You are 100% right.

I am the owner of a flat fee realty in the republic of panama. We only sell condos in panama city.

Peolple love ou business models and we turned positive in 1 year.

Of course like any other company you have to be careful with the expenses of the company but its a proven model (look at redfin).

Best,

Sammy Wolcovinsky
panamaflatfeerealty.com
Panama Real Estate for a fee!

Here’s what I”m talking about: http://www.beneaththecover.com/2009/11/13/the-glass-ceiling/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+BeneathTheCover+(Beneath+the+Cover)&utm_content=Google+Reader

I see someone’s had their wheaties today… For the record I’m still waking up over here on the left coast – thought I’d roll around in my bed full of 6% listings… ha, are you kidding me?

Just so you know, I got into this biz because I too thought that Realtors weren’t worth 6% or even 1%… At the time, and as an investor, all I wanted was a “Supra key” and access to the local MLS so that I could bypass which ever side of the transaction I was planning to work on. In fact I even thought the commission splits within the Brokerage were such bull that I started my own company.

It wasn’t until I actually started doing the work, day in and out that I really appreciated the trade. In the course of my experience, I have been humbled by many a great realtor – and come to have quite the appreciation for the value of a good agent.

I like to think of our “debated” options as the equivalent of an oil change. Sure I could get under the hood and dirty; but for the same fractional price of taking your car to Jiffy Lube and getting the 110 inspection… I’d opt keep my hands clean and let someone else do it. Sure I’d still try to “cut a coupon” or drive in during a special – ie negotiate… Unless, you’re in it that skinny – to which you need a Short Sale expert.

Time is money – and sure you can educate yourself ad nauseam on the internet, but that isn’t like taking the training wheel’s off in the real world. Fortunately there are enough simple deals to make people feel good about their home depoe’ness – and to your stance, yes,.. A legitimate way to go when you’re surrounded by morons. lol

I’m just saying that there are many cases where the sales price is determined by the market – the final sales price is determined by the person running the deal. 6% is half courtesy to the other side, the ability to play poker lies in the cards you were delt. Look well at your cards before you deal… and take your intention out of the game if you can re: Seller’s & Brokers alike.

All the best to you – I know your gig works… So does mine and it’s not always 6. Doing things on your own is typical of our culture (I’ll leave it there)… Let’s not be hateful on people making money, it’s simply un-American

Peace… I gotta run to another 6% listing now.

You should wake up, respect, and not discount how smart today’s sellers are. Selling a home is not rocket science, nor does it require a license. Most folks that use our service are educated on the selling process (or have already been listed with an agent – didn’t sell) and they can negotiate a decent price on their own.

As you stated above, it’s the market [buyers market] that determine the sales price, so agent or no agent… it’s all about pricing and exposure.

Since the Seller is the one who negotiates the commissions; and for the most part (and in most parts) these are Short Sales &/or REO’s. Shouldn’t we ask one of our 3 remaining banks what they think?…

Personally, when working as a buyer’s agent – I love dealing with “educated” sellers who list with a discount fee agency or FSBO type site – Limited Rep etc… It’s almost as fun as a “moron” with a license. Trust me they would be better served with a competent realtor, 6% is nothing compared to what they are availing themselves to.

At the end of the day this is a business unlike a Subway shop… At Subway, even if you fork out fecal bacteria on every sandwich you will still have another sucker waiting in line. On the other hand, a realtor is a stand alone business system on their own. That person either sinks or swims… (unless you do everything for nothing) Market forces will determine, just like the final sales price.

In the end 6% is a lot for a moron. The next 60 minute’s article should be on how to detect one. If you hire the right person it might be the best 6% you ever spent.

The industry is not going to change anytime soon, but how we conduct ourselves and the service we provide our clients is something that each one of us can change.

Attorney’s don’t have a system set up to let anyone in either. A real estate license is simple to obtain. Membership to the associations and MLS is dirt cheap. There is no “bar” in the real estate industry to help raise the level of standard.

It costs more to open a subway sandwhich franchise and more financial credentials to sell subway sandwiches than it takes to get in the Real Estate biz.

