Saturday, June 23, 2007

20/20 Equates To Perfect Vision?

I think not! On the heels of the much maligned piece by 60 Minutes, 20/20 has decided to create their own mis-informed, poorly collaborated and inaccurate description of the Real Estate industry. I was not so shocked by 60 Minutes due to some of their one-sided and atagonistic reporting in the past. However, I had high hope for 20/20 last night.

A few items to rebutt some of the comments coming from my perspective:
  1. Is a Broker Worth It? You're darn right I am! 20/20 illustrated how a commission is split. THEY chose to use a 6% commission. Not me and certainly not the industry standard. However, using their suggestion of 6% and how they broke it down I beg to go a few steps further. From the sale of a home there is a 6% commission paid out. (Again, THEIR figure!) 3% is paid to the seller's agent and 3% is paid to the buyer's agent. Let's say that I am the Seller's Agent. I take my 3% and then split it with my broker-in-charge which leaves me with 1.5%. Out of my 1.5% I have to pay monthly dues to belong to the local MLS board, dues to the Association of Realtors, health insurance, dental insurance, vision insurance, taxes (no folks, that commision is not taxed) and, oh, do I have a 401K? No, I do not. On top of those items, I have to recoup the money that I spent on advertising the home I just sold. There are website fees, 800# fees, newspaper ads, signs created for the yard and open houses, printing costs for flyers and post cards, and the list goes on. It is unfair to start reporting a story and stop short!

  2. "No real estate agent can walk into the house and show it with the zeal that I can show it," she said. Taken directly from the story. Zeal? Hhmmm, okay, what about desperation, lack of sales skills and giving up leverage? Once that buyer walks in the door and you are selling on your own, do you know what to say? It's called leverage folks. Also, as we all know, our homes are well, our homes! What is that smell? Did you cook fish last night? Yep, still smells the next day. Oh, what is that fuzzy thing running around the house? Your beloved cat which the potential buyers are distracted by or even worse, allergic to. The potential buyer asks why you are moving - what do you say? Can't say too much! Remember, LEVERAGE!

All I know is that when my tooth hurts I go to a dentist. When I have a medical problem I go to a doctor. When my car needs repaired I go to a mechanic. So, where will you go when you want to buy or sell a home?

Shuck on..............

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