Friends & ClientsWelcome to spring from Real Estate Modo! Quick follow up from last month’s note, for those of you that feared for my well being during our Adventure Race. We survived, 67
Real Estate Modo Press Release
The Coastal Carolinas welcome new Real Estate firm with a new approach .
Real Estate Modo, founded by longtime area Realtor Brian Piercy, opened its doors in January as a full-service agency, but one that will be following a business plan more commonly found in insurance or stock brokerage offices.
Piercy, who has worked for brokers in the Myrtle Beach area for 13 years, is at the forefront of a slow-moving U.S trend toward lower seller commissions and a niche focus.
Modo focuses on selling all types of real estate, with a heavy on investments, vacations homes and retirement properties and will charge sellers only a 4 percent commission, rather than the traditional 6 percent on sales. Unlike a discount brokerage, however, they also will provide marketing services, listings in the MLS, a market analysis, will schedule showing appointments, represent the seller in contract negotiations and handle everything from contract thru closing, with no additional costs.
“A study looked at rates from 2002-2015 in developed countries around the world and there was a significant drop in commissions in every one, except the U.S., where the same 6% commission that was typical in the 80’s still exists today,” Piercy said. “We’re bringing that reduced commission to our clients and to the area.”
How will he attract commission-driven sales agents with that lower commission figure to sell their clients properties? Agents will still get traditional 3 percent commissions on sales. But in a departure from more traditional shops, Real Estate Modo agents will be exclusively buyer’s agents, which means they represent only the buyer and aren’t responsible for coming up with listings. Instead, they will be provided 30 to 40 leads and contacts a month.
He noted that the structure won’t appeal to some agents. “It’s definitely not for everyone. As buyer’s agents, they’ll need to know the inventory and be on the streets with buyers,” Piercy said. “We will hold them accountable for following up on those leads, really assist them throughout the processes, and looking at their number of pending contracts and percent of closings.”
He believes it is time for such a model to take hold in this area.
“Technology has changed businesses in ways that were unimaginable a decade ago,” the Washington Post wrote in April 2016. “But even industry insiders say that residential real estate practices have yet to fully adapt to the reality that buyers and sellers have unlimited access to property listings and other information that was once held firmly in the hands of realty agents.
“That access has led many consumers to question the fees they pay for the services of an agent, commonly 6percent of the home sales price, including payment to a buyer’s agent and a listing agent, or $30,000 on a $500,000 property sale,” the article said.
Under the 4 percent plan for example, sellers of a $500,000 property will receive a savings of $10,000 when selling with Real Estate Modo.
At Modo, volume of sales will drive the revenue, Piercy said. “That’s the key.”
Brian has been a local resident of Myrtle Beach and the Grand Strand for over 18 years. He originally moved to the area from Northern Virginia to attend Coastal Carolina University. After graduating w....
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