Six Years of Exchange Collaboration

Every year, the concept of real estate agents becoming extinct make national headlines and some believe technology will supplant the practice, but is that true? Agents have survived dozens of revolutions thus far and somehow remain in the field.

Agents becoming extinct?

The news cycle is at it again with threats of the real estate agent becoming extinct, often perpetuated by self deprecating agents themselves1. People fear change, whine about making less money, and that consumers are being fed too much information.

more ..... https://agbeat.com/editorials/will-real-estate-agents-become-extinct-over-time/

I consider the demise of traditional real estate firms a necessary market correction, with their archaic business models flooding the consumer.

Over the past ten years, consumers have become empowered through technology, providing them with a wealth of resources and tools to find a home. Information that was once considered privaledge, is now available online for homebuyers

Traditional real estate brokers are trying to justify their relevance in order to continue to charge high commissions to cover their expenses and continue on wasting money on the agent trying to motivate them, versus focusing on the consumer.

more .... https://zonicrealty.com/index.php/about-zonicrealty/2012-03-13-21-30-12/item/2-demise-of-traditional-residential-real-estate-firms

I have for several years now used a consulting approach with my clients, who are mostly referrals.  For sellers, I utilize Merv’s SmartSeller Plan in listing appointments.  First, we review which services will fit the needs of the seller and the property.  If it is a traditional sale, usually the sellers choose the shared risk plan or traditional commission for payment.  If it is a short sale, they pick the traditional commission plan.  I haven’t had any sellers choose to pay for services by the hour yet.  With buyers, I have gone through the SmartBuyer plan and use it in showing the value that I will bring to clients when working with them; however, I had not offered a choice in payment for buyers until recently.  I want to share my experience with two different buyers and the choice of being paid by the hour.

Last year I was in an audience listening to a motivational speaker. He whipped out his wallet and pulled out a One Hundred Dollar bill. Holding it up, he asked,

Word-of-mouth is gold and social media is the vessel we use to promote it, but how exactly is it accomplished? As businesses we are always looking for ways to lower the cost of acquiring new customers. It’s simple economics, the lower the acquisition cost the more sales (and money) we make…simple right? Not exactly. As with most things it’s easier said than done, but if you make it part of your daily customer/employee interaction to give your customers something positive to talk about you go a long way to influencing a higher rate of word-of-mouth, let’s call it your ROE or "Return On Experience."

More ..... https://socialmediatoday.com/davidjohnson4/466776/forget-about-roi-start-thinking-about-roe

1. In person and not by phone nor email

Your specific response concerning the amount of your consulting fees can create a negative response.

Watch this short video of an example of how a professional real estate consultant handles phone calls. Notice that they do to discuss their fees on the phone.

A real estate consultant needs more facts to determine how much time and effort is required to help the prospective client. It may be wise to look a real estate property before disclosing fees.

Doctors, lawyers and CPAs do not quote their fees on the phone or by email. Can you effectively buy a house or commercial property by phone only? Prospective clients must know, like and trust you before they become a client. If you are using an internet dating service, do you want to meet that person before you get married?

More ..... https://realtyconsults.wordpress.com/2012/03/09/rules-for-real-estate-consulting/

Flat fee websites using the phrase "List on Realtor.com" were the subject of a preliminary injunction granted by a federal judge for deceptive advertising and trademark infringement, which the Defendant allegedly says he will fight by naming "1000+" other Brokers that use the phrase in their advertising.

More ..... https://agbeat.com/real-estate-news-events/list-on-realtor-com-flat-fee-under-fire-by-nar/

Note from Lester... There are five states with Minimum Service fiduciary obligations and standards therefore the brokers that stick a sign in the ground can not profitably charge their low flat fee.

Here is where I am having some difficulty.  I'm trying to figure out if my market will/can support the consulting model.  Based on what I have been reading, it appears that agents who are using this model are able to charge what would be considered a sizable fee here. 

Statistics from the past 30 days are:

8 home sales:  4 sold for less than $45,000; 1 sold for $77,000; 1 sold for $110,000; 1 for $149,900 and the last for $220,000 (which was priced at $45.39 a square foot, it was almost 5000 sq. ft.)

Here is the 3rd installment of Dan Kennedy's Renegade Millionaire video. This video is testimonials from clients. www.renegademillionaire.com/video/3

Okay guys, here is the second installment of the video on Attraction Marketing wiht Dan Kennedy.

If you didn't view the first video, not to worry because this video should really speak to each real estate professional. Here is why. Mr. Kennedy states, "Stop focusing on selling stuff for income, instead on getting customers to build equity"

This statement applies to our industry in so many different ways. Remember to take notes as Dan asks--Trust me this video alone maybe your business's savior.

Quick question, can anyone tell me what is our industry's fence and what happened to that fence?

Well here is the link. www.renegademillionaire.com/video/2

Enjoy!