ConspiracyTrends

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How You Can Win The Commission Game
Blanche Evans, Editor, Realty Times
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(No Transcript)
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Agent Commissions

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The open door to competition
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MLS
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The open door to competition
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MLS
Lack of brokerage training, standards,
non-agency, transparency
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The open door to competition
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MLS
Lack of brokerage training, standards,
non-agency, transparency
Referral fees
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The open door to competition
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MLS
Lack of brokerage training, standards,
non-agency, transparency
Referral fees
Rebates to buyers
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The open door to competition
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MLS
Lack of brokerage training, standards,
non-agency, transparency
Referral fees
Rebates to buyers
Ancillary services like mortgages, title
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The open door to competition
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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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(No Transcript)
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(No Transcript)
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Banks against the real estate industry
The OCC issued a rule to exempt national banks
from state oversight. NAR asks Supreme Court to
overturn it.
The Fair Choice and Competition in Real Estate
Act
HUD and the single-package closing
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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 is threatening suits against 15 MLSs
The DOJ and FTC have importuned states not to
pass minimum service rules
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Third-party service providers against the real
estate industry
Forsalebyowner.com
Have received over 1 million to track violators
down
ISoldMyHouse.com
Zillow.com
Consumer Groups against the real estate industry
A mortgage bank subsidiary, doesnt need a
license to sell real estate.
Consumer Federation Of America
American Homeowners Grassroots Alliance and the
American Homeowners Foundation
Fair Housing entities
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Realtors are bad
Everybody gets what they want
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
Consumer groups collect donations, fees

No Pesky Lobbyists
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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 sphere.
Listen to complaints about the industry.
Dont avoid agency if that is what your client
wants.
Develop expertise in rentals.
Become developers.
Skate to where the puck is going to be.
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Learn about new housing models.
Learn to work foreclosures.
Develop niches.
Develop a make-ready team.
Stop paying 35 percent referral fees
to third-party vendors.
Dont lose hope.
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Learn effective responses to commission-cutting re
quests.
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Americans are bombarded by 3000 marketing
messages a day.
Cutting the commissions, Jane Bryant Quinn,
Newsweek
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Discount means cheaper labor
American Airlines no frills, no thrills
First Class is always full
Lets call a spade a spade
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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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Numbers.
Reasons.
Explanations.
Examples.
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Know your negotiating strengths . Save your
commission with two new techniques
1. Confrontation
2. Marketing Loan - You VS. Bank
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