New Trend with Fee for Service Real Estate

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by: sarawilliams
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Word Count: 507

The current economic downturn has consumers looking for ways to trim their budgets and create a financial safety net to make it through the recession. Real estate is still one of the areas of the economy struggling to keep a toe hold. Many areas of the country have been wounded by significantly declining property values. A lot of homeowners in those markets have less equity in their homes or have loans that are larger than the price of their properties now. Foreclosure rates have continued to increase, which has exacerbated the surplus of unsold homes on the market. The Obama administration introduced a housing aid plan that many hope will provide a boost to the real estate market and, in turn, the economy. One of the main goals of the plan is to help responsible consumers and their lenders make mortgage payments more manageable, thus reducing the number of defaults and foreclosures. The one silver lining in the housing crisis is the incredible rates for mortages. Interest rates for mortgage loans are currently at historically low levels, which has encouraged some potential qualified home buyers to start shopping for homes again. But many budget conscious buyers are considering options like fee for service real estate and even shopping for homes without a realtor.
The way people buy and sell houses in this post bubble economy will likely be very different than ever before. Realtors were king during the housing boom. As buyers clamored to find a house and be the highest bidder, realtors were maxed out with business. The way people buy houses, however, was slowly changing even prior to the economic downturn. Ten years ago, there were no fee for service real estate options or online homes databases. Your realtor was the key to helping you know what was for sale, where and how much. If you used a real estate agent, your only choice was to pay them a set percentage of the price for a home you bought or sold. The web has put consumers at the helm of their real estate transactions. You can see property photos, take virtual trips through neighborhoods and know a listing price without ever even meeting with a realtor. Fee for service real estate, a new trend in realtor relationships, is also putting consumers at the helm. Fee for service real estate is a model that charges a consumer for real estate services, in lieu of a commission percentage. There are variations of fee for service real estate options. It can be as structured as an ala cart or hourly menu, or a charge for a selection of basic services with additional costs incurred for work beyond that. Fee for service real estate models give consumers more choices and more control over how they want to buy and sell their homes. Many realtors also like the model, since it can often showcase how much time and effort goes into buying and selling a home.

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Get more on fee for service real estate, visit smithadams.com.

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