HouseValues flawed business model results in massive layoffs.

The SeattlePI reported today that HouseValues lost $1.5 million last quarter and in addition is laying off 60 employees as well as key executives leaving for other ventures. For those who haven’t followed HouseValues.  HouseValues sells leads back to agents by harvesting them through the search engines and Television and Radio advertising.  That being said their margins have erroded significantly over the last two years and agents have not been renewing their contracts for leads.  In my opinion (It’s a blog so its all my opinion) Housevalues has not had a defensible business model from day one.  Other then a few domain names which provide some branding the consumer experience is horrible and inconsistent which ultimately kills the...

6% Commission Too Much?

I saw this post on Craigslist and decided to blog a bit about it > 6% is too much < tonka4x4> 10/02 14:30:17 I think 6% is too much, I think it should be on a sliding scale, 4% if the house sells in the first couple of weeks and if after the 1st month move to 4.5%, then if it’s 2 months maybe 5%, but I think that’s enough. 6% is crazy! I’m a REALTOR and I also agree that 6% is too much for many properties.  However here is the dilema.  Most truly experienced agents who have had a fair degree of success over their career of 5+ years in real estate have enough business coming in that demanding 6% to some extent makes their job manageable.  If they took listings at a lower commission they would have to hire more staff and...