Monthly Archives: May 2008

You get what you pay for…

Rona, maybe it’s not a question of what qualities sellers are looking for, but a question about how they are compensating their listing agent.

How motivated would the average person be to work on their own jobs if they had not been paid in 203 days, 251 days, or 716 days — the listing periods mentioned for three of the four condos described above?

Maybe the deteriorating customer service you describe will begin a discussion about how to compensation agents — whether buyer agent, seller agent, or  non-agents — to best serve their respective clients. 

More than a decade ago, the former chief economist of the National Association of Realtors predicted that:

"The next major revolution in real estate will be fee-based services replacing the blanket commission pricing that has dominated the industry for so long."

Do you think consumers would get better service if they compensated their agent by the hour, instead of commissions paid at the closing table?  (Before you answer  that question, consider this fact:  there were nearly 30,00 expired and canceled listing in the last three months of 2008 alone, which means that a lot of listing agents effectively volunteered to work on overprice listings.)

Posted in Uncategorized

How can we improve our money-saving Menu of Fees & Rebates?

Menurebates_v1It’s been more than a year since we updated our Menu of Fees & Rebates, so we’d like to invite home buyers to meet in person to discuss possible improvements.  Our current options are shown above (click on arrowheads in outline for more detail) and on our wiki.

  • We offer three basic options:  traditional commissions with limited rebates, hourly fees with full rebates, and flat fees with performance bonuses
  • Our most popular options include a 100% rebate of the buyer agency commission included in the sales price. 
  • Our hourly fees range from $75 to $125 per hour depending on the size of retainer prepaid (or $150 per hour with no retainer or minimum fee).
  • Limited availability:  Flat fees start at $3,000 plus performance bonus.  Each performance bonus is negotiated individually to motivate us to help you maximize saving (see map of savings totaling over $1 million).
  • We’re also willing to work with a few buyers on a 1% fee option, some restrictions apply.
  • Finally, you can propose your own fee / rebate, particularly if you are selling "for sale by owner" and would like us to represent you as a buyer.  That way you can maximize savings both buying and selling.

Our ideal is a mix of fees — hourly, flat fees, and traditional.  If you select option 3.3 and prepaid $3,000 in the next few days, we’ll cut our hourly rate by 50% for the first 40 hours.  We’re pushing this special offer so we can attend the National Association of Realtors mid-year convention next week to identify the best new money-saving tools and trends for home buyers and sellers. 

Should we host a series of webinars or meetings off-line to discuss the benefits of each fee / rebate, and to help new clients decide which money-saving option best meets their
needs?  We can meet on short notice at a local cafe or in the privacy of your home.  We’re also eager to begin meeting at  TogetherInMotion in Arlington, MA so working parents can talk over food while their kids play.  Please contact us for additional information.

Posted in "We" companies, Client Feedback, Commission Reform, Do-it-yourself, Fee-for-service, Inside The Real Estate Cafe, Savings & Rebates, Social Networking, Unbundling the Commission
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