During COVID, popular streaming services, like Netflix, are certainly keeping us entertained. Around the office here at Bōde, we binged the real estate shows (of course!) and couldn’t get enough of Selling Sunset, Million Dollar Beachhouse and Million Dollar Listing Los Angeles.
These “luxury” real estate shows feature such obnoxiously priced homes that, at times, it’s difficult for any of us to relate. So, why do we like watching them so much? Because they do allow us to escape reality and forget about COVID for a while. And, let’s face it, it is entertaining to see inside the homes of the rich and famous, keep up with the crazy drama and competition among agents and see the somewhat ridiculous open house parties that were held to market homes. With the pumping EDM music, outrageous outfits and amazing views from these multi-million dollar homes, it’s easy to get caught up in it all. It’s Hollywood, people!
At first glance it’s sheer entertainment, but when you view the shows through a critical or educated lens, we think they provide great insight for buyers and sellers.
Exposed commissions
Many of us aren’t super clear about how commissions work. We know that realtors are going to pocket some of the money from the sale, but it differs between provinces and there is always room for negotiation. The shows are pretty clear about how much commission the agents stand to make on these million dollar homes. Remember that $40-million dollar house we’re introduced to in Season 1 of Selling Sunset? Reportedly, brokerage owner Jason Oppenheim sold the house and earned the $1.2-million commission. No wonder they were ringing that bell at the Oppenheim Group! While these commissions are a far cry from what the average realtor makes, it does shed light on how much they benefit from individual sales. Consider that on a $750,000 home, a seller will pay $30,000 in real estate commission. At Bōde, we only collect a 1% service free on the sold price, so the seller would only pay $7,500 – a savings of 75%.
Over-the-top marketing and open house events
Who can forget the Selling Sunset Open House hosted by Christine, where attendees could also get a shot of Botox? Or what about the big reveal of the Oppenheim Group billboard? We, here at Bōde, don’t believe in these types of overly expensive marketing tactics. Statistics show open houses are highly ineffective and usually just consist of people kicking tires and nosey neighbours. You won’t find our company name slapped on billboards, benches and all over local TV and radio. That’s because we know that digital marketing is much more economical and effective. Most buyers today are searching for homes online, so we meet them where they’re at by advertising your home on sites like Zillow, Facebook Marketplace, Realtor.ca and Kijiji. But, hey, if you really want to see our smiling faces, you can check us out here!
Realtor politics
It was enlightening to see the competition among agents and, wow, there were definitely fireworks. It was also clearly evident just how many people were involved in the transaction – the agents had to confer with their broker before going to the other agent, who would then go to their client. We think that’s just too many cooks in the kitchen. At Bōde, we get out of the way and allow you to deal directly with the buyer or seller. We simply facilitate the deal with our online platform and let you take control.
Hey, who doesn’t have a case of house envy? We all love to see beautiful homes and dream properties. So, if you’re ready to do some looking, you can check out our amazing current listings and, if you’re ready to sell, we make it super simple to start today.
