In the past decade, companies like Amazon, Google and Uber are disrupting industries that we thought would never change. Using technology and innovative thinking, they have changed the way business is done, making it more economical, efficient and easy for consumers. It’s movements like these that make us wonder what other industries are due for a revolution?
The real estate industry is one as old as time. Buying or selling a home is no small ordeal, it’s confusing and expensive. People hire real estate agents to walk them through the complicated paperwork, find them homes that fit their requirements and use their connections to market and sell client’s homes for the best price.
For these services, realtors receive 6% commission for the transaction, 3% to the Buyer’s agent and 3% to the Seller’s agent. This 6% fee is not actually legally required, it has just become customary in the United States. In Europe and most other countries, the total commission on home sales is usually below 2%. So why is our commission rate still so high?
In between 90% and 95% of home buyers now find their homes online through sites like Zillow, Trulia or Redfin. The exclusive need for realtors to find homes for buyers just doesn’t exist anymore. The automation of listings has made it easy for consumers to search homes with the exact requirements and features they are looking for. If you find the home on your own, why should you still have to pay a Buyer’s agent 3% commission? Agents are no longer the gatekeepers between buyers and sellers so there is no need to pay exorbitant commissions to buy or sell your home.
Paperless platforms like DocuSign have also made an agent’s work much easier. They don’t have to go through the trouble of ensuring all necessary documents are signed and collected like they used to. Most of the paperwork is done online!
Realtors conduct an average of less than 3 transactions every year to earn an annual salary of almost $100,000 in the DFW area. That’s a lot of money for only 3 homes! However, agents are extremely valued for their expertise and advice and many people want a guiding hand through this important and complex process. So what is the solution?
A flat-fee real estate brokerage. Flat-fee brokerages, like Door, charge $5,000 at close no matter the price of the home. These companies provide the same professional service that you would get from a traditional realtor at a much more reasonable cost. With the emergence of a new consumer comes the emergence of industry disruptors. Door is disrupting the real estate industry to cater to the changing times and needs of consumers.
Contact a Door agent today to be a part of the real estate disruption!