Comments on: What if Realtors® charged fees like other professionals?

By: TeamKlemm

TeamKlemm — Mon, 15 Sep 2008 02:58:27 +0000

Unfortunately, at least in the area I work, there aren’t enough Realtors who have the backbone to price a property at market value or seek a fair comission let alone have a minimum fee. Anytime I go head to head with other agents for a listing I ALWAYS have to battle the “Well, I had one Realtor say they would do it for 5% and another that would do it for 4%” arguement. Agents are so QUICK to cut their comission or over price a property just to get a sign in the yard and that house sits and sits and sits…..it is a DISSERVICE to the seller!! DUH! As much as I love the ideas in this post, I can’t see it happening……unless I just do it myself! lol! Sometimes I feel like I am the only one out there getting 6% and sticking to my guns when it comes to market value pricing anyway! Why not this too! Maybe I will start a trend! lol!
–Lisa

By: Elaine Reese

Elaine Reese — Sun, 14 Sep 2008 23:37:44 +0000

Tisha, I think you hit on a key point in that if most, but not all, agents charged an upfront retainer, then there would be those that would say that they don’t.

Perhaps, also if the clients had to Pay-as-you-Go, like a monthly fee, then they would be more likely to price the home realistically for a quicker sale. Or buyers wouldn’t ask to see 50 homes then decide that they will continue to rent. It’s a touchy subject but one that might change perceptions of what we do.

By: Tisha L.

Tisha L. — Sun, 14 Sep 2008 19:15:45 +0000

I know every Realtor wants to get paid upfront for their time. Any agent that tells you they don’t, they are not being realistic. Some of these agents are scared to admit online (where buyers and sellers can read it) that they are not reaping the best benefit from real estate. If majority of Realtors started this, you would have plenty that would love to promote themselves as a no upfront fee Realtor. Which makes the decision to charge up front hard to implement. People should pay for services initially and get a credit at closing. We have families that are depending on us to bring home the bacon. If we are waiting on some of these buyers that know they are wasting our time, our families pay the price. A buyer brokerage agreement doesn’t make them loyal either.

The same goes for sellers. They like to list knowing you will pay for the marketing of THEIR home. Just because we can write this off on taxes, doesn’t mean we are made out of money. Georgia contracts have made the seller aware that they may be charged for advertising paid for by the Realtor. Especially from terminating the contract early. I charge a fee of $500 to terminate a contract. I think this is a fair charge to take the listing off the market.

We all love what we do. We need to make being a Realtor just as significant to the community as lawyers and doctors.

By: Elaine Reese

Elaine Reese — Sat, 13 Sep 2008 12:09:24 +0000

Jon, good point on the billing operation. That would add further to our costs unless we ask for the check at the time services were performed. (home inspectors do this).

The relationship aspect of this job is what makes this industry unique. I truly enjoy the hugs at closing!

By: Jon Griffiith

Jon Griffiith — Sat, 13 Sep 2008 05:14:28 +0000

I think the point at which someone makes a commitment to cover the costs of chips at a restaurant could be debated.

Is it when they sit down, or is it after they order something? Here’s an interesting twist. What if you sat down with someone for dinner at that restaurant (you being a doctor, on call) and you were called away between the time you sat down and were served chips and when the waitress came to take your order. Would leaving constitute a breach of any unspoken contract? Probably not. Perhaps the restaurant might be peeved that they spent chips on you if they found out you picked up a quick bite on the way to the ER.

I personally wouldn’t want the added headache of billing. It’s enough to need a cost tracking system in place. The last thing I want is a collection issue. I am in this business to build long-term rewarding relationships who trade more than just a commodity.

Good points though. However, I think technology will never trump the need for face to face contact with clients. I love technology, but there’s something very personal about putting pen to paper and shaking their hand.

By: elainereese

elainereese — Tue, 13 May 2008 00:25:17 +0000

As we know, those chips aren’t free. Their cost is covered in the P&L price of the drinks and meals. There’s no such thing as a free lunch! Sorry, couldn’t resist.

I don’t think buyers or sellers should base their selection of a Realtor® on a mere CMA spreadsheet. Rather they should Google the agent’s name to verify the agent has a strong presence on the Internet (important to sellers) and they should talk to friends and co-workers to see who they used and how satisfied they were with the agent’s performance.

We do that type of research when selecting Dr’s and attorneys and it should be done for agents as well.