Subway requires, good credit, a financial statement with substantial networth and in California a $250k investment just to open the doors. All that to probably net $150k annually for a huge commitment in payroll, leases etc.

A real estate license and membership to the MLS – your in under $1500 and your income is unlimited.

A real estate agent can ruin a person’s largest investment (their home), where the subway franchise guy might make someone sick on a sandwich.

Our industry has a long way to go before it can be put in a category near attorneys

For example: One instance I had a senior that had a house full of junk and it all needed to go in the dumpster, he had no extra money and the house needed to be cleaned out. We negotiated a different commission schedule, I ran the job on two Saturdays – a work crew or 4 and two 40 yard roll off containers later we were clean an ready to market the property.

Second example: Short Sales – the lender will ultimately determine what the agents are going to get paid 5%-4%, the listing agent then can make the decision if that is worthwhile to take on.

I don’t negotiate my fees. They are what they are, signup or move on.

In my neck of the woods, I don’t see closing attys varying their fees. But I DO see home inspectors and some other service providers charging more, based on a scale that takes into account the purchae price.

As for Nordstroms …. Many of the agents I know that claim they deserve some higher commission because they are better or offer a “Nordstroms” experience don’t do anything different than the rest of the herd.

Commission is what you negotiate, it is what you are willing to do the job for and nothing else. I offer all kinds of extras like full motion video …. does that mean I magically deserve 7%? No, I negotiate what I want to work for and what I am comfortable with – if the seller sees my value proposition then I get the job.

Whats interesting is that in some areas, where homes avg are 500k or more, six can seem like too much, but in other areas, it’s fine. I think the problem lies in the % model, and sellers may feel it’s unfair. After all there is not much difference between selling a 200k home and 500k home, so why is it so much more expensive to sell?

An attorney wouldn’t charge more for a closing, right?

What I charge is my clients business, and absolutely no one elses. Whether I charge 3%, 6%, $299 or a six pack doesn’t matter.

There is a place for multiple business models. Honestly I don’t give a rat’s ass if flat fee, discount, or full service models survive. I care about my model surviving.

Shopping at Nordstrom is a treat, an event, you are pampered, your hand is held and customer service is outstanding. Some, many, go to Nordstrom for the full experience. Some will avoid Wallmart to AVOID the experience, but some will go there to get the best deal.

There are solutions for every single person out there, from the ones who want to 100% FSBO (without even using a flat fee service at all) and there are some who prefer the Nordstorm’s experience (especially if they have lunch at the cafe).

This is not a one size fits all business and we don’t need to try and make it one. What we can do is make sure WHATEVER service we provide and whatever model we select to use is provide the best service to our clients for that model. We don’t need to defend which model we select, we work with one that resonates most with our own desires, plans and client base.

are you serious? you work and interact with agents all day long, do you see any of them doing “less work”? or was this just to bait us for a lively conversation?

with inventory levels at ridiculous highs, listing agents have to work like monsters to make their listings stand out (less work?)… with buyers wanting “a deal”, buyer agents are going nuts (less work?)… with short sales being the story of the day, everyone is working for months on end (and often at a reduced commission in the end) (less work?)… with banks only wanting to lend to the Queen of England and appraisers running a-muck (less work?)…

A question like that could have possibly been timely and valid in 2007 or before, but 2009? I felt like I entered a time-warp when I read that. (yes I know the “fact” was questioned in the blog post, but come on..)

I don’t know a single agent who is still a full time agent who has done “less work” for several years now. I see dedicated, educated, hardworking, passionate and professional agents and brokers still making a full time living in real estate, but “less work” is not what I see.

If you know of someone who is, let me know, I’ll go copy them.

1. 6% of what is too much? Real estate is local. Maybe in certain areas where the average sale is $500K it is too much. In October 09 here in Ocala FL 337 houses sold on the MLS and 199 were below $100K!!!

2. In another life I was a commercial landscape contractor and bid on maintenance contracts in the $30,000- to $100,000- range. Contracts were won or lost by 5-10%. Was it price fixing? No, it was that companies large enough to do multiple jobs like that all had similar over head.