This week, an Opendoor competitor announced a $260M funding round, causing some readers to question what’s in it for sellers, and what this direct-purchase trend means. In addition, readers reacted to the HUD suspension of the mortgage insurance premium reduction, to a mixed real estate industry crowd.
We learned how a group of agents cracked the Snapchat code and one agent shared a story revealing just how deep our younger generations’ connection to the smartphone goes.
Dig into that and more with our top comments of the week.
Age discrimination: It goes both ways
I got into the business when I was 19, and still to this day, face people who have an issue with me being young. People automatically assume, without even listening to what I have to say first, that because of my age, that I do not know what I am talking about. But an Agent who is older, who could be in the business for two weeks and the customer wouldn’t even know, does not get the same treatment, because they automatically assume that because of their age, they have been in the business longer. I spend a lot of money and time on classes to ensure that I stay up to date and have an edge on my competition. I even had a class this past summer where the class instructor made a joke about my age in front of the entire class of other Real Estate Professionals, and some of them actually laughed at the joke. It does go both ways.
I delayed a closing for a buyer client to take advantage of the cut and then had to say “just kidding”. This would have saved the client $816 annually.
There are buyers who could use every dollar
It’s disappointing to read some of these comments from Realtors saying “if this difference in affordability means they can’t purchase, maybe they shouldn’t” as you sound out of touch with this buyer market, and similarly equating the MIP program as a reason why we had the financial meltdown. The public was not using this program en masse to get in to shady mortgage products and fleece the system. This program is NOT why the banks went under, where sadly only 1 bank exec was even indicted for their screwing of the public, but that’s another tangent. Yes, there are bigger fish to fry and better programs to protect/enhance, such as the mortgage interest deduction. The headlines for this are overly political, but it’s an indication of policies to keep a steady eye on alert for.
There are buyers who could use every dollar to make their purchase work. Acting like they’re leaching the system and scraping it together is a disservice to their hard work and effort to qualify for home ownership. There are myriad reasons why, from recent graduates who have only just started, to families with new children, to people who suffered financially in the last meltdown and are now back on their feet. All of these are valid buyers who could use the help and support not the insults.
Check your denial
From a different perspective. I think we need to put all of the obvious arguments for the success or failure of these new brokerage models aside for just a minute to better understand what we can learn here. These businesses are proving out a slient indictment of the current home marketing process with Sellers. Think about it. Sellers who when given an option to accept a dicounted price in return for an immediate and certain sale of their property, now can do so. They are opting out of selecting the alternative that brokers and agents are offering. And that process is – if you can even call it that – whatever 1.2 million agents independently decide “should work to sell a home.” How telling. Never, never underestimate the power of a viable alternative. Especially if the “net” of that alternative with the consumer results in business taken away from you because what you are doing now is no longer valued . . . . or valued as much. In this case, my strong advice to you is that you check your denial of all that is happening here the front door. Or not.
I tried OfferPad
I tried Offer Pad to get an offer on one of my listings. They offered $15,000 less than the offer we just accepted on the property. That coupled with the exhorbitant fees leave me asking what seller in their right mind would leave so much money on the table. You either really have to hate Realtors or be really desperate to do so. Open Door wouldn’t even give me an offer on the listing because it didn’t fit within their parameters. I foresee both of these companies being gone within a few years, especially if there’s a turn down in the market. They won’t be able to flip a home for a profit in a declining market.
2 teenagers talking via smartphone, face to face
I’m always AMAZED at the daily advances of technology and how it engages consumers who are constantly on their smartphones.
Just last weekend while in the lobby at a movie theatre, I witnessed two teenagers engaged in conversations with their smartphones. They were sharing comments and videos from their Snapchat posts. They NEVER put their phones down to actually talk to one another!
One would be a dinasour if they didn’t latch onto the latest technology that’s really effective in engaging consumers on their smartphones.
I’d like to jump in on the Snaplistings whenever an opening is available.
To be clear…
Doug Watson · Commented on How the appraiser shortage is affecting homeowners
To be clear, there is not a shortage of appraisers. There is a shortage of appraisers willing to work for low fees offered via appraisal management companies. These companies collect a fee from the lender and pay the appraiser out of that fee. While it is true many appraisers have left the profession, many others like myself have shifted to non-lender work for attorneys, propertyowners and accountants (among others). We generally get paid quickly and don’t have underwriters tearing apart our reports looking for any reason to send back with revision requests. I shifted my business model after the housing meltdown in 2008 and it was the best decision ever. Much less stress and no collection hassles.
Top comments are compiled by Inman’s editorial staff.