We all have them. Their marketing is relentless and is loaded with misrepresentations about our industry. What I'd like us to share is our success stories and the horror stories that we know about these companies and the poor unknowing souls who have trusted their most important investment to these blood suckers. ie...couldn't sell on their own and you listed and sold it for 30k more than they were asking, or the buyer is suing the owner because he didn't dislcose some stuff that they should have. Their are thousands of examples we have as an industry the real danger of these companies has been exposed. No names of companies are necessary just your stories and testimonials.

Hi Sheldon, not sure what you are asking. Do you mean scams like Housevalues or do you mean these FSBO listing companies and or "ALTERNATIVE" brokerages. Just asking and then I may have something to add.

Alternative marketing companies. Housevalues and lead generating companies are a whole other ball of wax.

I had some experience but escaped before loosing money. If you want to try some thing like leads, Ask them for free trial. Most of them will say no but its tells you some thing

I'm mostly talking about blatant misrepresentations about commissions saved. Or a non licensed marketing company advertising on there signs as commission free realty.

I have several instances of this sort of thing, Sheldon.

I decided I would try to use these FSBO-type web sites to try to get FSBO leads. So I went through one and captured all the homes in my area that were listed on this site. Before I started to contact them I figured it might be a good idea to check ton MLS to see if any had since grown tired of this way of trying to sell and had since listed with real estate agent.

What I found was surprising. I found several that were currently listed with local Realtors that were still listed on the FSBO site.

I decided to take it a step further. I searched the FSBO site for all of the ones in my area that they claimed had sold with 0% commission. Several of these had recently been listed and sold by local Realtors and the MLS listings indicated that most were paying a 2.5% co-broke fee. There was no date given on the listing on the FSBO site.

So how the hell does this work??? I have to be truthful in my advertising and dealing with the public but this web site doesn't??? Here they are advertising publically that this (and several other) homes had sold for 0% commission when this was simply not the case. What utter rubbish!

So who do I complain to? My local board, CREA, OREA? Who? These sites are outright lying and so far they seem to be getting away with it. Can anything be done about this?

Jerry

Finally, after 2 months, a response - thanks Jerry! Sheldon - I thought that there would be nothing bad said, leading me to believe that everything was the "truth"

I agree, this is an issue with SOME marketing companies but not all. In many cases, the company relies on the homeowner to keep the site updated, and they do not or, when they sell through a real estate agent, they just go on the site themselves and mark the home as sold and the marketing company takes credit for the sale. This can be frustrating for the buyers looking on these sites and for the agents trying to prospect the private sales ;-)

Some companies are taking a more professional approach to the private sale business and we do our best not to overstate commissions saved or homes sold. In our case, if a client offers up a buyers commission, this is factored into what we publish for "savings" on the website.

BTW – Bloodsuckers is a bit harsh… "Bloodsuckers" usually drain their source of food unwillingly. Intelligent homeowners wanting some professional marketing for their private sale do not unwillingly part with a couple of hundred dollars; they make a conscious decision to get a bit of help.

But I still see these do-it-yourself sites that list homes on MLS say that they have sold for 1% commission when on MLS it clearly shows that they paid 2.5% co-broke. So obviously the property sold for 3.5% commission, not 1% as stated on the web site. Is this not complete and utter deceit? Why do realtors have to tell the truth but these discount/DIY sites don't have to? Seems like an unlevel playing field to me.

Jerry

I think most of us don't find it useful to trash other people or companies in the industry. If you were to ask what we thought worked, it's a more positive topic. There's so many companies out there that it would take forever to list what didn't work, especially since what may/may not work for one person may/may not work for another.

Just because a particular company or strategy may not work for us,it doesn't mean they're a scam or "bloodsuckers".

I think most of us don't find it useful to trash other people or companies in the industry. If you were to ask what we thought worked, it's a more positive topic. There's so many companies out there that it would take forever to list what didn't work, especially since what may/may not work for one person may/may not work for another.

Just because a particular company or strategy may not work for us,it doesn't mean they're a scam or "bloodsuckers". [/QUOTE]

I wasn't the one who used the term "bloodsucker."

I am however concerned that some of these places that offer flat fee or cut rate service are extremely cavalier with the facts. If they have a home listed on their web site that clearly states that it was sold for 0% commission when that wasn't the case then there is a problem. I've seen several instances of these bogus claims because when I pull up the property in MLS it shows that it was listed by an agent and paid a co-broke fee to a buyer's agent. With that being so how can they claim that it sold for 0% commssion??? They are telling an outright lie at that point.

