| For many years, the real estate industry has done an | | | | purchased. |
| injustice to the public it serves. Now through the | | | | 5. Which leads me the next concept traditional |
| popularity of the internet coupled with a challenging | | | | brokers don't want you to understand. The agent |
| economy, consumers are increasingly becoming | | | | that represents the buyer does the majority of the |
| aware of unfair commissions charged by traditional | | | | labor. There is popular statistic that the average |
| real estate brokers. It's typical for a real estate | | | | buyer's agent spends about 40 hours with a client |
| broker to charge a 6% fee of the total sales price to | | | | from the inception of the business relationship to the |
| the seller for listing and marketing their home. The | | | | real estate closing. That's about ten times the |
| industry has been able to continue this hoax on the | | | | average time a listing agent spends working on a |
| public by simply keeping these seven concepts very | | | | listing. Yet, the two agents are traditionally |
| close to the vest. Until now, not many brave souls | | | | compensated equally. You do the math. |
| have been willing to expose the truth. Let's take a | | | | 6. Most marketing plans are designed to impress |
| look at these concepts and you be the judge. | | | | sellers and not sell homes. The new buzz in the |
| 1. First and foremost, 90% or more of all advertising | | | | industry is to present a multi-page marketing plan to |
| is done to drive buyer business. Statistics show the | | | | sellers at the listing appointment/interview. Too bad |
| chance of your home being the idea home for the | | | | the majority of the plans are templates provided by |
| prospective buyer is slim to none. In fact, when the | | | | their companies that simply spell out what you're |
| buyer calls on your listing, the agent is trained to | | | | getting anyway for signing with any agent. This is |
| qualify the prospect and find out exactly what their | | | | trickery to the utmost. The belief is if the client |
| looking for in a home. In other words, you listing is | | | | doesn't know its included the agent can separate |
| used as the honey that brings the bees into the hive. | | | | himself from the competition by writing it down on |
| 2. Marketing is also done for the benefit of pacifying | | | | his marketing plan and touting it has an unique |
| the seller. Within the industry, it's a known fact that | | | | feature he offers. |
| brokers often get paid thousands of dollars for as | | | | 7. And the biggest secret of all, the MLS (multiple |
| little as a few hours of work. To compensate for | | | | listing service) is the tool that does all of the heavy |
| that lopsided scale, realtors feel pressure to advertise | | | | lifting in the whole process. Many "for sale by owner |
| properties in publications that simply do not work to | | | | websites" have tried without success to get the |
| justify their fees. | | | | same results as the real estate agents' MLS. If you |
| 3. Selling your home with one company over another | | | | are serious about selling your home, you have to list |
| really has no impact on the sale of your home. If all | | | | your home on this service. Only licensed brokers |
| things are equal, the national franchise is no more | | | | have access to the MLS. This is one of the values of |
| successful at selling your home than the mom-pop | | | | using a real estate agent. Traditional real estate |
| local brokerage. In the end, the buyer's agents are | | | | brokers shy away from the importance of the |
| driving prospects to homes that meet their specific | | | | system. While it's an appreciated tool, the belief is if |
| requirements. The commission is the same for selling | | | | the general public knew just how important the tool |
| an in-house listing as it is to sell a competitor's listing. | | | | is to selling homes they would simply duplicate the |
| The name of the game is to find the client the | | | | system in a non-proprietary format. |
| "perfect" home as quick as possible and move on to | | | | There you have it. Fear and greed are at the heart |
| next client. | | | | of this injustice. Fortunately, there are a few brave |
| 4. Discount brokers offer the same services as | | | | brokers that offer alternatives to sellers looking to |
| traditional real estate brokers. The traditional broker | | | | sale their homes without being duped out of their |
| wants you to believe the discount broker can offer | | | | hard earned equity. Some brokers offer a flat fee |
| you a great deal because they don't provide you | | | | alternatives which require and up front payment for |
| with stellar service. That's a bunch of bull. The | | | | listing services and the seller pays the buyer agent at |
| discount broker has decided to cut the crap and | | | | the time of closing. Other discount brokers choose to |
| treat people with dignity. The fee charged by a | | | | charge the sellers less that the normal six percent |
| discount broker to list a property is still a good piece | | | | commission with the lion-share going to the buyer's |
| of change for approximately four hours of work. The | | | | agent at the time of closing. The important thing to |
| discount broker is also counting on the reciprocity | | | | remember is you have choices. You can get your |
| factor. The hope is the increased listings will yield | | | | home sold and make more money in the process. |
| more buyers and the broker can earn 3% | | | | Happy home selling! |
| commission of the sales price of the home | | | | |