Negotiations image via Shutterstock.

Some people hate negotiating.

So the idea of haggling with real

estate agents -- who are no

strangers to the art form -- can

be daunting.

People who don't like to

negotiate might prefer to come to

an agreement through a more

structured process when selling

a home -- one that slices the

bargaining aspect of hiring a real estate agent out of the equation.

That's the idea behind LessThan6Percent , one of the latest agent-consumer

matchmaking sites to emerge of late.

The San Bruno, Calif.-based site caters to home sellers with an aversion to

bargaining betting that, through it's algorithm-fueled value proposition and

marketing approach, many will sign up for its service to leapfrog the negotiating

table.

"It allows the home seller to put up their address and have a Realtor come in and

compete for that listing," said Simon Ru, the site's founder.

The site joins a batch of other referral sites that have cropped up in the last year,

like Google-backed HomeLight and Brokur .

Article continues below

Advertise with Inman

Promotional video posted on YouTube by LessThan6Percent.

But the difference between LessThan6Percent and some of those sites is that,

instead of connecting consumers to purportedly compatible agents,

LessThan6Percent connects them with proposals submitted by agents.

Launched in late January, the site invites up to five agents that are part of its

8

Comments

Sign in to Print

Bookmark

Reprint Rights

Community Guidelines

New website lets sellers see proposalsfrom listing agentsLessThan6Percent provides agents' asking commission , marketing planBY TEKE WIGGIN, MONDAY, APRIL 8, 2013.Inman News®

Like 98

Similar

Headlines

Most Recent Most Comments Most Emailed

Royal LePage adopts Imprev's new marketing...

Shooting video is only the beginning

Realty ONE boosting brand on Trulia

My face is not my brand

Ellie Mae: Mortgage credit continues to ease

Mortgage rates drop for third straight week

Housing markets characterized by 'egotisti...

Introducing #madREskillz

Fannie Mae: Housing recovery could be 'mor...

How to pull off a real vacation from real...

Agent Finder offersreferrals based onbehavioralcompatibility

Shooting video is onlythe beginning

Realty ONE boostingbrand on Trulia

Email

Share This

network to submit proposals that must include an agent's asking commission rate

and marketing plan. Agents draft those proposals based on information provided to

them by LessThan6Percent about the seller's home, but the site does not disclose

the identity of a seller to agents.

"An agent will say, "Hey I will bring a private chef and that they'll cook filet mignon

for an open house," Ru said. "We try not to simplify proposals into numbers. We try

to make it qualitative."

After receiving proposals, the site then vets them and forwards them on to the

seller, who may then choose to contact up to two of the agents through the site.

"Someone who's not used to getting on the phone and negotiating. It's a very safe

environment for them," Ru said.

Jim Holt, an agent at Keller Williams Palo Alto, said he thinks the site offers a

referral model that is more attractive to consumers than those provided by sites like

HomeLight.

"While many clients would like to sit down and discuss their options, I am finding

that consumers today are looking for a quick way to see what you offer, sample

flyers, etc. at the click of your mouse, and LT6P allows this," said Holt, who

submitted a proposal to one lead he acquired through the site. "On the agent side, I

find it useful because I can put together a listing proposal that really highlights my

strengths, which then sets the precedent for the client of what to expect."

The site's name comes from its straightforward come-on: all proposals must offer a

6 percent commission or less.

That's not necessarily a remarkable selling point since the average commission

that a home seller pays is historically lower than 6 percent. But the site still

believes it's a guarantee that will turn some heads. The average commission

rate was 5.4 percent in 2011 , The Economist reported last year, citing data from

research firm REAL Trends.

Consumers may sign up for the site's matchmaking service, or peruse the profiles

of participating agents on their own.

But LessThan6Percent also expects to reel in many leads through an algorithm

that the company has created to identify people who are likely to sell. Ru said the

algorithm scours a wide array of information sources, including social media, and

then turns up likely sellers, like people who it's discovered are having children

soon.

The company then uses printed materials, cookies and keyword advertising to

invite those people to use the site, Ru said.

To join the site's network, an agent must fill out a sign-up form. After that,

LessThan6Percent reviews the applicant's experience and reputation based on

information available about the agent on the Internet like Yelp reviews, and

LinkedIn history.

If an agent is approved, the site collates that information and displays it on a profile

that it generates. The agent may then connect with leads through users who find

the agent on the site, or through proposal requests from LessThan6Percent. The

site charges an agent a 25 percent referral fee for matches that result in sales. And

it offers a $500 rebate to a consumer after the person's home sells, or the same

sum if it does not receive a "reasonable" offer while working with an agent referral

provided by the site.

Lessthan6Percent may be particularly appealing to agents who are in the early

stages of building a referral network, Ru said. "It could enable some of the hungry

and mid-level agents to get in front of a seller and leap frog that process."

For now, the site only covers the San Francisco Bay Area, with more than 80

brokerages having joined its network so far, according to Ru. But he said the

company plans to ramp up marketing efforts soon, and expand nationally in a few

months.

Contact Teke Wiggin:

Facebook Twitter Email Letter to the Editor

Copyright 2013 Inman News

Archives

April 2013

March 2013

February 2013

January 2013

December 2012

November 2012

all

Housing marketscharacterized by'egotistical' prices,gun-shy buyers

Introducing#madREskillz