From CNBC:
No more 6% commission – these brokers will sell your house for a flat fee
In an increasingly crowded and competitive real estate market, brokers are messing with traditional models, and that could mean big savings for sellers and buyers.
For decades, the 6 percent commission for real estate agents has been pretty standard, but then came 2 percent and 1 percent offers from new brokerages, and now, just a flat fee.
London-based Purplebricks, which is barely 3 years old, launched its new U.S. business in Los Angeles on Friday, after raising $60 million in special stock offering.
It offers the full services of a regular real estate brokerage for just $3,200. That includes professional photography, 3-D virtual tours, help with staging, home tours and listings on all the major online platforms.
Buyers who choose Purplebricks as their agent will receive a $1,000 rebate on closing. The model has been successful in the U.K., and the company expanded into Australia in 2016.
“I think what’s great about our model is it’s new in the U.S., but it has been proven in the U.K. within three years,” said Eric Eckardt, Purplebricks’ U.S. CEO. “When they launched in the U.K., they weren’t the first flat-fee model, but the way they approached the market, with a full hybrid offering, with the customer service from listing to closing, with a local real estate professional to provide all the services associated with that — it has really been a competitive differentiator.”
Purplebricks is not the first flat-fee model in America. Reali recently launched in San Francisco with much the same offering but a higher flat-fee of $4,950, likely because of San Francisco’s higher median home price. It is now expanding to Sacramento, California.
“The differentiation we make is not just our agents or fees,” said Reali CEO Amit Haller. “We created significant technology and a strong efficiency of our agents. That’s what allows us to reduce costs so significantly at the consumer level.”
Haller said that as his company reaches other, lower-priced markets, the flat fee may decrease.
Both Reali and Purplebricks focus heavily on technology, which is taking over the real estate business in general. Haller started in tech and then moved to real estate.
“In general, the real estate market is being disrupted by many people, and I think that many of us, as a company, we expect a lot. We are going after the same war,” Haller said. “We want to change things for the consumer.”
From NPR:
As Millennials Get Older, Many Are Buying SUVs To Drive To Their Suburban Homes
Just a few years ago, many car dealers and homebuilders were worried that millennials would forever want to be urban hipsters, uninterested in buying cars or homes.
But now, as millennials get older — and richer — more of them are buying SUVs to drive to their suburban homes.
The National Association of Realtors’ 2017 Home Buyer and Seller Generational Trends study found that millennials were the largest group of homebuyers for the fourth consecutive year.
Zillow’s chief economist, Svenja Gudell, says that for millennials, growing older is beginning to mean buying a house in the suburbs.
The Great Recession acted as a pause button for many choices that Gudell says millennials were already going to be slow to make.
“We’re seeing that the age at which women have kids has also gone up. And so instead of having children in their late 20s, you might start having kids when you’re in your early 30s at this point,” she says.
Generationally speaking, the stereotype of millennials as urbanites falls flat when it comes to homeownership. The Zillow 2016 Consumer Housing Trends Report found that 47 percent of millennial homeowners live in the suburbs, with 33 percent settling in an urban setting and 20 percent opting for a rural area.
Millennial homebuyers do wait longer to buy a first home than did previous generations. But they are skipping the traditional “starter home” and buying larger homes that were previously considered the norm for “move up” buyers.
And how are millennials navigating the suburbs? With SUVs, according to several recent studies.
Michelle Krebs, an executive analyst at Autotrader, says college debt kept millennials out of the car market, but now that’s changing.
In 2011, millennials were just 20 percent of the market. They’re about 30 percent now, and Krebs says that they’ll be 40 percent of the market before the next decade if current trends continue.
Erich Merkle, an economist with Ford, says that as millennials cross the threshold into family life, they’re buying large SUVs.
“We expect them to carry on as they age with three-row SUVs and likely go larger simply because they need the space to accommodate children that are now teenagers or preteenagers,” he said.
Ford expects all SUV sales to grow from 40 percent to more than 45 percent of the total U.S. new vehicle market within the next five to seven years.
Millennials just might be mainstream after all.
Late Gen-X’ers so jealous of Millennials, they are trying to join their generation.
