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#183168 - 11/25/07 03:07 PM Re: Realtor "FREE AGENT"??? [Re: TrueVisionary]
JoeyBagadonuts Offline
Veteran Member

Registered: 06/24/06
Posts: 1074
Loc: Bucks County PA
 Originally Posted By: TrueVisionary


What if the market value for the web-services were in fact 25% of the commission, would we still have a problem here?

TrueVisionary...



Yes, service providers usually get paid a flat rate, not a percentage of commission since that is illegal.

Why are you trying to catch a falling knife?
_________________________
Joseph Grabowski, REALTOR®
Keller Williams Preferred Real Estate – Yardley, PA
Buying or selling a home, land, or real estate in Bucks County Pennsylvania?
Visit my Bucks County Homes & Real Estate Website

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#183169 - 11/25/07 03:12 PM Re: Realtor "FREE AGENT"??? [Re: TrueVisionary]
JoeyBagadonuts Offline
Veteran Member

Registered: 06/24/06
Posts: 1074
Loc: Bucks County PA
 Originally Posted By: TrueVisionary
And lets further say that that fee is equivalent to 25% of the average sales commission.

Example:

Let's say that he is operating in a market where the average sale price is $300k. The total commission is 6%, 3% on the Listing side and 3% on the selling side. 25% of a 3% commission on this particular sale would be $2,250.00. Now lets say that this is his fee. Let's also say that other web companies are charging the same thing in this market... In other words, this is the "going" rate.

Would he still have a problem? Would there be any question of intent? If so, how could that be proven?

Your point on RE being "result driven" is crystal clear. Real Estate Brokers/Agents are definitely different from other professions in this regard.

Could he have a fee structure like so?:
$3,000 - Ultra Mega Kick butt w/all the bells and whistles site.

$2,000 - Kick butt w/some of the bells and whistles site.

$1,000 - Basic site


TrueVisionary...


You're kidding me, right?

A percentage of the agent's commission goes to the broker, another portion goes to the IRS, but you think agents would be willing to shell out a huge chuck of what is left after everyone took their piece of the pie?

I think you need to look into a different career, or at least look to provide service to another sector of the market.
_________________________
Joseph Grabowski, REALTOR®
Keller Williams Preferred Real Estate – Yardley, PA
Buying or selling a home, land, or real estate in Bucks County Pennsylvania?
Visit my Bucks County Homes & Real Estate Website

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#183182 - 11/25/07 04:35 PM Re: Realtor "FREE AGENT"??? [Re: JoeyBagadonuts]
TrueVisionary Offline
Member

Registered: 03/28/07
Posts: 41
Loc: VA
Falling knives are dangerous.... =^)
_________________________
"It is impossible to rightly govern a nation without God and the Bible."
-- George Washington (The 1st President of the United States)

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#183185 - 11/25/07 04:41 PM Re: Realtor "FREE AGENT"??? [Re: JoeyBagadonuts]
TrueVisionary Offline
Member

Registered: 03/28/07
Posts: 41
Loc: VA
Replace the agent with a Broker/Owner or an agent with 100% Co.
Hmmmmm... Quite interesting... Quite interesting indeed...

TrueVisionary...
_________________________
"It is impossible to rightly govern a nation without God and the Bible."
-- George Washington (The 1st President of the United States)

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#183188 - 11/25/07 05:36 PM Re: Realtor "FREE AGENT"??? [Re: staggart]
TrueVisionary Offline
Member

Registered: 03/28/07
Posts: 41
Loc: VA
 Originally Posted By: staggart
The reason this is so silly is that individual listing web sites (ie. the web address looks like: http://www.123SMain.com) run about $75 with 25 pictures, a virtual tour link, extensive community information, etc.

Anyone charging the amounts noted above would clearly be charging for something besides the web site --- and that is clearly improper.



