{"id":494,"date":"2006-10-02T06:20:10","date_gmt":"2006-10-02T13:20:10","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=494"},"modified":"2006-10-02T11:18:45","modified_gmt":"2006-10-02T18:18:45","slug":"fast-full-service-buyers-brokerage-at-a-flat-fee-that-smells-like-a-big-win-to-me","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/494\/fast-full-service-buyers-brokerage-at-a-flat-fee-that-smells-like-a-big-win-to-me\/","title":{"rendered":"Fast full-service buyer’s brokerage at a flat fee: That smells like a big win to me . . ."},"content":{"rendered":"

This is from a comment by Jeff Brown, responding to an earlier post<\/a>. I’m only showing a snippet here, but Jeff’s ideas are worth apprehending in full and pondering at length.<\/p>\n

Once and for all, the money paid for representing a buyer OR a seller is based upon only one factor: The ultimate value perceived by the client. Is the client better off being represented by you than not represented period? Is he better off with you vs. another agent?<\/p><\/blockquote>\n

Here’s the thing: The market will bear what it knows about. This is the purpose of marketing, to educate your own buyer.<\/p>\n

So think of it this way:<\/p>\n

I personally can sell about a house a week. More than that, and I can’t juggle all the eggs. But even assuming I have enough ready, willing and able buyers to sell a house a week, the effort involved for some transactions can exceed the time I can afford to spend on it. Because we don’t relate costs to compensation, sometimes we make good money, and sometimes we take it in the shorts. No other personal services\/consultation business works this way — except for contingency-fee attorneys.<\/p>\n

So: In ideal circumstances, I can sell a house a week at $250,000 each, on average, earning $7,500 each, on average, for a gross income of $375,000. Not bad. My marketing costs and other expenses are huge, and, practically speaking, some of those transactions were under-performing: Either the deal didn’t close at all or my costs exceeded my return. And, of course, I don’t always have a buyer to work with every week. Unused Realtor capacity is a hidden cost in this business, one that would be accounted for in the books for in any other business. But still, after everything: Nothing to sneeze at.<\/p>\n

But suppose I can structure my business a different way. What if I were to charge a flat fee to represent a buyer in exchange for a non-refundable retainer. My marketing costs just plummeted, especially for the high-end clients whose homes we want to list — now and also when they move again. My exposure for under-performance just Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

This is from a comment by Jeff Brown, responding to an earlier post. I’m only showing a snippet here, but Jeff’s ideas are worth apprehending in full and pondering at length. Once and for all, the money paid for representing a buyer OR a seller is based upon only one factor: The ultimate value perceived […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,4,6,5],"tags":[],"class_list":{"0":"post-494","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-blogging","7":"category-disintermediation","8":"category-marketing","9":"category-real-estate","11":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":650,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/650\/an-argument-for-dual-agency-%e2%80%93-part-1\/","url_meta":{"origin":494,"position":0},"title":"Dual Agency Smack-Down: An Argument FOR Dual Agency – part 1","author":"Russell Shaw","date":"November 18, 2006","format":false,"excerpt":"This is a stupid subject. This is a necessary subject. There are a lot of different viewpoints on this subject. A lot of the viewpoints that seem to matter came from lawyers, court decisions (judges who are also lawyers), and other people who are also wrong. Back in the days\u2026","rel":"","context":"In "Dual Agency"","block_context":{"text":"Dual Agency","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/dual-agency\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":649,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/649\/dual-agency-smack-down-a-category-11-hurricane-of-arguments-against-disclosed-dual-agency\/","url_meta":{"origin":494,"position":1},"title":"Dual Agency Smack-Down: A category 11 hurricane of arguments against Disclosed Dual Agency . . .","author":"Greg Swann","date":"November 17, 2006","format":false,"excerpt":"I'm going to stir up a category 11 hurricane by basing my initial entry in the Dual Agency Smack-Down on our past posts on the subject. Cathleen and I have dealt with this topic at great length in the past, so it seems reasonable to reinforce our arguments by revisiting\u2026","rel":"","context":"In "Dual Agency"","block_context":{"text":"Dual Agency","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/dual-agency\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":662,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/662\/dual-agency-smack-down-how-about-sub-agency\/","url_meta":{"origin":494,"position":2},"title":"Dual Agency Smack-Down, how about sub-agency?","author":"Russell Shaw","date":"November 20, 2006","format":false,"excerpt":"It has been said that democracy is the worst form of government except all the others that have been tried. - Sir Winston Churchill Thank you to Jeff for responding SO well to Greg's points and issues. I do understand Greg's points and in a perfect world - almost everything\u2026","rel":"","context":"In "Dual Agency"","block_context":{"text":"Dual Agency","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/dual-agency\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":297,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/297\/back-story-how-we-evolved-our-policy-forbidding-dual-agency\/","url_meta":{"origin":494,"position":3},"title":"Back story: How we evolved our policy forbidding dual agency . . .","author":"Cathleen Collins","date":"September 7, 2006","format":false,"excerpt":"Someone commented on Greg's recent post regarding dual agency. I thought I'd give you the \"back story\" so you can understand how we came to this position. Just this past May three events converged to make it crystal clear that dual agency was, in general, good for no one except\u2026","rel":"","context":"In "Dual Agency"","block_context":{"text":"Dual Agency","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/dual-agency\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":658,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/658\/dual-agency-smack-down-if-being-a-big-brokerage-is-an-inherent-agency-violation-its-not-the-clients-fault\/","url_meta":{"origin":494,"position":4},"title":"Dual Agency Smack-Down: If being a big brokerage is an inherent agency violation, it’s not the client’s fault . . .","author":"Greg Swann","date":"November 19, 2006","format":false,"excerpt":"Please. Recognize that everything I say or write is true and do not argue with me. Thanks!Hi! Welcome to BloodhoundBlog. My name is Greg Swann. I question everything. ;) From my point of view, we're still not getting any traction.But single agency is not a viable business model.\u00a0 Period.\u00a0 A\u2026","rel":"","context":"In "Dual Agency"","block_context":{"text":"Dual Agency","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/dual-agency\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":487,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/487\/butterflies-might-be-free-but-home-buyers-pay-for-real-estate-advice-whether-they-know-it-or-not\/","url_meta":{"origin":494,"position":5},"title":"Butterflies might be free, but home-buyers pay for real estate advice — whether they know it or not . . .","author":"Greg Swann","date":"September 29, 2006","format":false,"excerpt":"Ardell raises some questions at Rain City Guide about my column in this morning's paper on negotiating the buyer's agent's commission. I'm going to address some of her remarks here, but my fullest statement on the topic is quite a bit more comprehensive. In the newspaper, I get 350 words\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/494","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=494"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/494\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=494"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=494"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=494"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}