The future's so bright, I gotta wear shades.....

Well, well, well. Here is a New Flash that has just come out today. Yes, my faithful followers, you may be hearing it here for the first time. To quote just a bit from the article:

....."Because commission fees "do not tend to vary in proportion to changing home prices," they are considered to be "relatively inflexible," the report states, and the agencies recommend that regulators pursue a detailed study of commission rate and fee practices to better measure price competition in the industry.".....

and, in addition,

....."Some consumers may not be aware of the range of alternatives available to them when hiring a real estate broker, including the types of business models available and the negotiability of fees, for both home buyers and sellers, and/or may not understand the duties owed by their broker." The information could help enhance competition, according to the recommendations.".....

Once you read the full report it may become a little clearer. To paraphrase, the article is basically suggesting that Real Estate professionals are not flexible in their real estate commissions. It also suggests that while the price of individual homes may be different that the majority of Real Estate professionals maintain the same level of commission. Bear with me a moment......I may take a lot of heat for this and I look forward to the debate.

Selling a home that is priced in the median range is much, much different than selling a high end home say $1mil and up. Your clients, your sellers, your market and your advertising methods are vastly different. Liken a home that is in the millions to a Lamborghini. The maintenance on the home is tantamount to that of the maintenance of the Lamborghini. You don't pay just $29.95 for an oil change and have the tires rotated every so often. Your marketing efforts are now shifted to a different set of principals altogether. No longer can you rely on the tried and true methods of MLS, print advertising, mass mailings and networking. Your target market of buyers has been drastically reduced! So, yes, my commission should stay the same for a home priced over $1mil as it is for a home say in the $300's. Not only do I expend efforts along the mainstream, I am continually seeking new and creative ways to seek out those that would prefer not to be sought. I spend my days dreaming up ways to reach those that may not even know that they are ready to purchase a Lamborghini.

On the flip side of the issue......something that many of you may not know about me......I come from a Limited Service background. Yes, I do. While in Charlotte I was Vice President of a wonderful Limited Service company that offered a tiered commission structure. I thought it was wonderful. I still do! I bring that philosophy with me still today. There are always people that want to keep control and that's okay! I personally, (yes, personally as in my own opinion!) believe that there are companies out there for everyone. As I previously enlightened you with the "Working With Real Estate Agents" series this is no different. You MUST interview an agent(s). Don't rely so much on the company name as you do the agent themselves. You have got to find out what their individual business model is. What are they going to do for you? Compare their services to those of others that you interview.

I enjoy the competition from the other companies whether full service, limited service or just a listing company. It gives me the opportunity to relentlessly fine-tune my skills and affirm that for those seeking a true professional, "the future's so bright, I gotta wear shades!"......

I would welcome any questions and/or comments regarding the article. Tell me what you think!

Until high tide..........

Happy Shucking...............