As a new agent or broker, if you want business — and don’t have an existing sphere ready to buy/sell — there’s no doubt you’re going to pay a (hefty) tax. Either to Zillow for Premiere Agent, 25-40% referral fees for leads, or a sizable investment into a tech platform such as Boomtown & marketing spend to drive traffic. Or, you could spend months / years building your sphere (not likely to make much money in the first few years). You could also spend years building organic SEO, and still be left in the dust.
- The potential of a fake market in real agent selection.
- There is a lack of clarity to the general public around real agent selection and a lot of different ways for real estate agents to build up their sphere. Real estate agents don’t always see the long-term harm in fake markets vs short-term gains.
- There is some evidence to suggest a fake market exists but as of now it is all guesswork.
“I think it’s clear buyers don’t know what buyers don’t know.”
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