http://www.theconsultingtimes.com/agent/ Blogging about real estate consulting for the real estate professional. en Copyright 2008 Thu, 07 Feb 2008 15:40:06 -0500 http://www.sixapart.com/movabletype/ http://blogs.law.harvard.edu/tech/rss Vince Kleinknecht says: Very interesting exchange! I am in agreement on many points both Ms. Wasserman and Mr. Smith have made. A couple points of disagreement. Local brokers are experts in their own market areas. I cannot see a Russian business person engineering a real estate sale by internet only. Only the local broker will be able to foresee (and therefore avoid) possible problems, steer the process through all the proper channels, and generally shepherd the transaction to close. Each market area is UNIQUE. Real estate is local! The MLS is indeed a dying entity as we know it today. Maybe Mr. Smith's venture will be it's replacement. OR, maybe Bank of America will develop one....or possibly WalMart. But it still will not eliminate the need for local market knowledge. As for giant institutional players dominating the industry, just remember the Coldwell Banker/Sears initiative of years ago. For those who view real estate as a sales oriented business, these folks will have a much tougher go of it in the near future. For those who treat real estate as a profession and who are looked upon as trusted advisors, they will be the ones who dominate their respective markets. Topic is "In the News" http://www.theconsultingtimes.com/agent/archives/2007/09/26/the_emerging_role_of_the_real.html In the News commission consulting Universal MLS Wed, 26 Sep 2007 15:07:09 -0500 creed smith says: Exactly...there's too much information out there for buyers and sellers to deal with. That's why we did the Universal MLS--to allow the very best service providers to download the data, add value, create precise services for niche markets, and give the most competitive pricing. If a business person in Russia wants to sell US investment properties and manage the complex negotiations and paper work for his clients, he will do just that. His niche clientele will get superior service. That's where we are heading--very skilled niche players offering superior services effectively and efficiently. But also keep in mind that the DOJ FTC lawsuit will first open up and eventually destroy the MLS systems. This will also open the door for the very large competitors such as banks to be in direct competition with brokers. Also, the zillows of the world will use the antitrust lawsuit to provide a very, very cheap MLS input service on a national basis, act as another lead referral system, or even act as a large national brokerage. So brokers will be competing with the very skilled niche players and the giant institutional players. Topic is "In the News" http://www.theconsultingtimes.com/agent/archives/2007/09/26/the_emerging_role_of_the_real.html http://www.universalmls.com In the News commission consulting Universal MLS Wed, 26 Sep 2007 13:13:22 -0500 Mollie Wasserman says: Creed, it's not what you say - it's how you say it. You and I are in total agreement that the process needs to be streamlined and frankly, changed - the old sales model payable strictly by commission just makes no sense in the age of the Internet. I talk about that extensively in my book Ripping the Roof off Real Estate. My problem is that the Internet cannot interpret what all this data they are getting so easily means and the consumer needs to be given that message. It's not a matter of agents working 9-5, it's a matter of being paid for our time. We do not need to do (or be paid for) a lot of functionary things that can be better done by technology. But, a consumer can lose their shirt buying or selling without some expert guidance. This is what real estate consulting and the Accredited Consultant in Real Estate is all about. Mollie Topic is "In the News" http://www.theconsultingtimes.com/agent/archives/2007/09/26/the_emerging_role_of_the_real.html In the News commission consulting Universal MLS Wed, 26 Sep 2007 12:48:54 -0500 creed smith says: Hi, sorry about the horror; sometimes to get people to listen you have to say something in a unique way. The information did go to over 1000 peers and corporate clients before the press grabbed it. I agree, brokers will take on the role of professional consultant--but eventually after the internet has allowed buyers and sellers to find each other. Maybe we'll get to work Monday through Friday (not evenings and weekends). However, the entire home search and sale process will become more streamlined. Brokers will have to become very efficient at what they do, and they will manage many more transactions at once. There will not be the need for 2 million brokers to complete 6 million transactions--just too inefficient. The successful brokers will have systems to effectively and efficently manage a couple hundred transactions each year. Thus, there will be far fewer brokers in the marketplace. thanks Topic is "In the News" http://www.theconsultingtimes.com/agent/archives/2007/09/26/the_emerging_role_of_the_real.html http://www.universalmls.com In the News commission consulting Universal MLS Wed, 26 Sep 2007 12:37:55 -0500 Mollie Wasserman says: Albert, thanks for your comments. We're learning that there are a lot of us that feel