Traditional Sale! This beautiful Fresno High area home is located on a very large corner lot. It is surrounded by home with so much character. A truly unique neighborhood! This home has been completelRead more...
Real estate sales professionals serve a crucial role in a real estate transaction. They bring parties together and arrange the sale. The utility or service they provide will never disappear from the marketplace, it will just change form.
Telephone communication before Direct Dialing (1951) was very human driven with multiple operators in cities and towns across the world physically connecting the lines. Today we not only have direct dialing allowing an almost infinite amount of coded connections to happen without operators, but also have handheld computers branded as smart phones more complicated than I want to try to understand.
Simply put, the motivation behind PBO List is to change the form in which the utility and service of Real Estate Agents is delivered, in the process it is my sincere hope that a more appropriate compensation structure will be created when it comes to real estate transactions or sales.
I hear Real Estate Agents when they say that they can make up for their commission in a higher achieved sale price, but the world of finance is a zero sum game. Meaning that in a transactional sense for every dollar received, there has to be a dollar rendered. If what they say is true and a higher sale price is achieved with them, then the buyer is getting the property overvalued as the seller would have been willing to sell for less.
The commission structure is something of the past and screams for change in the wake of the subprime mortgage crisis. I don’t see real estate agents issuing refund checks to homeowners on the brink of bankruptcy for the portion of the commission they collected on bubble valuations. A commission is a transactional cost, no matter how they like to cut it. Real Estate purchase or sale prices should be determined by the market like any other commodity and the transactional cost should be an almost insignificant amount.
The PBOList Effect:
Guidance & Simplification: No BS
Flexibility & Control: No Conflict of Interest, No Broker