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HOW TO GET 7% COMMISSION HOW TO LAND EVERY LISTING APPOINTMENT AND GET 7% HOW TO GET 7% COMMISSION HOW TO LAND EVERY LISTING APPOINTMENT AND GET 7% COMMISSION! PRESENTED BY: THE CAREER COMPASS REAL ESTATE SUCCESS TRAINING & LIFETIME LICENSE RENEWAL MORE INFORMATION ABOUT THE CAREER COMPASS AT: www. The. Career. Compass. com

GETTING 7% COMMISSION THIS TECHNIQUE IS NOTHING NEW, BUT CAN LITERALLY GET YOU THE GETTING 7% COMMISSION THIS TECHNIQUE IS NOTHING NEW, BUT CAN LITERALLY GET YOU THE LISTING THE FIRST TIME, EVERY TIME. HOWEVER, IT IS ALL IN HOW YOU PRESENT IT. . . INDUSTRY FACT: Most listing agents price homes knowing that there is going to be negotiation. INDUSTRY FACT: In normal markets, 90%+ of all initial offers are for some number OTHER than the full price and the accepted offer is somewhere between the list price and the initial offer. INDUSTRY FACT: As unfortunate as it is, buyer’s agents in particular favor homes that have higher percentages in terms of commissions. Many make certain homes priorities in terms of showing based on the buying side commission INDUSTRY FACT: Some listing agents do listing presentations with the aspect of how they will cut commission as much or more than other agents. For example cutting the total commission down to 5% which we will use for this example.

+1% to the price. . . COMP PRICE: +1% NEW LIST PRICE: 395, 000 +1% to the price. . . COMP PRICE: +1% NEW LIST PRICE: 395, 000 3, 950 398, 950 93% OF 398, 950 = 371, 023 95% OF 395, 000 = 375, 250 THE 5% IS $4, 227 MORE, BUT. . . LISTING SIDE BUYING SIDE

The 5% listing gets negotiation-based offers that typically start between 2 -6% below the The 5% listing gets negotiation-based offers that typically start between 2 -6% below the listed price of $395, 000. The agents negotiate the price to approximately 4% below list. (NOTE: The negotiation takes time and runs the risk of the two sides not coming to an agreed-upon price. In which case the home may sit for longer than 30 -60 days creating a situation where the offers get even lower. ) $379, 200 After commission: 379, 200 - 5% (before expenses) = $360, 240 Negotiated price: 395, 000 - 4% = The 7% listing gets immediate full price offers from eager buyer ’s agents wanting the 4%, creating either a full priced sale or a bidding war from buyers who have been convinced this is the best home for them by their buyer ’s agent. This also happens extremely fast with no negotiation and makes this house the hottest house on the market. $398, 950 After commission: 398, 950 - 7% (before expenses) = $371, 023 Negotiated price: 398, 950 - 0% = $410, 918 After commission: 410, 918 - 7% (before expenses) = $382, 154 Bidding war price: 398, 950 + 3% =

OTHER AGENTS 5% @2. 5% = $9480 YOUR LISTING 7% @3% = $11, 968 OTHER AGENTS 5% @2. 5% = $9480 YOUR LISTING 7% @3% = $11, 968 YOUR LISTING 7% @3% = $12, 327 (Bidding War) 2. 5% of 379, 200 3% of 398, 950 3% of 410, 918 WANT AN ADDITIONAL $2, 234?

“Mr. & Mrs Seller. If we go with this 7% plan and we do “Mr. & Mrs Seller. If we go with this 7% plan and we do not get the offers that are comensurate with what I have detailed here, we can always re-list the house after 90 days at the 395, 000 price and a regular commission. However, I will do you one better. If my plan does not work, I will re-list your house for a total of 4% (1/3) to fairly compensate you for your time and faith in my plan. However, I am very confident I will not need to do so. Your house is going to sell quickly!” “However, Mr. & Mrs Seller, if and when my plan does work, if I can negotiate your house into a bidding war where we get a price in excess of the list, would you agree I have done more than my job in selling your house? If that is the case, would you agree on an override commission beyond a certain point? Thus, if the home sells for 5% or more above the, original listed price, would you agree to a 10% additional override of the excess to be added to my commission? EXAMPLE: ORIGINAL 7% LISTED PRICE: 398, 950 SELLING PRICE 398, 950 + 5%: 418, 897 $ MORE THAN LISTED PRICE: 19, 948 10% OF ADDITIONAL FUNDS: 1, 994 Additional Commission TOTAL COMMISSION (3% + $1994): 14, 561 (vs. 9, 480 @ 5% 379, 200)

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