Coldwell Banker Discount Brokerage?
By Anthony Longo 12 06 2008
Today (through a broker peer of mine) I came across a site called BlueEdge, which claims to be a discount brokerage owned and operated by Coldwell Banker. I didnt believe it when I saw it. Does anyone else know about this?
Blue Edge offers both sell-side and buy-side real estate brokerage for 2% which is what we all know 1% less than the traditional real estate commission.
I am still in aww that Coldwell Banker is involved with this. I need more details…anyone got any?
Note: Don’t be confused with BlueRoof, a successful Prudential owned discounter in Utah.
UPDATED:
Alex Perreillo, president and CEO of Coldwell Banker Real Estate Corporation, one of the residential real estate brands owned by Cendant Corporation, presented an update on the Blue Edge Realty “concept” they are currently testing in Illinois and Pennsylvania at the recent Real Estate Connect conference in San Francisco.
The limited service business model is targeted to the self-directed, price-conscious consumer - the ‘For Sale By Owner’ home seller.
Perreillo posed the question members of the audience might have been asking themselves - “Why would a 95-year-old real estate company, with 74,000 agents entrenched in full service do such a thing?”
Coldwell Banker runs their full service franchise-based business separately and distinctly from the Blue Edge Realty business model. The details of the Blue Edge Realty business model are:
* it is not a discount company — it is a limited-service business model
* it is targeted to for sale by owner market (which is 16 percent of the total market)
* they only work with sellers (all buyers are promptly referred to full-service CB offices)
* real estate agents are licensed, salaried employees
* the outside staff are Property Market Consultants (listing presentation, virtual tour photos)
* the inside staff are back office people who support the outside staff
* sellers may talk to two or three people during the listing process
* there are two plans - the 2% plan and the 2% plus plan
* the 2% plan provides no MLS placement but offers marketing materials, sign, listing on web site, scheduling of appointments, and help with paperwork
* the 2% plus plan provides MLS placement; requires sellers to cooperate with buyer brokers
Their presence in the marketplace is from mobile offices.
MORE HERE… http://www.ired.com/news/2001/0108/blueedge.htm
I run HardinHomes, a RE/MAX real estate team in the Fort Knox Kentucky area. We currently have 2 pricing plans available for sellers. We have a 4% plan with $0 upfront fee and a 3% plan with $695 upfront fee. We offer 3% to any agent who finds a buyer. We are trying to help sellers at the same time increase sign calls. If we sell the house (dual agency) then we get the full commission.
Jason