Wednesday, January 2, 2013

Brokers are not Loyal to their Loyal Agents.

The last few years, 2008 - 2012, were more than challenging to most real estate agents.  The industry went through the toughest period in 70 years.  Agents that survived it worked harder and spent more on marketing in their brokers name just to stay afloat.  And how were they rewarded?  They weren't!  Instead of brokers holding a meeting and saying "Hey folks, the worst is over and we'll finally see a good increase in business.  You worked really hard in the last few years and to reward you I'm not bringing on any new people so that you can enjoy the big upturn.  It's only fair since you were so loyal  and worked so hard."

NOT!

Brokers are slapping their long time producers in the face, as they always do, by keeping that "Now Interviewing" banner waiving out front.  After painful years of hard work there is no reward.  This industry has long reminded me of the old Roman Coliseum  where the broker (Emperor) sits on his or her perch and brings in more and more agents (the Gladiators) to let everyone, even the loyalist, fight for survival.

Traditional real estate is an awful way of life.  Open your mind and see how it's different at Help-U-Sell.

Traditional Brokers are Getting Squeezed

It isn't easy being a traditional broker these days.  The onset of the 100% concept as seen by ReMax and Realty Executives presents many brokers with a tough choice.  They either have to watch their heavy producers walk out the door or start paying much higher commission rates to them.  Back in the day when brokerage income was split evenly there was some breathing room but not any more with payouts averaging abut 70%.  A few months ago a gentleman I have known since he was about 5 years old became licensed and came in for an interview.  Things went well and we made an appointment for a 2nd interview 3 days later.  When he came back, he said he received a lot of mail and made a few calls and that the Century 21 office down the street would start him at 65%.  The ink was barely dry on his license and someone was offering him 65%.  Absolutely Insane!!  When will brokers gather the courage to take their businesses back?  Talk about the inmates running the asylum.


Monday, December 10, 2012

Percentage Commissions don't make sense

No matter how you slice it there is no way percentage commissions make sense.  Sellers in Lanoka Harbor, Forked River and surrounding towns in southern Ocean County can avoid high commissions.  Here is an example of why the Help-U-Sell set fee system eases the pain for home sellers:

The vast majority of home sold in this area, excluding Seaside Heights and Long Beach Island, sell for between $150,000 and $450,000.  Now lets look at a $150,000 seller, a $300,000 seller and a $450,000 seller.  At any given percentage seller #2 pays DOUBLE what seller #1 pays and poor seller #3 pays an astounding TRIPLE!! for essentially the same service.  That's crazy!  Now, does reducing the commission percentage help?  No.  Let me show you.

$150,000 x 5% = $7,500 commission

$300,000 x 4% = $12,000 commission

$450,000 x 3% (if you could find it) is still $13,500 in commissions.

So lowering the percentage does not help!  Percentage real estate commissions are totally unfair.  There is no relationship between the amount of commissions paid and the value of services rendered.  The sale of the $450,000 house is the same as the $150,000 house.  If you took and Chevy and a Lincoln to the car wash you pay the same because the car was is the same.  Does your doctor or dentist ask how much you make before quoting the cost of a procedure?  Of course not -- it makes no sense.  And neither does percentage based real estate commissions.

The Help-U-Sell set fee system has saved sellers over TWO BILLION dollars in unnecessary commissions all across our country since 1976.  Why not you?  Selling through Help-U-Sell is like buying a Pick 5 Lottery ticket and knowing your the winner when you buy it.  Why not cash in now?  (In NJ all commissions are negotiable.  Bay Beach Realty is an individually owned and operated member of the Help-U-Sell franchise system)