Are You An Xennial? New Micro-Generation Forming Between Gen X And Millennials
We’ve all heard that if you’re born between 1982 and 2004 you’re a millennial and the generation that spans the 20 years before that is Generation X. But now a new micro-generation between the two is forming.
If you remember dial-up Internet connections, ever owned a flip-phone, made a mixed tape or remember when the New Kids on the Block shot to stardom the first time, then you may be an xennial. It’s a population sandwiched between Gen Xers and millennials that doesn’t identify with either.
…
Now found on the Internet, xennials are being coined as a micro-generation that experienced an analogue childhood and a digital adulthood. Born between the years 1977 and 1983, they claim to possess both Gen X cynicism and millennial optimism and drive.
Cue pumps in 3…2…1
Clay Travis is a genius.
https://www.washingtonpost.com/news/the-fix/wp/2017/09/15/clay-travis-used-his-first-amendment-and-boobs-line-long-before-he-shocked-cnn/?utm_term=.660d1642ca16
For everyone that continues to belittle my financial intelligence, make some calls like I have. Do I have to go back through the archives to show how wrong you were in the past and how correct I was. I don’t know it all when it comes to economics, but I do have a pretty good grasp of it to be able to make correct calls 5-6 years in advance and be correct on almost every single call. You know how difficult that is to do? And you guys just sh!t on it. 3b says some stupid sh!t, yet no one rags on him, I’m the only one calling him out. Writing is on the wall here.
On the topic of hedging inflation, I stand by what I said. Not losing money when you are supposed to, is making money in my mind. If you don’t hedge you can lose big, do you know how long it’s going to take to make that back? Put it this way, you wouldn’t buy a home without insurance, you could lose it all. Inflation works the same damn way, if you don’t protect your capital, you could lose a significant chunk of that value. A penny saved is a penny earned. So buying inflation hedges, is a big part of the process of growing wealth.
Laugh at me, tell me I’m wrong, I don’t care. But some of you should start taking my advice. I bet places like Wayne/Paramus types see the biggest appreciation gains in the next 5 years in the northeast nj area. Do you see how high their prices peaked last bubble in comparson to all the other towns? Why do you think this time is any different? Wayne/Paramus/Montville/Fairfield types haven’t seen the appreciation yet, so what do you think is screaming value? These are the towns these millennials can afford and will target. Call me the idiot, but watch what happens. Then I will say, told you so, where is my due? All I will hear is crickets.
In case you’re locked out of washpo:
https://www.youtube.com/watch?v=TcWOQKbEPD0
Where are your 3 degrees from, Pumps? Maybe you have a Masters in Baiting?
For everyone that continues to belittle my financial intelligence,
^^^btw, what I quoted is as far as I read on your typical Saturday cum post.
Who wants to bet the next 20 consecutive posts are from our resident dunce jacking himself off? I guess I’ll check back tomorrow and see. Bye.
Everybody knows if you want fast appreciation you have to live on a highway with a fast speed limit.
Now found on the Internet, xennials are being coined as a micro-generation that experienced an analogue childhood and a digital adulthood. Born between the years 1977 and 1983, they claim to possess both Gen X cynicism and millennial optimism and drive.
Born in 1980, total cynic, and I possess no millennial traits. Everyone I know 2 years younger than me is a total millennial.
Look how high places like Fairfield, montville, Wayne, and Paramus went last run-up. (places that were 1.3 million are selling now for 850,000).So I ask again, since human nature guides the market, why is this time any different? These places just all of a sudden became undesirable to white/Asian families and professional class? My wife’s sister lives in Wayne, and both my siblings now live in Wayne. Her sister is older and bought back in 2001. My siblings are millennials that bought in the past 3 years. All have two kids. The writing is on the wall. Also, every single one of them is a high paid professional. What do you think, they are an anomaly?
Human nature/demographics drive the market. It really is as simple as that. You don’t need a degree from some fancy school to understand this. You just have to think and separate the noise from the real data.
Nobody born in 1977 grew up analogue. We already had touch tone phones and digital watches. Heck, I learned to program in Fortran IV in 1976. Macs, PCs, and compact discs were just around the corner in the early 1980’s.
