Wah! wah!…..and then complain about it! Today I want to talk briefly about co-brokes and the “ole’ 50/50 rule”. In my area it is quite common for short sale listings to have verbiage in the MLS remarks stating that what ever commission is received will be split 50/50 with the selling agent. Then of course they offer a ridiculously high co-broke so the uneducated Buyers agent believes he will get that x% co-broke when most of us know the short sale lender will rarely allow more than y%.

I don’t handle my listings that way. I offer z% percent as a co-broke and I guarantee it. No matter how much the lender allows me to get paid I honor the co-broker offer. I do this because I completely disagree with changing co-brokes after the Buyers agent has already shown and negotiated a deal on my listing. In my opinion it’s playing dirty pool.

BUT….I’m also not an idiot. I offer a co-broke that is in line with my market conditions but one that still leaves me a little bit of room for play. This means that if the lender allows y% I end up making more money than the selling agent. If the lender reduces the commission I make less than the selling agent. It all works out in the end and I feel it’s a fair way of doing business. There are no surprises for the selling agent. They get what’s offered in the MLS with no exceptions.

Today I had a selling agent upset at me because they saw I was making more than them on the HUD statement. He wanted to know why? I explained my company policy to him but he just didn’t get it and started going off about the 50/50 rule. Finally I just had to tell him that what I get paid is really none of his business. He hung up on me.

So I sent him this email:

Dear agent,

I want to clarify the co-broke on my short sale listings. It is always z% Even if the bank comes back and reduces the commission to h% or j% I still l pay z% to the selling agent. Your commission is guaranteed.

In fact I am the only broker that I know of in this area that does not reduce the co-broke when the lender reduces the commission on a short sale. It was z% when you showed the property and it’s still z%.

My commission agreement is between me and my seller. I’m sure if I were getting less than you there would be no issue. On this particular short sale the lender allowed me to get y% so I made out better. That is not always the case.

There is no such thing as 50/50 rule. That is a figment of your imagination.

Thank you for your hard work with getting this transaction closed. I hope we can do more in the future. End of email.

Is this really that difficult to understand? What say you?

Do you need a new Broker?

Want to find out more? www.TTRealtyNet.com

 

The BIO for Bryant Tutas

Copyright © 2010 http://www.brokerbryant.com/ | All Rights Reserved

 

I hate open houses and I’m sticking to it!

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

I hate open houses! There I said it. It's out in the open and I'm not taking it back. I don't do them and I'm not starting. My Sellers know this. I tell them this at time of listing. "I will sell your house but I will not do an open house, ever."

Well, I had two of my Sellers call me today wanting to do open houses. So being the good little Realtor that I am, I said no. Now don't get me wrong, I like pleasing my Sellers and I like being agreeable when they ask me to do things. But I'm not doing it! I'm going fishing. It's Saturday and the fish are biting. So what do you do?

Being as how both of these Sellers are long time customers, we compromised. They are having open houses. Yup, you heard me right. They are having open houses. One is having a yard sale and the other is home all weekend and wants to do it. So, I stopped by today and dropped off Open House signs, buyer sign in sheets and wished them good luck. I told them if they should happen to find a Buyer for their house, who is not working with another Realtor, I will give them a discount on the commission. They were thrilled! They can use the money and thought this was an excellent idea. They are really getting into it now. I told them I would be available by cell phone if they need me and I have arranged for my Mortgage Broker to be available for pre-qualifications if necessary. I hope they find a Buyer. I hope I can give them a commission rebate. I hope they don't ever ask me again. I hope I catch the big one!

Anyway, I have been thinking about this all day and decided I may offer this to my Sellers. After all, we are a team and who knows the house better than the Seller. Obviously, you do want to make sure you have a strong relationship with your Seller and they have to promise, no negotiating. I like it. I like it a lot. They can work. I can fish. And maybe we will both get paid.

So next time a Seller ask for an open house, just tell them…….. "I hate open houses and I'm sticking to it!

Short Sale Agent Training

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

www.ShortSaleSuperStars.com

 

We now have 1,300+ members of www.ShortSaleSuperStars.com  who are ready to help you master Short Sales. And if that’s not enough…….

 

Need Training?

