Just say no to brokers' 50% cut
Letters to the Editor
By Inman News, Friday, March 6, 2009.Re: 'What would Starbucks do?' (March 5)
Dear Editor:
I have another view. Agents are customers of the broker/company. A customer is someone who brings income to the company and has a choice to go somewhere else for service or product. Why are agents not shopping around for a "better deal"?
The days of the 50 percent broker should be over by now. It's time for agents to find a company that will give them the same or better service at a better price.
The fact is a lot of consumers and agents pay for "comfort." I think McDonald's coffee is just as good or better than Starbucks. But, people will continue to go to Starbucks because they are comfortable and don't want to change.
Today there are thousands of agents getting a commission check, and the company is taking 50 percent or more of their hard-earned money. Why? Because they don't like -- or are scared of -- change.
Tony Geraci
Broker
Century 21 HomeStar
Cleveland, Ohio
Dear Editor:
I am signing eight listings this week with healthy commissions because my clients see the value I bring to the table. One of them bargained with me and then upped it himself when he understood the full value of my services as compared to others.
It is hard enough these days for so many, as less sales equals less income. I say, fight hard and show them what you are worth. They need us more than ever before!!!
Victoria Lorusso
Keller Williams
Stamford, Conn.
***
What's your opinion? Leave your comments below or send a letter to the editor.
All rights reserved. This content may not be used or reproduced in any manner whatsoever, in part or in whole, without written permission of Inman News. Use of this content without permission is a violation of federal copyright law.
You must login or register to post a comment.
Submitted by Stacey Robertson on March 6, 2009 - 2:23pm.
There are plenty of discount brokers available, including the one I work for.
I pay $599 per purchase deal, plus $500 if I use his purchase coordinater, and a small legal review fee. I also pay $100 per quarter for my membership fee, which is the limit of my participation. This, plus I have access to lending channels as well, so when I can, I usually end up netting 100% of the commission!
Great for part-timers too, as you don't have to worry about quotas.
That's how I do it, in California.
Interested? www.compasshomerealty.com for more information, or call Marco Baljeu, 949-275-5552.
Stacey Robertson
Compass Real Estate
Submitted by John Rakoci on March 6, 2009 - 2:34pm.
My company consolidated offices. Those with a history received several offers with the question - "if you are going to move a few miles why not consider us?". I received a much better deal in percentage AND zero office fees.I have always looked around every couple years, if for no other reason than a bargaining chip to be used during the annual meeting with the BIC.
Submitted by Dave "Utah Dave" Robison on March 6, 2009 - 3:39pm.
The day of the discount broker is over. When you dont have value nor know how to communicate it....you compete on price. When you compete on price..you are a commodity. When you are a commodity..you have nothing special.
When you have something special...people see value and pay for value.
Agents who ask Brokers what their split is upfront are just like for sale by owners that ask agents what their split is.
Agents that complain for sale by owners dont pay them what they are worth are the same agents that complain their brokers cuts are bad.
You can either complain about your split...or you can know that your split doesnt affect your income. You can either complain fsbos dont pay you what you are worth or you can learn to show value and not be a commodity.
Real value is when you know that a lower split could actually mean more money in your pocket. If you dont understand this, you might be the fsbo asking the agent what their fee is before they chose an agent. We all know that chosing an agent based on split means making a bad decision. Doing the same with your broker is also a bad decision.
Raise from the commoditization of the market and become valuable.
Your Friend,
Utah Dave
http://www.Kahunarainmaking.com
http://www.UtahDave.com
Submitted by Ruthmarie Hicks on March 6, 2009 - 7:27pm.
It depends on the brokerage. If the brokerage is offering (and making good) on providing real LEADS - and support for your listings then a high split is fair. But if they are nickeling and diming for things like paper clips, pens, pencils, have high E & O fees refuse to help advertise listings beyond a very paltry amount, provide only "token" leads and then have the nerve to charge a franchise fee on TOP of the 50:50 split - then I say vote with your feet and walk.
Like the consumer who doesn't like it when we charge a lot of money, it doesn't MATTER what their overhead is. The consumer doesn't CARE what our broker takes from us or how much it costs for us to run our business. They want results. Agents should feel the same way about brokerages. After all, a lot of our client's money ends up there - so we need to care. What matters is what the brokerage offers for such a high take on their end. If they are offering virtually NOTHING - then don't work there.
Submitted by Richard Stabile Bergen County Real Estate on March 7, 2009 - 3:02pm.
REMAX has been about this for over 30 years. REMAX has forced an increase of agent commissions in traditional companies for a long time. Traditional companies have raised commissions and benefits to their agents to retain them.
An agents cost to operate is quantifiable. More agents should figure it out. Many have and either moved to REMAX or have negotiated a better deal for themselves where they were.
Richard
http://newhomesbyrichard.com
Submitted by Bill Fooks on March 9, 2009 - 3:12am.
Bill Fooks
TFT realty Marketing Service
Warwick, RI http://www.fooksteam.com
Commissions splits with the company are just a negotiable as they are with clients. Sit down and figure your value and see where you go.
It should be reviewed in this manor. What you bring to the table. What the company can bring to the table to serve your clients better.When you analize these two areas see if what you are paying in desk cost (The share the company takes),meets the value expectations of you and your clients.
Submitted by Scott Farrell on March 9, 2009 - 4:57am.
We are all capitalists. If you want a certain level of service (including training, BIC support, marketing, administrativie, IT, type of office enviornment, etc.) each agent needs to run their business. I alsways hear the argument that why do I have to pay for something I don't want, you don't. Find a company that works for you.