Threats & Opportunities: The future of property transactions
We live in an incredibly fast paced and exciting era.
Technological aids such as virtual reality, augmented reality, holograms, human robots and the internet will, and have already revolutionised the real estate industry.
Buyers have virtually unlimited access to listed properties all over the world instantly and 24/7.
More than ever, buyers and sellers can choose the level of involvement of the agent and negotiate, not only the selling price, but also the sales commission.
The convenient and easy access to properties via the Internet has made it relatively easy for the seller 'to wing it' and to try and sell the property himself.
Enter the hybrid model:
A fairly recent and popular development in the USA, is the so-called hybrid model.
The hybrid model combines the services of the traditional estate agent with the own efforts of the property owner ['For Sale By Owner'- the 'FSBO'].
The hybrid model offers the ideal opportunity for attorneys to assist the FSBO and offer his services. E.g. drafting and finalising the sale agreement and attending to the conveyancing.
Thus, the attorney not only gets a commission, but is also in a position to accept the mandate to do the transfer.
The hybrid model also offers an opportunity for attorneys to act for the buyer.
As you may know, in the USA, there are usually two sets of estate agents involved.
One agent acts for the seller and the other for the buyer.
The commission, usually 5% to 6%, is shared between the buyer agent and the seller agent.
This system creates the ideal opportunity for the attorney to act for the buyer.
He can assist the buyer during the negotiations, ensure that there is full legal compliance by the seller and prepare and finalise the agreement.
He may even get the mandate to attend to the conveyancing.
We live in interesting times and opportunities abound, but we must be open and alert to new opportunities and stay abreast of the times.
This fast pace era is not only exciting but offers also opportunities and ensures our independence from estate agents.
CEO 3%.Com Properties
This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)
Author: 3%.Com Properties