Entry by Deb Orth

A Prospect Who Chose a Limited Service Broker

I've been in dialogue with a newbie investor. Discussed consulting service vs. conventional listing. He was in awe of how much a REALTOR really does but just couldn't get past how much he'd have to pay either for a guaranteed result (x% listing commission) or consulting services (x$$$).

Obsessed with saving $$ money so he can have a nice payday. Typical "Carleton Sheets/Infomercial" kind of investor who thinks this kind of money grows on trees. Well, I wished him all the best, shook hands and said goodbye.

He called me tonight to say that although he felt he would get the very best service from me, he has opted to go with IHSRealty.com flat fee - I asked what he gets and it is MLS only, lockbox, sign, listing on IHS website, listing on Realtor.com; no representation. For this he pays
$700 plus is offering a 3% buyer's agent commission.

Again, I wished him all the best, hoped for his success, etc. and just warned him that if/when he gets a contract from a Realtor, the Realtor may very well eat his lunch (do I sound like Paula?) since he/she is going to know so much more than he does.

He said if he doesn't get this sold in the next 3 weeks he'll be coming back to me for full service. Yeah, I'll bet he will! For what he has already or may have to spend, he could have spent a bit more with me and had plenty of protection as well as be able to convert to a convnetional listing with rebate on the commission.

We'll see what lessons this young'un will be learning.


This page contains a single entry by Deb Orth published on January 30, 2007 8:07 PM.

Consulting isn't just for buyers and sellers... was the previous entry in this blog.

Rebating or Crediting the Consulting Fee is the next entry in this blog.

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