How MLS feed can work: Sometimes, you really are just a number
Ever heard of a referral website? It’s a website that curates lists of professionals with testimonials and such. It then let’s people pick and choose from those lists, i.e if they needed a plumber or something of the like. What a lot of people don’t know is that behind the scenes these sites, the business model is getting paid referrals for successful completion of a connection. A referral. A company’s is in business to make money so it makes sense.
A couple years ago some people noticed this business model and jumped all over it, created website that did the same for real estate. The caveat being that they had access one amazing tool called the IDX Feed to give them an edge.
When we list your property a few things happen. Prior to our meeting we do a ton of due diligence. We pull sales history, property records, verify zoning, run CMA’s, some other super secret Real Estate analysis and often, we do drive by’s to see your property and the others that have sold in your neighbourhood. Then we come for the preliminary consultation where we get a tour of your home, review it against our preliminary data and have an open discussion about the sales process and likely market value of your home. Then, once you’ve fallen in love with our sales systems and are totally see why were the right team for the job, we sign the listing + data paperwork. This paperwork is submitted to the board and the property hits the local MLS(there are different boards-which we will cover in another post.) The MLS feeds the property to the IDX which is a pipeline that feeds sites like Realtor.ca. Well a couple years ago CREA decided to open up the IDX so agents and brokerages couple publish the feed. The main difference is the IDX feed is live data, where as Realtor.ca is delayed by a couple days.
Sites and brokerages started popping up with the business model that they would use lead capture(landing pages, sites where you can search for properties etc..) by forcing you to input your email to view properties. They then take your info and sell it back to the Realtors, who did all the hard work in the first place to get it on the IDX. Their end game being a 25–35% referral for a successful transaction. Again, they’re in it to make money so makes sense right? The problem we see is that these sites are really good at marketing. That what they do. They’re great at telling you how they’ve spent hours vetting the agents that they refer to you, and that they only work with top producers. They rave about the customer care you’ll receive from their end. Then, they call a agents in the local marketplace, ask them a few questions about their productivity, make sure they agree to the referral and voila- you now have someone your barely know, with no concept of their qualification representing you in the sale or purchase of the largest investment of your life.
We’ll let you decide if you think this is a deceptive business practice. Our business is 95% referral, and our clients are some of the most educated, loyal and hardworking people we know. They’re simply looking for the same loyalty in return, and we’re happy to give it to them. To quote last weeks episode of Suits when it comes to loyalty- “If we’re asking for it, you’re getting it”.
We simply wanted to take a second to break down how the system works.
We list it-> it’s in the pipeline-> lead capture sites tap into the pipeline-> you enter your email to lead capture-> they try and sell you as a lead back to us. There’s all kinds of businesses out there, and the great thing about a free market is there’s room for us all. Some agents base their business off this and to be honest there tons of great ones that do. We just feel there’s a massive lack of transparency in our industry. Watch us change that.
Let us know what you think of the model, and feel free to comment or ask any questions at all!
If you like this content please click below and recommend it and/or share it! It’s a small gesture but would mean the world to us, and provide more jet-fuel to keep pumping out the content!
In keeping with record setting numbers all summer, August capped off another great month for real estate in the LSTAR jurisdiction. With all the excitement over the newly approved Kingsmills deal , people getting wet doing the #ALS challenge and the heatwave we experienced it's no wonder the community is as active as ever. Inventory was down but that only means we need more houses to sell! Continuing the trend of being in a balanced market we see sales going well into the fall and are excited to use this momentum to carry us straight through the seasons!
A RETURN ON INVESTMENT
Providing you freedom
By Justin Konikow and Shannon Grogan
We have created this guide to provide our clients with an understanding of what to expect in the realty process. Given the vast nature of individuals professions, we understand that everyone wants to get top value for their dollar.
With us you are getting top quality service as well as a team of realty agents that will partner with you. Providing a vast sum of knowledge in real estate, business, marketing as well as making comprehensive decisions when it comes to your investments.
Coming from diverse backgrounds,we have the ability to assess every situation independently, as well as provide in depth analysis into what is really going on behind the scenes.
Shannon Grogan, coming from a management background in business and holding an MBA from the Richard Ivey School of Business is uniquely equipped to provide quantitative analysis of investments, as well as provide real time insight into the marketplace.
Justin Konikow comes from over twelve years of Marketing co-ordination and management, giving you enhanced knowledge and understanding of how to get the most when it comes to your investments and their place in the market.
Essentially, when you hire us to represent you, you are getting partners who really understand what it is you want and how to best reach your goals. When looking for an agent we assure you we understand what is important and it is our vision and goal to provide these qualities to you. You will not find two agents that will be more honest and forthright about your business. We understand our clients and make it our goal to give them the respect they deserve. Trust that when you sign with us you are getting a team of professional, educated agents that will work with honesty, integrity and passion to earn your business.
What we offer you
We are here to protect YOU.
- All REALTORS® are graduates of a real estate education program and are committed to pursuing ongoing professional development courses;
- REALTORS® must adhere to a strict Code of Ethics and Standards of Business Practice ; your guarantee of professional conduct and service excellence.
- All REALTORS® carry errors and omissions insurance;
- The Real Estate Assurance Fund is available to you in the rare event of fraud, or breach of trust by a REALTOR®. It is your protection against financial loss. This fund is financially supported by our members; and,
- A licensed brokerage supervises the business conduct of all REALTORS® to ensure their compliance with Alberta Ontario