the same way - it's just that most of us thought we were the only ones. I hope you'll consider becoming an ACRE - you'll find a whole community of like-minded pioneers! Take care, Mollie Wasserman Topic is "Commissions" http://www.theconsultingtimes.com/agent/archives/2007/09/05/think_real_estate_consulting_i.html Commissions discounting fee-for-service Mon, 17 Sep 2007 14:32:52 -0500 Albert says: Real Estate Consulting is the future business model of real estate. I've known there has always been something wrong with the compensation of traditional real estate, after reading Ripping the roof off real estate I quickly understood what I had been feeling. Commissions cheapen the home selling/buying process. Homes are not commodities and should not be treated as such. By offering various compensation options it molds Realtors into a more professional field. This is what our industry needs, more professionalism, this should not be a sales business and commissions only promotes that outdated model. I am in the process of restructuring my business to become a Real Estate Consultant. Consumers and business people are calling for a change, and Consulting in Real Estate is what is needed. Topic is "Commissions" http://www.theconsultingtimes.com/agent/archives/2007/09/05/think_real_estate_consulting_i.html Commissions discounting fee-for-service Mon, 17 Sep 2007 14:22:32 -0500 Dave Roberts says: Thanks Mollie, You've made it clear there are non-commission options for handling many of our real estate tasks that allow us to get paid for our time and provide value to our clients. I think most of my fellow agents really don't understand the concept of risk insurance and how that unbalances the proper relationship between a demanding seller and a desperate agent. A consulting fee structure lets everyone keep their self respect and professionalism and still allows for sellers who want risk insurance to choose that option. Topic is "Commissions" http://www.theconsultingtimes.com/agent/archives/2007/09/05/think_real_estate_consulting_i.html http://www.sonoma.net/blog Commissions discounting fee-for-service Mon, 17 Sep 2007 13:31:30 -0500 Mollie Wasserman says: ACRE testimonial section of this blog. And please feel free to contact any of these ACRE grads to get an idea of what our program is about. You can get any ACRE's contact information by going to "Find An ACRE" on our ACRE Course Site. Mollie]]> Topic is "Commissions" http://www.theconsultingtimes.com/agent/archives/2007/09/05/think_real_estate_consulting_i.html Commissions discounting fee-for-service Sat, 08 Sep 2007 17:47:07 -0500 William Johnson GRI CRS e-PRO says: Hello Mollie, A wonderful clarification for those that don't get it. I suppose you more clearly defined the Consulting approach that it has been in many a year. Why more us don't begin to get the picture is puzzling. I for one want to embrace this concept and would love to read more about this. Especially how one would be best implement your ideas. Topic is "Commissions" http://www.theconsultingtimes.com/agent/archives/2007/09/05/think_real_estate_consulting_i.html http://www.TheRealEstateTextBook.com Commissions discounting fee-for-service Sat, 08 Sep 2007 17:24:53 -0500 Mollie Wasserman says: My Response: Dear John: I don't believe you understand Consulting. This is NOT discounting. Offering alterntive ways to be paid does not impact you doing your traditional commission transactions. It will not lower your income but instead increase it because you get paid for things that in the traditional model you did for free. The consumer is not, for the most part, looking for cheap - they are looking for choice. If you give them choices in how they can pay you, many will still choose a tradtional commission because it mitigates their risk. But, by being TRANSPARENT in what you do and how much it costs you to do it, if they choose a commission, they understand that they must pay a premium for that option. Or, they can share the risk with you and pay less but you're guaranteed to be paid. Offering an hourly rate or a flat fee opens up opportunities to do business with a whole new group of consumers. Case in point: homeowners who may be deciding whether to add on to their house or sell and buy a bigger house. They traditionally do not seek out an agent because: a) they don't buy that they could possibly get objective advice since one choice will pay you and the other won't. b) there is no way to pay you for your counsel. Another example: sometimes, whether we like it or not, sellers will find their own buyer. Sometimes this happens very innocently - they mention to their neighbor that they are thinking of selling and the neighbor has a friend who would love to buy the house. Wala! They have a buyer - now what do they do? This is when they need a professional most but unfortunately, because we don't offer any flexibility, most of the time they go to an attorney to negotiate and troubleshoot their transaction and attorneys can't do this as well because this is NOT what they do. By having an hourly rate, you can offer to negotiate and troubleshoot the transaction, they have expertise and representation for a reasonable cost and you get paid very well for the time you spend and a paycheck that you never would have had! One more: homeowners are