Earlier this week, I completed and e-filed my 2006 Income Taxes (what a joy and a pleasure that was). Although I track my figures throughout the year, I was absolutely blown away when I looked at my 1099 from Coldwell Banker where all of my closed transactions had been from relo business and saw what I actually had earned (can I hear an ouch?). I do state up front that I was fully aware of the terms involved. Relo charges had increased up to 35-40%. Now that's a lot of money when you consider you still have your broker split to consider. In April of 2006, I left CB and joined KW where I no longer do relo! LOL
I came across an article in Inman News from 2/13/2007 which seems to be right on point. The article addresses how relo fees have "risen over time from 15 percent to 20 percent of a real estate agent's share of a home-sale commission to 35 percent or more -- several real estate professionals told Inman News that relocation company fees can exceed 40 percent. This is causing lots of real estate folks to "just say no" to relo,
IMO, there;s also the age old question, why do they (relo companies) charge so much when WE do so much work to close the deal. On this listing side, the paperwork alone is time consuming, on-going and tedious. Some of that work (BMA's, EMC's) has to be done before you even get the listing and if you don't get it...time spent=money lost.
The article is well worth a look see.
Disclaimer: Writer acknowledges that she has not yet had a 2nd cup of coffee :>
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