I received this email the other day from a potential seller:

"We are considering hiring a broker and property manager to assist us with disposing of 4 - 5 properties in Columbus.  Please send us your fee structure and list of references."

I get this type of a call or email a couple of times a month.  To be honest with you, I am always reminded of a scene in Full Metal Jacket where the recruit states to the drill instructor "the private believes that any answer he gives will be wrong".  

My response is always the same:

 Thank you for your interest in working with me.  To properly answer these questions it would be helpful to understand the project and your needs.  We can accomplish this over the phone if you wish.  Following our conversation I will be pleased to provide a list of references that can speak to my expertise that relates to your need.  If I do not have that expertise, I will let you know and try to guide you to someone that does.

Most people will either hang up, tell me that all they need is the fee quote or not respond to my response email.  If they push for the quote, I push for the conversation.  I won't quote the fee without discussing their needs no matter what.

The people that do actually take the next step usually end up engaging our services.

I also participate in an auctioneer forum.  The general feeling on that forum, one that I totally agree with, is that people only interested in your fee are not the kind of clients you are going to have a good experience with.

On the other hand I could just whip off a response " xx % and call Tony at xxx-xxx-xxxx"

I like option A better.  That's just me, but it seems to work.

Not sure why I brough this up.

R

Richard F. Kruse is the President of Columbus, Ohio based Gryphon USA, Ltd. (www.gryphonusa.com).  The Gryphon Organization includes Gryphon Asset Management providing receivership and consulting services in the distressed marketplace, United Country Ohio Realty & Auction Group (www.ucohiorealty.com & www.ucohioauctions.com) providing real estate brokerage and auction services throughout Ohio and OnlineAuctionUSA.com (www.onlineauctionusa.com) providing commercial asset liquidations from the Midwest to East Coast. 

United Country Ohio Realty & Auction Career Opportunities Available.  Call 614-885-0020 x 17

 

6 Comments on XX % and Call Tony

FEB
12
2007
5 Featured Posts Outside Blog

I think he "push" for conversation is correct! Those that will converse are more likely to be clients. I love the pic...because this guy is great on the TV program "Mail Call".

He thanks for replying on my Violin Blog! Only thing is you mentioned placing a Axe-handle on the wall behind my desk. Your forgetting they filmed the Teas Chainsaw Massacre here in Austin! Ha! Later dude have a great day!

2:23am • #1
MAR
03
2007
1 Featured Post

Rich:

 You are my hero!

Sincerely,

Billy Burke

6:28am • #2
MAR
17
2007

I partly agree with you. As you know, this call could be a potential profit center for you.  I know that caller is calling to compare commissions and fees.

I would attempt to get this caller involved in the negoatation that he started.  I would begin with questions on the location of the properties, how long he has owned them, why is he selling and what is he going to do with the proceeds.

Mr. Seller, I am sure you are looking for the best possible deal and the fastest possible sale, but you know there are other considerations you should think about.  Do you know what your capital gains taxes will be?  You may want to look into a Tax Deferred Exchange.  It is possible to save many dollars in taxes while building a more quality portfolio.

If you are commission rate sensitive, I can sugges a zero commission and no settlment cost method of selling your property, and a method of liquadating as fast as 3 weeks. (The reserve auction method of selling; call me or Billy Burke for more information on this.)

The point I am making is to keep this prospect on the phone as long as you can and dazzle him with your knowledge and ability to get the job done.

Charles Parrish/Auctioneer www.auctionbrokrs.net

www.CharlesPaarrish.com

8:33pm • #3
MAR
18
2007
116,754 Points 9 Featured Posts Outside Blog

Charles - Familiar with reserve auctions.  Been an auctioneer sine 1996.

This guy is waht I call a "price shopper".  He does not see the value in service and only wants low cost.

Additionally, this is the same guy that is going to see that the 10% BP is retained and he is really paying a commission.  I am happy to talk through all the options with someone interested in engaging in a conversation.  The guy that will not talk about his issue and ONLY wants to talk about my fee is not a client I want, especially if I need to talk him into it.

Ask Billy if I am wrong.  I'd be surprised if he disagreed.

I am going to go look at your site now.

Rich

11:10am • #4
MAR
22
2007
118,231 Points 6 Featured Posts Outside Blog

Rich - Great Post - I agree 100%. Your asking me for my commission rate. Thats fine but I need to know the deal first. Some Auctioneers are stuck on "one commission fits all" approach which I do not always agree with however on the other hand...I don't always put myself up for sale.

The way I look at it...the interview process is for me to control. I take 1 out of every 5 properties I look at. I know folks that will take everything that comes in the office as long as the Seller can pay for advertising. Yelling out "No Sale" "No Sale" "No Sale" will get old after awhile. 

Again, great post. Looking forward to reading others.

Robert B. McArtor

11:00pm • #5
116,754 Points 9 Featured Posts Outside Blog

Ahh, the real estate auction biz.  Only place you can get 10 and 5 + advance funds for marketing on a $400,000 Absolute deal with the seller smiling.

I'm not kidding.

See you soon.

R

11:10pm • #6

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Rich Kruse

Columbus, OH

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Gryphon USA, Ltd.

Address: 9387 S. Old State Rd., Columbus, OH , 43035

Office Phone: (614) 885-0020 x 17

Cell Phone: (614) 885-0020

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A lighthearted and informative look at the real estate and asset sale professions. The Gryphon Organization provides real estate, auction and asset management services through a variety of subsidiaries including Gryphon Asset Management and United Country Ohio Realty & Auction Group.


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