New to this: intro & disruptive real estate broker prop-tech firm!

New to this and I don't know what the protocol is. My name is Georges Benoliel, Franco-American, happily married to a Costa Rican Wife and proud father of 2-year-old tri-national Lily. I am the co-founder of New York-based next generation real estate technology and brokerage firm NestApple. My firm is offering (i) home buyers the opportunity to earn a 2% rebate check off the sale price and (ii) home sellers the option to list an apartment with full-service brokerage services for only 1%. Technology has changed the way business is done in ways that were unimaginable a decade ago. Residential real estate practices should adapt and evolve now that buyers and sellers have unlimited access to property listings and other information that was once hard to get. Twenty years ago, brokers were receiving apartment listings over fax, had access to information not available to the general public and were considered to have an insight into the business. Brokers are still useful and play a significant role in real estate transactions. However, their role has changed and should, therefore, be reflected in the commissions they receive.

Comments

  • Eddie_HolmesEddie_Holmes Administrator admin
    Hi @Georges_Benoliel , welcome to the community! Good luck with the business
  • GaryMcDonaldGaryMcDonald Member
    Could this be done for Commercial? Purple Bricks for Commercial Investors & prospective tennants
  • Hi George, having sold property for over 30 years then turned business consultant to help agents, I am fascinated that your model is to offer a lower fee, presumably due to technology stripping out some of the cost base? Would the client not pay the same or even more than the traditional fee model, if the service you provided was superior, is next generation tech always going to be a race to the bottom, because the bottom is where little profit lives. I agree that years ago brokers or agents here in the UK were the high priests privy to all the inside information, which now property portals - thanks Prop Tech give freely to the public minimising to some the brokers value. As an example I had a young client two years ago, she had been trading for a year, and she charged 0.95% or less as a fee, I asked why, she said to compete, I said let's do a breakdown of cost of sale, she did it was £2,100 that would be breakeven, I then said let's add 28% for gross profit. She said I can not charge that - no-one will pay it. So, I put together a detailed i-pad presentation of exactly what she would do for the client, including type of sale, the components, post sale service etc. A year later we went through the figures, I thought my calculator was broken, as typically my clients increase gross profit by 10% to 15%, she had increased it to 43%, selling roughly the same amount of units. The point is, if you have a great product and I am sure you have, and it is industry leading why let the client have it for free, just a thought and of course I am not a realtor, but I guess if I bought into the product / system and it works wouldn't it be of greater not less value than the old days of the fax? Thoughts.
  • James_Dearsley2James_Dearsley2 Member, Administrator admin
    Welcome to the community @Georges_Benoliel.......hoping we can help you here.
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