 

If you need short sale training to feel comfortable pulling off the deal, you’re not alone. The number of foreclosures happening across the United States is unprecedented, and it’s not often that short sales are mentioned outside of this kind of economic environment.

 

It’s time for you to get the expertise you need, because short sales are becoming extremely common. You don’t want to be caught feeling unsure when a client asks for one.

 

That’s why we offer you three different training solutions, each of them custom-made for agents just like you. These training sessions take you from complete confusion to calm confidence in no time flat – and you’ll be able to turn that new knowledge into perfect closures immediately. 

 

Short Sale Agent Training

 

This five-part Short Sale Agent Training webinar with short sale professionals Bryant and Wendy takes you through 8 full hours of short sale training, walking you through each step of a short sale so you know exactly what to expect and how to deal with problems that may arise. Click the button above to order $97

 

Click to Buy

 

Bryant and Wendy interview a short sale negotiator from one of the major lenders to get you the insider secrets that make your short sale a huge success. If you want to come out ahead in a negotiation, ask the negotiator – and we did just that, so we could give you that insider info. $27

 

Click to buy

 

First short sale? Use this handy Short Sale Listing Package, and you won’t leave anything out next time. Everything from the short sale submission letter to a listing checklist, as well as anything else you‘ll need, all in one tidy package so you don’t have to stress. Just check it off, and close the deal. $27

 

Wendy Rulnick and Bryant Tutas
www.ShortSaleSuperStars.com

Copyright © 2010 REGrow, LLC | All Rights Reserved

 

 

Does that 50 cents have to be on the HUD?

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

I just love final walkthroughs! Why is it that Buyers and their Realtors sometimes try to spoil the elated feeling I get, knowing that we finally made it to day of closing?

I get the call this morning, telling me they did the walkthrough and everything is OK, except for the hole in the living room wall. What? A hole? How can that be? I was just in the house last week and it was fine. No holes! I don’t want to hear about holes two hours before closing. I mean the house is vacant. No one has been in the house but the appraiser. Then they spring the big one on me. “What’s the Seller going to do about it?”

Personally, I think that’s a pretty good question. “What’s the Seller going to do about it?” Well, my answer is “I don’t know”. I am still trying to digest the fact that there is hole in the living room wall. Well I got lucky, the other Realtor had a call beeping in on him and decided to take it and call me back.

So, I get myself out of bed (not sleeping mind you, but diligently “working” on reading all the ActiveRain posts from last night), anyway, I get myself out of bed, hop in my SUV and burn $10.00 worth of gas to go check out the hole in the living room wall. Now I’m a pretty observant guy and would probably notice a hole in the living room wall, but I don’t. No hole. Well, maybe they meant the family room. So I go look and again, no hole. Wait a minute, what’s that? Let me see, if I get down on my knees and squint just right I can see a tiny indentation in the wall about the size of my pinky fingernail. This my friends must be the culprit. The all elusive hole!

I call the Realtor back and tell him I have been at the house to look at the “hole” and asked him if he had actually seen it, or did he just allow the Buyers to go over by themselves to do the walkthrough? Do I need to even tell you his response? Of course he hadn’t seen it! It was too far for him drive to so he just gave the buyers the code so they could do their own walkthrough! The Buyers told him there was a hole in the wall, and asked, “What was the Seller going to do about it”. Anyway, I remained calm and politely told him to show the Buyers the definition of “hole” in the dictionary and that we would give them compensation of 50 cents. After all that, the Realtor told me to not worry about it, that he would take care of the Buyers.

I tell you, you got to love this business. The things people try to get away with. And the Realtor……….well that’s good material for another post.

The Moral is: Never, ever, take the other party’s, to a transaction, word on anything. Check, double check and check again. Look out for your own customer’s or client’s interest or that “hole” may be in your wallet.

By the way………..Does that 50 cents have to be on the HUD?

Newbie Realtors Beware!!

