A Discounter Defends High Commissions - Why A Smug Attitude Doesn't Make You Right!

By
Mortgage and Lending with Bank of England (NMLS#418481) NMLS# 1046286

I don't know if you've read any of what has been written here on AR recently about Jennifer Allans appearance on the internet radio show, "Real Estate Radio USA", but Jennifer has written about it as has Broker Bryant (of course his got featured! ;-) and after reading a comment by Brett Wilson on Jennifer's original post, "Why Our Commissions Are So High" I felt like I had to jump in and call a spade a spade.

While I'll admit that I'm not familiar with Mr. Wilson's radio show, having worked in radio before and having some close friends who are involved with television production, I am familiar with how radio and tv shows work.  I'm familiar with some of the tricks that are used to make it appear that the host always has the upper hand, such as turning the guest's microphone down or simply talking over them.

I've never listened to Mr. Wilson's show, so I don't know that he does this or not, but I did notice in his comment (that was in response to a comment that I had made) that he attempted to do something similar to me.  That is, he attempted to dismiss me and what I was saying by adopting a smug, know it all attitude.

Well, one advantage that a forum such as AR has over going on an obscure internet radio show is that I have the ability to stand up to the challenge without having my microphone turned down!

The funny thing about this whole episode is that I agree with a lot of what Mr. Wilson has to say.  If I didn't, I wouldn't have started my DISCOUNT real estate company back in 1995.  I do think that MOST real estate agents aren't truly professional.  I also think that real estate commissions have gotten out of hand.

As I've written about before, I've never been able to have someone justify why it costs three times as much to sell a $300,000 home as it does a $100,000 home.  Is there 3 times as much work involved?  I don't think so.

But even with that said, I think that Mr. Wilson's position that all Realtors are pretty much idiots who are stealing from the public is simply not founded (my words not his - at least not that I could find).  I personally know a great number of Realtors who do an excellent job of justifying their commissions and whom their clients hold in high regard.

As I pointed out on Jennifer's post, I personally have been involved in transactions where I had to stand toe to toe with attorneys representing numerous parties and utilize my skills to keep the entire transaction moving forward.  I did so as an equal to the attorneys involved.

Simply because being a real estate agent doesn't require the education that being an Attorney or a Doctor does, doesn't mean that we are any less professional as a matter of course.   While I would love to have the educational requirements to be a real estate agent raised and to make it harder for an agent to keep a real estate license,  I don't think that this precludes an agent from being able to obtain the status of being considered a true professional.

So, Mr. Wilson, while I don't mean to attack you personally, I do wish to attack your message.  Please consider what I'm saying here and please don't attempt to dismiss me by being smug.

 

R.B. "Bob" Mitchell

ValueList Real Estate Services, Inc.

 

Bob Mitchell is president of ValueList Real Estate Services,  St. Louis' largest discount/full-service real estate and mortgage company.  If you would like to find out more about Bob, ValueList or our flat-fee listing program, please feel free to visit our web site at valuelistre.com

 

 

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Rainer
155,621
R. B. "Bob" Mitchell - Loan Officer Raleigh/Durham
Bank of England (NMLS#418481) - Raleigh, NC
Bob Mitchell (NMLS#1046286)

Fiona:  I agree whole heartedly that Brett's comment and the tone that it took is much easier to take.  Thank you for your comment!

Oak Valley Mortgage:  I have to point out again that as of right now, I've never listened to their radio show and I have to believe Brett when he says that they don't turn the mikes down on their guests.  I said this in my post because I do know that this happens in tv and radio interviews, as well as other tricks that the shows can do to make their favored position appear in a better light.

A lot of people don't know that the discussions can be manipulated this way and need to consider that this sort of thing does happen when they watch or listen to one of these types of shows.  While I can't say that Mr. Wilson or his cohorts do this on their show, I can say that his response to my original comment on Jennifer's post was a variation on the theme.

By dismissing me curtly with a smug attitude, he was attempting to bolster his position and while this might work on radio, it obviously doesn't work in a forum such as AR.  Thank you for your comment!

