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Rethinking your Real Estate Market...

Discussion in 'Real Estate' started by Highrpm955, Jan 25, 2016.

  1. Highrpm955

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    OK...Im sure that most of you are frustrated with the frugal ways of the Real Estate sector.. I think the reason for this is that if an Agency pays for your services to list, and another Agency sells the property, they are out the money. This is why they have been so called "cheap", and I can understand that. However, I am attempting to seal a deal with the President of a Realtors Association to fill the pipe of properties for market and flood all Agents with all the marketing they can provide for me to produce. Works like this... I shoot and produce all the properties they want me to (prefer higher end). I edit and provide the link, which is not only available to the listing agent, but all agents in the MLS.. I don't get paid until the property sells. Is it a risk?.. sure. But this way, you can ask for a larger premium because nobody is paying up front, and it can be a payday for you when you least expect it... My set charge is one 1/4 of 1 percent of the asking price... ex. $200K pays $500, a $400K property pays $1000... etc. The President of this Association thought this was a great idea to get marketing started up, without any upfront fees.... another incentive was that if the property did not sell,or got pulled from the market, no harm, no foul, and no charge...The end result being that if the listing agent sells the property, then they pay the entire amount, but if another agency sell their listing, the listing agent pays 40%, and the selling agent 60%. You gotta admit that this is a better approach than what I have been trying to accomplish for a few months now. What do you all think? Thoughts?
     
    #1 Highrpm955, Jan 25, 2016
    Last edited: Jan 27, 2016
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  2. Yapper915

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    I think it is a great Idea. I am currently working with come Brokers right now on the same type of agreement. They have had me in touch with a couple of the Presidents. We are still working through the payment piece. In your example who pays that 1/2 of a %? What if one of the realtors involved in the sale doesn't agree on the 1/4 of a % for their half?
     
  3. DennisR

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    I think anything that works is good.Real estate people are the worst to get money out of. They expect everything for nothing. so what you are saying is you get paid when the property sells? I thought of doing that years ago but then the mean people come and say... "What if it wasn't your video that sold the property?" How are you going to get around that? The only way it can work is if you get paid on settlement regardless on how they claim it was sold.
     
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  4. Highrpm955

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    The contract would be ANY property that I have shot that sold.. Yapper... The President of the Association will be signing agreements with all agents on who listed and who sold.. Listing agents would pay 40% of the the 1/4 of 1 percent of the asking price, and the selling agent would pay the 60%.... either way, all of this is negotiable. You could work out a 70/30 spilt, 80/20.. whatever. The bottom line is to get your work in the marketplace. This also gives you the experience in different lighting, situations, settings, and will hone your skills without any pressure, while building a nice residual income for you down the road.... think mailbox money.
     
    #4 Highrpm955, Jan 25, 2016
    Last edited: Jan 26, 2016
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  5. DennisR

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    For my work, I have been shooting high end display homes for 8 years but at a rate over $2200 a piece. I have shot over 500 of them but had thoughts of entering into the real estate market many times but couldn't get anyone to pay. Most want my work for $550 and I don't do that sort of work.Your idea has merit.
     
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  6. DennisR

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    I have tried to work it out but your fees dont add up. How do you work out half of 1%? How do you get half of 1% of 200k is $500?
     
  7. Highrpm955

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    $200,000 times .25% is $500 .... my mistake... I meant 1 quarter.
     
  8. DennisR

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    But you said half a percent. .25 is one quarter of a percent.
     
  9. Highrpm955

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    Read above^^^...... been a long day, I make a typo.
     
  10. DennisR

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    Ok..thats a big help. Most homes in Australia are above $550,000 and th homes I shoot are above 800k. There would have to be a sliding scale.
     
  11. Highrpm955

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    I thought abut that as well, but around my market, $395K is about average.. But if I were in a different market, I would prob discount as the asking price increased above $600K to 1 Million and above......... or maybe not.. F*ck em!, If you have a 1 Million dollar home you are trying to sell, $2500 is a bargain!.
     
