60-Minutes

I do hope Todd has a productive trip. While he is away I hope to keep the blog up to date. I too saw the 60 minute segment on Sunday night. While I agree that our industry needs to change and I really do feel that it is the idea of realtors operating a transaction over the phone terrifying.

In the segment, a Kelly Engel explains the guilt felt when they worked '5 hours' on a transaction and made $12,000 and in fact they said that the client found the home they bought on the Internet.

This is indeed sad. First of all the money Kelly Engel made in that transaction probably was too much if indeed that was all that the realtor did to earn it. A good buyers agent would show the property to the client, then prepare a comparative market analysis to help educate the buyer as to the market value of the property and then formulate an offer based on that information. The buyers agent would also point out that price is not the only factor looked at by the seller when deciding if and how to counter. In other words, a seller may accept a larger concession in price if the financing is solid and the closing date is quick. That's just the work that needs to be attended to in order to make an offer- after the buyers agent negotiates the offer and it is accepted then the buyers agent needs to open the escrow and make sure that all the important time sensitive inspections take place and that the buyer is reminded of their obligations and rights with regard to those inspections. Then the preliminary commitment for title arrives....or does it? Did the buyers receive it during the period outlined in the contract? What do they do with it? These are just a few of the duties a buyers agent performs during the transaction. Oh and did I mention that the sellers agent pays the buyers agent? Yes, that's right.

The television show began with talking about realtors charging 6%. They never talked about who receives that money. Now again, this realtor who says he worked the deal for 5 hours.....he should feel guilty, but as far as the original agreement for a percentage, that was negotiated between the seller and the sellers agent????? Commissions are not fixed--everything is negotiable, how the home is marketed, open houses, and commission. If the sellers agent showed the seller his marketing plan for the property and the seller felt he was getting his money worth through, color print advertising, web advertising and such...well...

The point is that I agree, our industry needs to change. We as Realtors are two things we are service providers and marketing executives. All of us need to strive to provide better service to our clientele. I feel that people for the most part understand that we are discussing their most valuable asset and they understand the concept of 'you get what you pay for', and they just want what they are willing to pay for.