne is offering rebates to buyers who work with its agents, and members of its sales force are now independent contractors rather than employees. "In the early days, when we first came out, our approach ... was a little arrogant. That's what I've heard and as such I think there was a backlash. That has abated, but in some cases ill will takes a long time to resolve itself," said Michael Jackman, w...

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