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:

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: 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: 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: 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: 395,000 +1% 3,950 NEW LIST PRICE: 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 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 days creating a situation where the offers get even lower.) Negotiated price: 395, % = $379,200 After commission: 379, % (before expenses) = $360,240 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. Negotiated price: 398, % = $398,950 After commission: 398, % (before expenses) = $371,023 Bidding war price: 398, % = $410,918 After commission: 410, % (before expenses) = $382,154

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

“ 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, %: 418,897 $ MORE THAN LISTED PRICE: 19,948 10% OF ADDITIONAL FUNDS: 1,994 Additional Commission TOTAL COMMISSION (3% + $1994): 14,561 (vs. 5% 379,200)

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