Patrick of Patrick.net, one of the leading luminaries of the real estate Armageddon school of thought, recently launched a “real estate dating service.” In a clever twist, and to (at least try to) prevent pesky real estate agents from using the service to do a “bait-and-switch” to land clients, his service initially charged sellers $10 per match-up, of which $5 went to the buyer in question.

The idea is that a buyer will register and indicate that he’s looking for, say, a 3/2 in zip code 94025 for $1.2M, and is willing to put 20% down. If I’m a seller with a similar property for sale, I pay $10 for the introduction to the buyer, $5 of which goes to the buyer.

Here’s the issue, however…with Patrick.net being so decidedly bearish on real estate, why would any seller expect to meet anybody other than bottom-feeding buyers who’ve been on the troll for that “30% under market value property” since the waning years of the Clinton presidency?

The FAQ handily addresses that issue:

Didn’t you say “it’s a terrible time to buy”?

Yes, it is a terrible time to buy. Don’t do it - unless you can get a great price, way below the cost of renting.

Earth calling Bay Area home buyers…it’s been probably a decade since there were homes available in this market where the total cost of ownership was less than renting. It’s just not the way it is right now in this market!

Two days ago, Patrick announced that the $10-from-seller-and-$5-to-buyer scheme — which is definitely a creative touch — wasn’t working, largely because sellers were suspicious that buyers who were being paid $5 to talk might not have been serious. So, he cut the fees altogether and may make the service advertising-supported.

My advice to Patrick? This idea may well have legs, but how about tweaking the incentives. Charge the sellers $5 for an introduction, but don’t pay the buyers for participating. The prospect of finding an off-MLS opportunity should be reward enough for buyers to play along.

Tags: Bubblistas, Patrick, Real estate
Possibly related posts

• Get A Mortgage
• Bad memory? Use technology to compensate…
• Flood Park…without the water