Brett:  Please read my response to Oak Valley's comment.  Regarding your position that it's the consumer who will dictate the future of real estate, in the long haul you are right.  It's a case of the Golden Rule and the consumer is the one with the gold.  That said, markets are made by the interaction of buyers and sellers in a market with the "sellers" in this case being the real estate agents.  So, to say that the agents are irrelevant is simply not true.  If you don't think that sellers can have an impact on prices, look at what's going on now with the worlds energy markets.  As with the Arab Oil Embargo back in 1973, sellers are having a lot to say about that market!

Options!  Couldn't agree more!  Great comment! 

Mana:  You're right on target with your comment!  Thank you!

Notary:  Great analogy....I wouldn't delete a comment (and haven't done so yet since I've been on AR) unless it was complete crap that wasn't relevant in any way to the conversation.  That said, even the ones that are complete crap seem to work out to support my arguments by making the commenter look like an idiot!  Thank you for you comment and your mike is always on here at RadioBobbyville.

Greg:  As I've pointed out above, I've not had the chance to listen to the show, so I don't know if he has slandered anybody or not...at least on the show.  Here in his comments, I think that he's been very belligerent and condescending.  To me, everyone has a right to their opinion and if his opinion is that listing agents are worthless, then he has a right to express that opinion.  The manner that he does so speaks volumes though.  Thanks for your comment!

Rich:  ???? I don't know who Scott Gormley is?  Inside joke?

Ardell:  If you couldn't tell, my educational background is in economics and while I don't have a degree in it, I have continued my studies on my own and find the field fascinating.  One of the things that I've found is just what you're saying.  Smaller businesses can compete against larger, better financed rivals, but they have to add value to what it is that they are selling.

In terms of real estate, the market is becoming more diffuse and competition is forcing commissions down.  That said, I am willing to bet that if you come back 20 years from now that there will still be conventional, traditional real estate shops open and thriving.  They will do so, by adjusting to the markets and by adding value to the product that they sell.  Thanks for your comment.

Jennifer..being that you used to live in Alabama, I'll let you get away with the link...can you say, "War Eagle?"  ;-)

Bob Mitchell

ValueList Real Estate Services, Inc.

Jul 03, 2008 08:16 AM #55
Rainer
155,621
R. B. "Bob" Mitchell - Loan Officer Raleigh/Durham
Bank of England (NMLS#418481) - Raleigh, NC
Bob Mitchell (NMLS#1046286)

Glen:  Baby, do I hear what you're saying!  My company, ValueList over-comes this issue by offering different real estate related services. You're right though, if we didn't, I don't see how we would be able to exist. 

I grew my company to where at our biggest we had offices in St. Louis and in St. Petersburg (actually Largo FL) we also were looking to expand into the Nashville market.  Unfortunately, that's when my kids hit college and I did something stupid...I bought my largest competitor and expanded into a downward turning market.

Therefore, I downsized big time!  I even got to the point where I wasn't taking listings anymore.  I was only working with buyers and doing mortgages.  As of about 3 months ago, I've decided to ramp things back up and am rewriting the business plan as we speak.  Give me about a year and a couple of hundred grand extra to be found somewhere and you can look forward to a ValueList coming to your city soon! ;-)  Thanks for your comment!

Terri:  First, I think that it was me paraphrasing Brett when I used the term "uneducated thieves" or something to that effect.  To the best of my knowledge, he has never said those words...I could be wrong!

Secondly, you're right on the mark with the rest of your comment.  What you said is the reason that I wrote this post...that and I didn't like having somebody dismiss me like he attempted to do.  Thanks for your comment!

Jennifer:  Thats wild!  Why would he say that????

Name Not Left:  I agree with the first part of what you're saying totally.  I don't know that you can divorce the buyer's agents commission from the total, but even if you did....there are people who would be more than willing to pay the agent's commission to help them navigate the road to a real estate purchase.  Thanks for your comment!

Yeah!!!! That was a bunch of work addressing all of your comments!  Thank you all very much!

 

Bob Mitchell

ValueList Real Estate Services, Inc.

