How Agents Can Win The Commission Game

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How Agents can win the commission game
By Blanche Evans, Editor for Realty Times
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Agent Commissions

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The open door to competition
MLS
Lack of brokerage training, standards,
non-agency, transparency
Referral fees
Rebates to buyers
Ancillary services like mortgages, title
Internet Advertising
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Banks against the real estate industry
The OCC issued a rule to exempt national banks
from state oversight.
The Fair Choice and Competition in Real Estate
Act
HUD and the single-package closing
ISoldMyHouse.com, a mortgage bank subsidiary,
doesnt need a license to sell real estate.
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The government against the real estate industry
President Bush appointed a Tax Reform Panel
The DOJ filed suit against the N.A.R.
The DOJ filed suit against the Kentucky Real
Estate Commission
The DOJ and FTC have importuned states not to
pass minimum service rules
NAR has comprised with new ILD policy
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Third-party service providers against the real
estate industry
Zillow.com
Forsalebyowner.com
Consumer Groups against the real estate industry
Consumer Federation Of America
American Homeowners Grassroots Alliance and the
American Homeowners Foundation
The National Fair Housing Alliance
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Realtors are bad
Whats the end game?
Banks get into real estate no state licensing
Fed rewards banks with single package closing
Banks under Fed control, add transfer tax to HUD1
Third-parties get into MLS, serve desperate
agents
Consumers can buy real estate for less money

No Pesky Lobbyists
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Commissions at 6 percent are too high.
The Internet should have squeezed Commissions by
now
Agents are lazy and dishonest, and dont
do anything except put your home in the MLS.
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Advertising is designed to capture people who
dont know you
They fish further upstream
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MLS-entry only
Fee for service
Discount brokerage
Non-agency transactional brokerage
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All full-service alternatives distance
the broker/agent from responsibility for the
consumer.
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Support your local, state, national associations.
Call the media to task.
Write and call advertisers in the media.
Bring Buyers Back.
Raise your own standards.
Ask for training.
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Market to your own sphere.
Listen to complaints about the industry.
Dont avoid agency if thats what your client
wants.
Dont lose hope.
Develop expertise in rentals.
Become developers.
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Skate to where the puck is going to be.
Learn to better serve buyers.
Learn about new housing models.
Learn to work foreclosures.
Develop niches.
Develop a make-ready team
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Stop paying 35 percent referral fees to
third-party vendors.
Have effective responses to commission-cutting
requests.
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Cutting the commissions, Jane Bryant Quinn,
Newsweek
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Service. Knowledge. Integrity. Enthusiasm.
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Discount means cheaper labor
American Airlines no frills, no thrills
First Class is always full
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MLS-entry only
Fee for service
Discount brokerage
Non-agency transactional brokerage
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Of course, you save money. Youre taking more
risk.
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Outline your services
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Outline your services
Explain how Realtors mitigate risk.
Explain that commissions are paid on the back end
of a transaction.
Money is risk.
Dont be afraid to confront.
Explain about rebates, referrals.
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On a 30 Yr. Fixed Rate Loan At 6.75 percent
Loan Amount
Payment
Balance after 5 yrs
100,000
648/mo
93,755
98,875
641/mo
92,700
98,000
635/mo
91,880
Calculations courtesy of David Reed, author of
Mortgages 101, Amacom
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Reasons why buyers still need Realtors
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Realtors are market specialists.
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Realtors are market specialists.
Realtors have more information about homes than
you do.
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Realtors are market specialists.
Realtors have more information about homes than
you do.
Realtors save you time.
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Realtors are market specialists.
Realtors have more information about homes than
you do.
Realtors save you time.
Realtors can work with you how you want to work.
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Realtors are market specialists.
Realtors have more information about homes than
you do.
Realtors save you time.
Realtors can work with you how you want to work.
Realtors share your risk.
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Realtors are market specialists.
Realtors have more information about homes than
you do.
Realtors save you time.
Realtors can work with you how you want to work.
Realtors share your risk.
Realtors know how to close.
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