Too bad you know it alls don’t have the ability to understand the writing on the wall. It’s not your fault, majority of the population usually doesn’t get it.
If you didn’t save your paper boy earnings or babysitting money to buy vinyl records you didn’t grow up analogue.
For everyone that continues to belittle my financial intelligence, make some calls like I have.
You don’t make any real calls. Attach a number to your predicted gains/losses. I predicted real estate would modestly go up. You predicted it would bubble. Who’s right? Is the story even over yet? You can’t measure your predictions without attaching a number to your prediction.
Your predictions are so vague and all over the place and often counter to your other predictions. When grim talked about what those new homes in Franklin Lakes would be worth in 10 years…that was a real prediction.
Too bad you have no f.ucking idea what inflation or hedging is.
Too bad you know it alls don’t have the ability to understand the writing on the wall. It’s not your fault, majority of the population usually doesn’t get it.
I predict that Pumps will be the only one posting here in 10 years, but he’ll be posting more.
Blue,
Calling out specific numbers is stupid, just call the trend. It’s all a cycle, just call which part of the cycle is happening now and for how long. This is what I have done on this blog. I have called the trends and have provided the years. I don’t claim to know how high or how far human nature will push the bubble. If you want to do it, be my guess.
grim unmod plz
“I don’t know it all when it comes to economics, but I do have a pretty good grasp of it to be able to make correct calls 5-6 years in advance and be correct on almost every single call… I have called the trends and have provided the years.”
The above is why you are a dunce as others have just pointed out. Not because doing *just* the above without specificity is relatively meaningless. But because you don’t understand that and keep patting yourself on the back for the equivalent of waking up in the morning.
After a major decline you called a reversion with no specificity over a period so long as to be nearly meaningless. In other words, here we go: We are currently near all time yield lows on the ten year and at all time highs in the stock market. I predict that some time in the next eight years the stock market will be lower than today and the ten year yield higher. There. Now make me an MD at Blackstone and give me $3mil all-in. F*cking idiot too stupid to even realize he is stupid.
“Do I have to go back through the archives to show how wrong you were in the past and how correct I was.”
Do it. I dare you. You can’t prove it. I want multiple (6-10) supporting pieces for each of your calls. For each call.
@kylegriffin1
Trump starts his day at Trump Nat’l Golf Club in N.J.
This is his 60th day at a golf course, 77th day at a Trump property as POTUS.
Lefty, so no one was calling for a stock market crash/or major correction, or dead cat bounce in housing from 2012-16? Nah, just everyone and their mother. Wage inflation, I was told impossible. So stfu, you have no idea how much heat I took for those calls. Was called an idiot and mental midget for making those calls at the time, and now you have to nerve to say that I called meaningless call. Get your head out of your a$$.
How the hell do you think I got the name “Great Pumpkin?” Jesus, going to say it was a meaningless call now, I can’t believe this crap.
In an increasingly crowded and competitive real estate market, brokers are messing with traditional models, and that could mean big savings for sellers and buyers.
The beginning of the end for house tour guides. Maybe they can transition into buggy whip sales.
Good brokers will survive technology. I sold 4 homes, 3 with brokers. I didn’t mind paying the commissions.
I hate the RE commission and all the information opaqueness that occurs with the present system. But it will stick around, because most users of the system, are rare/occasional users and the time cost of getting it done is usually not worth it.
I’ll present the problem in a non-RE way.
I had to mail a critical package. Went to post office, was not sure Priority Mail/Registered Mail need to place high insurance. The staff did not help much. The attitude and “don’t have my act together” vibe was very clear. Decided to take my package and get it done at FedEx store.
Afterward, looking at prices at their respective sites. UPS & FedEx were in the same ballpark. USPS was way cheaper and got it there a day sooner. However, the “incompetence / can’t get it done ” vibe vs my need of getting this critical package sent securely and properly insured could not convince me of it yesterday. In the future maybe, not yesterday.
Same thing will happen with Real Estate. Is why you go to a cashier lane, instead of the self-service check out when you have a few items.
