Is Flat Fee MLS in Georgia a threat to traditional real estate?

The answer to the question: “Is Flat Fee MLS in Georgia a threat” depends on who you ask. When we first started DitY Realty with the Flat Fee MLS concept we did it to serve a very specific type of clientele. Our decision to start DitY Realty was initially driven by the real estate down-turn and as a means to help Georgia Home Sellers that had negative equity.

It was not our intention to create animosity in the Georgia real estate community, but there are specific competitors that are truly threatened.

Real estate agents working the traditional real estate model in Georgia have not reacted harshly and we are not working to take their business. The traditional real estate agent should not feel threatened because their business is (or should be) driven by the relationship they have with their home seller.

In contrast, the real estate brokerages that target home sellers through the “we can do it cheaper” strategy are, and should feel threatened. These real estate business models claim to take a chunk out of real estate commissions, promise to assist or help sellers yet still charge thousands of dollars to sell the home. Their clientele are extremely price conscious and are attracted to the lowest cost solution. When they research real estate companies and find they will pay $3000 or more (+3% for the buyer’s agent) for someone to help them sell and then compare it to listing the home for sale with a Flat Fee MLS real estate brokerage at $495 (and can avoid the 3% for buyer’s agents altogether) the cheaper solution is obvious and of course it is the one a price conscious home seller will pursue.

So that’s the long answer to the question. The short answer is that traditional real estate agents do not have to worry provided they continue to have strong, relationship-based clients. BUT, the “we can do it cheaper at $3000” real estate agents should be concerned because a “much, much less expensive” opportunity has presented itself through a Flat Fee MLS avenue.



Original Post on Point2.