Original Story here: http://activerain.com/blogsview/1254539/-give-us-your-commission-or-else-
You and most of the agent comments here are what's wrong with the real estate
industry!
Turn the tables. What if an agent did this to you? What would you do if you
ended up
losing your home over the REALTORS GREED? The firearm you posted above could end
up
pointed at you. You're playing with fire.
If this was an $800,000 deal with a $48,000 commission reduced to $32,000 would
you have
taken 32K??? What's the problem? You've spent 26 hours on the deal and $231 per
hour is
not good enough for you??? I bet if this was one of your employees you would
have
instructed them to do the deal in order to not sacrifice your cut of the deal.
What if this was a first time buyer you represented and they were short on cash
to close
to the tune of $1,500. Your 3% commission is $7,500. If they can't close on time
they'll
rent an apartment and you get paid zero. Do you reduce your commission by $1,500
and ask
the seller to apply it to closing costs? Likely not. I bet you'd go to the
seller and
convince them to lower the price or ask the mortgage broker to raise the rate so
YSP can
cover the shortage. You have no problem with taking money out of the pockets of
others but
when it comes to your own (look out!) the greed kicks in.
I understand that you were expecting a 6% payday. In the world of sales that's
just how it
goes. Sometimes we don't get the max target commission. Did you pay sticker
price for your
car or did you get the price AND the salesman's commission reduced? Yes you did.
Then you
bragged about how you got a lower price and got the salesman to lower his
commission to
cover the cost of your tax, tag and title.
If you do a stock trade next Tuesday and can pay less than $50 using Scottrade
or $1,925
using a full service brokerage which would you choose?
OK SO WHAT IF I was the mortgage broker for YOUR CLIENTS John and Mary Homeowner
on a
$250,000 property...
I get them pre-approved for a loan, you deliver a contract today (9-25-09) that
says you
will be closing on or before October 15, 2009.
I play it safe and do a 30 lock today. Your client is locked in with zero points
(because
you told them if I charged any points you'd send them to your mortgage buddy
Joe) and I'm
getting a YSP of 1.625% or $4,062 with no junk fees, no processing fees just
$4,062 total.
I send in a full package and get a clear to close on Monday or Tuesday.
Something comes up, now the transaction is set to close on November 1, 2009.
Rates have
gotten worse and I need to extend the rate lock. Now I'm only going to get 1% or
$2,500.
If I try to raise the rate or push the fee off on the seller they won't want the
loan (and
you send them to Joe who by the way usually ends up giving them a bad deal but
mortgagee
doesn't know until signing). Too often in this situation the delayed closing is
the fault
of the Buyers, Sellers or one of the REALTORS - sure not my fault - I did my
job. I shut
up and take my paycheck. I'd rather do the deal than take a total loss!
This is why so many consumers DO NOT like REALTORS. As a long time discounter
I've gotten
to hear hundreds of horror and hate stories from homeowners.
Joe Realtor charges $300
Jane Realtor charges 3% (say $7,500)
How can Joe do the deal for $7,200 less? Because he's more efficient, more tech
savvy, he
converts some flat fee contracts to full service and he gets a new buyer every
week
because of all his listings. At the end ofthe year the discounter earns more.
Jake Realtor gives half of his 3% commission to the buyer for closing costs,
rate buy down
etc.
Judy Realtor keeps all of the 3% commission refuses to reduce it - even if it
gets her
fired by John and Mary Homeowner. Again at the end of the year the rebater earns
more.
REALTOR - endangered species. Why? The next generation of buyers and sellers
will not need
you. They'll be smarter than you and there will be more technology available.
Typical defense from a REALTOR: Service, service, service. I provide this
service that
service (lip service) and so on. So your a server... like the waitress at
Denny's or
Waffle house. Today you can cook your own eggs and bring them to the kitchen
table, you
can pour your own coffee right? In ten years this will be the case in real
estate. It's
just a fact that the next generation will be smarter. What would your brain be
like today
if you had the Internet and the games systems that our children have? You would
be much
smarter that you are today. I have an 8 yr old daughter that is likely more
fluent with
technology that thousands of REALTORS in America. My 14 yr old who is already
typing over
40 wpm and who has been on the Internet longer than most of you will never and I
mean
NEVER need an agent. REALTORS won't even be needed for taxi service by 2020 -
technology
will end your career. Maybe this is the source of your greed - because you you
know your
time is short.
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