How do you do it all for $199?

By
Real Estate Agent with RE/MAX Realty Specialists Inc.,

Introductory Meeting-1 to 2 hours (minimum $200)
Professional Appraisal Completion- 3 to 5 hours (minimum $400)
Listing Presentation-1 to 2 hours (minimum $200)
Professional Staging and Pre-List Preparation-1 to 3 hours (minimum $200)
Listing Data Verification and Signing-1 hour (minimum $100)
Listing Copy Writing and MLS uploading-2 to 3 hours (minimum $300 includes the mls processing fee)
Professional Listing Photography 1 hour(minimum $100)
Professional Photography Editing-1 to 2 hours (minimum $100)
Professional Feature Sheet Composition-1 to 2 hours (minimum $150)
Feature Sheet Production- one set of 25 (minimum $100)
Sign Placement- includes board and frame and disposable corner markers (minimum $50)
Professional Virtual Tour Production- 2 hours (minimum $200)
Website Upload- 2 hours (minimum $200)
Professional Agent Open House- 3 hours (minimum $300) 
Professional Public Open House-4 hours (minimum $400)
Professional Offer Negotiations- 4 hours ( minimum $400)
Conditional Follow Ups- 2 hours (minimum $200)
Lawyer and Closing Follow Up-2 hours (minimum $200)
Additional incured upon each Offer Presentation= $800
Brokerage or Brand Open House- 3 hours (minimum $300)
Follow Up and Leads- 2 hours per week (minimum $200 per week)
Additional Public Open House- 4 hours (minimum $400 per Open House)
Advertisments in print- (Canadian average $300 per ad per week)
Magazine Advertising (varies with property value and reach of magazine)
Please note the above billing rate is only $100/hr. This rate is all inclusive covering non-variable hard operating expenses (about $60,000 per year) spread over a 2000 hrs per year allocation and labour.

An interesting conundrum....

What additional services do you provide?

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Rainmaker
1,063,383
Michael Jacobs
Coldwell Banker Residential Brokerage - Pasadena, CA
PasadenaCA Real Estate Representation 818.516.4393

David -- everyone can choose their own business model.  Perhaps a more important question than how someone does it all is WHY?

Apr 17, 2012 07:23 AM #1
Rainmaker
830,269
Marc Swartz
Toronto, ON
CPA, CA - Toronto, Durham & York Regions, Ontario

Hi David - By greatly reducing the number of services provided as well as reducing the hourly rate to, say, minimum wage, some people would be (and are) happy with $199 per transaction.  They just need to perform the minimum work required by law and the regulator (REBBA, RECO etc.)

Apr 17, 2012 08:19 PM #2
Rainmaker
244,545
David Pylyp
RE/MAX Realty Specialists Inc., - Toronto, ON

Sadly, consumers approach housing with the view that LIKE fruit  once displayed it can be easily sold.  No one considers that they are the only fruit in the display.

The phrase what you don't know cannot hurt you has never been more accurate.

 

David Pylyp

 

Apr 18, 2012 08:56 AM #3
Rainmaker
447,865
Malcolm Johnston
Century 21 Lanthorn Real Estate LTD., Trenton, Ontario - Trenton, ON
Trenton Real Estate

David, I am sick and tired of getting emails from people who have signed up with those $199 MLs listing outfits who want me to bring them a buyer. I get 5 or 6 emails a week from these people who notice my web and local advertising presence and ask me to promote their listing in the hopes I will bring them an offer.

I have stopped responding to this type of spam. I have spent tens of thousands of hours and dollars building my marketing presence in this area, and the sellers who will benefit from it are the ones who sign a listing with me. If they sign with another agent for a flat fee, then they are getting exactly what they payed for in terms of promotion. Even if I earned the odd commission cheque by bringing a buyer for one or the other of these properties, ultimately it's a very short sighted business model if I start promoting other agents properties in the same manner as I promote the properties of clients who are willing to sign with me and pay me the proper amount of commission I need to offer the services I do.

I'm not sure what level of service people expect from agents (or FSBO outfits) who charge $199. Perhaps this is why about 80% of all "For Sale By Owner" properties eventually do get sold through a licensed agent.

Apr 18, 2012 10:21 AM #4
Rainmaker
244,545
David Pylyp
RE/MAX Realty Specialists Inc., - Toronto, ON

You make an excellent point Malcolm,

I also receive direct solicitations from VENDORS expounding the virtues of their Toronto real estate. 

I had not previously thought about the source of their inquiry in the fashion you have, but I can understand why we are wasting out time responding to FSBO's.

Another topic string went on at length about the absurdity of our obligations to a mere listing Vendor and being forced to explain their options to them.

 

 

Thank you!!

Apr 18, 2012 12:56 PM #5
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Rainmaker
244,545

David Pylyp

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