The huge opportunity of the flat fee buyer agency

a chance to go statewide

A younger me in a Canal Real Estate School promo video, August 2015.

In the fall of 2016 I was operating a small real estate school near the Cape Cod Canal, my classroom might have fit 25 students.

Then by pure chance I happened to read that the Commonwealth of Massachusetts was just about to authorize online real estate education. The state would be accepting applications in less than two days. I mastered the new regulations and submitted my application. Clearly some other school owners had been pushing and organizing the change unbeknownst to me.

I recognized the rule change for what it was, a chance to go statewide with a product that up until then was restricted to in person instruction and dominated by schools that could afford classroom space in or near Boston.

By May of 2017, I was the first school to close my physical classroom and go all online and now I operate a very successful statewide online real estate school. Several of the legacy schools which failed to embrace the new regulatory environment are either gone or struggling.

The price of real estate school is half of what it was in 2016. But I’m not complaining, I’m fishing with a much larger net from a much larger boat. Smaller fish, for sure, but many many more.

And this is the opportunity we have ahead of us in regard to flat fee buyer agency, especially in markets which feature open houses for most new listings.

The flat fee buyer agency is a very similar opportunity and no it won’t be for everyone, but it doesn’t have to be.

The model is simple. The buyer locates the home they wish to purchase, most likely by attending an open house (in other words, you the agent can be almost anywhere, as long as licensed in the state).

Since you have a Buyer Agency Agreement with the buyer, they contact you: “Hey, we just came from the Open House at 123 Main Street, can you help us write up an offer? And oh by the way, what is a fair price for the property? Also list agent says the seller is looking for a short term sale-lease back, can you help with that too?”

So what is the agent selling? Expertise and negotiation, which are really the only things that matter right?

Maybe as part of your agreement you attend the home inspection and the closing. And you can do this for a lower price over a much much larger territory. Sound familiar?

Customer acquisition, as always, is crucial, but here I think some agents will shine as their expertise (and their ability to communicate that expertise) will become the greatest variable of success. And since you’ll be doing more deals, you’ll also be gaining more experience (and referrals) - cue the snowball effect.

Start thinking like an entrepreneur not a real estate agent and you’ll be just fine.