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  • 1850 Realty LFRO

What is New is… Old

“The real estate industry is ripe for disruption…” We wholeheartedly agree. 1850 Realty is trying to steer the ship of real estate service into clearer waters. Discount and pay per service providers have been around for decades. Disruption doesn’t relate to fees, as the data continues to demonstrate. According to Market Trends, for sale by owner and non-represented sales have actually declined in the past 15 years. This proves that the average consumer doesn’t want the daunting task of negotiating the oceans of real estate transaction. This time is better spent with family. The old saying: “you get what you pay for.”

Speaking of fees, what would you expect for free? This start-up thinks they have the answer. By letting folks put their property up for market, it is alleged that Allre will facilitate the entire transaction for free. No really: zero, nothing, nada. All you have to do is fill in a couple of web forms, then you happily travel through your transaction. They also do it faster: in ten days, despite all of the consumer protections that exist to the contrary.

As full time real estate practitioners, we know that virtually every part of the service offered is a misrepresentation of reality in the state of California. A short list of things agents facilitate on either side of a transaction:

  • Screening loan pre-approval letters
  • Recommending settlement services (title/escrow)
  • Purchase of HOA documents
  • Arraigning for home inspections by trusted providers
  • Negotiating repairs: both mandatory (Section 1 termite) and elective
  • Recommending home warranty services
  • Provide a visual record of home condition at the time of the transaction
  • Compliance with all federal, state and local laws and regulations related to the transaction

This list can go on ad nauseam depending on a myriad of factors related to the property in question. Fines and possible jail time are on the line for errors and omissions, which applies to all persons in a home sale regardless if they are licensed or not. Is that worth the risk for a one time deal?

We see this service over representing itself. If LegalZoom said they could handle your court case without a lawyer for free, you would be very skeptical. Rightly so. LegalZoom provides niche products vet by attorneys for simple statutory tasks, not legal representation in court. Court in this example relates to the real estate transaction. While there are a few individuals who could manage to settle a dispute without outside interference, it behooves them to have representation who fight tirelessly for their cause. The same goes for buying or selling a home.

We wish them luck. But it is very curious how a small company has out flanked multi-billion dollar brokerages and marketing companies in a profit model that claims to beat them on their home turf. They built a home valuation model better than Zillow? Nine years and hundreds of millions of dollars in development, Zillow is the best of the worst at estimating home value. Picture for proof:

2014-07-26_1010

Five tract homes in San Marcos CA, literally next to each other with a valuation spread of 22%/$208,000. The picture isn’t market reality. But Allre will do better by getting you top dollar for free. So they say… This one requires both caveat emptor and caveat venditor.

How is 1850 Realty disrupting? If you go to the link and watch the video, we do everything this company claims no one does in real estate. Transparency, honesty and integrity.

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760-814-1850
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1850 Realty ® California DRE #01946868                      Carol Farrar DRE #01733808                                         Eric Farrar DRE #01949104
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