I received an email today from a development in Orlando (one of the standard emails we receive marketing various projects) but this one read "23% Commission" in the subject and nothing else.  Of course I was intrigued   Upon opening it I see that it indeed offers "23% for a limited time".  There's no mention of how long this promotion lasts, no info whatsoever on the details of the commission, illegible writing at the bottom (it appears to be the disclosure statement), but there's a picture of a really pretty woman in the middle of the flier.  Maybe that's the hook.  A lot of money and a beautiful gal.

I don't know, but if someone's offering such a large commission it's probably because the units aren't moving.  If they aren't moving, wouldn't it make sense to drop the price by 10 or 15% instead of increasing the agent commission by such a large number?  Don't get me wrong, I'm all about making money but isn't the marketing department's priorities skewed?  Agents making more money doesn't make the units any more attractive to the buyers.  

Price the units properly and compensate agents well, that's a recipe to success. 

 

 

 

 
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10 Comments on 23% Commission?

MAY
07
2008
157,511 Points 2 Featured Posts Outside Blog

I had an REO property that ended up paying me 25% due to a flat fee and a LOW price.

This one sounds like quite a scam, maybe they will pay you a 23% referral

9:58pm • #1
176,173 Points Outside Blog
Sounds good to me.  Maybe they give you 23% and she takes it away???
9:58pm • #2
Localism Sponsor

Jeff - 25%?  I'm impressed!  23% referral sounds much more realistic, which I don't have a problem with but don't market it in a manner that an agent thinks it's 23% commission.  That's misleading. 

Adam - LOL!!!  That could very well be how it works out. 

10:01pm • #3
594,713 Points 34 Featured Posts Localism Sponsor Outside Blog Hit Router
I see referral offers ALL of the time and that is inline with what I see.  If it is commission, you are right that it would be better to drop the price and get action.
10:08pm • #4

It sounds to good to be true but all you can do is check it out.

Desperate times brings desperate measures.

10:08pm • #5
The commission is 23% + a cute girl?  How do you show that on the HUD1 ?
10:08pm • #6
359,397 Points 22 Featured Posts Localism Sponsor Outside Blog
Wow....I'm in....just throw in the Ferrari, and the weekend in Vegas.  They probably forgot to mention the sales price is $500K and it's a 300 sq foot, 1 bedroom ranch.
10:13pm • #7
You are correct on this one. My experience has been price sells and a good commission is just the icing on the cake.
10:14pm • #8
4 Featured Posts
Tchaka, it doesn't sound right to me either.  The lowering of the price should do the job for the client.
10:27pm • #9
MAY
28
2008
159,976 Points Localism Sponsor Outside Blog

Tchaka - This sounds like some kind of scam to me.  Doesn't sound right.  If they are trying to sell by offering a 23% commission that just plays in to the public perception of the greedy real estate agent.  Of course if it is actually a referral fee that is another thing entirely.  Our office traditionally offers a 25% referal fee.  Makes you wonder about an agent who doesn't know the difference between a comission and a referral fee.

8:01am • #10

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Tchaka Owen

Hollywood, FL

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Elite Coastal Properties

Address: 1844 Radius Drive, Hollywood, FL, 33020

Cell Phone: (954) 552-6112

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http://tchakaowen.blogspot.com/ is primary blog. But I will repost RE related blogs here.


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