re: Commissions at Risk - Questions or Feedback

Posted by Randy & Nancy Selby at 9:12 AM, Aug. 1, 2006

We have yet to run into anyone who has listed their home with byowner and sold their home. They are just out thousands in upfront fees.

re: Commissions at Risk - Questions or Feedback

Posted by Danielle Babb at 11:09 AM, Sep. 6, 2006

With regard to Selbyteam's message that noted they haven't seen anyone who successfully listed their home online and sold it - well, I have.. and my husband has! Two homes within 3 months of one another, and we were successful AND saved 6% in agent fees. We actually got top dollar for our homes, priced them using Internet tools, and have monitored the market readily since. :) I personally know dozens of people who have done the same thing. If you check out this last weekends' New York Times Business Front page, there's a great article on exactly this topic. The potential disintermediation of the real estate agent. We're not suggesting it will happen tomorrow or in all markets, but in some markets and over time - much like the travel agent!

re: Commissions at Risk - Questions or Feedback

Posted by Robert King at 9:02 PM, Sep. 19, 2006

If the seller saved the commission did the buyer keep the commission or were they so dumb as to be willing to give it to the seller to pocket knowning the seller didn't have to give it to an agent? I find it very difficult to think anybody can save a commission other than the preson spending money.  When was the last time you went to a closing and the seller got his check book out?  Never, that's why sellers hire Realtors.  Buyer's come to Realtors to find them a home thinking that the seller is paying for the commission, after all the closing statement says the seller is paying for it, right?  But the question you have to ask yourself is this, where does the money come from.  It comes from the equity of the sellers AFTER the seller accepts the offer!  There is NO equity until the buyer presents an offer the seller can't refuse.  It's always the buyer who needs to beware what he is spending, not the seller.  For the seller it's all about net dollars and the way to get the most for the least after expenses.  For the buyer it's all about the price plus any additional costs.  Seller's expenses are always Subtracted from the consideration and the Buyer's expenses are always an Addition to the consideration.  All the seller is asking us to do, is bring a ready willing and able buyer with an acceptable offer.  The commission is the amount of money the seller is willing to give out of their equity for an acceptable offer.  The buyers money is what determines the final outcome and it is the source of all expenses on both sides of the aisle on the day of closing.  Everybody is working for the money and I'm greatful for every agent who brings a buyer to one of my listings.  That's why I always pay a most handsome compensation package to the selling agent.  Why sell somebodies discounted compensation package when you can sell mine and in most cases double your net.  If a buyers agent wants to give back a portion of his commission to their customer is perfectly ok with me and my sellers.  The commission we agree to pay is for the services of a buyer's agent.  As far as FSBOs are concerned they are just marketing in the "other market".  There are only 2 markets, the "professional market" where the seller hires a representative to bring a buyer from the MLS pool. Or the "amature market" where the the seller chooses some other form of advertising to attract a buyer to save the commission the buyer is paying for.  Just don't tell that to the buyer, he may not be aware of that fact.  The buyer on the other hand has to decide do they want to work with a professional or would they be better off cutting their own deal.  It can be confusing but when you follow the money it all makes since in the end, after all, are we not all looking at the same statistics.  The only difference is the desire and want that the buyer and seller agree to come to terms with.  Nobody puts a gun to anybodies head to buy or sell.  Everybody needs to protect their best interest whether it's the deed or the money or the representation the customers want. Robert King, mailto:rlking@sprintmail.com Charles Rutenberg Realtors, Broker / Consultant and real estate trainer.  Clearwater, FL

re: Commissions at Risk - Questions or Feedback

Posted by Dani Babb at 5:35 PM, Sep. 23, 2006

I understand what you are saying, but if the seller can sell his/her home for $600k and pay 6% or pay 3%, which will they choose? Sometimes this results in the seller being willing to come down a bit on price, but from my experience, they don't have to come down so much as to eat up their entire 3% savings. When I list by owner, I also offer a hefty compensation package to the buyers' agent, even as a FSBO person. Simply because I want agents to bring their buyers to me. But, even paying 3.25% is less than paying 5% or more when I use an agent, and I can be a little more flexible with price allowing me to sell my home more quickly. What do you think?

