Food For Thought Especially For Realtors

By
Real Estate Broker/Owner with South Florida Real Estate & Development, Inc. BK3027955

I just read a another brilliant post from the famous Lenn Harley called ...

WHAT IS A "DISCOUNT BROKER" AND WHAT IS DISCOUNTED FROM WHAT?

Strikes up a great conversation, but I have to have the last word, of course. That is my nature, good or bad, that is just me. Lenn, has a bad influence on me lately - bringing out the latter.

I am a listing agent, always have been. I don't "do" buyers, I know you ask, "Who do you think you are?" - just me - I always had the the conviction of "He who lists - lasts and lasts and lasts - and doesn't burn out!"

All the buyers agents I know have burned themselves out - endless phone calls, endless showings, endless getting in and out of cars, handing cards to sellers, making sure all the doors are locked and lights are off when exiting the listing...yes, I have done this before -

Having said that, I "appreciate" all buyers agents - for they do a service that should be "well" rewarded.

That is why when I go on a listing appointment and convey to the seller the "hard" work of all buyers agents to bring well qualified buyers who are ready, willing and able to purchase their property- they should be rewarded with a "bonus" commission.

I explain the days of "discounted" - HA! - discount brokers are over - yes, they are discounted and discarded - never to be thought of again in this market of foreclosures, short sales and endless inventory of "phantom properties as well as actual properties on the market.

I call them phantom because they don't exist but they exist in the mind of the buyers - it is called the what if's of the buyer's mindset.

What if the banks release all the foreclosures at once - won't that "kill" the market? What if the declining market doesn't stop declining? What are the best deals in my target area? Is this in your professional opinion a "good" deal?

Questions that a buyer's agent must answer to the buyer to get the desired result of the seller - an executed contract! Buyer's willingness to sign the contract is eliminating the "risk" factor - in most cases.

On my listing contract is definitively states the commission of 6%, 7%, 8%, 9% or even 10% - and then it also states what percentage to give to the selling broker - now we see the motivation of the seller don't we?

Most seller's want to sell - need to sell or even "have" to sell their property for whatever reason - so it is an option to give a "BONUS" to the agents out their in the trenches.

I have worked with banks in some small capacity over the years - and I have always conveyed the "bonus" theory to the banks as well - some have caught on to this is our market in Fort Lauderdale offering a bonus to agents if the property closes before a certain date - how original...

I don't believe in discounts - even at the butcher shop - if they offer you a discount on meats - it is most probable that it is about to expire and you are buying the "left overs" - I always prefer "fresh" meat, don't you?

Sellers do not want their properties to be considered "left overs" and now are willing to offer that coveted "bonus" to sell the property and attract that buyer who is motivated to close fast -

Food for thought - not only for realtors but for seller's and buyer's as well -

 

Comments (126)

Broker Nick
South Florida Real Estate & Development, Inc. - Coconut Creek, FL
Broker Nick Relocation Broker Service

Mike - You are correct - you are not a tour guide but a professional real estate agent and salesperson.

Kelsey - Dead End Street Kids

Dec 06, 2010 11:56 AM
Broker Nick
South Florida Real Estate & Development, Inc. - Coconut Creek, FL
Broker Nick Relocation Broker Service

Anja - Mutliple offers are a fool's game - I refuse to play that game - thanks

Pamela - I charge as much as 10% depending upon the price and duties - good point!

Dec 06, 2010 11:59 AM
Broker Nick
South Florida Real Estate & Development, Inc. - Coconut Creek, FL
Broker Nick Relocation Broker Service

Michelle - Lasting power - I need some of that - lol

Hans - What makes you think I always need the last word?

Dec 06, 2010 12:01 PM
Broker Nick
South Florida Real Estate & Development, Inc. - Coconut Creek, FL
Broker Nick Relocation Broker Service

Ronda - I touched a nerve alright - I think I need a bullet proof vest!

Marcy - moveon.org it is - lol

Donna - I love Canada and Canadians - some of my best friends and customers - thanks

Dec 06, 2010 12:04 PM
Broker Nick
South Florida Real Estate & Development, Inc. - Coconut Creek, FL
Broker Nick Relocation Broker Service

Bob - Bring it on brother - smart man!

Mark - I have looked around and it doesn't work for me - volume is not there anymore - quality!

Dorte - This is a free country for sure - but we are professional "salespersons" that demand payment for a service rendered - tell that to your attorney the next time you need a professional - he may be rich but he or she ain't doing it for free I can assure you of that - and if it is really important - he won't be a "discount" attorney - if you know what I mean!

 

Dec 06, 2010 12:12 PM
Broker Nick
South Florida Real Estate & Development, Inc. - Coconut Creek, FL
Broker Nick Relocation Broker Service

Ellen - You are a trooper and deserve your weight in gold - bonus time!

April - Five years and you finally learned the secret of a listing agent - good for you! Much success on the "dark" side -

Dec 06, 2010 12:15 PM
Broker Nick
South Florida Real Estate & Development, Inc. - Coconut Creek, FL
Broker Nick Relocation Broker Service

Elchin - I get paid to drive the best agents and buyers to my listings - that is worth my full commission - and the buyer's agent makes me look good or bad depending upon the circumstances!