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

Recently I have heard several Realtors commenting on the influx of newbie and part time Realtors and why Brokers should not hire them as they are cutting into the seasoned professional‘s business. The general consensus seems to be to concentrate on our own business and let the market sort itself out. I agree with this. However I think we are missing the real issue. In my opinion the real issue is not how these inexperienced Realtors are affecting our business but how they are jeopardizing the Sellers and Buyers that are hiring them. A Seller or Buyer hiring a Realtor to help them, with what may be the single largest financial transaction of their lives, should be able to assume that a licensed Realtor is qualified to handle their transaction. This as we all know is not the case. Being licensed and being a Realtor does not necessarily mean you have a clue to what you are doing. To me this is very scary. I agree that everyone was new to the business at one time and must start somewhere. I do not agree that learning the basics of Real Estate should be a trial and error affair.

Brokers are obligated by law to train and supervise their Realtors. This is not a choice, this is law. At a minimum, new and old Realtors should be able to properly complete a legible and binding purchase contract and listing agreement. They should be able to prepare an accurate Market Analysis and be able to justify market value to their Sellers and Buyers. They should know to who and when to provide the proper Agency Disclosure. They should be able to intelligently discuss financing, appraisals, inspections, repairs and the closing process. These things need to be taught and learned prior to conducting the services of Real Estate. It is the Broker’s responsibility to make sure all Realtors are receiving this very minimum amount of training prior to holding themselves out to the public as being a professional capable of handling their Real Estate transaction. To be any less qualified than this is probably illegal and definitely unethical.

To be an experienced Realtor comes later. This IS learned by trial and error. Learning how to handle closing issues, negotiating techniques, people skills, preparing marketing plans, having a feel for a deal, being able to confidently counsel your customer/clients and many other skills that can only come from being involved in transactions. Hopefully, the more deals you do the more experienced you will become. One thing for sure about this business is you will never know it all.

My advice to new Realtors is to take as many training classes as you can. Learn the basic skills required to conduct your business. Read everything you can related to Real Estate. Find a Mentor. Hook up with a great mortgage Broker. Take the GRI classes. Take a seasoned Realtor with you on your first listing or buyer appointment. Have your Broker review all your contracts prior to presenting them. Read and understand the purchase contact including the standards. Practice preparing a Market Analysis before your first listing. And most important find a Brokerage that offers training. You can always switch to a higher commission split office later once you know what you are doing. Treat this business as a profession and dedicate your time to learning and you will find this a very rewarding business to be in.

Any thoughts on this?

By the way the message title of this post is to get your attention and is in no way an attack on new Realtors. My comments apply to all Realtors who do not conduct their business in a professional manner

BB and TLWHere’s a secret about expired listings. Expired listings are  almost ALWAYS over priced. That’s why they are expired.

E$pired listings are without a doubt my favorite type of lead. These Sellers have already decided to sell and they’ve already decided to use a broker. 

The only hurdle left is to get the price right. That being the case it’s important to establish quickly if this is possible or not.

A CMA (Comparable Market Analysis) for a property that has expired should be short, sweet and to the point. No need to go overboard. A good technique is to arrive at a “range” of where you know the property will sell.

The idea is to make sure the seller is willing and able to make the proper price adjustment BEFORE you spend a ton of time arriving at a more precise price.

Why? Well…. the property was overpriced. This means either the seller was unrealistic about price or they were given bad advice by an inexperienced agent. The first seller will be more difficult than the second.

An example would be an expired listing that was priced at $500,000 that’s worth $325,000. All you really need to know is that the property should sell in the $300,000 to $350,000 range.

If you give the seller this price range you will know almost immediately, by their reaction, if you have a chance of getting the property priced right or if you just need to walk. If  you feel the seller is receptive to pricing right then get serious and do a full blown analysis.

Good listers can establish this stuff during a phone call. No need to set an appointment unless we know for a fact we can get the price right. I know my time is valuable. Is yours?

Do you need a new Broker?

Want to find out more? www.TTRealtyNet.com

 

The BIO for Bryant Tutas

Copyright © 2010 http://www.brokerbryant.com/ | All Rights Reserved

 

Counting the chickens before they hatch!

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

Had a listing appointment today. Yes, I know it's Sunday and I don't normally work on Sundays, but hey, I'm the Broker, I make the rules and I can break the rules. It was either today after Church or during the week at night. Well figured I would already be dressed in my "Sunday go to meetin cloths", so what the heck, I'd drive on over there. I'd still be home in time to cook lunch for "The Lovely Wife".