Jul 03, 2008 08:31 AM #56
Rainer
39,227
David Daniels
Owner of FlyersToYou, Inc. and former Top Realtor - Hemet, CA

Bob Mitchell,

OMG!!! I just had an epiphany!!!!!

You know how you said your highest deal was $795,000 (or something like that)...and that the million dollar housing market was slightly tough to crack for a discounter??

It just occured to me that that the solution is sooooooooo easy!!! Instead of charging 1% or whatever it is you charge on the lower priced homes...here's an easy way to capture the higher-end market.

Create a completely separate marketing campaign for higher-end homes. Reference the incredible success your company has experienced in the low to mid range market...and state that (in response to higher-end customers' requests) your company is rolling out its Platinum Program for Luxury Homes (call it whatever you want). The Platinum program offers the high-end home seller all of the "normal, everyday, average-people solutions" <smirk> but in addition, the Luxury Home seller receives the following:

Make up a list and insert it here. It doesn't matter what it contains, as long as you charge more for it.

Your platinum customers simply don't want to feel that they're doing what an "average" person does. Hence, the preference for the brand name HVAC system and branded leather purse examples from above. My daughter's mom is a "Nordstrom's Girl". One day, we went to the Mac cosmetics counter. She bought a lipstick liner and a mascara. The total was $82.00 and I couldn't help thinking to myself "Did Maybelline and Cover Girl go out of business????" LOL!! But in her mind...she felt really good about spending the extra money...and she can often be heard telling complete strangers that she uses Mac cosmetics. ROFL!

Back to your Platinum Program.

All you'd have to do is charge a flat fee of...hmm...let's go with $15,000 for your Platinum Luxury Homes Program. To justify the higher fee, be sure to offer all of the same arguments you're seeing here (cost of living, greater advertising costs, more expensive Diet Cokes, etc.) The fact that they CAN pay more than your normal discounted fee will appeal to them for all the same reasons that paying $2,500 a night for a suite at the Bellagio in Las Vegas makes sense to some.

You'll become the leading real estate office in your area for the Luxury housing market....simply by giving them what they want. A higher fee. The added bonus is that they can still save face by telling their friends that they paid a bunch extra and got the Platinum package versus the "everyday-average-people" one.

Geeze....you know....part of me is being facetious....and part of me wants to help you create the marketing materials just to see if it works!!!!

I love it!

Dave

Jul 03, 2008 10:34 AM #57
Ambassador
2,733,701
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

You wrote:  If I go on a listing call where I'm competing with you for the listing and I do a better job of convincing the client that my program is a better deal, then I get the listing.  If you do a better job of convincing them that your program is a better deal, you win. It's that simple.

Which is why I don't justify my fee.  I don't sell a program.  I broker the listing and/or sale of real property by providing representation or consultation to buyers or seller or listing brokers.  Each property is unique and each buyer and sellers' needa are unique and there is no one program that is right for all.  Each sale involves a plan taylored to meet the needs of the buyer or seller within present market conditions. 

A taylor who custom fits a fine suit with quality fabric can charge a lot more than an off the rack at Wal Mart.  The taylor doesn't negotiate his fee, nor does he have to justify it.  If you want his fine tayloring, you pay his fee.  Otherwise, go to Wal Mart. 

 

 

 

Jul 03, 2008 12:19 PM #58
Rainmaker
1,141,943
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

Bob, I just don't know. My initial thoughts are that if I sold the 1mil property before my advertising even hit then obviously I did something right and the seller would be more than happy to pay me accordingly. Last I checked...selling a property quickly is a good thing for most sellers. I was working with a couple of Drs earlier this year on purchasing a medical center where my part of the commission would have been $95,000. They knew it and didn't think anything of it at all. I say would because the deal didn't happen due to the property being too small. So we are back to looking at properties. 

I do want to point out that despite popular beliefs commission rates are actually increasing. They are higher now than they were during the boom because the consumer knows they have to hire experience and they have to be able to offer higher co-brokes to make their properties stand out(the same as a builder offering incentives). Commission are affected much more by market conditions than they are by information availability(Internet). 

