The Divide Shaping Real Estate’s Future: Premium Service vs. Budget Prices

So many consumers assume buying or selling a home is a miserable process.

That’s because they’ve only ever worked with or heard stories about inexperienced, part-time agents who add little value for a hefty fee. 

Guy Gal, co-founder and CEO of Side, points to this as one of the main reasons so many discount brokerages keep popping up. “It’s like they’re saying: ‘Hey, are you frustrated paying a 2.5% commission for a bad experience working with a part-time agent? Come work with us instead — you’ll still have a bad experience, but you’ll pay less.”

In an interview on the podcast GRIT The Real Estate Growth Mindset, Guy explains how he sees the industry splitting into two paths: Budget on one side, premium on the other. Those paths have nothing to do with home price, but everything to do with service level and experience.

According to Guy, there will be two main options for consumers down the line. “You can work with a really awesome agent who is part of a team at a locally-owned, focused, and specialized boutique company, where you pay full commission. Or you can choose do-it-yourself artificial intelligence or an agent who has been retrofitted into a cyborg at a discount brokerage, where you pay less. I’m of the mind that 70% of the time, people will choose to work with the awesome agent.”

For more from Guy on why he’s placed his faith in locally-owned boutiques, plus his advice for entrepreneurs looking to grow their companies, check out the full podcast.


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