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On going saga for Matterport11991

ron0987 private msg quote post Address this user
This is just a personal observation from me. I am trying to sell one of my homes in the Seattle area and after talking with a few agents and offering a free MP tour to add to the listing they almost seemed anoid that i was asking them to add this to the listing. They were happy to use my photos for free but MP tour had to be a push and the only reason I think they added is because I was the client and it cost them zero. I kept getting the same respone, I dont include those in my listing. Or I have never found them to be helpful. I still see that MP is not catching on like i would have though it would. Just mt experience.
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briangreul private msg quote post Address this user
Many agents are cost focused, not results focused.

These same folks think it's okay to use blurry iphone images and run ads in print publications.

In some markets you really don't have to do much to sell a house. Seattle is probably one of those. I'd have to run the numbers to see the outcome, but there is a strong possibility that they make more money without spending anything on advertising.

Let me illustrate:
Assume 6% commission, split evenly between Brokers and a 50/50 split to the agent.

That means a 1.5% Net commission pre-taxes and expenses or EBITDA.

Sales price of $750K with no marketing, under contract in less than 7 days.
Payout to agent is $11,250.

Let's add a Matterport, quality photography, and some Aerial work. Cost of $1K.
Sales price of $100K over asking at $850K and under contract in 5 days with a cash offer. By all accounts a better sale. Agent gets $12,750, less marketing expense nets out to $11,750. Spend $1K to net $500 more. Seller of course comes out really well. Agents are supposed to put client interests first, but that's not really how it works IMHO. I also am not sure you'd have such a wonderful picture.

In Houston, average days on market was 78 pre COVID-19. Figure another 35 days to close. Average home price is $250K give or take. Agent EBITDA commission is $3750 using the above split. Even if you got a 10% bump that's only $375 in commission. You don't have a cost associated with days on market, so who cares if it takes 5 months to close vs 3 months or 1 month.

What agents can do is use virtual tours to sell their services by positioning themselves as tech savvy. In COVID-19 land it gives them a tool to appease sellers who don't want strangers in their house.

I'm reminded of a phrase I like...... price focused clients are rarely profitable. Focus instead on outcome focused clients where there is margin to be had for great work.

I think MP has the most potential in marketing (streetview, etc) and in commercial real estate where showings are something of a PITA for all involved due to no SUPRA and needing 3-4 people to show up for the showing.
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izoneguy private msg quote post Address this user
You should have found an agent that would have reduced their listing commission since you provided marketing materials.
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Narvan891 private msg quote post Address this user
We're shooting quite a few Matterport's each week in the Puget Sound market area with business in these VR shoots up over 500% with our client agents since March. This is due to their need to represent their clients properties virtually for "open house" purposes which are restricted in this state.

Several agents in particular, who have adopted adding the shoots to pretty much all their listings, were ones that I recall telling me earlier how much they didn't like them but that now it's the "new normal" and they need them.

A certain amount of shoot requests we receive are probably generated by the owners request, but the market savvy agents know when to adopt new technology when the time is right and now is certainly that time!
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homefinders3d private msg quote post Address this user
Personally I believe that quite a few MSP's have no concept about the average RE agents business model or cashflow. I have both a Florida and an Alabama RE license (but I don't pretend to be a RE expert). In most markets the commission is not split 50-50 between agents.

In Florida the commission is actually split between the two brokers. The broker then gives their agent a "split" or cut of the commission. In most brokerages the agent grosses 70% of the brokers cut. If the agent has a mentor, the mentor will usually take 10-20% of their 70%. Not every home sells and so marketing expense is a risk and is paid up front. The average agent is not a top producer and has a limited cash flow and so any marketing expense has to be cost effective.

Agents pay monthly desk fees, technology fees, MLS fees, E-key fees etc.. If you are in an area where there are a lot of military or VETS and there is a USAA or NFCU presence, a lot of listing commissions are reduced further. I personally know lots of top producing agents that pay for RE photography that will NOT pay for a Matterport tour.