The bottom line is that the consumer has had choices for a long time now. They can hire who they want and pretty much pay what they want. There is no monopoly. If someone doesn't feel I'm worth what I charge then they don't have to hire me. I never pressure anyone to work with me. They work with me because they want to.

Jul 03, 2008 12:32 PM #59
Rainmaker
1,141,943
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

By the way. I left this comment for Brett over on my post but he never came back to comment on it so I'llleave it here as well:

OK Brett, I'm going to approach this from a different angle for ya. First you need to clear your mind of any and all preconceived ideas. 

I would never compare what I do to an Attorney or a Doctor. Although there are many Drs and Attorneys that suck at what they do. Just because they may be book smart does not make them good Drs or Attorneys. Nor does it make them a professional. I'm sure you can agree with that. 

I also would never justify my commission by how much money I spend or solely on what I do to market a property. Even though the marketing is a part of it. Folk spay me because of what I bring to the transaction. It's a package that includes years of experience, knowledge, reputation etc.. 

Look at this way: As an advertiser why would I pay money to place an add on your blog site, website or show? Why can't I just go out and build my own website or blog site and place my own ads? Why can't I just advertise on Craigslist or a myriad of other free sites? I certainly have the knowledge to do so. I don't know how much you guys charge but I'm sure the cost to advertise far exceeds any set up costs that you incur. They pay to advertise on your sites and show because you drive traffic. This is an intangible that just happens to be the most important part pf the equation. 

If you didn't have any traffic then advertising with you would be a a waste of money because you cannot justify the costs just by the things you do i.e. build a pretty ad and place it on your site. Anyone can do that. And many do. They are paying you because of what you bring to the table. And they know you are bringing things to the table because you can show them results. These results are due to the Barries personality and their knowledge and experience in marketing. There are folks that do exactly what the Barries do BUT if they don't have the personalities, knowledge and experience for it they will fail. The sites and show are NOT successful because of the way the ads are designed. 

Here's another example: Let's say you were wholesaling a property. You went out and found a deal and placed it under contract with an assignable contract and then sold off your interest for a tidy profit. Why couldn't the end user have just done the same thing? Why should you be entitled to a tidy profit for just flipping a contract? It's because you had the knowledge and the time to put it together. Even though anyone(in theory) could do it, they don't necessarily have the inclination to do so. This is also an intangible.

There will be some people that will take advantage of today's technology to market and sell their own property. But there will be many more, by far, that won't. Those are the folks I'm looking for. Those are the folks that just want to sell their property and are willing to pay what I charge to get it done. They don't care how I do it. 

We will NEVER be able to justify our commissions to you because you don't need or want our services. So trying to do so is an effort in futility. All I know is that in 14 years I have never had a seller that was disappointed in my services or what I charged. Even though I have had many houses that I didn't sell. That's just the nature of the business. I take NO responsibility for market conditions. That's out of my control. It's out of my control that they owe more than the property is worth. My sellers are my friends. They are far more than just a pay check. We do the best we can with what we have to work with.  

I care about the folks I work for and they know it. That's how I justify my commission. 

I have sellers right now that I have been working with for 2 years. We may never sell their property because they aren't able to price it low enough. They are in their 80s and have health problems. We have no option but to try. The members of AR actually donated money so we could help them pay for a bankruptcy to get rid of bills they could no longer afford. They have nothing except their home that is too big and expensive for them. Earlier this year I worked with them for 3 months to negotiate their 11% adjustable rate mortgage down to a 6.25% fixed rate. Their property is listed with me pro bono to try and get the price closer to market value. I've spent many hours on the phone with them letting them cry on my shoulder when they get depressed. I worry about them daily. That's how I justify my commission which in this case will be nothing. These are intangibles. 

I truly hope that the day never comes when you need a REALTOR(R) like me and many others who will help you solve your problems whether we get paid or not. But if you ever do..... give me a call. I'll refer you over to Century 21 :) 

It's not what we do, it's how we do it. And you'll either get that or you won't. My guess is you won't. And there's nothing I can do about that.

