I received a Tweet today from Inman News that announced ZipRealty was closing 11 offices in the U.S. in an effort to "achieve positive cash flow". What's so significant about the struggles of ZipRealty? ZipRealty is a real estate brokerage company with a relatively new business model. The brokerage offers seller clients up to 25% off their listing commission and buyer clients up to a 20% rebate.
I get asked periodically by sellers to reduce our commission. While politely declining, I share this timeless piece of advice with them:
"It's unwise to pay too much, but it's worse to pay too little.
When you pay too much, you lose a little money...that is all.
When you pay too little, you sometimes lose everything; because the thing you bought was incapable of doing the thing it was bought to do.
The common law of business balance prohibits paying a little and getting a lot...it can't be done. If you deal with the lowest bidder, it is well to add something for the risk you run, and if you do that you will have enough to pay for something better."
John Ruskin - 1819-1900
How is it that Century 21 and Century 21 Canada can celebrate 40 and 35 years respectively in the real estate business in 2011? By bringing value to the marketplace and creating positive experiences for our clients. ZipRealty would do well to study that business model.
Century 21 Home Realty Inc. Brokerage
"Delivering results since 1989"