Yesterday, I received a call from a REALTOR® ( I think) who wanted to know if I wanted a referral. I never get too excited about referrals but thought I would at least ask the details. Turns out it was a Buyer referral….well, almost. They basically wanted to offer me a 25% referral fee to meet a Buyer at a property (not my listing) and let him in with my electronic key. What a deal!!! 25% for opening a door! Anyway, I said no thanks and then decided to do a little research on this particular company.
They actually have a pretty nice web site. It seems they are an ABM (alternative business model) that offers a menu of different services, ranging from listing for a fee, buyer rebates to full service. I guess the referral they offered me was part of the Buyer rebate program. Since they offer the Buyer a 50% rebate and the door opener 25% they can't be expected to actually show properties for the remaining 25% commission.
I wonder what they do for their 25%? Probably just paperwork. So I started thinking that I must be handling my business completely wrong. What if I could just sit behind the computer all day and handle Buyer leads this way? What if all I ever had to do was fill out a contract and Email it over to the listing Broker? It actually sounds kind of appealing. I would never have to leave my house. I could work in my underwear everyday. In my market, Poinciana FL, where the average sale is about $200,000, I would make approximately $1,500 for every deal I did. If I could do a few deals a week I could make a pretty good income. Sounds good doesn't it?
But what about the Buyer? I wonder how much that $3,000 (or so) rebate really ends up costing him? Can a REALTOR® really negotiate the best deal for his Buyer on a property he has never seen? I know when I first got my license, 13 years ago, one of the cardinal rules of real estate was "Never, ever sell a property you have not seen." How could you possibly know the true value of a property with out at least looking at it? Maybe, they figure the appraisal will protect them. Well, we know that's not true. In my market, right now, there could be a huge difference between appraised value and market value. A 90 day old comparable sale has nothing to do with today's market value. I guess they just don't care if the Buyer over pays or not. It's not about the Buyer, it's about their 25% cut and doing lots of business.
I think I'm going to get on this band wagon. I'm really tired of actually working for a living. So, I've been trying to come up with a name for my new company. I wouldn't want to put my name on it, so my current company, Tutas Towne Realty, Inc won't work. How about:
Me Lazy Agent, Inc
Paper Work for a Fee, LLC
Buy Today, Pay Later, Inc
You Likey, We Typey, Inc.
Well, those don't work for me. So I guess I'll just keep WORKING, for you. What say you?
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