Jul 03, 2008 12:36 PM #60
Rainmaker
1,017,543
Barbara S. Duncan
RE/MAX Advantage - Searcy, AR
GRI, e-PRO, Executive Broker, Searcy AR

Bob, I couldn't read all those long comments so I'll make a short one.  Looks as if you've become a "golden child" with stars aplenty.  LOL

Jul 03, 2008 12:37 PM #61
Rainmaker
559,720
Tim Maitski
Atlanta Communities Real Estate Brokerage - Atlanta, GA
Truth, Excellence and a Good Deal

In my personal experience, it always seems that the higher the price of the home, the easier the transaction goes.  When it gets down around $100,000 it seems like everything is difficult.  Getting financing is difficult, homes are in more disrepair, both sides are trying to squeeze every nickle out of the transaction. 

When I sell a million dollar home, people seems to have no problem with the money, the homes usually have been maintained better, and people seem to do what they say.  There are fewer surprises.

I just figure that the $100,000 sales are getting my services at a discount.  I wish I could charge more but it seems that some how other agents are there willing to do it at a low price.

For the million dollar homes I really don't feel like I need to justify my fees.  There are many agents out there and I'm sure that others will do it for less.  If someone wants to pay me what I'm asking, why should I somehow feel that I'm charging too much?  For some reason, they trust me and feel that I will bring more value to the transaction than someone else.  Sometimes they might just not want the hassle of shopping around.  People make decisions for all sorts of reasons.  I play the game the way it is currently set up and when it changes, I'll make adustments. 

 

Jul 03, 2008 01:29 PM #62
Rainer
179,676
Erik Hitzelberger
RE/MAX Alliance - Louisville REALTOR-Luxury Homes - Louisville, KY
Louisville - Middletown Real Estate

The profession is constantly changing (the fact that we are a national discussion on a blog or series of blogs that are open to the public is proof).  As mentioned above, customers are more educated.  This is a good thing as are choice and competition.   Who knows what  model, if any, will prevail?  My guess is that traditional, discount, tiered, etc will all still be around when we are dead and buried.  Agents will fail or succeed in every model not because of the model, but because of the agent. 

Jul 03, 2008 02:53 PM #63
Ambassador
890,730
Lane Bailey
Century 21 Results Realty - Suwanee, GA
Realtor & Car Guy

If I am putting out my money and my time with the hopes that my skills and my knowledge will sell a property, then I charge the rate I feel I am worth. 

Brett, if you'd like a discount from that rate, it is REAL easy.  Pay me.  Up front.  Non-refundable.  I'll be happy to work in an hourly capacity on those terms. 

Look at Doctors.  They get paid whether they are right or wrong (I know this one first hand).  Attorneys that only get paid if they win charge WAY more than those that work hourly... at least if they win... a lot. 

But, it is back to the basic point.  If you want me to break out what I do to some sort of hourly rate, you are going to pay me an hourly rate to do the work.  If you want to wait to find out if I'm going to be successful, you aren't going to get me on the cheap.  And I have offered discount plans, and will offer them again (stay tuned, I'll be wrting about it here on A|R).  But, sitting at the table with MOST home owners, the decision sounds like a no-brainer until that whole "writing a check now" thing comes up.  They don't want the risk.  They want ME to assume the risks.

Jul 03, 2008 03:07 PM #64
Rainer
224,325
Find a Notary Public needAnotary
QEC Internet Services - Long Beach, CA

RadioBobbyville  - With the powers bestowed upon me as a member of the Rain.  I declare you credible.  There are some who cannot make the declaration you put forth, as they resent debate. 

We are the sum total of our experiences and are not expected to see life or an event in the same way.  There is a difference in an argument and a debate.  No one is compelled to agree with another, but they should respect a dissenting point of view.

As you said, dissentions sometimes enforce your perspective more as the fallacies in the opposing arguments are revealed.

You have received a lot of MPG from this posting!  Keep the mike on.

Jul 04, 2008 01:36 AM #65
Rainer
155,621
R. B. "Bob" Mitchell - Loan Officer Raleigh/Durham
Bank of England (NMLS#418481) - Raleigh, NC
Bob Mitchell (NMLS#1046286)

Dave:  That was tooooo funny!  Thank you for lightening up the conversation.  I hate to say it now, but I've actually given a fair amount of consideration to something similar to your idea.  I think that it would probably work!  Again, thanks!