often thinking of refinancing or their tax bill seems high. Many would love to pay a professional to run the numbers and see if it makes sense for them to do a refinance or check their home's assesment. We have lost hundreds of thousands of dollars over the years as an industry because we can't address these "wide open blue oceans" of untapped business. Our ACRE grads are making a lot of additional income helping folks who don't fall into the traditional "full commission for a full package of services" and getting paid for it. This in no way takes away from their traditional business. This is what I mean by Blue Oceans - everyone is fighting over the consumers who are looking to buy or sell and will pay by commission. With the growth of technology allowing them to do many functional tasks on their own, our industry's refusal to offer choices simply cuts us out of providing the vital fiduciary counsel that is so needed. Consulting is not about "not competing". On the contrary, it's about competing and wiping out the competition because you can not only offer the standard fare that everyone else does, you can also tailor your services to their needs. Remember, discounting is about lowering your "contingent-on-an-outcome" pay where you are still shouldering all the risk. Consulting is about offering choices to the consumer both in the types of tasks they need you to perform and how they would like to pay for them. Commissions are built on high risk - high reward which is why they MUST be high in order to make up for the unpaid work we all do when transactions don't happen. When you work by the hour, or by a flat fee, the consumer is paying for the services themselves, not risk mitigation, and the agent gets paid very well for the expertise and time they provide. BIG point of difference. I encourage "John" or others to learn more about consulting by reading some of the articles written on this blog or check out what ACRE agents, clients, and industry leaders are saying in the Testimonial section. Mollie Wasserman ]]> Topic is "Consumers" http://www.theconsultingtimes.com/agent/archives/2007/06/26/bleeding_is_not_good_for_your_3.html Consumers Fri, 31 Aug 2007 11:55:33 -0500 Paula Bean says: Thanks for the kudo's on the article Marty, I had lot's of help with that from my friend and partner Mollie Wasserman. For any of you who did NOT go and watch the video from Broker Bryant that Marty posted in his article - YOU MUST GO NOW and view it. While you are there, be sure to watch his Redneck counter-offer video too. It will make your day. I'm proud to say that Brian works not far from me in Florida ;-) What a proud addition to the real estate community. He is experienced, funny, lighthearted and I'm sure very successful. I will be referring all of my Poinciana leads to him in the future. I'm just wondering if I should charge per lead, or get a referral fee as I'm not sure many counteroffers work in his neck of the woods after watching his video, lol! ~ Paula Bean Topic is "Internet" http://www.theconsultingtimes.com/agent/archives/2007/06/17/what_is_all_the_fuss_about_pay.html http://www.HomeOrlando.com Internet Sat, 14 Jul 2007 14:04:22 -0500 Marty Van Diest says: http://www.brokerbryant.com/2007/07/07/lead-or-prospect-are-you-buying here is the video http://www.youtube.com/watch?v=1TWyTNqV-iE I know it's not really good manners to put an offsite link into a comment so please come back to this post after watching the video. I doubt that you will be able to bring yourself to sign up for any leads after watching the video]]> Topic is "Internet" http://www.theconsultingtimes.com/agent/archives/2007/06/17/what_is_all_the_fuss_about_pay.html http://www.valleymarket.com Internet Sat, 14 Jul 2007 02:46:59 -0500 Joel Burslem says: Looking forward to seeing you guys in San Francisco. Connect should be a lot of fun! Topic is "In the News" http://www.theconsultingtimes.com/agent/archives/2007/07/03/acre_attending_inman_real_esta.html http://www.inman.com In the News Conference Connect Inman Tue, 03 Jul 2007 17:09:21 -0500 Paula Bean says: Hi Bruce, Mollie is preparing for a conference and asked me to get with you regarding your questions above. Please feel free to contact me at PaulaBean at HomeOrlando dot com with your contact info and I'll be happy to speak with you and answer any questions you have about our wildly successful Consulting model. Paula Bean Topic is "In the News" http://www.theconsultingtimes.com/agent/archives/2007/07/03/acre_attending_inman_real_esta.html http://www.HomeOrlando.com In the News Conference Connect Inman Tue, 03 Jul 2007 11:06:34 -0500 Bruce Deery says: Hey Mollie...read your book over the week-end...Loved it...just getting back into the business after going in another direction for years....Searching for a consumer advocate /consulting approach and your book hits alot of points right on the head....Curious to know if you know of a business model that licenses their model as opposed to franchising it so that it does not ccst me a fortune....Prefer to not have to re-invent the wheel....Thanx... Bruce Deery....ps enjoy the conference..... Topic is "In the News" http://www.theconsultingtimes.com/agent/archives/2007/07/03/acre_attending_inman_real_esta.html In the News Conference Connect Inman Tue, 03 Jul 2007 08:50:29 -0500