    #11 Highrpm955, Jan 26, 2016
    Last edited: Jan 26, 2016
  12. MrDRC

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    Good luck with that but in my market agents and brokers are independent contractors and the Board of Realtors has absolutely ZERO involvement in commission structures and fees paid. In our market the MLS and Board of Realtors was sued many years ago for price fixing commissions and this is similar slippery slope. There would definitely be an "opt out" in my market for any agent or broker not wanting the service. There is already an "opt out" for certain listing internet publishing features and almost all agents opt out of it.

    I've been a successful broker for 25 years and opt out of the 3rd party commentary option for internet published listings. You can even opt out of all internet publishing of listings. Not that it would be smart but there are circumstances where clients do not want their listing or photos online. I can never see our local board being able to make this mandatory. The President of our Board of Realtors does not have the right to enter into contracts on behalf of a brokers clients. Its not in their mandate nor in their purview. If a seller client does not want aerial he is the final say, not the Board of Realtors.
     
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  13. Yapper915

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    That makes sense. I can see that really being the only hurdle with them basically being told they will have to give up cash. The argument of "I didn't want a video made" or blah, blah, blah. But over all it is great and it is more professional than Billy Bob in the back of his pickup driving around the estate.... I mean i grew up 3.5 hours from OKC and all those horse people with their noses in the air and their lavish estates (only jealous here) I can only imagine what Carol Roses's Realtor or someone of that caliber might be like. LOL Great job on thinking out of the box.
     
  14. Highrpm955

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    Again... This would be an agreement contract with the local agencies. I'm in a smaller market and it's a tight knit community.. They all try so work together. I'm am sure all regions and markets are differ in their approach.
     
  15. Yapper915

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    This is the direction that I was going with my posts. Hence why I went to the Brokers. My thought process is to bake it in to the listing fees (since in MO at least the commissions (6%) are split 50-50). I plan on trying it out in the spring with some above average homes and donating my time/effort. If we can move a property on market faster (simple latency analytics here) with a video then without then i would work out the payment upon sales structure.
     
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  16. DennisR

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    Heres an example of what I charge $2200 for as a display home. I was doing 3 a week for years. .
    Blueprint Charleston
    Established homes like this one below are hard to get that sort of money from. I have tried a few but no one wants to pay decent money. These take a lot of my time and simply not worth what they want to pay.Thats where your idea is good. Something I thought about before but never implemented.
    38 Ormsby Tce

    30 Warren Place Mandurah
     
  17. MrDRC

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    And this is exactly where you need to go, the brokers/agents, not the Board of Realtors. They are the ones signing contracts with owners/clients. The Board/MLS only facilitate the dissemination of the information and conduct of Realtors. They dont set client policy.

    I have been using my Phantoms to take a few aerial photos on my personal listings for over 2 years. I only use a couple per listings and not all listings are conducive for aerial. It can be a great marketing tool and gives potential buyers a nice look at a property that is much better than Google Earth but it doesn't work on all homes. Bottom line though, the owner is the client and will ultimately decide if they want aerial or not.
     
  18. Highrpm955

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    True!.. not all would need aerial, but they all need ground and interior footage... All the listings around here pretty much include iPhone photos and they look horrible.. But all could benefit from quality ground footage with and GH4/Gimbal/Osmo setup like in your BluePrint video. A tight area could still work with at least a 360 degree aerial of the neighborhood mixed in the video.
     
  19. DennisR

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    the Blueprint video can't use aerials because its a display home and we can't show the oppositions builders in the shot. On another note, you need much more than an el cheapo GH4 to take wide angle shots like this. No fisheye here and the walls are straight up and down. Residential homes could certainly benefit from aerials as you say.
     
  20. licensed pilot

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    Great idea, I am pondering this. I have been told by realtors they can't post videos on MLS....???