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If I was not busy, 1/2 is beter than nothing, but if it takes away from higher paying business...no
We have always discouraged our clients from doing that. It is time consuming and the relo companies kept bugging them every other minute, and their commission was reduced to next to nothing. A
Not worth it to me, I can find my own business.
It is surely not worth, Debbie!
I have stopped working for relo companies.
Debbie, I have started to cut back on this kind of business if they ask for more than 35%, unless it's a past client who specifically requested I work with them on the sale of a home I sold them. And a lot also depends on the size of the transaction. Giving away 40-45% of my commission on a $200,000 sale is just not worth it.
Hi Debbie -- it's definitely an important part of some agents book of business but it certainly needs to be monitored. The fees, times involved and lack of truly qualified leads can make it a very unprofitable venture.
I have on occasion done relocation but it is a rare thing. I am not personally against it but my business is very brisk and taking the time and paying out the fee is not worth it for me.
I recently accepted 2 relo's for 30% fee. They had 1 week to buy a home while they visited my area. I thought spending 3 full days with them was not bad vs spending months with a buyer. Since we have low pre-owned homes inventory they both bought new construction and I received a bonus on one so it covered some of the referral fees!
One of them already told me she wants to sell and move closer to where her daughter bought. They also have referred me! I would do it again!
I built a lot of my business on relocation, but most of it was done back when the referral fees were 25%. The last relo I received wanted 41%. Nope, sorry, not having a half-price sale.
Some agents in my market have made their career off of relocation companies.
It depends on how much they charge and the housing market at that time.
Agents have to start somewhere.
But let's not limit gouging to relocaton companies.
Some of you have called with referrals that were declined becuase you were greedy.
Let us not look to far beyond what some brokers and team leaders do. Yes, it's gouging.
Is this not part of the business we signed up for? At every turn, everyone is compelling extrodinary fees from real estate professionals.
Fortuneately, we do have the liberty to choose the business we want and leave this arena to the newbies who do not have the same choice liberties.
Unfortunately, just like nearly half of AR agents can not resist serving the dark side by giving Zillow their money, many others will pay relo companies for the folks the relo has entrapped by providing kickbacks through the company HR department.
It's just business.
Hi Debbie. I did a lot of them in my early years, but I didn't have clients of my own then. I got some great clients that are still in my Garden years later. I wouldn't be interested today. High maintenance and low return .. not an attractive formula.
Debbie, I think the short term pay is not a lot just like already pointed out. However, there could be a long term reward especially when working with relocation buyers. These buyers may turn into sellers again one day and hopefully, you will be their listing agent. So this may be a good way for someone to build and add to their customer base.
Anythings more than a normal 25% is gouging!!! And I don't encourage gouging!!!
If you can leverage the listings to get other listings or more buyers, the one you sacrificed the commission for is not soooo bad.
We've never worked with any. We have been approached by a few, but we were too busy with our own clients. By reading all the above...we have enough going on without their leads...
When considering "making less than half" we need to look at what we would be doing with that time if we didn't accept the relo client. If it's non-revenue producing, then it's a question of making 'something' vs. nothing. And you never know ... that client may be a great source of future 'full-price' business.
If that is the only business you are doing it probably would be nice to have, no matter the commission, however, I am not interested in cutting my commission.
I did it a couple of times and won't again Debbie. It is a rip. You are almost cutting your pay check in half. I do not think it is fair.
It is a business decision. Would they work for as much of a pay cut as the terms outlined position us?
My last RE company had a exclusive with a well known national company that required 45% of my commission before the split OUCH! I would rather deal agent to agent for my referral clients!
Debbie - Well I have never worked with any, but I would imagine if you needed the business part of something is better than part of nothing.
We don't see much activity from relocation sales out here. I've never done them, but I have heard of the high referral fees they charge. I don't think I would do it.