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.

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: MORE INFORMATION ABOUT THE CAREER COMPASS AT: www.TheCareerCompass.comwww.TheCareerCompass.com

GETTING 7% COMMISSIONGETTING 7% COMMISSIONTHIS TECHNIQUE IS NOTHING NEW, BUT CAN LITERALLY GET YOU THIS TECHNIQUE IS NOTHING NEW, BUT CAN LITERALLY GET YOU THE LISTING THE FIRST TIME, EVERY TIME. HOWEVER, IT IS ALL IN THE LISTING THE FIRST TIME, EVERY TIME. HOWEVER, IT IS ALL IN HOW YOU PRESENT IT...HOW YOU PRESENT IT...

INDUSTRY FACT: As unfortunate as it is, buyerINDUSTRY FACT: As unfortunate as it is, buyer ’’s agents in s agents in particular favor homes that have higher percentages in terms particular favor homes that have higher percentages in terms of commissions. Many make certain homes priorities in terms of commissions. Many make certain homes priorities in terms of showing based on the buying side commissionof showing based on the buying side commission

INDUSTRY FACT: Most listing agents price homes knowing that INDUSTRY FACT: Most listing agents price homes knowing that there is going to be negotiation. there is going to be negotiation.

INDUSTRY FACT: In normal markets, 90%+ of all initial offers INDUSTRY FACT: In normal markets, 90%+ of all initial offers are for some number OTHER than the full price and the are for some number OTHER than the full price and the accepted offer is somewhere between the list price and the accepted offer is somewhere between the list price and the initial offer.initial offer.

INDUSTRY FACT: Some listing agents do listing presentations INDUSTRY FACT: Some listing agents do listing presentations with the aspect of how they will cut commission as much or with the aspect of how they will cut commission as much or more than other agents. For example cutting the total more than other agents. For example cutting the total commission down to 5% which we will use for this example.commission down to 5% which we will use for this example.

+1% to the price...+1% to the price...COMP PRICE: 395,000COMP PRICE: 395,000+1% 3,950+1% 3,950NEW LIST PRICE: 398,950NEW LIST PRICE: 398,950

93% OF 398,950 = 371,02395% OF 395,000 = 375,250THE 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 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.)

Negotiated price: 395,000 - 4% = $379,200After commission: 379,200 - 5% (before expenses) = $360,240

The 7% listing gets immediate full price offers from eager buyerThe 7% listing gets immediate full price offers from eager buyer ’’s agents s agents wanting the 4%, creating either a full priced sale or a bidding war from buyers 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 buyerwho have been convinced this is the best home for them by their buyer ’’s s agent. This also happens extremely fast with no negotiation and makes this agent. This also happens extremely fast with no negotiation and makes this house the hottest house on the market. house the hottest house on the market.

Negotiated price: 398,950 - 0% = $398,950After commission: 398,950 - 7% (before expenses) = $371,023

Bidding war price: 398,950 + 3% = $410,918After commission: 410,918 - 7% (before expenses) = $382,154

OTHER AGENTS 5%OTHER AGENTS 5%

YOUR LISTING 7%YOUR LISTING 7%

YOUR LISTING 7%YOUR LISTING 7% (Bidding War)(Bidding War)

@2.5% = @2.5% = $9480$9480

2.5% of 379,2002.5% of 379,200

@3% = @3% = $11,968$11,968

3% of 398,9503% of 398,950

@3% = @3% = $12,327$12,327

3% of 410,9183% of 410,918

WANT AN ADDITIONAL $2,234?WANT AN ADDITIONAL $2,234?

““Mr. & Mrs Seller. If we go with this 7% plan and we do not get the offers that are 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 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. 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 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 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!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 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 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 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?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 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?agree to a 10% additional override of the excess to be added to my commission?

EXAMPLE:EXAMPLE:ORIGINAL 7% LISTED PRICE: 398,950ORIGINAL 7% LISTED PRICE: 398,950SELLING PRICE 398,950 + 5%: 418,897SELLING PRICE 398,950 + 5%: 418,897$ MORE THAN LISTED PRICE: 19,948$ MORE THAN LISTED PRICE: 19,94810% OF ADDITIONAL FUNDS: 1,994 10% OF ADDITIONAL FUNDS: 1,994 Additional CommissionAdditional CommissionTOTAL COMMISSION (3% + $1994): 14,561 TOTAL COMMISSION (3% + $1994): 14,561 (vs. 9,480 @ 5% 379,200)(vs. 9,480 @ 5% 379,200)

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ONE TIME: $195ONE TIME: $195ALL INCLUSIVE! ALL INCLUSIVE!