HOW TO LAND EVERY LISTING APPOINTMENT AND GET 7% COMMISSION!
Bradley N. Meyer Founder Cas Cow Systems
More information at: https://cashcowsystems.squarespace.com/
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........
The Cold Hard Facts
1. INDUSTRY FACT: Most listing agents price homes knowing that there is going to be negotiation.
2. 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.
3. 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
4. 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.
Add 1% to the listing price...
COMP PRICE: $395,000.00
Add 1% $3,950.00, NEW LIST PRICE: $398,950.00 93% OF $398,950.00 = $371,023.00
95% OF $395,000.00 = $375,250.00
THE 5% IS $4,227.00 MORE, BUT...
3% LISTING SIDE 4% BUYER SIDE
Other Agents 5% split at 2.5% = $9,480.00 each 2.5% of $379,200.00 = $9,480.00
Your Listing 7% @ 3% = $11,968.00
3% of $398,950.00 = $11,968.00
Your Listing 7% @ 4% = $15,958.00
Bidding wars do happen when you do this in a sellers’ market.
Want an additional $2,488.00
Use this script when you talk with sellers
“Mr. & Mrs. Seller. If we go with this 7% plan and we do not get the offers that are commensurate with what I have detailed here, we can always re-list the house after 90 days at the $395,000.00 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 more than 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?
ORIGINAL 7% LISTED PRICE: $398,950.00
SELLING PRICE 398,950 + 5%: $418,897.00
MORE THAN LISTED PRICE: $19,948.00
10% OF ADDITIONAL FUNDS: $1,994 Additional Commission TOTAL COMMISSION (3% + $1994): $13,954.00
Vs. $9,480 @ 5% $379,200.00
You must show the seller how this is a hug benefit to them. Use expire d’s listed at %5 as an example to prove your point. Also use this to list expire d’s too.