Book Excerpts

I will post here some brief excerpts from my book, "Read This Book; if You Plan to Stay in Real Estate"

Please feel free to comment and add yout thoughts.

Changing the Consumer's Mindset and Our Own Business Plan

The traditional "contingent" model places all of the risk of sale in the hands of the listing broker. If the property does not sell, then the broker does not get paid - regardless of whether the broker has invested significant time and money in an effort to sell the home. The outcome is almost entirely beyond the control of the broker.

Consumers believe that we sell every listing we get and we get every listing we seek. Nothing could be further from reality. While it is true that in certain markets, such as the one seen in the first half of the 2000's, listings sold with little effort in many market areas. "Get a listing-get a check." Remember? I can testify, however, that even in such heady times there were plenty of listings that didn't sell or sold after many marketing dollars were invested. Also, competition was stiff and commissions were the first thing to be reduced in the competitive arena. So, agents did not get every listing they tried to get and not every listing sold. Magnify that in a down, or even a buyer's market. Agents invest much time, talent and money in getting listings and getting them sold. Many listings in this market expire - leaving the agent holding the bag for the investment.

In the traditional model, all of the risk of sale or no sale is shouldered by the broker. This forces the broker to charge typically high fees for those transactions that actually do close. They must make up their investment on the clients whose trust in them leads to a sale. This is true with most contingent fee arrangements - including attorney fees.

In contrast, the consultant is paid for services rendered whether or not there is a close of escrow. The risk is either shifted to the client or shared between the client and the consultant. As a result, the consultant can and usually does charge a much reduced fee in recognition of the reduced risk.

What If The Client Just Needs Help?

There are many instances where the real estate consumer might need a skilled professional's assistance outside a sale or purchase: