In the last few months we've seen the emergence of several discount brokerages. They claim that they have a technology platform that enables them to operate more efficiently and hence charge lower commissions. The reality is, they don't. Sure they have a fancy website and they pay for google placement ads, but most people use realtor.ca or remax.ca. AND everyone does offers through the Toronto Real Estate Board, and these companies will too.
So where are these savings?
Perhaps it is the CRM, that's Customer Relationship Software. These companies have developed their own. But I can tell you that my top agents all have their own CRM's and they would never use a company version. They're afraid the company would steal their clients. Just about every company I know uses electronic signatures. We are also the only company that uses Transaction Rooms and Digital storage. We use sophisticated accounting software and direct deposits too. No new company has a better backend.
So where do these companies think they can save customers money? It's by paying sales people less money. So what type of sales people will these companies hire? Not those busy sales people. They would have to take a pay cut. If you asked a Ford worker at $40/hr to work for $20. What would you get? Only unskilled workers who are unemployed.
That is what these companies will hire for agents too. Those who are currently not making any money. Is that what customers want to entrust their most important asset to?