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Old 10-16-2007, 08:52 AM
 
Location: 89121
413 posts, read 1,396,087 times
Reputation: 336

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We've been through two realtors covering 9 months with no success. Our first realtor had a 6 month contract and the second a three month contract. Very little in the way of showings and needless to say no offers. BOTH realtors felt that the property was priced correctly. In both cases the realtors would refuse to advertise in major metropolitan areas. We feel that this is due to the expense.
The last listing has expired but we were happy with her and her office. She is also the one who sold us the property. This is what we would like to do:
We would re-list with her for a 3 month listing. We would NOT want the property inserted into the MLS due to the market cancer that the property has. This would be her little listing that no other agent would know about althoug other agents in the county knew that the property was for sale. We are fully aware of the lack of exposure this would cause but we also feel that the detriments of market cancer are worse than no direct exposure on the MLS.
We would advertise in the major metro areas at our own expense.
We would also put the property on FSBO sites and Craig's List. The agents SOLE responsibity would be to show the property as we are 2500 miles away and prepare any documents that need to be prepared.
The commission schedule would look like this:
4% if she brings in the buyer directly
6% if she has to co-broke with another agent.
3% if we bring in the buyer directly.
Remember, she is spending NOTHING out-of-pocket for advertising.
Your thoughts ?
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Old 10-16-2007, 09:30 AM
 
Location: New Mexico
631 posts, read 2,106,380 times
Reputation: 325
Quote:
Originally Posted by NYtoVT View Post
The commission schedule would look like this:
4% if she brings in the buyer directly
6% if she has to co-broke with another agent.
3% if we bring in the buyer directly.
Remember, she is spending NOTHING out-of-pocket for advertising.
Your thoughts ?
I think if the rate is based on 6%,
6% if she brings the buyer directly
6% if she has to co-broke with another agent
4% if you find the buyer

A thought comes to mind. Who will qualify the callers for a showing? You or her? I would not want to show anyone property unless I got to work with them from the start. If you had an interested party, I would agree to you telling them to call me for details. I would not agree to you sending me a blind appointment for a showing.
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Old 10-16-2007, 09:39 AM
 
Location: 89121
413 posts, read 1,396,087 times
Reputation: 336
I guess I don't get it. Why should the broker get the FULL 6% with no money out-of-pocket ?.
Any leads that we generate will be referred to her. 4% of $420k is not bad.
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Old 10-16-2007, 10:02 AM
 
Location: New Mexico
631 posts, read 2,106,380 times
Reputation: 325
If she finds the buyer directly why not?
Who says no money out of pocket? It might not have directed
towards your property, but the whole entire being in business,
the cost of doing business, the cost of finding buyers, staying in business,
the buyer was spent on you instead of perhaps what they initially called about.
I advertise what makes the phones ring. Not all my listings. They all help eachother for exposure.

The 420K makes for a pretty hefty commission at any rate.
I was agreeing that if you found the buyer, then no to a full price commission. But I did bump it up a percent thinking of brokerage takes and she's doing the work to get the deal done and turn your lead into a buyer.
I'm sure there is no magic number for a rate. I was basing the opinion on the 6% rate you seem to have suggested. At 420K, you send a buyer, yeah, I'd do it for 3%.

Probably the most disagreed is if she finds the buyer, then she should be paid the full price.
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Old 10-16-2007, 11:09 AM
 
Location: Cape Cod
1,038 posts, read 3,473,432 times
Reputation: 435
What kind of advertising in "Major Metropolitan Areas"? Curious.
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Old 10-16-2007, 12:36 PM
 
Location: 89121
413 posts, read 1,396,087 times
Reputation: 336
Quote:
Originally Posted by capecodcathy View Post
What kind of advertising in "Major Metropolitan Areas"? Curious.

Property is in a relatively rural area of Vermont so local advertising isn't going to do it. Two brokers spent 9 months advertising locally with NOTHING. I had in mind the Boston Globe, Boston Herald, NY Times, Wall Street Journal. Advertising costs here would run about 5-6k. Local brokers aren't going to spend that kind of money.

"Who says no money out of pocket? It might not have directed
towards your property, but the whole entire being in business,
the cost of doing business, the cost of finding buyers, staying in business,"

Here we go again. Brokerage costs, staying-in-business costs, etc are NOT my problem.
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Old 10-16-2007, 01:12 PM
 
Location: Union County, NC
1,889 posts, read 5,453,346 times
Reputation: 739
Just curious, is it on realtor.com?
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Old 10-16-2007, 01:15 PM
 
Location: 89121
413 posts, read 1,396,087 times
Reputation: 336
Nope. I thought that site was for realtors only. Aren't there insertion fees for that site also ?
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Old 10-16-2007, 01:24 PM
 
Location: New Mexico
631 posts, read 2,106,380 times
Reputation: 325
Of course it's not your problem.
It's a tit for tat. Not going down that road with you.

I wonder why if she lists it, finds her own buyer, and sells it,
why you would not agree to pay whatever the buyer/seller commisson rate is?

I'm going to pay you 6% commission if you spend lots of money
to sell my property.
But if you sell it and it didn't cost you much to do it I'm only going to pay you 1/2.
I am lost on that one.
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Old 10-16-2007, 01:55 PM
 
Location: 89121
413 posts, read 1,396,087 times
Reputation: 336
Some confusion maybe ?. She is NOT, I repeat NOT going to list it. There will be NO MLS llisting. No Realtor.com. NOTHING.
She would keep it as a "private" listing. If she had a client that was interested in the type of property we had, she could show it and receive the agreed upon commission.
BTW, on the recently expired listing agreement, she was going to get 5% if she brought in the buyer. 6% on a co-broke.
Another thing. We recently held a 5-day auction on the property. It did not result in a sale but we had over 70 phone calls in 2 weeks of advertising in the major metro areas and over 200 people through the property on the Saturday and Sunday of the auction. For a property in Vermont, we had calls from CA,WI,PA,VA,FL,NY,CT,NJ and ME. All the advertising was print media.
Why can't local brokers do the same thing ?. Because it costs money, that's why. At least in my area of VT, brokers can't think outside the box. In this market, one has to spend money to make money. The broker will always tell you, lower the price, offer owner financing, cook the buyers dinner, home warranties. Always concessions by the seller. Do they ever reduce their commission rate. Not very likely.
I would be more than happy to pay her a 6% commission if she would spend the money in proven markets.

On the commission structure:
4% if she brings in a buyer direct (not half)
6% if she co-brokes
3% if we bring in the buyer.

Last edited by NYtoVT; 10-16-2007 at 02:36 PM..
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