From: "Sudoxe" 
Newsgroups: alt.org.natl-assn-mortgage-brokers alt.real-estate alt.real-estate-agents alt.real-estate.rentals
Subject: Re: Set Commission Based On Difficulty to Sell???
Date: Mon, 06 Oct 2003 00:14:49 GMT


"Baird Spalding"  wrote in message
news:9e1gb.44018$k17.13805@bignews5.bellsouth.net...
>
> On  5-Oct-2003, "Don Zimmerman"  wrote:
>
> > >> As I understand all these things make you a greater risk with a
> > > corresponding higher interest rate. To say they're charging more
because
> > > it's "harder" should insult your intelligence. It also ought to
tell you
> > > about their level of experience. It may be harder for a broker
with no
> > > sub-prime experience, but it's not harder for a competent broker.
> > >
> > > > self-employed or unverified income
> > > > As I understand it, all these things make it harder to get a
loan.
> > >
> > > Yea sure, it's harder to not document a loan than to document one.
> > >
> > > But you've given me an idea! I'll charge more commission for one
> > > bathroom
> > > homes because they're harder to sell. Wait! That orange paint,
that'll
> > cost
> > > you another 2%. Hope you spanked little Johnnie good, that vomit
stain's
> > > gunna cost you 1%.
> >
> > Yes, I see your point. Greater risk should entitle the lender to a
higher
> > interest rate, but it might not affect the amount of work done in
finding
> > and processing the loan. I am not sure about that.
>
> If mortgage brokers have been getting away with the "we charge more
for
> harder to approve loans." And you seemed to accept it, and judging
from your
> posts, you're no fool and you're in the business too. I wonder if that
> method would fly in the real estate business. I wouldn't mind taking
1% if
> the home would sell in a few days with relatively little interaction
with
> the sellers or agents. When it stays on the market I not only have to
call
> the seller on a weekly basis at the very least. I need to follow up on
the
> showings, send messages to prospective buyer's agents etc. It seems
like not
> only a good marketing angle, but a sound business decision. Some
sellers are
> getting screwed at 6% while others have caused me so much time and
expense I
> should have charged them 20% or walked away. I occasionally agree to
lower
> commission or pay a seller's bonus in exchange for them lowering the
price
> and or cleaning up and doing cosmetic work on the house and it's
worked well
> in every case. Why not do it up front?
>
> It doesn't seem fair to charge everyone the same. Just wondering what
you
> all think about keeping the commission open until an evaluation is
done or
> even have it based in part on how long it's on the market.

Nah, Realtors should work for free.