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And you're asking me to do WHAT?

I am not an advocate of cutting commissions, but repeat business is great if you can get it.

Yes, I will get to the point eventually.

In the past week I have taken 21 new listings from 2 clients.  It was a good week.

Client 1 called today and wanted to apologize that he made a mistake.  He didn't remember that he had offered a right of first refusal to a tenant and wanted me to know about it.  I made him a deal.  He would negotiate with the tenant and work the deal without my help.  If he was willing to do the work without me, I would rip up the Exclusive Right to Sell Agreement.

Total work involved to date - Walkthrough of property, run comps and offer list price suggestion.  Took about 20 minutes.  There goes $4,000.

Client 2 called two days ago and told me he had an offer on a duplex and if I would go look at it and give my assessment, he would give me a commission on the sale.  I offered him the same deal as I offered Client 1.

Total work involved to date - Walkthrough of property, run comps and offer list price suggestion.  Took about 20 minutes.  There goes more than $4,000

Darn, I am down to 20 listings at full commission + transaction fee when I could have had 22. 

Amazing thing happened.  Client 2 calls again and gives me a listing on a 42 unit apartment complex.  Side note - Client 2 had referred in Client 1.

There are a lot of questions about how to get more business.  The moral of the story here is to be fair, don't overcharge for your time or services and it comes back around.

 

3 Comments on Loose Money – Build Business

My dad introduced me to one of his builders when I first started in 1984. I listed a few houses and sold them. His son got into building and he and I have a great relationship.

When his father wanted to sell his home they called Monika and me. We listed it for two weeks and then they came to us and said they had someone that had seen it before and forget to exclude them and asked if it was OK. We said fine and no problem. We were out a few hundred bucks. No big deal.

They ended up inviting us to their condo in Aruba for 2 weeks. All we had to do was pay for our flight, food and tax. The next year Mrs. builders mother needed to sell her house and they called us and we sold her house. We earned a full commission and another 2 weeks in Aruba. Then in 2005 we were asked if we wanted to use their condo again and all we had to pay was their maintenance fee. 600 a week. Still a bargain.

It does pay to be fair...

02/08/2007 10:22 PM by Jay McGillicuddy~Real Estate Broker (Prudential Verani Realty)


Thanks for the comment Jay.  I figured that you and Monika would have had similar experiences.

02/08/2007 10:34 PM by Rich Kruse (Gryphon USA, Ltd.)


I put an easy out clause in all my listings.  I go ahead and tell the seller right up front that if they find a friend or coworker that wants their house they can call me and cancell the listing or ask me to help for a reduced commission.  It's up to them.  I get almost all my business by word of mouth. 

HEY...that's a great blog subject.  I better start writing.!

02/09/2007 01:38 AM by Marty Van Diest, Your Alaskan Realtor (RE/MAX of Wasilla)


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Real Estate Agent: Rich Kruse (Gryphon USA, Ltd.)
Rich Kruse
Columbus, OH
More about me…
Gryphon USA, Ltd.

Office Phone: (614) 885-0020 Ext.: 17
Cell Phone: (614) 885-0020
Email Me
A lighthearted yet informative look at the real estate and asset sale professions. Gryphon services clients sale and management problems with creative and sometimes extremely aggressive solutions. Primarily a servicer for sellers, Gryphon's professional do also assist investor/ developer buyers with acquisition transactions where the company sometiems participates as a principal.


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