Steven R. Keefe, Broker/Owner
Coldwell Banker Sky Ridge Realty
Arrowhead Home Loans, Inc.
www.mountainmoves.com
steve@mountainupdate.com
(909) 336-2131
This last week, discount real estate leaders Foxtons Real Estate announced it will be closing its doors due to a downturn in the housing market. The West Long Branch, New Jersey-based real estate company, known for its discounted commissions and Mini Coopers, said it is contemplating bankruptcy for an orderly shutdown. According to an article in the Asbury Park Press, the company will continue with only a “skeleton crew”-laying off 350 of its 380 employees.
Calls to the company yesterday were met with a recoded message saying that the discount brokerage was closed.
Foxtons was founded in 1999 as YourHomeDirect.com by Glenn Cohen, an entrepreneur with the idea of paying a salary instead a traditional commission.
According to the article in the Asbury Park Press, the business model, however, was unproven. Real estate agents were unmotivated to show their buyers Foxtons homes, knowing the commission wouldn’t be as much.
Foxtons never made any kind of impact in the California marketplace, however, there are multiple real estate models with the same premis operating in the California market that will likely go the way of Foxtons as consumers gravitate to full service models like Coldwell Banker to insure they get the best services and representation.
In the current market climate, sellers can not afford to gamble with a limited service company. They need full exposure to insure that they get top dollar within a reasonable time period. The odds are better in vegas than with a limited service or discount brokerage.
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