REbuyersgroup
03-05-2007, 10:58 AM
This will get long winded, but it needs to be said. Real Estate agents are selling property the wrong way. Don't start throwing things at me yet.
Here is how agents sell property today:
Hi there Mr/Mrs seller, I will list your property and charge you 6% of the sales price as compensation for that service. I may or may not market your property, and may or may not cooperate with other agents who may have an interested buyer. Seller signs on the line and off we go to enter the property into the MLS and wait for the phone to ring. 6 months goes by and the house never sells, seller pulls the listing and gives it to another agent to basically do the same, or possibly the other agent will spend a few hundred dollars attempting to "market" the property to the local audience.
New market means new thinking. I have started to make the seller pay ALL of the marketing costs. Here is how my conversation goes. Hello Mr seller, I will list and market your property for 8% and you will pay between $3,000 and $5,000 in marketing costs. After they start breathing again and get back to their chair, I explain further. Selling a property is ALL about marketing and agents are not risking their money to market a property that may or may not sell. I tell them to NOT sign with me today, and interview 3 other agents for their marketing plan and who is paying for it. Some seller get it, some don't.
Scenario: 6% commission, seller agent pays 3% to buyer agent, leaving 3% for seller agent compensation and marketing. If the home sells by the buyer agent, the sellers agent is left with 1%-2% if they are lucky after paying their broker split.
Does Nike tell their sales people to go out and spend their own money marketing sneakers, to get a commission of the sale? Not... Nike hires a marketing company to get people into the store. Then the sales people show the client sneakers and close the deal. Sound familiar?
People do not know how to market their homes. We create the marketing plan, fees, etc. Here is the kick, this is not commission so you can benefit from any markup!!!! and not have to pay your broker a dime. As people call in we close the deal. If a buyer comes in from another broker, we split the 8%. if the buyer comes in directly from marketing and advertising, the commission is reduced to 5%. VERY FAIR!!!!!
OK you can start throwing things now....
Here is how agents sell property today:
Hi there Mr/Mrs seller, I will list your property and charge you 6% of the sales price as compensation for that service. I may or may not market your property, and may or may not cooperate with other agents who may have an interested buyer. Seller signs on the line and off we go to enter the property into the MLS and wait for the phone to ring. 6 months goes by and the house never sells, seller pulls the listing and gives it to another agent to basically do the same, or possibly the other agent will spend a few hundred dollars attempting to "market" the property to the local audience.
New market means new thinking. I have started to make the seller pay ALL of the marketing costs. Here is how my conversation goes. Hello Mr seller, I will list and market your property for 8% and you will pay between $3,000 and $5,000 in marketing costs. After they start breathing again and get back to their chair, I explain further. Selling a property is ALL about marketing and agents are not risking their money to market a property that may or may not sell. I tell them to NOT sign with me today, and interview 3 other agents for their marketing plan and who is paying for it. Some seller get it, some don't.
Scenario: 6% commission, seller agent pays 3% to buyer agent, leaving 3% for seller agent compensation and marketing. If the home sells by the buyer agent, the sellers agent is left with 1%-2% if they are lucky after paying their broker split.
Does Nike tell their sales people to go out and spend their own money marketing sneakers, to get a commission of the sale? Not... Nike hires a marketing company to get people into the store. Then the sales people show the client sneakers and close the deal. Sound familiar?
People do not know how to market their homes. We create the marketing plan, fees, etc. Here is the kick, this is not commission so you can benefit from any markup!!!! and not have to pay your broker a dime. As people call in we close the deal. If a buyer comes in from another broker, we split the 8%. if the buyer comes in directly from marketing and advertising, the commission is reduced to 5%. VERY FAIR!!!!!
OK you can start throwing things now....