Big business forums?

[Evan]

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the franchise industry

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What is the franchise industry?

[Tupacia]

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the franchise industry

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What is the franchise industry?

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Not really sure if you're trying to make a point here, but I assumed he was talking about people who have developed franchise concepts before and implemented them as it's a very difficult process with legal and logistical problems.

[Evan]

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the franchise industry

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What is the franchise industry?

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Not really sure if you're trying to make a point here, but I assumed he was talking about people who have developed franchise concepts before and implemented them as it's a very difficult process with legal and logistical problems.

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I wasn't really trying to make a point as much as I was trying to say I have no idea what he is talking about. I've never heard anyone refer to the "franchise industry." To me it seems kind of like talking about the "single store industry." If he meant what you suggest, people who have experience building and deploying franchises, that's fine. I was just confused by the wording since I've never heard the term and it wasn't really clear to me what he meant.

[Tien]

Tupacia is correct.

These guys in the "franchise industry" take a business model that can be easily replicated, help develop it into something that is marketable as a respectable turn key franchise, they help compile the gigantic business manuals, and then help you with positioning / marketing / branding to bring in those that want to purchase those franchises off of you.

It is a nearly impossible task for a small start off business to go off trying to franchise on its own without the help of those companies that deal specifically with bringing these businesses into franchisable models.

[maxtower]

Tien,

I don't know what you are planning, but in 20 years or less, I believe RE commissions will be on their way out. People will just search on the internet to buy their houses like they do now for everything else. Remember travel agents? The real estate industry has that to look forward to. One major reason this hasn't already happened is because MLS has a bit of a monopoly. You have to advertise there because thats where everyone looks, and you have to look there because thats where everyone advertises.
If your plan includes cracking this monopoly, then by all means go ahead. If your plan involves something else, then make sure you can adapt to this coming shift.
Check out this article
http://www.madisoncommons.org/article.php?storyid=999
This is about the FSBOMadison.com web site. They are already getting more traffic than the MLS database in that area.
http://www.dane101.com/current/2007/...s_fsbo_madison

I think this is how it will start. I believe this worked well in Madison for a couple reasons.
#1. Its a small city, so they are competing with a much smaller MLS
#2. Being a college town, you can expect the average home buyer/seller is going to be well educated and self reliant (like a professor). This means they'll be more open to new good ideas.

Maybe you should start your service in a college town.

[Tien]

I do not believe RE commissions will be on their way out and disappear.

Too many people out there don't want to deal with the hassle of marketing the home, taking calls from sellers, negotiating, determining market value etc etc. Many folks don't have the time at all. Selling a house is not the same as selling an airplane ticket. There are a lot more intricacies involved with that. There is a Realtor statistic that says most FSBO's end up being listed anyways. FSBO's will also be on the market for a lot longer than a listed house.

FSBO is currently eating up more and more market share because of the internet and the MLS agents are losing more and more of their market share. However because of the service they provide, it will be very difficult to put them out of business. You will have that gigantic market share that doesn't want to do all that it takes to get the home sold.

My plan involves speeding up the selling process even more (within 7 days) while achieving as close to market value as possible and delivering a much higher standard of agents to the market.

FSBO -> Months and months on market
Agents -> 3-6 months on average (depending on market)
My system -> 7 days.


I'm not going to say how I am going to go about doing it within 7 days but when it works, I can target more than just homeowners, there's a huge business of networking with builders who have large inventory and need to get rid of it.


But of course, you pointed out something I didn't notice before. I predict FSBO to eat a gigantic market share within 10-15 years.

I also predict gigantic websites that do nothing but act like the go between between buyers and sellers.


That looks like another business idea......

[maxtower]

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I do not believe RE commissions will be on their way out and disappear.

Too many people out there don't want to deal with the hassle of marketing the home, taking calls from sellers, negotiating, determining market value etc etc. Many folks don't have the time at all. Selling a house is not the same as selling an airplane ticket. There are a lot more intricacies involved with that. There is a Realtor statistic that says most FSBO's end up being listed anyways. FSBO's will also be on the market for a lot longer than a listed house.


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I agree that there will always be some buyers and sellers who are not comfortable going through such a large transaction by themselves. I do think that 6% commissions are going to be under attack even for these clients though.

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My plan involves speeding up the selling process even more (within 7 days) while achieving as close to market value as possible and delivering a much higher standard of agents to the market.


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I can't wait to see what your system is.
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But of course, you pointed out something I didn't notice before. I predict FSBO to eat a gigantic market share within 10-15 years.


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I sold my house FSBO on craigslist. It was really easy, the title company did all the paper work. It was actually easier than when I bought my house using an agent. I think sites like zillow.com and craigslist will improve the FSBO process. You can always list on MLS for a few hundred anyway.

[Tien]

What market are you in?

[Tien]

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I can't wait to see what your system is.


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I can't talk about it until I have it protected.


But.... 5 years from now if you see a new big controversial real estate franchise, it'll be me.

[BradleyT]

Here's one example where real estate agents are necessary. My parents + my dads two sisters inherited my grandfathers estate (house) and everyone live 200+ miles from the house so FSBO is not really an option.