Commission Bashing
I’m so sick of hearing it. Where there’s high risk, there’s high pay.
Every morning, I wake up unemployed. I have to figure out where my next paycheck is coming from.
When I list a property for sale, I take the risk. I pay for all of the upfront expenses. I recoup those expenses when and if the house sells. The seller signs the contract, the home may not actually be available for purchase for months while the house is prepared for sale. Then it goes on the market. I pay for the advertising, marketing, the sign, the flyers, the virtual tour, the website, etc. An offer comes in. I negotiate it. I fight for my client’s price. I fax. I copy. I drive back and forth. The house goes into contract. I manage the process. The buyer hires an inspector. The inspector finds something negative with the property. The negotiation starts again. Maybe the buyer and seller come to an agreement, maybe they don’t. Maybe I get paid, maybe I don’t.
It’s the same scenario when working with a buyer.
I’m not saying these things for empathy. I love my job and can’t imagine doing anything else. However, the risk I expend with my time and money is high; and therefore, so should the reward.
Are all Realtors good? Of course not. Is everyone at your place of employment good? No.
The lower the commission goes, the less interested professionals will be to engage in the work. Then most will be standing behind a Starbuck’s counter saying, “I can sell your house.”
Be a responsible consumer. Interview the agent you’re hiring. Go with your gut.
I feel your pain… you should check out my series on commissions….
http://www.agentscoreboard.com/blog/2007/06/13/the-commission-paradox-part-1/
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What you’re saying is your experience and expertise trump what your client can accomplish. It also trumps 90% of your competition.
You offer an easy choice via your value proposition. This is why I’ve been laughing for nearly four decades at the RE business models who continually try to give Mercedes performance at Yugo prices. They come, they go, they’re forgotten.
My all time favorite saying is what you’ve said between the lines – and it works both for you and your clients.
About the time the farmer got the old mare to work without eating – she died.
[...] Read on for a great piece from a new blog. ______________________________________________________________ Posted by Maureen Francis, Realtor, SKBK Sotheby’s, 248.961.0801 Search for homes in Oakland County ______________________________________________________________ [...]
Vicki, great post. I’ve referenced you! Thanks for writing my thoughts!
As the late great Bear Bryant would say, “Bingo, that’s a goodie!” Great post that expresses how all of us who are trying to make a living and a difference in this business feel. Jeff comments were right on as well.
What a great article – thanks so much for putting it out there and so well! “every morning I wake up unemployed”….a quote to remember.
[...] Vicki Moore busted onto the real estate blog scene in June but really hit the ‘blog stands’ with this gem titled “Commission Bashing.” Vicki became an instant hit- not because she defended commissions, but because she eloquently broke down the reality of what it means to be your every day agent (maybe about twenty stories or more above ‘average’). [...]
[...] I might be know affectionately as a smart a** except for the fact that I keep those comments to myself – thus the regular smile on my face. After a particularly long and annoying day, I let the big mouth out by posting Commission Bashing. Having that old tape running that I was too stupid to have an opinion and I should shut up, there was a little knot in my stomach. [...]
[...] Moore said it back in 2007 in her article, “Commission Bashing” better than I’ve heard almost anyone else defend the profession and you should commit [...]
[...] smile on my face. After a particularly long and annoying day, I let the big mouth out by posting Commission Bashing. Having that old tape running that I was too stupid to have an opinion and I should shut up, [...]