Articles about Realtor's Fees and Commissions
Former Dallas Morning News Advertising Representative Sheds Light On Motivation Behind Online Real Estate Partnership
Last week, we had the opportunity to speak with a former Dallas Morning News real estate advertising sales representative who shared some inside details on how the online partnership between A.H. Belo and Sawbuck Realty may affect their ability to sell real estate advertising with other Dallas brokerages and why the choice was made to move toward a new business model.
The sales rep, who asked to remain anonymous because of a confidentiality agreement with The Dallas Morning News, decided to “pursue other options” after A.H. Belo announced it’s funding of an online real estate brokerage (Sawbuck Realty) from the dallasnews.com website.
“I feel they screwed over us — the account executives — because they screwed over our clients,” said the sales rep.
The source explained that while times had been tough for the past year — they hadn’t received a commission check since 2008 — bringing in and openly siding with an outside competitor like Sawbuck Realty would make it nearly impossible to sell real estate ads.
“All my clients are going to abandon ship soon,” said the sales rep. (more…)
Audio: Sawbuck/A.H. Belo Conference Call
As promised, we have at the bottom of this post the 29 minute long press conference call where Candy and I ask Dave Ellett (vice president for A. H. Belo Corporation and president/GM of Belo Interactive Media), Guy Wolcott (CEO of Sawbuck Realty), Steve Barnes (co-founder of Sawbuck), and Chewy Redding (product manager for Belo Interactive Media) questions about the A.H. Belo/Sawbuck Realty online real estate partnership.
Just to warn you the quality of the audio ain’t great. Due to some extenuating circumstances I was participating via my iPhone on speaker phone setting so my recorder could pick up the conversation. If it sounds like I’m shouting in your ears I sincerely apologize.
If you want the quick summary of the A.H. Belo/Sawbuck deal here it is:
- A.H. Belo has invested $2 million in Sawbuck Realty.
- Sawbuck’s site will become the new face of the “Home Center” portion of The Dallas Morning News Web site.
- Clients who contact Sawbuck Realty to enquire about a home for sale will eventually be put in touch with a local “partner” agent who will show them the home and represent them as the buyer’s agent.
- If a home is sold via a lead from Sawbuck, Sawbuck will take 30 percent off the top of the 3 percent buyer’s agent commission.
- A.H. Belo will not directly receive proceeeds from these commissions, but they do have a stake in the company.
- Partner agents will be determined based on experience and other criteria set by Sawbuck. (I’ve heard five years experience and and at least 50 sales over the last five years.)
- A.H. Belo will continue to pursue traditional forms of ad revenue from real estate agents and brokerages. Good luck with that.
Click here to play the conference call
It’s Official: DMN Announces Sawbuck/A.H. Belo Internet Real Estate Partnership
The Dallas Morning News announced this morning what we’ve been reporting for days:
A.H. Belo Corporation, publisher of The Dallas Morning News, is investing in Sawbuck Realty, an online real estate broker that will bring its services this year into A.H. Belo’s territories in Southern California, Rhode Island and North Texas.
Sawbuck is expected to announce today that A.H. Belo has joined Sawbuck’s two co-founders, Guy Wolcott and Steve Barnes, in a $2 million round of investment in the young company. The individual contributions were not disclosed.
I’m in a conference call with A.H. Belo and Sawbuck Realty right now. As soon as it’s done we’ll get you audio from that call. Until then, jump for the interesting part of the DMN story: (more…)
Sawbuck’s Marriage With The DMN?
Wow, Josh, so this is the big story I heard bits and pieces of all last week. Very interesting. Here’s what I know about Sawbuck Realty: it’s an “alternative brokerage” without brick and mortar, launched in the D.C. area, and likes to partner with top-producing, hand-picked real estate agents in a given community. They are expanding rapidly.
