And buyers also seem to conveniently not understand that the commission is negotiated between the agent and the SELLER. Negotiations to buy the house are between the buyer and the seller, NOT the agent and the buyer.

I think they see it something like this"

- "Why do I need a Realtor? Buying a home is not rocket science, and the heavy lifting is done by the title company and lender anyway!"

-"Realtors make thousands of dollars from the transaction. The home would be cheaper without those commissions being paid out to those semi-useless Realtors!"

-"Therefore, I can buy a home cheaper WITHOUT a Realtor, than with one!"

So the name of the game here is to help them understand that:

-if a home is listed on the MLS, the commission is already built into the sales price, so they are losing nothing by using me;

-While buying a home is not rocket science, it can be a royal PITA, and I can act as a $hit-shield/stress absorber for them in the transaction;

.... and anything else you guys can think of? I don't think the whole "who's looking out for YOUR interests?" has much resonance for them, because their reply would be "we are not babes in the woods here. WE are looking out for our interests! Duh!"

-jeff

Then tell them to go it alone.

How does that help?

Yeah, exactly! They are going to be buying 2-3 homes in the next 6 months. I figure out how to get in tight with them, that's $10k-$20k in commissions!!

I think the real root of the question is, how to keep the conversation alive, without getting pushy or salesman-y, when they get that deer-in-the-headlights look to them at the idea of using a Realtor.

-jeff

Jeff,
As someone else said you need to explain that helping them as an agent on listed properties will cost them nothing. Let them know that the listing agent is not going to share any of his commission with them so there is no upside to not being represented as a buyer of listed properties.

No for non-listed properties if you can find something that is a Really good deal then my suggestion is to try to get it for less with a 60 day option for you or your assigns . Then offer it to the investors at a markup for the profit you want to make. Remember that since this is an investor buyer the numbers must show it is a good deal at your markup price.

If they take it you just sell them the option and collect a check at closing.

There are a lot of people who once they have been though a few transactions that were smooth and easy, or it seemed like that to the buyers and sellers because we the Realtors made it seem that way, who think we add no value. Especially Attorneys, they more often then other professions, in my experience, seem to think they know it all, they have more then enough skill to get that house sold, to go though a house and understand what the real values are in a neighborhood.

I have also seen several of them get burned so bad that both cheeks of their a$@ were totally off. I don't know, I am about as honest as they come, They only time you don't get the strait and hard truth out of me, is when the law prohibits it when involved with a client, but the attorneys just seem to think that everyone is lying to them and so the don't want to trust anything they are told involving real estate.

Yes, commissions are negotiable, besides my 6% plan, I have 7 and
8% plans, would you care to hear about those?

Jeff- It sounds like your clients have it all figured out. Let them go at it alone. I would continue to offer market data, suggestions what not, in a limited way. Become an advisor to them, and future business will come your way.

Now, don't waste alot of time doing their research, if it gets to be to much, start charging a consulting fee for your time and expertise. If and when he needs a Realtor, you will the goto Realtor.

Don't look for the commission today. You will spook a potential investor client if you hammer him that he has to have a Realtor.
Build the trust and wait for a payout tomorrow.

You know what, that makes perfect sense. Thank you. These are old friends and clients of my "old" business... they are smart, successful people... that approach is the only one that makes sense.

It hurts, because they WILL be buying 2-4 homes in the next year... I'd like to get in on that action! :-)

-jeff

I picked up a investor today from a blog I wrote about Drew University expanding.

Jeff see above...Picked up a buyer from a blog...nudge nudge...now go get with it. Just email me if you want help on that.

But it's not like I like to write endlessly about my thoughts or anything!

:-)

I think a blog is perfect for me. I just need to find the time. In a sense, one more internet "addiction" to feed is ALL I need.

-jeff