Real Estate Commissions Are Broken. Here’s the $9,750 Alternative

Drew Thomas Hendricks00:30

Welcome We Fixed Real Estate. Let us know what do you think of that new jingle we got going on? Today we have Fred. We’re welcome to ninety seven fifty We Fixed Real Estate. And we’ve got a very focused, focused episode here. How’s it going, Fred?

Fred Glick00:46

Great. You see my new T shirt?

Drew Thomas Hendricks00:49

Iconoclast.

Fred Glick00:50

Look it up, kids. It’s it’s it’s me. So

Drew Thomas Hendricks00:52

There’s one thing that that yes, this it

is. And it and it’s Arrivva. And the one thing before we jump into our deep dive, I want to just something we talked about

in the pre-show was

interest rates are rising. We know the interest rates are rising, we talked about them all the time. But one thing that doesn’t matter is if you’re a cash buyer, you don’t really care if there’s interest rates because you’re gonna pay cash. And Arrivva

is the cash buyer’s dream because it is the the most efficient full service deal where you keep the most of your cash.

Fred Glick01:27

Yeah, it’s I don’t understand the mentality of people, but I’m here to change it, hopefully. What I mean is in San Francisco right now, houses are being sold like bananas, especially four million dollar houses. Pfft I had one or or even higher. There was a deal it listed at six point nine and it went over nine.

Cash buyer, close in five days. So if you’re going to be spending, let’s say, $4 million on a house, why are you going to a broker who’s going to just prepare the contract for you, download the disclosures, and put the offer in,

why you paying them 2.5% of the sale price? It’s insane.

We do this all the time. I’ve done a bunch of deals in San Francisco. We charge nine thousand seven hundred and fifty dollars. So the idea is you put your offer in at the highest you’re gonna go and have zero buyer broker fee. That just saved you two and a half percent of the sale price. On a four million dollar deal, that’s a hundred thousand dollars.

Because you’re competing against buyers who I don’t know why are going to these Compass or Callwell banker agents and paying them two and a half percent. And getting into an exclusive contract instead of a non-exclusive contract. So San Francisco buyers who are paying a lot of money, dudes, I could save you a whole bunch. Okay? I I I I know how to fill out the forms. We’re

And here’s the big announcement in

in our Slack private Slack channels that we’ll have with you, because that’s the best way to communicate.

we’re gonna have Claude.

And

Drew Thomas Hendricks03:17

Mm-hmm.

Fred Glick03:18

right now I’m I’m rocking with not like the Sonnet five five, I’m going much higher than that. So you’re getting real experience Claude in there. Super Claude.

Drew Thomas Hendricks03:30

And what does

that do for what does that do for the transaction and do for your clients?

Fred Glick03:33

Okay, so here’s what it is. You go to an open house, you slack us the address or the or the link. We’ll go to the multiple listing service where you can’t get into. We’ll put up private notes between agents that really have a lot to do with you.

And then we’ll also download the disclosures, the inspections, everything, the whole package, because that’s the way it works here. Everybody discloses everything.

So as soon as it hits the Slack channel, Claude starts working on it, figuring it, telling you what’s wrong, telling you what it’s going to cost a fixed fix. Fix.

And we’re going to be able to evaluate whether you want to go forward and what you want to offer. Well, even talked about offers in Claude. You know, it it can pull comps as easy as I can and evaluate them. And especially now, we’ve had a few months of the craziness, so it can see what’s going on and how much higher things should be bid on, in addition to my expertise in knowing that. So

It’s crazy. It it’s why everybody’s wasting two and a half percent of sale price on that is is it’s insanity.

Drew Thomas Hendricks04:47

Especially if you’re a cash buyer. So you got buying

Fred Glick04:49

Yeah.

Drew Thomas Hendricks04:49

a four million dollar house. Why what what’s two and a half percent of four million? You’re giving away what, hundred twenty five thousand?

Fred Glick04:58

Yeah. A hundred thousand or four million. Two and a half, right? Yeah. It’s crazy.

Anyway, that’s my pitch to you guys in San

Francisco. I’ve done a bunch of deals there.

I have a person on the ground there to help you get into property that are not on open house. I have access to off market listings that come up in a private group that I’m in that’s limited to the number of agents, only the active agents in there. And some of them will say, We’ll show and we’ll sell before it goes on the MLS. Here’s why.

You know, grandma just moved out of the house and you figure, we gotta sell.

We gotta

Take out the carpet, put in new floors, maybe upgrade the kitchen, but this way they don’t have to do it. They’ll say, Hey, we’ll sell it beforehand before we fix it up and paint it.

You know, bring your buyer, throw us a great offer and we’ll move on. And you know what? They might end up netting more money than if they fixed it up. So or sometimes people don’t want the aggravation. And you don’t want to put an ugly house on the market. So there’s a million different reasons for this. Someone is just, you know

a a a noted person doesn’t want to show their house to the public, so that’s another idea. So there you go.

Drew Thomas Hendricks06:15

And kinda like the fact that you have AI driven Slack channels, or even Slack channels for that matter, brings up something that kinda’s been under the engine that’s evolving and becoming that much more forefront. And the fact that real estate is not just about finding a house. It they at its core, Arriva is a a technology company and a project management driven technology company that h you you’re using the latest

to provide the best full service experience to the clients versus the old school way of doing things with faxes

Fred Glick06:52

Hundred percent.

Drew Thomas Hendricks06:53

and whatnots.