Sawbuck’s business model serves consumers at the beginning of a transaction by offering an online, map-based search system for local listings — I mean all local listings, everything in the MLS — hence this new affiliation with The Dallas Morning News is, I suppose, going to take the MLS to the DMN website. Then Sawbuck refers the buyers to an agent in the company’s referral network, in our case, a Dallas agent. They take a referral fee of about 30% from every closed transaction. I guess, in this case, the DMN will take the fee. Looks like they are sending the agent a white hot lead: the company claims that 50% of leads become closings. And get this for drawing in consumers: Sawbuck is said to offer buyers a no-fee mortgage and settlement package, as well as all the property information online at the beginning of a search. Sawbuck’s co-founder, Guy Woolcott, has said his company does a lot of work to qualify the buyers prior to sending that referral. Last year, here’s what he told Inman News:
“We’re actually contributing something to the deal,” Wolcott said. “We’re not just flipping (agents) a lead; we’re giving them a real buyer.”
The company offers live chat on its site so that consumers can ask questions without being connected to an agent and then choose to be connected when they are ready.
The agents that Sawbuck refers buyers to are hand-picked, and the company prefers to partner with experienced, top-producing agents who often are a part of a team, he said.”
My sources tell me they first heard about this Thursday when their giddy DMN ad reps paid them a visit, and they were shown a spiral notebook they had to return and keep very mum about the contents. The company launches Dallas August 1.
My head is swimming. This could be a brilliant partner$hip move on the part of the DMN – what is Belo’s stock symbol again? (Dialing broker now.) They know that 95% of all real estate searches begin on line and online is where real estate is headed. Traditional brokerage models are antiquated — the cost of doing business never goes anywhere but up.
But gosh, how would you like to be a broker who has paid bazillions to advertise in the DMN all these years and now come to find them a competitor colleague? (more…)
Re: Live Like a Bavarian King
Just got off the phone with the very enterprising Ben Jones. He was approximately 30 minutes away from beginning his contest that hopes to lure agents with qualified buyers to at least one of seven high-profile homes. What’s the prize for the winning agent? As always, Candy has the dirty details right here.
Jones said he was inspired to create the contest in part because his friend owns the Austrian hotel. The other part would be the flood of homes on the market making it slightly harder than normal to find a buyer:
(It was) just something new and different. Typically the real estate community does wine and cheese parties and luncheons. I wanted to do something outside the norm…You just have to be creative in finding new ways to sell your product.
He’s hoping to get 20 to 30 agents to show up, but he admits the rain could hamper his efforts:
If it starts raining in real estate they don’t get out (of the car).
The buyer paired with the winning agent will also get the same package, however Jones said he expects a prospective buyer will want to pay for their own airfare rather than fly for free in coach. Agents who show up today will also be included in a raffle for a $100 worth of NorthPark Gold. Contestants will have until May 1st to seal the deal, but my money is on Ben finding his winner sooner rather than later. Anyway, as soon as a winner is announced we’ll have the results posted here on DallasDirt.
Sell A Ben Jones Listing, Live Like A Bavarian King
The stakes in selling Dallas dirt have now jumped as high as the Alps. Sell one of the primo Allie Beth Allman listings below, and you’ll win a trip to Austria, expenses paid, to a Bavarian Castle. Not kidding. Just find the buyer for one of these homes, close, and here’s what you’ll get besides a nice juicy commission check: round trip airfare from the U.S., five nights in King Ludwig’s Hunting Lodge (now a luxurious hotel, Ludwig built the most extravagant Bavarian castles) sleeping in the King’s Suite, Audi Q-7 with personal driver from Munich, champagne VIP reception, entry to all of King Ludwig’s castles, day-trip to Salzburg or Innsbruck, night at the Opera and no less than four spa treatments. Calling masseuse Helga!
Check out all these properties on Thursday, March 26 from 2 to 4 p.m, go find a buyer, and be a Bavarian king (or queen) for five lusty days:
3608 Lexington $8,950,000
3928 Centenary $3,395,000
4022 Shannon $3,495,000
4409 Arcady $4,195,000
4500 Lakeside (lot, former Bright home) $12,500,000
3932 Centenary $3,395,000
5027 Radbrook $4,849,000
Missy Woehr Joins Keller Elite, Preston Center
Formerly the manager of Keller Williams Turtle Creek, Missy is the latest in a flurry of top, super sharp agents finding a new home at Keller Williams Elite at Preston Center. Recent additions include Philip Walker, and Nicky and Eleanor Mowery Sheets.