Anyway, I had sent these folks a preliminary CMA via E-mail last week and was really looking forward to meeting with them. I knew it was going to be a tuff one, but I felt up to the challenge. The challenge was, they had been listed for 6 months with another Realtor at $360,000, when the house, maximum, is worth only $299,000. They had already told me on the phone they were ready to reduce to $340,000. So I really had my job cut out for me. I won't take an overpriced listing so my goal was to get them to reduce $65,000. Also, since they were with a discount Realtor before, I needed to raise the commission a couple of points as well. So, if you do the math, we are looking at more than a 20% reduction in their anticipated Net.

Big challenge, but I woke up this morning ready to face it. I had prepared an analysis, to take with me, that was over 70 pages long. Now I don't know how you do your CMA's but 70 pages is a little over the top to say the least. It included:

  • Details on similar homes with pools.
  • Details on similar homes without pools.
  • Details on every pool home that had sold near theirs this year.
  • A list of every home on the market in their area.
  • A list of all of my sales YTD.
  • My grocery list from last week.

Anyway, you get the point. I was loaded for battle and well prepared to defend my position. Well I showed up for my appointment and as I had anticipated, the house, pool and yard were beautiful. So I was pleased about that. They had put a lot of time and money into it and it showed. The wife gave me the tour as I listened to her and I asked a few qualifying questions while we walked through the house. This is a very important step, as I am trying to find something that will help me in my presentation. I got lucky, one comment she made was, that when they were shopping for homes to buy, the first one they liked didn't appraise and they weren't able to buy it. Bingo! An excellent piece of info to help me with pricing.

So, hubby came in and we all sat at the table and I pulled out my arsenal of data. And of course the first thing I started explaining is how appraisals work and how they can affect the ability of a buyer being able to close on the house if it is not priced right. That was the right approach. It's true and it touched a cord with them since they had experienced exactly that. It opened the door for my discussion on pricing. Backed up with 70 pages of data, I made a strong case and after 90 minutes of hard fought discussion, we have agreed to Range Price the home from $289,000- $309,000 trying to sell as close to $299,000 as possible. Commission came up briefly but was not a factor.

We haven't done the paperwork yet, but I'm confident I have the listing. The Sellers are great people. It's an excellent property. It's priced right. I will be able to sell it. The Sellers will be able to move on with their lives. And "The Lovely Wife" had my "world famous" chicken and yellow rice with black beans for lunch. All in all, a very good day.

This listing, again, shows why it's so important to listen to your potential customers. They may just give you the information you need to succeed in your presentation. Pricing is everything in my market. Helping potential Sellers to understand this is what I enjoy doing. It gives me a great feeling of satisfaction. I just hope I'm not……….. counting the chickens before they hatch!

I’ll never work with them again!!

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

Have you ever had such a bad experience working with another Realtor that you swore you would never work with them again? I know it’s hard sometimes but we must remember that we are in business to assist Buyers and Sellers achieve their objectives. It’s tempting to not show a Realtor’s listings or suggest to your Seller not to accept a deal from a particular Realtor who we have had a bad experience with in the past. As difficult as it is, always try not to hold the Realtor’s incompetence against his customer/client.

The reality is, the Seller just wants to sale and the Buyer just wants to buy. Work towards helping them achieve these goals to the best of your ability. This may require dealing with unprofessional and rude Realtors on occasion. Bite your tongue, put on a smile and muddle through it. Take charge of the transaction. Be the one person in this stressful and difficult deal to hold it together and get the job done. Not only will your customer/client be impressed but the other Realtor’s customer/client will also become your biggest fan. This is how you build a long term successful business.

Anybody can handle a smooth transaction it is getting through the difficult situations that set you apart and make people remember you. Maybe your professionalism will rub off on the other Realtor. One thing is guaranteed the problems and issues we have with unprofessional Realtors will always be a part of our business. It’s our job to rise above it and keep moving forward with a good attitude. That is something we can control. That’s why they pay us the big bucks!!!!!!!!!

Don’t let “serious inspection issues” derail your deal.

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

Water damage and mold

Hi Folks. As we all know, nothing can derail a real estate transaction faster than a home inspection that uncovers “serious inspection issues“.

Recently I had a home inspection done on one of my pending listings. It was an older property and I was a little bit nervous and hoping there wasn’t going to be any major issues to deal with.

