Sol Sek

NYC, Exactly! Consumers want to have some form of measurement stick. People would rather pay 20% of the incremental result than 5-7% when the result comes in less than promised. It some way it's like bringing transparency to the commission game. Both sides see, understand and agree from start to finish. Sol P. Sek CEO/Founder, Forsalebyweb.com Where You Name Your House Values!

Thank you Craig. The bottom line is it's not the consumers' responsibility to come up with a model that profits agents or to get properties sold. They simply want to pay the least commission with maximized result. Great service is no long what consumers are looking for, it is what every consumer expects regardless of the commission model used. If the value isn't there you can be certain the consumers will seek hybrid offerings. It appears everybody is reactiving to Karim's model out of fear, when a close look at his product shows the real focus is lead generation. Performance based output is merely an option that consumers can choose/request from agents using his agent referral website. Sol P. Sek CEO/Founder, Forsalebyweb.com Where You Name Your House Values!

Thank you Karim for helping to make the performance based model Closer to reality. This is not a new concept for the real estate industry By any means. We have been testing this model using agents in several states for several years now. This model somewhat resembles our “Name Your House Values” business concept available at Forsalebyweb.com. Yet, we took the “idea” one step further By incorporating a proprietary process of marketing that has been used by investors and agents since 1999. There’s much to learn and holes you will find as you further develop the business model. My company has also integrated this using the flat fee concept as well. Rob, this is not a net listing as there is no fixed/net price on output. The commission is fully adjustable based on performance. The focus is on performance and not on promise. At the end of the day, the agent or company that delivers best on performance wins. Any company can make a promise to obtain a listing or to represent a buyer, yet only a performance based model forces the agent to work hard and penalizes the agent for price inflation, poor marketing and false promises. Kenneth, although 5% of the result is determined by the agent, it remains the key to getting the house sold. How is this any less valuable than the services offered by agents today? The value of any agent is based on his performance…that’s really what this model is about. The old days it was based on promises, the new market will be based on performance. The consumers can decide before they enter into a contract whereas today’s model headlocks consumers into a contract and creates bitterness when sales result in less than what the consumers expected. I like your comment about pricing being the key and agree it will remain so for the future. However, consumers should not have to pay through the nose when the result comes in less than promised as we see when agents take overpriced listings. Bill Wendel, I emailed Mark Nadel about his remarkable assessment of the industry. He is right on about performance based modeling. The only flaw I saw in his report was about commission rebates. As the industry move forward, we are going to see many rebate companies change their models again. What will rebate companies do when everybody lists $1 co-broke fee in the mls? Better, what will they rebate? The real issue to address is, how can real estate companies charge 5-10% when they don’t have 5-10% in equity to pay? Lenn Harley, the concept is based on performance outcome where as today’s models are based on value projection. It truly is about what the agent is doing for the consumers because the focus is 100% on the performance and result. Perhaps there are hybrid models that can be developed for the performance based concept, but if I were the consumers I would want to pay for result over promise of service. I’d be interested in reviewing a better idea based on performance if you have any. Craig Davidenko, your comment is right on. Our studies show that no agent, no performance based model can sell a house if the house has no equity to pay the agent. We, too, have been working on the solution to the real problem faced in today’s market. LACK OF EQUITY to pay commission. I don’t think for sale by owner is the solution, not now, not in the future but sales will not happen without equity. Karim, again, congratulations for helping to bring better understanding and joining the community of performance based agency as outlined by Mark Nader. I really like your my-currency.com concept and went as far as making a post on the site about a year or two ago. Unfortunately, it was never posted. This is far from being a "new" concept. Yet, I agree we all have to invent "new" ways to tackle today's problem. Lack of equity. Sol P. Sek CEO/Founder, Forsalebyweb.com Where You Name Your House Values!