HOW TO GET 7% COMMISSION

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HOW TO GET 7 COMMISSION

• HOW TO LAND EVERY LISTING APPOINTMENT AND GET 7
  COMMISSION!

PRESENTED BY THE CAREER COMPASS REAL ESTATE
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GETTING 7 COMMISSION
THIS TECHNIQUE IS NOTHING NEW, BUT CAN LITERALLY
GET YOU THE LISTING THE FIRST TIME, EVERY TIME.
HOWEVER, IT IS ALL IN HOW YOU PRESENT IT...
INDUSTRY FACT Most listing agents price homes
knowing that there is going to be negotiation.
INDUSTRY FACT In normal markets, 90 of all
initial offers are for some number OTHER than the
full price and the accepted offer is somewhere
between the list price and the initial offer.
INDUSTRY FACT As unfortunate as it is, buyers
agents in particular favor homes that have higher
percentages in terms of commissions. Many make
certain homes priorities in terms of showing
based on the buying side commission
INDUSTRY FACT Some listing agents do listing
presentations with the aspect of how they will
cut commission as much or more than other agents.
For example cutting the total commission down to
5 which we will use for this example.
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1 to the price...
COMP PRICE 395,000 1
3,950 NEW LIST PRICE
398,950 93 OF 398,950 371,023 95 OF 395,000
375,250 THE 5 IS 4,227 MORE, BUT...
BUYING SIDE
LISTING SIDE
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The 5 listing gets negotiation-based offers that
typically start between 2-6 below the listed
price of 395,000. The agents negotiate the
price to approximately 4 below list. (NOTE
The negotiation takes time and runs the risk of
the two sides not coming to an agreed-upon price.
In which case the home may sit for longer than
30-60 days creating a situation where the offers
get even lower.) Negotiated price 395,000 -
4 379,200 After
commission 379,200 - 5 (before expenses)
360,240
The 7 listing gets immediate full price offers
from eager buyers agents wanting the 4,
creating either a full priced sale or a bidding
war from buyers who have been convinced this is
the best home for them by their buyers agent.
This also happens extremely fast with no
negotiation and makes this house the hottest
house on the market. Negotiated price 398,950
- 0 398,950 After
commission 398,950 - 7 (before expenses)
371,023 Bidding war price 398,950 3
410,918 After commission
410,918 - 7 (before expenses) 382,154
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_at_2.5 9480 2.5 of 379,200
OTHER AGENTS 5
_at_3 11,968 3 of 398,950
YOUR LISTING 7
_at_3 12,327 3 of 410,918
YOUR LISTING 7 (Bidding War)
WANT AN ADDITIONAL 2,234?
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Mr. Mrs Seller. If we go with this 7 plan
and we do not get the offers that are comensurate
with what I have detailed here, we can always
re-list the house after 90 days at the 395,000
price and a regular commission. However, I will
do you one better. If my plan does not work, I
will re-list your house for a total of 4 (1/3)
to fairly compensate you for your time and faith
in my plan. However, I am very confident I will
not need to do so. Your house is going to sell
quickly!
However, Mr. Mrs Seller, if and when my plan
does work, if I can negotiate your house into a
bidding war where we get a price in excess of the
list, would you agree I have done more than my
job in selling your house? If that is the case,
would you agree on an override commission beyond
a certain point? Thus, if the home sells for 5
or more above the, original listed price, would
you agree to a 10 additional override of the
excess to be added to my commission?
EXAMPLE ORIGINAL 7 LISTED PRICE
398,950 SELLING PRICE 398,950 5
418,897 MORE THAN LISTED PRICE
19,948 10 OF ADDITIONAL FUNDS 1,994
Additional Commission TOTAL COMMISSION (3
1994) 14,561 (vs. 9,480 _at_ 5 379,200)
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