There was an interesting piece in Seattle Magazine regarding FindWell, Redfin, and changes in the RE industry generally. As you may know, both FindWell and Redfin rely on a robust web presence (primarily a search engine) PLUS a deeply discounted commission (about one half back to a buyer) as their business model. As noted by the author, this “alternative” model has yet to revolutionize the industry as some thought would happen, in large part because, when push comes to shove, EVERYONE still relies on the commission, the only issue being how big.

Of course, WaLaw is certainly not “everyone.” We are the true game-changing model, in that we charge a flat fee for the transaction. Hey, we work hard for everybody, not just those buying a seven figure house. Why should we be paid so much more for an expensive transaction? We don’t think we should. Plus, as the article notes, a commisison creates an inherent conflict of interest, particularly from the buyer’s perspective. The buyer wants to pay as little as possible, but the agent gets paid based on the price so the agent has a disincentive to negotiate aggresively.

On top of that — and unmentioned in the article — what happens if the buyer decides to not close at the last minute? I think its safe to say that the vast majority of agents would encourage the buyer to close, because no close = no pay. On a flat fee model, the attorney is not invested in the outcome at all and is happy to go in whatever direction you want.

So if you want “new and improved” go with WaLaw, not one of those other “alternatives” that really aren’t all that different.