re: Commissions at Risk - Questions or Feedback

Posted by Maureen McCabe at 10:09 AM, Oct. 7, 2006

Congratulations on writing your book.  Good luck with selling it.  I hope you are wildly successful. I have an RT Blog.  This morning in my office email I got spam re: your book.  My spam filter caught the spam email for what it is but I did open it to see.what it says.  I did not sign up for email regarding the real estate industry, commissions or technology on any of my email addresses, although the spam email below says I did.  I hope other RTBlogs will not start spamming one another, especially the vendor blogs. In my experience so far they have not spammed.     "Good morning!You are receiving this email because you expressed interest in materials related to the real estate industry, in particular, commissions
technology & your business. I am the author of the book Commissions at Risk and I am sending this email to let you know of my book release and web site. The book, available through Barnes & Noble and Amazon at www.commissions-at-risk.com, explains to real estate professionals how to compete in the world of technology where buyers and sellers can connect directly. Commissions at Risk provides real estate professionals with a look at the technology about to be released that will change their business forever; and the ways in which a real estate professional can modify his or her business to adapt to the technology about to hit the mainstream. Real estate professionals are already competing with low cost and flat fee brokers in the new Internet marketplace.Commissions at Risk explains to real estate agents, mortgage brokers and other experts' what will be needed to survive in a world about to be turned upside down by significant advances in technology and newly introduced standards that most are unaware of, including low cost and flat fee agents and brokers. Real Estate Professionals have done well adapting to technology that enabled their business; however the new breed of technologies being deployed will change all of this. No longer will the technology be focused on how to help real estate professionals conduct business more efficiently and with better customer service, but rather it will directly compete with the real estate agents and mortgage brokers. No book on the market today educates real estate professionals on technology that is about to enter the online world, the turf war between traditional and Internet-based models, and the drastic shift occurring online. We can expect to see an entirely web-based model where consumers can buy and sell real estate completely online. Mortgage brokers are in a similar situation; new technology promises to replace them entirely with complete online loan services. Changes will impact nearly 4 million professionals if they do not get their business plan ready for the next wave of technology. Commissions at Risk gives the real estate professional step by step advice on how to be prepared for the coming changes and helps consumers understand technology that will help them make the most of their business. Please check out my web site!Sincerely,Dr. Babb                         Commissions-at-Risk.biz26741 Portola Parkway #1E445 - Foothill Ranch, CA 92660 US     "    Again best of luck with the book.... just don't send me any spam about it.  I did not sign up for it and I find it offensive to get spam saying it is something I signed up for.     

re: Commissions at Risk - Questions or Feedback

Posted by Dani Babb at 5:42 PM, Oct. 7, 2006

Hi Maureen, I wanted to address your concern regarding the spam. My apologies; the system I am using was supposed to let people know they may be interested, not that they signed up for it. I find it offensive when advertisers do that too and know where you are coming from. Also, I did not get your email address from the blog, although I have visited your blog. There are several companies out there offering this information and it has nothing to do with the blogs. :) That said, I'll continue to check your site out; while I haven't invested in your area much and don't know much about the Columbus market, it's always interesting to see what others are doing and where differing opinions or advice from a techie may be appropriate. I look forward to reading your site more often and thanks for the message. Sincerely, Dani

re: Commissions at Risk - Questions or Feedback

Posted by Diane Faulkner at 12:36 PM, Mar. 22, 2007

Incredibly insightful.  I was so pleased to find a resource that so completely reflects the movement of the real estate industry. 

Changes are under way, and in Florida, the agencies are far, far behind and populated with brokers and agents reluctant to update skills, let alone change. 

As a new agent, who will soon sit for her broker's exam, this book inspired me to make the commitment to get on-line by the end of the month...and I will be. 

While I see this book as forward-thinking, I can only guess at the venom that will be spewed by those too entrenched in strategies that have worked in the past.  I feel for Dr. Dani on that end, and hope that she overcomes to continue to guide Realtors and agents into the technological future.

re: Commissions at Risk - Questions or Feedback

Posted by Dani at 12:08 AM, Mar. 30, 2007

Hi Diane.. thanks for the comments. Oh I sure do get beat up sometimes but that is okay.. in a few years when people are saying "darn that woman was right" and agents start taking the advice, it will be all worth it. :)

re: Commissions at Risk - Questions or Feedback

Posted by Albuquerque real estate at 2:14 PM, Jul. 27, 2007

@ selbyteam: That is truly shocking! I never would have guessed that. Thanks for passing that along.