Pumpkindunce – Maybe you can take your 3 mystery degrees and apply to Equifax to be their new Chief Internet Security Officer, since there is a recent opening. It seems like EFX doesn’t care what your degree(s) are in, even if you are deeply embarrassed about how irrelevant they are to the areas in which you claim to have expertise. Maybe your degree is in Transgender Studies?
http://www.zerohedge.com/news/2017-09-15/another-equifax-coverup-did-company-scrub-its-chief-security-officer-was-music-major
Maybe your thesis was Long Term Effects of High Speed Traffic on Cognitive Ability?
Just spoke to a broker in Red Bank do a deal for 1.75 to the listing agent and 2.75 to the buyer with a of a 2K fee …..interesting
that should be a $2K kickback to the buyer
http://recoverperu.org
Pumpkin
I thought you were looking in the mirror when you picked your bame
The Great Pumpkin says:
February 22, 2017 at 11:58 am
My father was deported by Obama in 2011 for crimes (organized crime) he committed in the 80s.
and crimes in 1996
and crimes in 1997
and he was ordered to be deported under George W. Bush. It just took until Obama’s administration to catch him and complete the job.
Just some more half-truths from Pumpkin. I guess when you are raised by a convicted drug dealer honesty doesn’t figure prominently into your early childhood development.
Pumps is damaged goods. He can’t be fixed.
I thought millennial s wanted these new suburbs with pedestrians walking paths and small lots with very little vehicular gratification walking distance to stuff and drone ports. So why do they want big sub s?? Oh I so confused!!
We are still talking wage inflation? I thought that BS was put to bed yesterday? As per their article wages have improved but still not at pre recession levels of 10 years ago. So I would t think if the article is too be believed then we cannot talk about wage inflation unit we have caught up to pre recession levels. And then if wages rise from there we perhaps can talk about wage inflation. Again if we are to believe the article we are just trying to get back to where we were 10 years ago and as such when that is done we are essentially flat. Just saying.
The one commission that kills me is how much people pay to use accountants to do and file their taxes. And keep in mind, you are much more likely to be audited if you let someone else do your taxes. Sure, a lot of people have no clue how to do them, but with TurboTax and the many resources available on the internet, it’s almost a no-brainer. I would argue that only the person who pays the bills really knows all of the expenses. You try to save all of your receipts, but do you really know what is deductible? I spend almost 20 hours on my taxes, but the savings make it well worth it. I try so many different combinations, it’s a lot like playing chess. And it is really not hard at all.
at 20 hrs you are better off paying someone to do them. even if you make minimum wage.
btw, very sunny out there. i bet you are tracking some shirtless hunks out there
Libturd sporting Tiger Wood says:
September 16, 2017 at 2:21 pm
I spend almost 20 hours
Moana, you are really, truly clueless. I guess when you make minimum wage, you wouldn’t understand how many tens of thousands one can save by maximizing deductions. Your simpleton mind only considered the cost of filing. I know. You are a moron. BTW, I filed well over 100 pages of tax forms, ever guess what a cpa would charge me for doing this much paperwork? Probably 10 times what you pay at H & R Block. With half the refund (or in my case, less taxes since I’m not stupid enough to loan the government money like you do). Go back to kindergarten you idiot.
by Brother-in-law pays about $10,000 per year for a return that thick.
I do my own capital gains and then hand that off to my accountant and he charges me about $350 to do the rest.
Back to Real Estate dark side.
Anyone thinking of looking at properties in the Caribbean? St. Maarten/Martin?
https://www.theguardian.com/world/2017/sep/07/irma-destruction-island-by-island-hurricane
I mention St. Maarten/Martin Over because they receive over one million visitors each year.
Shkreli is an interesting dude. This is worth an hour if you have it to spend:
https://www.youtube.com/watch?time_continue=3&v=EB_EfXUbFK4
No, don’t call the trend…because if real wages went up 1%, you would scream you are right about wage inflation. Attach a number to your predicted gains…and you can throw it in our face all you want if you are right.
This describes Pumpkin perfectly:
In the field of psychology, the Dunning–Kruger effect is a cognitive bias wherein persons of low ability suffer from illusory superiority, mistakenly assessing their cognitive ability as greater than it is. The cognitive bias of illusory superiority derives from the metacognitive inability of low-ability persons to recognize their own ineptitude
40yr anniversary, this is when I really start to feel old.
