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									How You Can Win The Commission Game
                       Blanche Evans,
                       Editor, Realty Times
Agent Commissions
The open door to competition:


       1
                     MLS
The open door to competition:


       2
                     MLS

                     Lack of brokerage training,
                     standards, non-agency,
                     transparency
The open door to competition:


       3
                     MLS

                     Lack of brokerage training,
                     standards, non-agency, transparency

                     Referral fees
The open door to competition:


       4
                     MLS

                     Lack of brokerage training,
                     standards, non-agency, transparency

                     Referral fees

                     Rebates to buyers
The open door to competition:


       5
                     MLS

                     Lack of brokerage training,
                     standards, non-agency, transparency

                     Referral fees

                     Rebates to buyers

                     Ancillary services like
                     mortgages, title
The open door to competition:


       6
                     MLS

                     Lack of brokerage training,
                     standards, non-agency, transparency

                     Referral fees

                     Rebates to buyers

                      Ancillary services like
                      mortgages, title

                      Internet advertising
:
:
Banks against the real estate industry




                                         The OCC issued a rule to exempt
                                         national banks from state
                                         oversight. NAR asks Supreme
                                         Court to overturn it.

                                         The “Fair Choice and
                                         Competition in Real Estate Act”

                                         HUD and the single-package
                                         closing
                                        The government against the real estate industry




President Bush appointed a Tax Reform
Panel

The DOJ filed suit against the N.A.R.

The DOJ is threatening suits against
15 MLSs

The DOJ and FTC have importuned
states not to pass minimum service
rules
Third-party service providers against the
real estate industry


    Have received                   Forsalebyowner.com
                                   over $1 million to track
               violators down
                    ISoldMyHouse.com

                                     Zillow.com

Consumer Groups against the real estate industry

      A mortgage bank subsidiary, doesn’t
           Consumer Federation Of America
                                  sell real estate.
        need a license toGrassroots Alliance and the
           American Homeowners
                 American Homeowners Foundation

                 Fair Housing entities
Realtors are bad

                   Everybody gets what they want

                                 Banks get into real estate = no state licensing

                                 Fed rewards banks with single package closing

                                 Banks under Fed control, add transfer tax to HUD1

                                 Third-parties get into MLS, serve desperate agents

                                 Consumers can buy real estate for less money

                                 Consumer groups collect donations, fees




                          =       No Pesky Lobbyists
Support your local, state, national associations.


Call the media to task.


Write and call advertisers in the media.


Bring buyers back.


Raise your own standards.


Ask for training.
Market to your sphere.


Listen to complaints about the industry.


Don’t avoid agency if that is what
your client wants.

Develop expertise in rentals.


Become developers.


Skate to where the puck is going to be.
Learn about new housing models.


Learn to work foreclosures.


Develop niches.


Develop a make-ready team.


Stop paying 35 percent referral fees to
third-party vendors.

Don’t lose hope.
Learn effective responses to commission-cutting
requests.
Americans are bombarded by 3000 marketing messages a day.
       Cutting the commissions, Jane Bryant Quinn, Newsweek
Discount means cheaper labor


    American Airlines – no frills, no thrills


            First Class is always full



                      Let’s call a spade a spade
MLS-entry only
Fee for service
Discount brokerage
Non-agency-
transactional brokerage
“Of course, you
save money.
You’re taking
more risk.”
Outline your services
Outline your services


       Explain how Realtors mitigate risk.


       Explain that commissions are paid on the back end of a transaction


       Money is risk


       Don’t be afraid to confront.


       Explain about rebates, referrals.
On a 30 Yr. Fixed Rate Loan At 6.75 percent:




      Loan Amount        Payment                         Balance after 5 yrs
              $100,000              $648/mo                                   $93,755
              $98,875               $641/mo                                   $92,700
              $98,000               $635/mo                                   $91,880




                               Calculations courtesy of David Reed, author of Mortgages 101, Amacom
Numbers.

Reasons.

Explanations.

Examples.
Know your negotiating strengths
.
Save your commission with two new techniques




    1. Confrontation
    2. Marketing Loan - You VS. Bank

								
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