“It’s exhilarating to be back in sales,” says Missy. “I’m not a check collector.”
Since KW has offices across the country and even in Canada, Missy plans to have a referral part for Vail/Beaver Creek second home sales as well as her Dallas listings.
House Porn: Turtle Lake, Not Creek
Right in your own backyard at 5815 Bent Trail.
House Porn: Gazebo, Greenhouse, Gads Of Space
I’m very bullish on Preston Trails — you get scads of space, seclusion and square footage up here north of LBJ. Jo Pressly, Virginia Cook. Has so much promise: 8100 square feet all on one floor (baby boomers are getting tired of stairs, I am hearing, one reason why this area is gaining so much attention) five bedrooms, study, four car garage, huge lot, gazebo, pool, tennis court and “Turtle Lake” right in your backyard. Asking: $2,889,900.
Today: Real Estate Stimulus D Day
President Obama is detailing his plan for helping homeowners struggling to stay in their homes and explain just how the umpteen billion stimulus package will help jazz up the housing market. What I have heard from local experts: we are in for a spring market like we have never seen — volume wise. Folks who have not had homes on the market, those waiting on the sidelines, are signing listing agreements left and right. Allie Beth Allman has — are you sitting down — more than $800 million in listings. Consumers, say many experts, think that we may have hit the bottom.
Have we?
Meantime, check out this letter to President Obama from Mortgages Unzipped: we need loans and we need them now.
Philip Walker Now At Keller Williams Elite
At Preston Center, the same office that houses Mary Jane Young, Vicki Foster and recently, Eleanor and Nicky Sheets. Philip was previously at Keller Williams Turtle Creek.
House Porn: Snow White on McCommas
This Snow White ranch on McCommas Boulevard has 3 or 4 bedrooms, 2.5 baths, new open kitchen, limestone fireplace, vaulted ceilings, new master suite with air jetted tub to knead away plunging market aches, dark hardwoods, gorgeous yard in the Lakewood Elementary Blue Ribbon School District. Current price: $549,000. Scott Carlson Real Estate, Inc.
3500 Beverly Has New Listing Agent
Dave Perry-Miller, an Ebby Halliday Company, listed for $17,500,000. Check out the story. Check out the video. Help Dave plan how to spend his commi$$ion…
Katye Sloan Joins Briggs Freeman, Home Of Nation’s #3 Best Website
More exciting changes: the wonderful Katye Weiner Sloan has left Ebby Halliday to join the class act that is Briggs-Freeman. Katye Sloan, how she is now known, worked with Joseph Gullotto at Ebby In-Town, primarily handling sales for The Azure. Katye has always had stellar taste — she co-owned a darling boutique in Preston Center and is multi-talented! Katye also has great foresight: she’s joining a firm that recently won accolades for having one of the best real estate websites in the country.
CondoDomain Flat-Fee Brokerage Service Sued Over Brokerage Shift: Choice Choice, Baby
Pay attention to this lawsuit as CondoDomain moved into the Dallas area last fall. It appears this may be another discount versus traditional broker battle, which we may be seeing more of. Why do we care? The outcome could well dictate brokerage changes.
Two major investors in CondoDomain.com, a Boston-based condo marketing and search portal site, are suing the site’s founder and the company. (You can sue your own company?) CondoDomain morphed into a real estate brokerage one year ago. The investors charge the business model change — i.e. becoming a broker — violated an existing business contract.
It seems those investors are also brokers – managers at Otis & Ahearn Inc., a large Boston real estate brokerage firm that specializes in the marketing and sale of condos.
Anthony J. Longo Jr., founder and CEO of CondoDomain.com, says it’s all about choice — here’s the letter he sent out yesterday to real estate press:
Could Real Estate Agent Transport Dog To D.C.
Terri Dalton/Remax By the Lakes, says a friend passed away, leaving a wife and three children as well as this family-friendly, 6 year old pup. Terri, a Wylie realtor, will personally deliver the pup to a good home, even if that means Washington, D.C. Right, Terri? Actually, this dog would be perfect for the Obamas: her name is Ladybird!