“I hate people when they’re not polite”
https://www.youtube.com/watch?v=O52jAYa4Pm8
“Clay Travis is a” D1ck!
No need to go there.
“looking at prices at their respective sites. UPS & FedEx”
Try getting High Vale returned to you!
I get all the arguments against USPS, but one thing Fed Ex, UPS, DHL, etc wont do. Even if you lifted all restrictions, deliver to every address in the USA.
Fab – you miss the larger point. Think free speech vs. censorship. Here’s CNN having a “serious” discussion about whether it’s OK for on air talent to tweet that the POTUS is a white supremacist who surrounds himself with white supremacists. Travis counters by saying he believes 100% in the first amendment and boobs. His statement is more sincere, truthful, and innocuous than Jamele Harris’s statement but CNN won’t have a “serious” discussion over whether he is allowed to say such things, they’ll just shut him down. I guess the more parallel statement would be if he voiced the opinion that Obama is a racist who surrounds himself with racists.
“Clay Travis is a” D1ck!
No need to go there.
^^^Given this nation’s great diversity, isn’t there something a little off about having two black Attorney Generals in a row serving a black president, even discounting that they were both corrupt and complicit with obstructing justice.
“The one commission that kills me is how much people pay to use accountants to do and file their taxes.”
Meanwhile in Lower Penn. Eddie Ray is saying “you’re nothing to me now. You’re not a brother, you’re not a friend. I don’t want to know you or what you do. I don’t want to see you at the hotels, I don’t want you near my house.”
No One – I used to keep the Dunning-Kruger chart on the wall of my office. It is
very aptin this case.“Unskilled and unaware of it: how difficulties in recognizing one’s own incompetence lead to inflated self-assessments.”
https://imgur.com/gallery/ls1j7
“”
This describes Pumpkin perfectly:
In the field of psychology, the Dunning–Kruger effect is a cognitive bias wherein persons of low ability suffer from illusory superiority, mistakenly assessing their cognitive ability as greater than it is. The cognitive bias of illusory superiority derives from the metacognitive inability of low-ability persons to recognize their own ineptitude
nuts. should have read:
It is
very aptperfect in this case.We had several bad cases of Dunning-Kruger in our office over the last two years. We have scrubbed everything clean but it still keeps cropping up like a bad fungus.
A Walmart heiress and other billionaires were the (New York) money behind phony “local citizens group” that pushed ballot for charter schools in Massachusetts. Big money corrupts politics at every level.
https://www.bostonglobe.com/metro/2017/09/11/pro-charter-school-group-pays-state-largest-campaign-finance-penalty/uQlWnaSnOC6CeHma74cPqN/story.html
FYI. As mentioned many times before, I know this is the case in Morris County.
https://mishtalk.com/2017/09/16/long-term-mortgage-delinquencies-seriously-under-reported/
I figure the banks wait about 10 more years and then say, “OK, your 20 years of free rent is up. Get out.”
Hello all, from obscurity.
How does this entire thread not mention the word “Foxtons” once? That was another UK firm that tried to bring the flat-fee model to the US during the last bubble. I guess this really is another bubble then.
expat,
Shrkreli is apparently ill. I didn’t see this coming but he was roaming around NYC with 200k in a bag, ranting about cemeteries, black suburbans, zooming in on license plates and claiming to be fearful for his life.
https://www.youtube.com/watch?v=mZKzW4e5quw
I didn’t say that Shkreli is sane or sober. I just find him very interesting to listen to when he is lucid.
The four American women attacked in Marseille, France with hydrochloric acid by a woman early Sunday are students at Boston College, a university spokesman said in a statement.
The students, all juniors, were studying abroad in Europe. Three of the women were enrolled at Boston College’s Paris program, and the fourth was a student at the Copenhagen Business School in Denmark, the spokesman said.
The acid incident occurred at around 11 a.m. local time Sunday morning at the Saint-Charles train station in Marseille.
All of the students were apparently targeted by what authorities describe as a 41-year-old woman with a history of psychiatric problems.
http://abcnews.go.com/International/us-women-attacked-acid-france-attack-police-terror/story?id=49907766