I totally agree with you. The reality is that the market has brought the price of such services way down over time. You can actually do it yourself and save the $75. So I am in total agreement. What is intriguing about this whole discussion is our system of capitalism. In this great country that we live in, anyone can do, say, create, and sell just about anything. I know that my point is extremely hypothetical, but I just wanted to bounce this around a bit. For instance:

In the "world" that I created... (LOL) =^), the details are:

1. Average SP of homes is $300k
2. Rate for the very best web services is 3k

Now we all know that value is perceived differently for different people. This is seen on ebay on a daily basis. People pay serious money for things that others would think is absolutely ridiculous. But hey... This is America!!! =^)

My point is that some Brokers/Agents would in fact pay this fee if they perceived that it had some value to them. There also would be no problem with R.E. Licensing laws because people can charge what they please here in America for just about whatever they please. The free market will determine real quickly what something is worth.

Now back to reality... =^)
The reality is that his services are not worth $3k IMHO, and the way he's going about it, is clearly in violation of most, if not all state licensing laws.

TrueVisionary...
_________________________
"It is impossible to rightly govern a nation without God and the Bible."
-- George Washington (The 1st President of the United States)

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#183203 - 11/25/07 07:42 PM Re: Realtor "FREE AGENT"??? [Re: TrueVisionary]
pikes peak Offline
Major Contributor

Registered: 12/15/04
Posts: 2744
Loc: CO
 Quote:
Now back to reality... =^)
The reality is that his services are not worth $3k IMHO, and the way he's going about it, is clearly in violation of most, if not all state licensing laws.

TrueVisionary...


There you go! Reality at work.

Top
#183211 - 11/25/07 08:35 PM Re: Realtor "FREE AGENT"??? [Re: pikes peak]
Perky_REALTOR Offline
Mod Squad
Major Contributor

Registered: 11/27/06
Posts: 7685
Loc: PA
I can't see an agent paying $500 per listing for something like that, let alone 25% of their commission! That's just NUTS. Most agents I know cringe at spending $75 per listing for virtual tours - heck, why should you when you have other programs to do it yourself, just as well, for very little money?

Sorry, bzzzt. move along...lol

Top
#183231 - 11/25/07 11:41 PM Re: Realtor "FREE AGENT"??? [Re: TrueVisionary]
JoeyBagadonuts Offline
Veteran Member

Registered: 06/24/06
Posts: 1074
Loc: Bucks County PA
 Originally Posted By: TrueVisionary
 Originally Posted By: staggart
The reason this is so silly is that individual listing web sites (ie. the web address looks like: http://www.123SMain.com) run about $75 with 25 pictures, a virtual tour link, extensive community information, etc.

Anyone charging the amounts noted above would clearly be charging for something besides the web site --- and that is clearly improper.



I totally agree with you. The reality is that the market has brought the price of such services way down over time. You can actually do it yourself and save the $75. So I am in total agreement. What is intriguing about this whole discussion is our system of capitalism. In this great country that we live in, anyone can do, say, create, and sell just about anything. I know that my point is extremely hypothetical, but I just wanted to bounce this around a bit. For instance:

In the "world" that I created... (LOL) =^), the details are:

1. Average SP of homes is $300k
2. Rate for the very best web services is 3k

Now we all know that value is perceived differently for different people. This is seen on ebay on a daily basis. People pay serious money for things that others would think is absolutely ridiculous. But hey... This is America!!! =^)

My point is that some Brokers/Agents would in fact pay this fee if they perceived that it had some value to them. There also would be no problem with R.E. Licensing laws because people can charge what they please here in America for just about whatever they please. The free market will determine real quickly what something is worth.

Now back to reality... =^)
The reality is that his services are not worth $3k IMHO, and the way he's going about it, is clearly in violation of most, if not all state licensing laws.

TrueVisionary...



I dont really see how the whole discussion was interesting.
Seems like more unresearched, pipe dream ideas to me.
_________________________
Joseph Grabowski, REALTOR®
Keller Williams Preferred Real Estate – Yardley, PA
Buying or selling a home, land, or real estate in Bucks County Pennsylvania?
Visit my Bucks County Homes & Real Estate Website

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