Industry Trends
In 1995, the NAR reported that 2% of homebuyers were utilizing the internet in the search for their next home. That number, over the next 10 years exploded to 77%. Today that number is upwards of 90%. The internet ushered in an era of unprecedented efficacy for not only brokers but for those whom they represent. New business models that embrace technology and the efficacy that that it offers consumers are becoming more and more visible each and every year.
Not that the pioneers in the industry of Limited Brokerage Services have had an easy time of it – too be sure. Consumers loved the idea of modern real estate but many within the real estate industry themselves were not as completely “converted’. When NAR launched the new policy for the IDX (Internet Data Exchange), VOW (Virtual Office Website), and the ILD (Internet Listing Display), they were promptly sued by the US Government– the very next day. Click on the link below to read more...
Competition and Real Estate
Eventually the Department of Justice Antitrust prevailed in the case but the stories of those Brokers/Entrepreneurs who struck out on their own in the meantime are legend. Many were harassed and ostracized (by those within their own industry) but they, like the Department of Justice, have prevailed too and continue today to embrace 21st century technology and the options and opportunities that present themselves to both Brokers and consumers alike.
Many traditional brokers and their companies are still utilizing the basic power of the internet! However, List2Move.com like Amazon, Expedia, and Craigslist, understands database driven websites and e-commerce. We designed a cost effective and efficient business model with very little overhead in order gain the maximum competitive edge in the marketplace.
Our technology allows us to pass along the savings to consumers and we believe that consumers will always gravitate to service providers who not only understand their needs – but respect them too. Options in real estate for consumers equals opportunities for Brokers willing to move past what once was and embrace what is!
List2Move.com opened its doors in 2005. Our business model addresses the needs of those home sellers who wish to knock out the traditional commissions of the past - while still competing with those sellers who wish to retain the services of full service brokerage. Our Brokerage lists home sellers on the Realtor MLS so that their exposure to the market is as assured as those home sellers utilizing the traditional real estate agent. We offer a la carte real estate services because we recognize that the needs of our clients vary. Some opt for CMA’s and lockboxes, some opt for mortgage broker and attorney referrals, some wish to utilize video services or extra signs. Every client has his own selling scenario and strategy but ALL clients are working for the same end result – to save as much money in the selling process as possible. We at List2Move.com provide the cost effective venue – home sellers make it happen!
Some Stats to Consider: 2008 NAR Profile of Home Buyers and Sellers
For 33% of home buyers, the first step in the home-buying process was
looking online for properties versus only 17% first contacting a real estate agent. For repeat buyers it was 38% going online first.
(in New York State buyers searched a median of 3 weeks on their own without enlisting an agent- Competitive Edge goes to the FSBO homeseller if listed on the Realtor Network)
"Given the convenience and round the clock accessibility, it is not surprising that one-third of buyers first looked for properties online when beginning their search."
Eighty-seven percent of all home buyers and
94 percent of buyers aged 25
to 44 years used the Internet to search for homes.
(Younger generations are going to the Internet for everything)
The primary reason that sellers (FSBO's) chose to sell their home without the assistance of a real estate agent to a buyer they did not know was that
they did not want to pay a fee or commission (59 percent). (
This will not go away anytime soon, especially if Flat Fee MLS is around)
93% aged 18-44 used the internet in the home search
The top 3 places buyers found the home they purchased
- Real estate agent 34% (down 14% since 2001)
- Internet 32% (up 24% since 2001)
- Yard sign or open house sign 15%
"87% of home buyers used the Internet to search for homes, up from 71% five years ago. Not only has the trend in overall usage risen, but the percent of buyers who reported using the Internet frequently increased from 42% in 2003 to 69% in 2008."
We think that Freakonomics co-author Steven D. Levitt summed it up perfectly when he wrote :
“Traditional pricing for real estate services is bound to crumble, and flat-fee brokers will likely deliver the deathblow.”
The information age has changed forever the way real estate now and in the future is and will be bought and sold! The industry knows it and consumers know it. List2Move .com practices it!