Fred Glick06:55

Hundred percent. And one thing I mentioned earlier about getting you the disclosures and the private notes and all that.

Drew Thomas Hendricks07:02

Mm-hmm.

Fred Glick07:03

We were trying to get this done for you automated, but the MLSs have come out, they don’t want any bots doing anything.

I it because what they know is going to happen is you’re gonna steal all the data that they have by doing all these, you know, have it bought okay, give me all the sales of blah blah blah and who did this and blah and da blah blah blah da. You just put your your blunt list and it can run the report. I can run manually the reports, all kinds of goofy

Drew Thomas Hendricks07:33

Mm-hmm.

Fred Glick07:34

reports. But

They think w if they let the bots in, they’ll steal everything and then literally replicate the MLS. And then that’s the end of their value.

Drew Thomas Hendricks07:44

If

it was that easy to do, they’re in trouble because that can already be done. I would have to believe they’ve got a bigger moat that just protecting themselves against mo bots.

Fred Glick07:54

all the MLSs are a little different. Some haven’t sent me anything, so who knows? And they’re all the MLSs, LA and San Francisco have their own that they have their own data, their own their own software, which is just it’s it’s so disgusting.

One of these days I just I’ll do a podcast on how awful these are. The UX UI is just vomitious.

Drew Thomas Hendricks08:21

that would be

a great blog post. We can screen grab all of them and just

Fred Glick08:24

Yeah.

Drew Thomas Hendricks08:25

say, look, this is what you’re paying us for. We have to navigate through all of this.

Fred Glick08:29

Yeah. And then there’s a couple, the one up in Northwest MLS in in the Seattle area and the Northern California one. they’re headquartered in Sunnyvale, Cupertino. Anyway, they use something from Core Logic, whatever Core Logic’s new name is, they’ve changed. and it’s decent. We we know it’s a real software. It doesn’t look like somebody in the DOS era wrote it.

I mean it’s just the s the San Francisco one. They actually got hacked about a year ago or two years ago, completely

Drew Thomas Hendricks09:02

cheese.

Fred Glick09:02

hacked and held hostage, had to pay up, got the site back, and completely said, we’re gonna rebuild it with security. Well, they took the same software and just overlaid.

They’re afraid that like the old ladies are gonna go crazy because they don’t understand the new way of doing it. Well, you know what? Too bad. You gotta and and literally the way software is written now, you could take your software that they have, put it in AI, and have it rewrite the software and just clean that up a little bit so that it’s it’s usable.

This way it’s

Drew Thomas Hendricks09:35

Well, that’s that’s the way it’s happening.

Fred Glick09:37

yeah.

There you go.

So we’re we’re using, we welcome Claude to our Slack channels.

as an agent. Yeah, it’s all we’re tr

Drew Thomas Hendricks09:45

It’s all for the benefit of the clients. Full transparency.

Fred Glick09:48

exactly. I mean you’re still gonna have my brain in there. We’re still gonna read things when it comes down to it,

but you know, the

giving you this information quicker and better and easier. and by the way, what I do when you do make an offer is we do it live on a Google Meet. So you see the actual form, you tell me, you know, we agree on what to fill in and the strategy

I I I mean there’s no better way of doing this than I know of ’cause if there was I’d do it. So

Drew Thomas Hendricks10:16

Yeah. So your exp the thing that I’m hearing here is that technology’s replacing the stuff that technology should replace, which is giving you more time to have that human element exactly where it’s needed, versus the human element spending time r pulling out a disclosure of some sort.

Fred Glick10:33

Bingo and to be honest, it means I can handle more business with more people. Yeah.

Drew Thomas Hendricks10:38

Mm-hmm. And and actually have real conversations at the time

at a time when a conversation’s necessary, such as filling out the contract.

Fred Glick10:45

Exactly.

Exactly.

Drew Thomas Hendricks10:50

That’s very smart. Iconoclastic if you

Fred Glick10:51

Thank you. We’re trying.

Exactly.

Anyway

Drew Thomas Hendricks10:57

We are gosh, it’s first of October and yeah, that was

Fred Glick11:02

Yeah, it’s gonna be

a hundred and ten degrees in Los Angeles soon. Makes sense, right kids?

Drew Thomas Hendricks11:07

I

thought we were d I just to complain about weather. I the the the w the articles I’m reading on X and Reddit and stuff, it’s like extended oppressive heat wave. This isn’t just a heat wave, this is gonna go on

Fred Glick11:18

Yeah.

Drew Thomas Hendricks11:18

for like a week and a half, two weeks.

Fred Glick11:20

A and there’s an with this hurricane, I mean surf is up again. I mean Santa Monica Pier, they’re taking the sign down ’cause they’re fixing everything. They may not ever put it back the way the surf is going. There may be no need for it. It’s crazy.

Drew Thomas Hendricks11:36

Yeah, well we will ch

Yeah. Well prepared for the latest. It’s supposed to hit tomorrow I last I read is the heat wave starts tomorrow at eleven AM.

Fred Glick11:46

Good to know. Good to know.

Drew Thomas Hendricks11:48

So you might be able to get one more pleasant beach walk before it hits.

Fred Glick11:53

Yeah, well it’s it’s four o’ four. I’m outta here. I’m I’m gonna take a bike ride, it’s a good idea. Okay, cheers.

Drew Thomas Hendricks11:59

We’re out of here. This has been the latest episode of We Fixed Real Estate.