New Trend with Fee for Service Real Estate
The current economic downturn has consumers looking for ways to trim their budgets and create a financial safety net to make it through the recession. The housing market has continued to worsen at a time when many had hoped it would turn around. Many areas of the country have been wounded by significantly declining property values. In fact, many homeowners in those areas now owe more on their mortgages than their homes are worth. The number of foreclosures are at record levels and has contributed to the glut of inventory of unsold properties. The Obama administration introduced a housing aid plan that many hope will provide a boost to the real estate market and, in turn, the economy. The plan also specifically intends to stem the foreclosure rate and help many homeowners before they get in trouble. The one silver lining in the housing crisis is the incredible rates for mortages. Interest rates for mortgage loans are currently at historically low levels, which has encouraged some potential qualified home buyers to start shopping for homes again. Some penny wise consumers in the current economy, however, are choosing non traditional fee for service real estate alternatives, representing themselves and trying to find the best deals.
The relationship between realtors and consumers has been affected by the economic downturn. Realtors were king during the housing boom. As buyers clamored to find a house and be the highest bidder, realtors were maxed out with business. The way people buy houses, however, was slowly changing even prior to the economic downturn. Ten years ago, there were no fee for service real estate options or online homes databases. Your realtor was the key to helping you know what was for sale, where and how much. The only model back then was paying a realtor a commission to help you buy or sell a house. The web has put consumers at the helm of their real estate transactions. You can preview houses, plot them on a map and compare prices from the convenience of your living room. Fee for service real estate, a new trend in realtor relationships, is also putting consumers at the helm. Fee for service real estate is a model that charges a consumer for real estate services, in lieu of a commission percentage. Different companies offer different fee for service real estate choices. It can range from a pay as you go model to a base price with various additional options at a cost. The advantage of fee for service real estate options is that it allows buyers and sellers the option to choose the specific services they want. Real estate agents who support the model believe it shows the value of their work more than a strict percentage commission model does.
View PDF | Print View
by: sarawilliams
Total views: 762
Word Count: 474
About the Author
For the real scoop on fee for service real estate, link to smithadams.com.
Rating: Not yet rated