I speak with Grant Clayton, Founder of 1% Lists, a national franchise that specializes in… you guessed it, listing homes for 1%. Unlike many discount brokers, Grant proudly embraces being a discount broker and disputes the age-old idea that “You get what you pay for” in real estate. Oh yeah, he’ll ruffle some feathers.
Grant shares his unique journey from a Hurricane Katrina evacuee to a struggling real estate agent to a successful real estate entrepreneur. He discusses the motivation for starting his company, the importance of providing value to clients and argues against the notion that higher fees equate to better service. He makes the case that his agents are more productive than “full-priced” agents, because they charge less, not in spite of charging less.
The discussion also touches on the future of real estate commissions, what makes an agent good or bad, the need for transparency in legal agreements, and the importance of diverse ideas in the industry.
This is sure to be controversial, as Grant courts — or at least is not afraid of — controversy. Though a genuinely genial and nice guy, some of his opinions are much in disfavor in the real estate brokerage industry today. For example:
The real estate industry often reveres the wrong metrics.
Higher fees do not guarantee better service.
The average agent's performance is not always indicative of their fees.
Sign agreements to set client expectations, not to protect yourself from the client.
I think you will find the conversation entertaining, possibly enraging, and definitely thought provoking.
Chapters
00:00 Introduction to the Conversation
00:57 Grant Clayton's Journey and Background
04:17 What We Value in the Industry
09:19 Growth and Expansion of 1% Lists
14:58 Challenging Industry Norms: You Get What You Pay For?
19:12 Measuring Agent Performance
24:57 The Future of Real Estate Commissions
35:39 Challenging Traditional Real Estate Practices
36:34 Innovative Business Models in Real Estate
38:10 Profitability at Low Commission Rates
39:55 Cost Efficiency in Real Estate Brokerage
44:34 The Importance of Listings for Success
44:59 Navigating Dual Agency and Conflict of Interest
48:45 Simplifying Buyer Representation Agreements
52:35 The Risks of Standardized Forms in Real Estate
57:21 The Clash of Ideas in Real Estate
01:02:12 The Future of Real Estate and Consumer Choice
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