I am a member of 3 MLS's that cover the Gulf Coast from Alabama to Panama City Florida. My experience talking to a lot of top producers is that they feel tours are over valued by the providers.
In my area I doubt any agent would consider a tour/drone package for a $1000. I have lived in Silicon Valley and I could see agents there paying those kinds of fees.

The really big misunderstanding is the value of tours for "Virtual Open Houses". Sounds great and I use that angle for marketing to an extent, but the truth is very few listing agents (your customers) hold open houses. Most brokerages encourage new agents to hold open houses for other listing agents. Not to actually sell the home (nice if they can), but to gain new buyer leads.

In this scenario the listing agent you are pitching to probably doesn't care too much about the chat features etc. as they are not going to use the tour as a Virtual Open House. Like any business arena there are providers that are going to earn the high dollar fees due to their reputation etc.. For the average provider pitching a tour for a fee of $250-$1000 for a $250k home - probably not going to happen in most markets today.

I would love to see the analytics that show a tour will reduce the time on market or increase the selling price, I don't mean a MP video stating they do. I'm not trying to be negative, I am working as a provider and I am not engaged in RE buying or selling. But the market has changed in most areas and is being impacted by providers with low cost tours.

I have sold several tours because the property owner wanted to reduce foot traffic during the Pandemic. I also couldn't see too many agents reducing their commission due to the owner providing a tour. My post isn't meant as an attack on anyone's posts, I just believe it might be helpful actually to discover the actual impact a VT has on a listing.

In my market area it is a sellers market with low inventory. Nathan Cool, one of the Youtube RE photography gurus has an interesting take on Matterport® https://youtu.be/omgcRgr5v94?t=697
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Seattle
kjoman private msg quote post Address this user
I’m also a RE broker and RE photographer with Matterport in the Puget Sound area and have had a huge increase in my Matterport work. It’s the first year it’s actually made me more money than the stills. I have some clients who always get the trifecta (stills, Matterport and floor plans) but have gotten several new clients. Sometimes there’s another still photographer and me splitting the work (me just doing Matterport). Been very busy these past few weeks. Feels like riding a wave. I’m hoping the new clients will still see the value in using Matterport when things calm down.
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homefinders3d private msg quote post Address this user
I believe the difference may be location. The Gulf Coast is not as densely populated as the metropolitan areas and hasn't been near as hard hit by Covid. Real estate was designated an essential service from the beginning and a lot of agents are still physically showing the properties and holding open houses.
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Houston
briangreul private msg quote post Address this user
@homefinders3d I was using 50/50 broker and 50/50 agent as an example. It's where many new agents start out from what I understand.

The truth is that the commission split between broker and agent can be anything they agree on.

I just wanted to point out that when you crunch the numbers a Matterport tour may not change the outcome enough to have an ROI. That doesn't mean it's not cool. It just means that whether you have one or not, the house is going to sell. A savvy agent, even one who is not a top producer, will manage their marketing to only do what has an ROI.
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ron0987 private msg quote post Address this user
Brian and @homefinders3d great info and support my overall feeling on Matterport, it appears to be dying on vine.
Bad news for all of us that invested in it. You also made good points about agents. I presented my own home sale in an opportunity to promote my on business and would never ask for a discount on the commission but an opportunity for me to educate an agent to use MP. But again after watching the video it supports what my concerns. I was unaware Zillow pulled their endorsement of MP. Just another sign MP is dying on the wine and they are not doing much to salvage the business model for long term use. Again these are just my views with nothing to support it other than being a MP provider for almost 5 years. Again @homefinders3d great info and insight. thank you
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izoneguy private msg quote post Address this user
Agents have told me they only do a Matterport tour if they have a killer property that presents well. Then they justify the expense as something they can use to show potential sellers in the future. Standard run of the mill oh-hum homes they pass on.
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homefinders3d private msg quote post Address this user
@briangreul @ron0987 I agree with you both completely.
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