Lynn:  I see what you're saying, but to me, the truth is that we all pretty much have approximately the same tools available to us and like any craftsman, there are tools that we tend to utilize on a more frequent basis.  Some tools we utilize just about all of the time.

So, do I have a "program"?  Yep!  Do I tailor that program to the individual's needs...I honestly don't see how I could do anything different.  That said, my "program" that is pretty extensive seems to cover about 99% of what I need to do that is "real" in order to sell someone's home and if a situation happens to arise that isn't covered by my program, I'll break into my tool box and work that out too!  Thank you for your comment.

Byrant:  Thanks for answering my question.  I don't know that there was a "right" answer, I was just curious and was making a point. 

Regarding your point about the Doctors not questioning your fee, I wish that I had more clients like that! ;-)  The largest transaction that I have ever worked on was a commercial mortgage for a huge apartment development down there in Florida.  The loan was going to be for a total of something like a hundred million dollars (over a period of time as the various stages were complete).

My company's fee was going to be .05% of which I was going to get 1/2 of the total commission - so a LOT of money!  Two funny things happened on that transaction...one, the borrowers didn't question the .05% commission, but they did question our travel expenses and the cost of the appraisals (which were relatively minimal) and before the deal ever got done one of the borrowers was indicted and fled the country! (so the deal never got done). thanks for your comment.

 

Bob Mitchell

ValueList Real Estate Services, Inc.

 

 

 

Jul 04, 2008 05:26 AM #66
Rainmaker
885,137
J. Philip Faranda
J. Philip Faranda (J. Philip R.E. LLC) Westchester County NY - Briarcliff Manor, NY
Broker-Owner

Bob,


Far be it from me to second-guess how you do business. 13 years says you are doing plenty right.

Let me clarify what I meant with regard to liability. Certainly, someone with more transactions is going to have more exposure. My point is that in any one transaction, the more high-maintenance and litigious clientele are the high end buyers and sellers. Again, agents who handle this higher amount of money changing hands with competence and aplomb are rarer. Scarcity justifies a higher compensation in my view.

Let me also clarify what I meant by being paid what we are worth. I said you are paid what you BELIEVE you are worth to the consumer in a given transaction. What I am saying is that you have ample justification to ask for, and deserve, a higher commission rate. Some consumers do not believe any agent is worth 3% on the listing end. Some are willing to pay more. It is a big pool with plenty of room for us all, and I appreciate your thoughts.

Jul 04, 2008 12:04 PM #67
Rainmaker
715,933
Ruthmarie Hicks
Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605 - White Plains, NY

Lane points out somthing really interesting - if the buyer/seller takes the financial risk UP - FRONT it's a no brainer to discount.  Part of what we charge has to do with all the lookie lous and sellers wanting free CMAs to get their FSBO pricing.  This is a problem for us, but the public pretty much takes it for granted that this is all "free." It's almost written in their DNA...There is DNA CODE in there that says "A Realtor is FREE unless a deal closes."

Lets call it the "theory of abundance."  This is free labor abundantly available.  No need to conserve or "think" before making use of the resource - because said resource is "free."  But NOTHING is free in this world.  Freebies are designed to rope you in so you actually WILL pay. The public doesn't give the free help a moment's thought - until its time to pay for it - when the deal closes. It is actually the price for something they have had free use of for a very long time with nary a thought.

Jul 04, 2008 05:57 PM #68
Rainer
39,227
David Daniels
Owner of FlyersToYou, Inc. and former Top Realtor - Hemet, CA

Ruthmarie,

I understand where you're coming from....BUT....isn't it US who have done that to ourselves as an industry??? Aren't we the ones who for years have been promoting "FREE Market Analysis, No Obligation Whatsoever!" on brochures, postcards, etc.??

Don't we do the same thing when it comes to buying a car? Free Test Drive. We go to the dealership, test drive a Chrysler 300....and then walk across the street and BUY the new Honda Civic Coupe (just picking makes and models as an example).

