{"id":4141,"date":"2015-06-30T20:21:54","date_gmt":"2015-07-01T03:21:54","guid":{"rendered":"https:\/\/realuoso.com\/?p=4141"},"modified":"2015-07-22T18:40:32","modified_gmt":"2015-07-23T01:40:32","slug":"listingdoor-model-and-assertions-are-not-only-offensive-to-realtors-but-wildly-inaccurate","status":"publish","type":"post","link":"https:\/\/theamericangenius.com\/housing\/editorials\/listingdoor-model-and-assertions-are-not-only-offensive-to-realtors-but-wildly-inaccurate\/","title":{"rendered":"ListingDoor model and assertions are not only offensive to Realtors, but wildly inaccurate"},"content":{"rendered":"

A statement circulated today by ListingDoor.com<\/a> proves the old truism that \u201cAll real estate is local\u201d and rides the new wave of websites promising to help homeowners sell their homes better, faster, cheaper, all by themselves. They’re calling themselves the “Uber” of real estate. Interesting…<\/p>\n

Last June, I wrote here about OpenDoor.com\u2019s $9 million launch that promised an oh-so-similar result<\/a> (\u201cSold. The Minute You\u2019re Ready,\u201d the site brags). A quick check today shows a whopping 45 move-in-ready homes listed on their site for sale, all in the Phoenix, Airzona area. I tried entering various zip codes and addresses from across the country, as if I was a homeowner trying to use their service, with no luck. I\u2019m not worried that homeowners in 95 percent of the United States will be trying this any time soon.<\/p>\n

“Veteran Realtor” launches startup with recycled model<\/h2>\n

Today the launch is ListingDoor.com – similar name, similar vision, and even more hyperbole in their promotional materials.<\/p>\n

Let\u2019s start with the first sentence of their press release: \u201cIn response to the thriving FSBO market, veteran real estate broker and author Sissy Lappin launches ListingDoor.com, providing profitable and powerful marketing tools for homeowners, giving them everything they need to successfully sell their home on their own.\u201d While some parts of the country are experiencing inventory shortages and perhaps FSBO\u2019s have an easier time than in the recent past, this is by no means a nationwide phenomenon<\/em>. I am not sure where she is seeing a \u201cthriving FSBO market\u201d but it is not everwhere.<\/p>\n

Lappin states that \u201ctoday homeowners are privy to all the same market information as real estate agents, allowing homeowners to efficiently determine the value of their home.\u201d Really, as Zillow has proven? Because the \u201cZestimate\u201d is never wrong?<\/p>\n

The site states that a homeowner plugs in basic data and they will churn out a market report and advise in pricing. AVMs (automated valuation models) are better than they used to be, true. But in many parts of the country, especially rural areas without lots of data points, the valuations are more often skewed (extremely high or low) than they are correct.<\/p>\n

Why would a broker say AVMs are superior to CMAs?<\/h2>\n

I find it interesting that Lappin, a real estate broker, would tout that an online computer modeled valuation would be more accurate than a skilled agent in pricing a home.<\/p>\n

Take for example the \u201cbest house in the neighborhood.\u201d You have a high-end home that has numerous upgrades and amenities unseen from the street and are not reflected on a tax parcel card. This luxury home sits in a predominantly middle-class neighborhood where homes are of builder-grade, no upgrades, and less square footage. Do you think that this home will be priced more accurately by a computer model or by a in-the-flesh neighborhood expert?<\/p>\n

These business models imply agents are just door openers<\/h2>\n

What all of these sites discount or take for granted is that agents do much more than hand you a CMA and suggest a price. They are more than door openers and open-house-sitters.<\/p>\n

A good agent does his\/her job well and gets the house sold for the highest price possible in the least amount of time on market (if that is the seller\u2019s goal). A great agent counsels and advises, listens to the seller\u2019s needs and take all of this into account as they guide the seller through the maze of a process.<\/p>\n

