| Steve Horrillo 2005-07-05, 6:25 pm |
| I keep the article below in my presentation book to show how the seller is
impairing the sale of their home by getting the Agent to discount their
commission. It's fine to discount YOUR OWN SIDE. The problems begin when
they underpay the Buyer's Agent. Most sellers don't know to ask what the
split is so they're an easy target for Discount Brokers. Someone gave my a
copy of their Home Discovere Realty contract. It's a real hoot. It even
states in all caps on their 2% commission option, "THE AMOUNT OF COMMISSION
OFFERED TO THE COOPERATING BROKER IS $202. THIS CAN AFFECT THE EXTENT TO
WHICH YOUR ROPERTY IS EXPOSED TO POTENTIAL BUYERS REPRESENTED BY OTHER
BROKERAGE FIRMS." On top of that the seller must use their title company,
screen all potential buyers through them so they can make money on the loan,
and they must buy a $389 home warranty for the buyer. Then there's the 4%
plan which gives a 2%/2% split. Or you can at any time switch to their 7%
plan whereby they get 3.5% and the Buyer's Agent gets 3.5%. All listings
must be a minimum of 6 months.
I especially like the article from Money titled "Feds Probe Real Estate
Agents.
"For Smith, the Feds' investigation comes a year or so too late. His realty
business on the brink of ruin, Smith recently abandoned discount brokerage
and went back to charging 6 percent. "In one week," Smith said, "I've had
more showings and more offers from other realtors than I had in the previous
two months." The full article is at
http://money.cnn.com/2005/04/22/rea...state/index.htm
***"In one week," Smith said, "I've had more showings and more offers from
other realtors than I had in the previous two months."***
--
Warmest regards,
Steve Horrillo, Realtor / C.Ht.
http://BrokerAgentTraining.com (MLXchange & Computer Training for Real
Estate Professionals)
http://over100percent.com (Realtors Earn Over 100 Percent at EXIT Realty)
http:/HipFSBO.com (Object to Paying Commission? Find a FSBO Friendly Real
Estate Professional)
http://eLOWn.com ("Got a heartbeat?" Get a loan! Credit Repair Library)
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