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When applying for a job (Listing)

By
Real Estate Agent with National Real Estate of Prescott

  As Realtor's we go in to many job interviews. Really every time we go on a listing appointment it is basically asking for a job. As we gain experience it is suppose to get easier. Does it. As the market has gotten tougher and there are more and more Realtor's do you find yourself giving up a little commission or taking a listing you know has very little chance of selling.

The commissionectomy  can be a very painful operation. It seems innocent enough.

Seller  "You can have my listing if you sell my house for 4%.  

Realtor  " Hell what do I have to lose, OK"  I mean 4% is better than nothing right.

Wrong let's see what happens. First you put the listing on the market with a 2% co-broke and your competition is at a 3% co-broke ( Realtor's are people to and if they can make $6,000 instead of $4,000 on a $200,000 home which one do you think they are going to show first.  Second, The seller probably wants to be above market price too. Now the Realtor's are using your home to sell the other homes like it. " Mr. buyer if you like this home for $220,000 you are going to just love this one at $200,000. Buyer's want a great deal. Third if you think the commissionectomy  is over at the listing interview you are sadly mistaken. When a contract does come in at the market price the seller is going to ask you for something else.  Count on it, closing cost a little help because they need to clear a certain dollar amount or drop your commission $500 and I will do the deal line.  Then you have to ask yourself on that $200,000 sale do I take the $3,500 commission I mean I worked really hard getting a contract on this home. I might not get another one.

Now I say this because the listing agent gave up a potential commission because they let the seller take control during the interview. They gave up commission before they even had a contract on a over priced listing. Have we done this? Probably 80-90% of us have. Why because inventory helps to keep the pipeline going.

How do we as Realtor's keep control. Here are a few tips. They may or may not work for you but have helped me in the past.

Do a good listing presentation with good comps and confidence in your abilities.

Take the listing if you really feel you have a chance to sell it.

Then work at selling it don't post and pray someone else brings a buyer, network with other Realtor's, hold an open house, Run an ad, list on internet site (  ACTIVE RAIN  )

Take control of the listing process and keep on track, The seller's don't care if you have outside accomplishments.

( This is hard for me )

Remember these lines at the beginning of the listing process. 

One of three things are going to happen here today.

1. You will decide to hire me to sell your house.

2. You will decide I am not the Realtor to sell your house.

3. I will decide to not list your house.

Here is an extra for the house that sells that first week. Now remember to say this just before your closing statement to the seller.

Mr. Seller just to let you know, If I sell your home in the first week, I won't ask you for a bonus. It just means that you and I agreed on a fair market value on your home and the home was ready to be shown. Thank you Mr. seller and I look forward to helping you take the next step in your life.

I hope this helps at least one Realtor out there, It was taught to me by a man I respect in both business and friendship. 

Comments (2)

Kaushik Sirkar
Call Realty, Inc. - Chandler, AZ
Good tips.  I do try to practice many of the items you list there.  It can be tricky navigating those waters during a listing presentation!
Mar 19, 2007 10:51 AM
Michael Krotchie
Tierra Antigua Realty, LLC - Tucson, AZ
Tucson Realtor, 520.261.MIKE
Ken thanks for the good advice.  As you mentioned oftentimes we must accept a commissionectomy (haha) to keep the flow going.  As I've never turned down a listing (yet), I'm curious as to how that situation turns out; do the customers generally accept the fact that you're walking away or do they concede the commission rate?
Apr 04, 2007 02:21 AM