I take offense to ListingDoor.com’s statements<\/h2>\n

While I am obviously not a fan of any site that proposes to \u201ccut the middle man\u201d (the agent) out of the transaction as if we hold no value, I take offense to this site\u2019s twisting of statistics and figures to pull at a viewer\u2019s gut.<\/p>\n

ListingDoor proposes that a broker\u2019s commission is a \u201closs of as much as 40 to 50% of home equity.\u201d So a commission is not a \u201cfee\u201d – it is the broker stealing up to half the seller\u2019s home equity. Wow. Talk about sensationalism.<\/p>\n

Market online, but not the MLS… what?<\/h2>\n

In addition to their offering a market analysis (which is actually NOT market analysis, as no human is analyzing the facts and figures and analyzing anything, it is a computer generated crap shoot), the site states that they promote the house online and in social media marketing – but do not use the MLS.<\/p>\n

While I agree social media marketing is crucial in selling homes these days, the MLS is still alive and kicking (and the standard source of syndication to all of the real estate portals). You can advertise on social media, but many active homebuyers will contact their own buyer\u2019s agent in order to then make that appointment.<\/p>\n

Avoiding the MLS cuts out any buyer\u2019s agents who may not be aware of your home, as well as those who choose not to show FSBO\u2019s as part of their business model (we won\u2019t go into the ethics of this here, as that is another column completely).<\/p>\n

“Avoid the pitfalls that come with using a real estate agent,” the site says<\/h2>\n

To drive the point home one more time, ListingDoor states that they teach you \u201cstep-by-step the right way to sell your home and avoid the pitfalls that come with using a real estate agent.\u201d<\/p>\n

Wow. What an amazing statement. This site\u2019s entire marketing push seems to be that real estate agents are the enemy to avoid. We steal your home\u2019s equity and somehow make it harder and more dangerous to sell with us than without us.<\/p>\n

The bottom line: ListingDoor ignores the agent’s value<\/h2>\n

Cutting out the \u201cmiddleman\u201d may work in some markets, for some sellers who have expertise and knowledge in handling negotiations and transactions – but it\u2019s not for everyone. Buying and selling a home may be the biggest financial transaction someone may make. This isn\u2019t filing your 1040EZ form through Turbo Tax.<\/p>\n

I personally wouldn\u2019t want to represent a seller who feels I bring no value to the table, and that my knowledge and skills can be replaced by a computer model. The first hurdle in the sale is finding a buyer. After that is when an agent\u2019s true value is realized, as we keep the deal together and delicately negotiated through the weeks and perhaps months required to close a loan these days.<\/p>\n

Our value is not just in pricing a home and filling in the blanks in a contract. When the deal threatens to fall apart, that\u2019s when \u201csalespeople\u201d disappear and \u201cexperts\u201d emerge.<\/p>\n

#ListingDoor<\/span><\/h3>\n","protected":false},"excerpt":{"rendered":"

ListingDoor, built by a veteran Realtor says they save buyers from paying broker’s commissions, which they call a \u201closs of as much as 40 to 50% of home equity.\u201d What?!<\/p>\n","protected":false},"author":335861,"featured_media":4151,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"wds_primary_category":0,"footnotes":"","jetpack_post_was_ever_published":false,"_links_to":"","_links_to_target":""},"categories":[254,264],"tags":[99,100,595],"class_list":["post-4141","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-editorials","category-real-estate-technology","tag-breaking-news","tag-hot-stories","tag-listingdoor"],"jetpack_featured_media_url":"https:\/\/theamericangenius.com\/housing\/wp-content\/uploads\/sites\/2\/2015\/06\/listingdoor.png","jetpack_sharing_enabled":true,"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/posts\/4141","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/users\/335861"}],"replies":[{"embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/comments?post=4141"}],"version-history":[{"count":4,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/posts\/4141\/revisions"}],"predecessor-version":[{"id":4474,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/posts\/4141\/revisions\/4474"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/media\/4151"}],"wp:attachment":[{"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/media?parent=4141"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/categories?post=4141"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/tags?post=4141"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}