I have no problem going against discounters et al but I do have a problem with having to do it blindfolded and with my hands tied behind my back. I have to play by rules and a code of ethics, why don't they? That's what I'm bothered by.

I think all parties should be up front and honest but maybe I'm in the minority. It seems that for now these other folks have free reign. Hopefully things will change.

Jerry

Jerry,

Things are changing with some private sale sites albeit slowly. I just drove by an ex-FSBO today in our community and it has been sold by a local real estate agent but it remains for sale on the FSBO site as the onus is on the homeowner to remove it from the site. Sometimes they do, sometimes they just log in and push the "Sold" button not realizing that this misrepresents the reality of the transaction on the site. I know what you mean though, but in some cases it is the error of the homeowner rather than the FSBO listing company.

Hi Dee I agree completely, however .. this property guy is not "In The Industry" .. they are not REALTORS or licensed in any way.

In Ontario they cannot show a property, book an appointment or in anyway act as a third party to a transaction. It's against the law.

They say they will replace the REALTOR, but it's a con.

In providing this very limited scope of service (by someone with no real estate experience) they confuse the public by advertising they can save all the commission.

They say They Replace the REALTOR, when in fact they replace the newspaper. Typically with poor quality print ads and national web sites that the average buyer would never trip on.

The property owner Replaces the REALTOR.

The property owner has to show their own property, hold their own open houses, prepare their own offers, negotiate on their own behalf... do everything REALTORS do.

Until they conduct their business in an honest manner I consider it a con and cheat and I don't think bloodsucker is strong at all.

Dave

They are in the real estate industry even if they are not REALTORS or licensees. Investors, real estate signs, postcard, and title companies are all in the real estate industry because they provide services related to real estate.

I just don't see the value in trashing other companies in a public forum even if names aren't mentioned. I respect your disdain, but you never know who is going to read your comments years from now.

I'm not sure about your area...

Which of the comapnies you've listed takes out ads in your local paper telling the public that they can replace Dee In Austin for less than $ 500.00 and do the same job. get the same results ??

This whole con has been designed to slide in under the regulations in Ontario. Anyone at any time can open a business such as this and answer to no one.

It's just like a guy who has never worked on cars, buying a case of oil and calling his driveway a service center... because he thinks mechanics charge too much.

I agree Dave. I spent much time, money, and effort getting and maintaining my real estate licence. Then these other places pop up telling consumers that if they use a Realtor to sell their home that they're throwing money away. Yet you'd be hard pressed to find any of these places that actually offers the full service they claim they do. They say things like, "You don't need a Realtor, the lawyer does all the work anyway" and things like that. I've never seen a lawyer insist on water potability tests or a home inspection. They'll check title and the usual stuff but for the most part they don't involve themselves beyond that because it's not their responsibility; the rest is usually left up to the Realtor. No Realtor? I guess it's up to the homeowner then isn't it? I find it hard to believe that some place the homeowner has paid $599 to and received a bunch of signs, a few forms, and baseball hat from will really give a toss once the customer's cheque clears or their credit card goes through.

But that's OK. I mean that's the wonderful thing about a free market economy; people are free to decide who to use for the services they need. My experience has been that a lot of homeowners who have gone the DIY route either get burned or quickly tire of the amount of work involved and do end up going with a Realtor. I think a lot of the reason they think it's a walk in the park to sell their home themselves is because these DIY and FSBO sites blather on long and loud about how using a Realtor is a waste of money, you can do it just as well yourself, blah, blah, blah. Then they try it and find out that a) it wasn't that easy and b) they're now out a few hundred buck for the lessons they've just learned.

I know some people have gone this route and had a successful transaction but I think those ones are the exceptions rather than the norm. In this litigious age in which we live I can see a day soon where one of these sell-it-yourself deals goes horribly wrong and one of the parties loses big. I wonder where the FSBO site they used will be then. Most likely as far away as possible.

Dee, I don't presume to speak for Dave (or anyone else for that matter) but I don't think the issue he has is with title companies. sign companies, etc. who are providing services to the real estate industry. I think if one of those companies presumed to take the place of a Realtor that the problem arises. That and the fact that the ones who do this generally skirt existing laws that we, as Realtors, are bound by and basically do whatever they want. That's why I'm against their particular business model. If they want to compete, great. Let's all compete using the same rule set. Once that happens you'll see these guys either drop out of the game or jack their prices up because you can't afford to stay in this game and provide true full service for $599.

Merry Christmas everybody.

Jerry