Parnell - FSBO's are some of my best customers - and I get a full commission from them same well - sometimes with bonus because they see the hard work first hand and up close - thanks

Dec 06, 2010 12:19 PM
Broker Nick
South Florida Real Estate & Development, Inc. - Coconut Creek, FL
Broker Nick Relocation Broker Service

Maya - Education and market knowledge is a must if you want to get paid like a professional - thanks

Gene - Like I said before - if you want to be paid like a professional you have to produce like a professional - otherwise you are a fake - and will be out of business because talk is cheap!

Dec 06, 2010 12:22 PM
Carol Tunis
Florida Homes Realty & Mortgage - Saint Augustine, FL
Carol Tunis...a "HouseSold" name!

I have thoroughly enjoyed reading each and every answer!  I like your style, Nicholas! 

Dec 06, 2010 12:39 PM
Broker Nick
South Florida Real Estate & Development, Inc. - Coconut Creek, FL
Broker Nick Relocation Broker Service

Carol - Thank you and "Elementary, my dear Watson"

Dec 06, 2010 01:06 PM
Coleen DeGroff
Coldwell Banker M.M. Parrish Realtors - Gainesville, FL
Haile Plantation Real Estate - Gainesville FL

Hi Nicholas,

In this tough market, if sellers are able to sell their home in a timely manner at a reasonable price using a discount broker, good for them.

Seems in this market tho sellers would want every advantage to make their home stand out from the rest.

Dec 06, 2010 01:18 PM
Broker Nick
South Florida Real Estate & Development, Inc. - Coconut Creek, FL
Broker Nick Relocation Broker Service

Coleen - Right - good for them - but the problem is that most do not and lose money because they were told they were getting the same service for less -

Dec 06, 2010 01:23 PM
DeeDee Riley
Lyon Real Estate - El Dorado Hills CA - El Dorado Hills, CA
Realtor - El Dorado Hills & the Surrounding Areas

Lots of thoughts and opinions flying here Nicholas.  Great  job!   I would love to split a 7% commission and always appreciate a bonus.  If the commission is out of the norm or there is a bonus attached, I let the buyer know up front. 

Dec 06, 2010 02:08 PM
Broker Nick
South Florida Real Estate & Development, Inc. - Coconut Creek, FL
Broker Nick Relocation Broker Service

DeeDee - Thank you - it is always good to disclose, disclose, disclose - buyers don't care if you make a bonus - at least the buyers I have dealt with

Dec 06, 2010 02:19 PM
Bandele Oguntomilade, Top REALTOR
Bogun Realty and Luxury Homes - Woodland Hills, CA
Your Woodland Hills Real Estate Agent 818-825-6996

Hi Nicholas: Interesting thoughts on why you are a seller's agents and leave the job of the buyer's agent to others. I really enjoy representing both buyers and sellers.  The variety of issues raised in the two different representations make for an exciting professional life.  It utilizes all your problem solving skills and you intereact with more people.  No dull days at all.  It is good that we are in a profession that allows generalization and specialization.

Best wishes for 2011.

Dec 06, 2010 03:31 PM
Tom Waite
Thomas Waite Real Estate Broker - Cypress, CA
So Cal-Apartment Bldg Investments

Sorry, Nicholas...Real estate agents don't get paid for hard work or working hard...only for results!

Discount or not.........you gotta have results to make the commission.

Dec 06, 2010 05:19 PM
Ty Lacroix
Envelope Real Estate Brokerage Inc - London, ON

Nicholas. you have brought up some valid points but this is a results business, you get paid when you perform correctly. 5,6,8,10% of nothing is still nothing!

Ty

Dec 07, 2010 02:14 AM
Beverly of Bev & Bob Meaux
Keller Williams Suburban Realty - West Orange, NJ
Where Buying & Selling Works

From the post to the comments, this is good reading. I don't talk commission. I'm not sure if a bonus works as much here because if a house stinks and is overpriced I can't convince my buyer to buy...I wouldn't even try. Now if they were choosing from two and one hada higher commission I would deep down want them to choose the one with a higher commission but I would still focus on what's best for them. I just had this instance recently and left my focus to what's best for them and it all worked out. I want to find my clients a home they want to buy now. Then get referred to do it again. Period.

Dec 09, 2010 10:17 AM
Broker Nick
South Florida Real Estate & Development, Inc. - Coconut Creek, FL
Broker Nick Relocation Broker Service

Bendele - Sometimes I just like dull days - thanks!

Tom - Don't be sorry - that is the whole point of this post - results - hard work always leads to results - but I am not in the mood to but heads today - suffice to say your results gets you paid and paid accordingly.

TY - I don't know what is leading people into believing I mean no results - I get paid when I sell real estate - not just listing the bloody property - results is the closed sale - period - come pick up your check at closing - yeah baby!

Bev - I must say that anybody having success selling real estate in New Jersey this year deserves any and all commission - nough said

Dec 09, 2010 12:10 PM
Debra V. Edwards
edwards builders and realty, inc. - Cashiers, NC
Realtor/Builder, Cashiers, NC., Highlands, NC., Glenville

Nick:  I work so hard both for Buyers and Sellers....they KNOW that they are getting their money's worth.  Even tho the Seller is paying me, it doesn't work, if the Buyers are not happy as well.

I agree with you whole heartedly....debra

Dec 16, 2010 10:21 AM