A real estate agent called complaining that he spoke with one of his buyers who wanted to see a property he found online. When the agent went to check the listing out, he was shocked. The commission stated was for $1.00. Being the professional that he was, he went to show the condo. He sent me a copy of the MLS sheet and lo and behold it was true. Then I contacted the listing agent thinking perhaps they were new and had made an error. Nope, she said, it was correct. The commission was one dollar.

 

Was this an isolated incident? No, the stories came pouring in from other agents. Another real estate agent showing buyers in a community where home prices start at $500,000 experienced something similar. The commission for the transaction broker was 3%. If you were a buyer’s agent, then the commission was only $1.

 

Now my curiosity was triggered to find out how many homes were for sale offering 1% or $1 commission. I searched multiple counties in one MLS in Florida, the results found 256 properties offering 1% commission with prices ranging from $25,000 to 12 million.  Two were offering $1.

 

As more and more real estate agents build teams with agents that specialize in working with buyers, this concept can be hurtful. The 1% is often split multiple ways. The commission could be split with the head of the team along with the brokerage. That coupled with franchise fees, transaction fees, errors and omissions insurance along with business expenses could have your commission end up being less than 50% of the 1%. Then when you subtract taxes, the net income gets even lower.  For many, this may not a profitable business model depending on the price of the home for sale.  1% of $50,000 is a lot different than 1% of 10M.

 

What Would You Do in This Situation?

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Remember the famous childhood rhyme, “Sticks and stones may break my bones, but names will never harm me?” Well, think again. In today’s digital age, words matter, and more importantly, what people are saying about you can make an impact on your business’ reputation.

 

What are people saying about you?

When was the last time you searched your name to see what came up? Take some time today to search your name on different browsers such as Google, Firefox, or Safari if you are a Mac user.

 

Why is knowing your business footprint important?

According to NAR statistics, 99% of Millennials search online websites compared to 90% of Boomers.  Whether you receive a large amount of your business from referrals or friends, rave reviews and testimonials can catapult you to the top. They can also create strength and value as to why clients should choose YOU.

 

A 2018 survey reveals how consumers search and what is important to them. Here are some key statistics from the survey:

  • 86% of consumers read reviews for local businesses (including 95% of people aged 18-34)
  • 91% of 18-34-year-old consumers trust online reviews as much as personal recommendations.
  • 80% of 18-34-year-olds have written online reviews – compared to just 41% of consumers over 55

 

3 steps to getting testimonials with ease.

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