Maybe the Chrysler didn't fit our needs as well. Maybe the salesman turned us off. But whatever the reason....we did exactly the same thing the FSBO customer did to us in garnering a free market analysis.

And I can't help but think we need to reassess what we perhaps did wrong...in not convincing them that we are perhaps a better value for them. I don't blame the consumer at all....we've trained them very well.

Dave

Jul 06, 2008 05:56 AM #69
Rainer
155,621
R. B. "Bob" Mitchell - Loan Officer Raleigh/Durham
Bank of England (NMLS#418481) - Raleigh, NC
Bob Mitchell (NMLS#1046286)

J. Philip:  Thanks for the clarification.  As anyone who knows me will tell you, I don't have a problem with what I think that I"m worth! ;-)

Ruthmarie:  I think that you and Lane are indeed right regarding the fact that the public doesn't have a problem burning our time and gas and that these considerations need to be taken into account when figuring out what a "fair and just" amount of compensation would be for a real estate agent.

Part of what you refer to as the "theory of abundance" is one of my biggest pet peeves with the real estate industry.  That is that there are far too many agents out there!  An agent doesn't tell you what you want to hear....find another agent!  When it turns out that the second agent was simply telling you what you wanted to hear, get pissed at agents in general because your house hasn't sold!  Or something to that effect! ;-)  Thanks for your comment Ruthmarie!

David:  You are absolutely right in that the real estate industry has done this to ourselves...if for no other reason than the fact that it's been made too easy to get and to keep a real estate license! 

Bob Mitchell

ValueList Real Estate Services, Inc.

Jul 07, 2008 03:50 AM #70
Rainer
155,621
R. B. "Bob" Mitchell - Loan Officer Raleigh/Durham
Bank of England (NMLS#418481) - Raleigh, NC
Bob Mitchell (NMLS#1046286)

Whoops!  Lost track of where I was over the weekend!  Didn't mean to dis anybody!

Barbara:  Golden Children...what "Golden Children"!  :-)  While I do appreciate the folks that flagged this (and other ones of my posts) I hope that AR still "Spreads the Wealth" as far as the features go.  Thanks for your comment!

Erik:  I agree whole heartedly with you.  Thanks for your comment!

Lane:  I think that you have hit the nail on the head regarding a "risk premium" that people have to pay.  We are in the process of rolling out a new program where the seller does indeed pay part of our fee up front.  I'll keep everybody posted on how it works.

 

Bob Mitchell

ValueList Real Estate Services, Inc.

 

Jul 07, 2008 03:56 AM #71
Rainer
155,621
R. B. "Bob" Mitchell - Loan Officer Raleigh/Durham
Bank of England (NMLS#418481) - Raleigh, NC
Bob Mitchell (NMLS#1046286)

Ob have:  That is wild!  I guess that one of the silver linings to the whole mortage mess is that investors are checking up on these things now, whereas they didn't in the past.  Thanks for your comment!

 

Bob Mitchell

ValueList Real Estate Services,Inc.

Jul 07, 2008 09:03 AM #73
Rainer
3,702
Nakia Evans
Urban Living Realty LLC - Baltimore, MD
Baltimore MD, Flat Fee MLS Services & HUD Homes

I agree with Lenn's comment that you don't have to justify your fee whatever it may be.

Oct 24, 2008 05:46 AM #74
Rainer
155,621
R. B. "Bob" Mitchell - Loan Officer Raleigh/Durham
Bank of England (NMLS#418481) - Raleigh, NC
Bob Mitchell (NMLS#1046286)

Nakia:  In a perfect world I would agree with you.  But in my world customers question my fees on almost a daily basis.  Even though I'm a discounter, I have to compete with the "MLS Only" companies all the time.  In that situation I have to "justify" to that customer why I am more expensive.  It's not hard to do, but I have to do it.  Thanks for you comment.

 

Bob Mitchell

ValueList Real Estate Services, Inc.

Oct 24, 2008 08:59 AM #75
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Bob Mitchell (NMLS#1046286)
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