Spam today from RealtyExecutives, which really used to matter in Phoenix:
I love the monthly fee with the huge, larcenous split. RealtyExecs actually invented the 100% commission plan. It was that idea that Dave Liniger spirited away to Denver, where he founded ReMax. He discovered right away that a 100% brokerage is a giant cash sink — for the broker — but, luckily, his minions in Canada figured out how to combine the 100% claim with a hidden 5% split. Liniger flies in a private jet today because his 100% commission brokerages are all actually split shops.
Still, $95 a month plus a 15% split is a little steep. HomeSmart will do you a monthly deal for twenty-five bucks plus E&O. But before its ignominious bankruptcy, RealtyExecutives was charging on the order of $750 a month — nine grand a year! — whether you closed anything or not. In the interim, a whole lot of Big Names have moved from RealtyExecs to HomeSmart.
I love the rest of the ad, though: 78% of RealtyExecutives’ agents made less than six figures in 2011. And if the average agent closed 12 deals, that suggests that a whole bunch of those agents sold five houses or fewer last year.
And to think: You could be an “executive” too!
Alex Cortez says:
Lol, it’s all in how information is interpreted. I bet there are a bunch of agents who thought this was a great deal for them.
Are monthly/transaction fees fairly common in Phoenix?
February 8, 2012 — 12:49 pm
Greg Swann says:
> Are monthly/transaction fees fairly common in Phoenix?
Very common. My guess would be that 90% or more of the agents doing 10 or more deals a year are on 100% plans or Liniger splits. If you’re paying a true split commission, you’re an even bigger sucker than the typical Realtor.
February 8, 2012 — 1:02 pm
Greg Swann says:
> If you’re paying a true split commission, you’re an even bigger sucker than the typical Realtor.
To clarify, the “you” in that sentence means agents here, the way things work in Phoenix. I don’t claim to know what works elsewhere. Funny, too: If we ever add licensees, we will probably pay them splits of our deals.
February 8, 2012 — 3:38 pm
Scott Grace says:
I wonder what the transaction fees are! :S
February 15, 2012 — 9:05 am
Wayne Long says:
The truth is that 78% of the agents actually make WAY less than six figures.
I think their point may have been that in most brokerages the figure would be more like 88 – 90% make less than six figures
So 22% in six figures is better than 10% in six figures. (I know less than nothing about this particular brokerage).
To me it is all in what you get for your money. What you pay to your broker should be seen as an investment in my opinion.
So the important number is not what you pay but what is your ROI. True???
February 20, 2012 — 7:06 am
Greg Swann says:
> So the important number is not what you pay but what is your ROI. True???
I agree with this, of course, but the business the broker is in is milking agents with pie-in-the-sky claims that only look good to outsiders.
February 22, 2012 — 6:48 am
Jonathan Karlen says:
Looks like they are trying to fill the middle ground between the brokers that charge big monthly fees (and higher splits 95/5 or whatever)…and the brokerages that charge big splits without fees (i.e. 60/40 or whatever).
Not overly familiar with the company/branding, but if it has a presence in your particular market, may not be a bad option (at least as an interim) for some persons to consider.
Stats are always fun. You know the old saying: there are liars, then there are damned liars, and then there are statisticians. 😉
February 20, 2012 — 1:52 pm