Hollis Group Joins Lillie Young, Allie Beth Allman & Associates To Need Sansa-belt
ABA just keeps on growing: The Hollis Group (Carla Hollis, Kamela Hollis and Kim Anbouba) has moved from Virginia Cook over to Allie Beth Allman, joining Lillie Young and her team. Recently, Lillie Young spearheaded the sale of Angie Barrett’s Beverly Drive home. With the recent addition of the nine-member Mathews-Nichols team, I have lost count of ABA’s agents. Congrats to all. Inside story: I have heard that is was dreadfully difficult to keep the Mathews-Nichols move under wraps, especialy when ABA began office renovation to acomodate the new team(s). I was at ABA in December and when asked, was told they were just sprucing up the joint. That’s what everyone was told. In truth, the move had been planned and was the main reason for the construction. Hey, y’all pulled one over my eyes!
Steve Brown: Erin & David “Shifting Operations”
Nice reporting, Steve, and I’m even happier to see that commenters have moved on to other blogs with the conspiracy theory.
Breaking Dallas Real Estate News: Mathews-Nichols Departs Briggs-Freeman
Dallas Dirt has just learned that the real estate sales dynamic duo of Erin Mathews and David Nichols has left Briggs-Freeman Real Estate Brokerage and will be hanging their sales shingle at Allie Beth Allman & Associates effective Monday morning. I’m told the split has been entirely amicable. Erin and David were number 35 on the Wall Street Journal’s top producing U.S. Realtors list. All their associates, including office manager Fran Cox and Erin’s handsome son Travis, will also be making the move to Allie Beth Allman. Stay tuned to Dallas Dirt next week for further developments.
The Rise and Fall of Eleanor Mowery Sheets
The story you’ve been waiting for… and the comment lines are ready for you.
Swapping Spouses, Houses?
A friend in Massachusetts told me about a couple-swapping ring going on at their country club — how risque! This I can handle: the DMN ran a cool story on house swapping. I understand house-swapping is a trade, an ”I agree to buy your house, you agree to buy mine” transaction. Like consensual swingers, potential home swappers post pictures (”House Porn”) and descriptions of their homes online, hoping to attract other homeowners looking to trade. (Do they fudge on details, like 6500 square feet and oceans of granite when really those are 12 by 12 granite tiles?) Ideally, they buy each other’s property and even better, no STDs!
The National Association of Realtors does not track swap sales, but a number of house-swapping websites have popped up in the last couple of years, most reporting steady increases in online swap postings, like Craigslist, which reported a 30 percent increase in house-swap listings in 2008 over last year.
So I wish I had asked our teacher about this in school. Vitally, what is the role of the Realtor? I would imagine it would be business as usual for Texas agents, but since out-of-state agents are considered “foreigners” here until they obtain a Texas license, wonder if you have to use an agent or an attorney if the swapper is in another state? And I imagine there are some horror stories out there — about the houses, not spouses — anyone?
PS: Another trend agents tell me we are going to be seeing more of: owner financing. Stay tuned.
Mortgage Rates: What’s The Story, Glory Or Gory?
My prediction: glorious low rates in 6 months. Today was my last full day of class at Champion School of Real Estate before my elective and then — I take the state exam! I am getting my real estate license to be a better real estate reporter for the D Empire and our forthcoming new website. Learned a ton – have TOTAL new respect for agents and brokers. From remembering intermediary to sub agent to IABS forms always need to be in size 10 type to HB 489 to independent contractor status to TRELA and TREC, ostensible authority and agency by estoppel, MLS to agent with appointment, without appointment, all I know is HOW DO YOU AGENTS DO IT? And I need an appointment with a glass of wine!
But, while I was ensconced in academia, history was made in the interest-rate realm. Here a couple of takes on that, jump for one from Philip Walker, one of my favorite agents at Keller Williams Turtle Creek, who brought lunch to recruit the A-plus students. Mortgage rate comments are on and the meter is running:
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