Anyway, shortly after the inspection was completed I get the e-mail from the selling agent to let me know we have “serious inspection issues.” She also sent me a copy of the inspection report and the WDO (wood destroying organisms) report. Darn it!!! We have termites!,  wood rot and major AC issues.

Well, being the good little Broker that I am, I pick up the phone and call my “peeps”, Wendal my HVAC guy, Dan the Termite Man and Khan my handyman and wood rot specialist. They all return my call within 5-10 minutes and stop what they are doing to go by the house and check it out. Within one hour, I have writen estimates from all three and time set aside on their schedules to get the repairs taken care of.

OK, now I’m prepared to call my Sellers. So I give them a call, explain the situation, go over the estimates and within 10 minutes I have authorization to move forward with the repairs.

Smartly, I had spent time during the listing presentation discussing inspections and repair issues and my Sellers were prepared. They understood that these were serious issues and would not just go away. So, they agreed to “let’s solve the problem and close the transaction.

Now, a little over an hour after receiving the inspection report and e-mail from the selling agent, I give her a call. Folks, for some reason she seemed to be surprised that I called back so quickly, not to moan and groan about a problem, but to let her know the problem had been solved, repairs had been approved and scheduled and the signed repair addendum was on the way over from the Sellers. I think this REALTOR(R) will be happy to show and sell my listings in the future.

What could have been a deal breaker was not even a bump in the road. It was just a few calls to the right “peeps” and a well informed Seller. We were back on track.

Folks, it’s all about educating your customers/clients and having people that you have worked with for years who are willing to drop everything and help you out when you need them.

So, have you built and nurtured your business relationships(“peeps”)? Are you in a position to solve problems this quickly? Are your Customers/clients educated and well aware of issues that my arise during the contract period? I hope so. There’s a lot more involved with being a listing Broker…… than marketing.

Broker Bryant’s Tips

  1. Educate your Sellers at time of listing
  2. Get estimates for repairs so the seller can make an informed decision. It’s rarely as bad as they will imagine.
  3. Have “peeps” that you can depend on. Make sure they get paid quickly. 
  4. Repairs issues will not just go away. The seller will pay one way or the other. Best to just do them and close the deal.

That’s it. What say you?

Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.

Want to find out more? www.CentralFloridaShortSales.com

***I am NOT an Attorney nor do I play one on TV. Click the button below for my Bio.

The BIO for Bryant Tutas

Copyright © 2010 http://www.brokerbryant.com/ | All Rights Reserved

 

My listing has already been sold!

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

My mom, I love her to death, sells timeshare resales. She has been in the timeshare business for almost 30 years and can sell ice to an Eskimo. She has won many National sales awards and is excellent at what she does.

But she has a hard time understanding what I do. Whenever I call her, and mention I sold a house today, she always says the same thing "Did you sell it? Or did another Realtor sell it". "Mom" I say "No, I didn‘t sell it, it was my listing but another Realtor sold it."

But you know, that is so far from the truth. I sold the house. I sold it when I spent 90 minutes convincing a Seller to price it right. I sold it when I talked the Seller into having a professional cleaning crew go through the house, or suggested they rip up the dirty carpet and lay down tile. I sold it when I positioned the house in the MLS, to get the most exposure. I sold it when the Realtor called me on a different listing and I talked him into showing this house as well. I sold it when I educated my Seller on paying closing costs for the Buyer. There are many things we do as listing agents that contribute to the house being sold.

As a matter of fact, if these things aren't done properly, there will be no sale. The house would be another property that sits on the market for 6 months only to expire or be withdrawn.

I heard a statement somewhere, "that a bad appraisal begins at time of listing." That is so true. It is also true "that a house is sold at time of listing".

A good listing agent will make the Buyer's agent job very easy. Priced right, clean, easy access and knowledgeable Sellers makes for an easy sale. So next time I talk to Mom, I think I will explain this to her. In the meantime, bring your Buyers on by…………….My listing has already been sold!

About us

I am a licensed real estate Broker in the state of Florida. My opinions on real estate have been formed from my experiences and 15 years of working in the business. My opinions are in line with Florida Real Estate laws and the REALTOR(R) Code of Ethics. Your State’s laws may differ. So do your own homework before implementing any of my business practices into your business.