B-roll: Cracking Real Estate's Black Box Consumers urged to ignore fear.
Consumers urged to ignore fear-based campaigns and think twice before
paying hefty agent fees
Video B-Roll available via CNW
MONCTON, NB, May 8, 2013 /CNW/ - PropertyGuys.com, Canada's largest private sale franchise network and a modern
alternative to traditional real estate agents, has launched a national
campaign to urge consumers to take a rational look at the hefty fees
"The stranglehold that the large brokerage brands have on the market is
based on fear and it is a disservice to consumers," says Ken LeBlanc,
President and CEO of PropertyGuys.com. "Consumers want an alternative
to the outrageous fees agents charge but they have been misinformed on
their viability. They want a solution that best combines technology and
access to expertise."
The campaign urges home sellers to consider PropertyGuys.com instead of
being held hostage by agents and their hefty fees.
A series of national consumer surveys conducted by Harris Decima and
Angus Reid for PropertyGuys.com revealed an underlying and pervasive
sentiment: the majority of respondents polled thought that 5 per cent
commission was too expensive a cost when selling their property. The
real question is: why do they charge so much, and why do most people
still agree to pay it? PropertyGuys.com attributes this to the lack of
information provided to the public on the true cost of the specific
activities performed by agents - this is what the company refers to as
the "real estate agent black box".
"Too often sellers just don't question the money they actually spend on
commission the same way they evaluate spending money on other things.
If they really examined the price they were going to be paying for the
services an agent provides, we think they would probably think twice
about using them," says Walter Melanson, Director of Partnerships. "At
the crux of the debate is the high cost of agent commission and the
negative impact it has on buyers, sellers and the entire market."
In fact, the grip that the largest brokerage brands have on the market
has resulted in ongoing intervention by the government's competition
watchdog. Despite their actions to help stimulate more competition,
traditional agents continue to hold a dominant position within the
market. Still, there is a strong desire for a less expensive system:
the company's surveys revealed that nearly 3 out of 4 respondents would
consider using a flat fee alternative service to save money.
PropertyGuys.com believes that the industry maintains their position by
using fear and misinformation to dissuade customers from choosing other
ways to sell.
"Fear has been the cornerstone of their advertising and promotional
messaging for several years," says Ken LeBlanc, President and CEO. "In
our view, their tactics only fog the real issue: that most of what an
agent does could be delivered more practically and for 10 times less
money by using other experts."
Instead of using agents, PropertyGuys.com chooses the services of
certified property appraisers like Deb Ridout of LaFontaine Appraisals,
who is part of a group of national appraisers that help deliver a
unique pricing strategy for their sellers.
"We believe that an appraisal is the best solution for determining the
true market value of your home as we have no vested interest in the
final sale. This allows for a fair opinion, free of any bias and backed
by market knowledge and expertise," explains Ridout.
Another key innovation in the program is how PropertyGuys.com prefers
bringing lawyers into the mix to provide sellers practical advice and
answers along the way.
"As seasoned real estate lawyers, we have found that by engaging
PropertyGuys.com sellers early in the process, it can build their
confidence to sell privately," states Ed McGrath of McGrath Boyd.
The company touts that its online platform combined with their new Pro
Approach is a better mix of technology and personalized service. In
fact, their re-engineering of the traditional model replaces expensive
listing agents with more qualified experts. This is sure to stir
controversy in the traditional industry. The company is adamant that
removing listing agents from the process is long overdue. Instead of
agents, their program includes real experts like marketers, innovative
real estate brokers, certified appraisers, experienced real estate
lawyers and a unique answering and appointment-booking service.
PropertyGuys.com is Canada's largest and fastest growing private sales franchise
network. It has 106 locally-owned franchise locations to assist home
buyers in more than 600 communities across Canada. PropertyGuys.com is
a proud member of the Canadian Franchise Association. It is a recipient
of Canada's top franchise honour, the Award of Excellence, for several
Video with caption: "B-roll: Cracking Real Estate's Black Box Consumers urged to ignore fear.". Video available at: http://stream1.newswire.ca/cgi-bin/playback.cgi?file=20130508_C4664_VIDEO_EN_26504.mp4&posterurl=http://photos.newswire.ca/images/20130508_C4664_PHOTO_EN_26504.jpg&clientName=PropertyGuys%2Ecom&caption=B%2Droll%3A%20Cracking%20Real%20Estate%27s%20Black%20Box%20Consumers%20urged%20to%20ignore%20fear%2E&title=&headline=Cracking%20Real%20Estate%27s%20Black%20Box
For further information:
contact: Kevin Morrison at 416-856-9807 or firstname.lastname@example.org