For Sale By Owner
Make Money as a Real Estate Consultant
Double Your Commissions by Working with Real Estate Buyers
You Will Learn How to:
Make the transition from focusing on sellers & buyers, to FSBO's
Sell your talents and skills to potential clients
Make a successful consulting presentation to FSBO's
Guarantee commissions with non-refundable retainers from clients
Implement a professional program to provide buyers
Develop a loyal customer base
Never work for free again
NOW IS THE TIME TO START CONSULTING!
You probably already know everything you need to know about listing sellers and about what the buyer needs are, but acting as a consultant will open a whole new avenue to make a commission. If you want big commissions no matter what happens to the market, look outside of where most agents are doing business. This course will provide guidance on developing exclusive listings with home owners that take on the challenge of marketing and selling real estate.
Sellers selling their own property are likely doing so to save the money they would have to pay a brokerage which includes both listing side and the selling side. However, many home owners soon realize they may need the expertise of a professional. As a added bonus of paying your consulstation fee, they are still saving the listing agent fee which could be utilized for home repairs of upgrades.
You as their Realtor can talk to the seller and ask if they are willing to pay your commission. Simply contact the person selling the home to see if they cooperate with Realtors. If the seller is not willing to, the buyer can pay your commission by adding it into the offer. Then have them sign a Fee Agreement. That way it will be paid from the proceeds at closing and not increase your clients costs.
Be sure to disclose all fees in the very first counseling session with a buyer. If it is really the house they want make an offer on, provide the offer to the seller for the list price plus $400 and have the seller pay your consultation fee. If you do this, suggest the list agent changes the list price before changing the listing status so it doesn't mess up the appraisal.
It has become pretty common for buyers agents to charge fees to buyers. It usually depends on the purchase price of the home they're buying but can also be a fee required by the brokerage. All fees and commissions are negotiable and should be discussed once they sign the agency agreement.
Help your clients realize that we do NOT get paid until the house closes. With that said we spend many hours taking buyers from home to home, going to inspections for 2-3 hours, going to appraisals, spending endless hours on email and the phone through the process, making sure the lenders and attorney's keep us in the loop and the process moving forward. Now on top of that our commission gets split down between cooperating brokerages. I know everyone thinks that 2.5% on a $300k house $7500 is a nice pay day. The reality is that off the top there is a listing fee -200, then there is franchise fees 5%-12%, and then finally what your split is with the broker. On that $7500 commission a realtor can walk away with $4800-$5000. Now divide that out by the hours he or she spent with buyer.
The Art of Consulting With For Sale By Owners
