RISMEDIA, December 12, 2006—There are many strong feelings among agents and brokers about the changes going on in the industry, and none more charged than when the subject turns to discounted or negotiated commissions. It is well known that a common strategy to demean a profession is to try to commoditize the function, to make claims that “anyone can do it, no special knowledge is required,” and to otherwise mock a profession. Use of such statements like “used car salesmen and Realtors will say anything to get a sale” are another well known technique.

These techniques are in use today, and the target is the full service real estate professional and their commission structure.

I recently authored a series on this in another newsletter, and the responses I received were legion. Full service agents applauded, discounters wrote angry denunciations. Now, I’m not talking about every real estate professional who has ever negotiated a commission—after all, negotiated commissions are proper and comply with the law. To refuse to negotiate might lead to more governmental scrutiny of our industry at worst, and make customers think we are knuckleheads, at best. I learned many points of view, and came away with a new appreciation for the diversity of opinion on this topic..

Among the many responses I received was one from David McCall, a Realtor of just two years standing in a small North Carolina town called Edenton. When I read that letter, I was again impressed by the commitment, the effort, and (when possible) the “win-win” results that a full service agent can bring to her or his customers—whether negotiating a commission or collecting the traditional one. The following has nothing to do with commissions, and everything to do with attitude, effort, and obtaining the best result for the customer. To me, it illustrates just a portion of the many reasons a professional real estate person is so valuable. Here’s the story, in David McCall’s words:

“Just a couple of months ago, I had helped a seller to come within 5K of the asking price he had listed a property at last year, in the hot market. The client had listed the property with another agent for $165K and it didn’t sell for a year. I did it by selling the house to an out-of-state investor for $160K, who still has never even been here to see the home.
That investor made a nice transaction for himself, and here’s how I did it: Based on my local knowledge, I told the investor that the 25K square footage rule for building lots was about to change to 40K square feet. Since this house sat in the middle of 77K square feet of lot, I believed the house would appraise at the asking price for just itself and the lot, but that the opportunity existed now to subdivide the property into three separate building lots, one on each side of the existing home, if we moved quickly. I actually took my cell phone with me and stuck it in the hands of the surveyor to get him out to survey and subdivide the parcel before the rules changed. The following day, I personally carried the “Plat” around town obtaining the necessary official approvals for the new survey. The following week, the rules changed. Our plan was “grandfathered” in.

My buyer was delighted: the house appraised fully on the new 25K square foot lot in the middle, with the two now-additional lots also appraising out as additional to the price by a significant amount. The house sold for 160K, and the buyer was very happy to have a home and lot mortgaged, and two additional building lots free and clear on separate deeds. I found a renter for the home. So, the way I see it, the seller won, the buyer won, the renter won, and two additional families will win when they can purchase building lots in town that are grandfathered and affordable! The insurance agent I hooked the buyer up with won. The loan broker I hooked him up with won. The building contractor I hooked him up with to do repairs won. The two attorneys who handled the transactions won, and I won. I ask you, isn’t this what growing a local economy is all about?”

Isn’t that “full service” at its best? That is what being a real estate professional is all about, in my opinion: doing the most good for the most parties, and doing well yourself as reward.

You can connect with David McCall at HomesandlandNC@Yahoo.comand his Web site is www.HomesandLandNC.com.

David also mentioned in his letter that his biggest ongoing concern is that he may not keep enough in his pipeline. I think we all know that feeling. That’s why online marketing is so important: it magnifies one person’s selling abilities and accesses a marketplace of many people looking to buy homes. I’ve written a little booklet with 15 tips to help you get the most out of your online marketing and Web site and it’s yours for the asking at realestate@theblackwatercg.com.Maybe there’s one good idea in there for you. For certain, it never ceases to amaze me that no matter where a professional is located, he or she can bring results like David McCall did to his customer. These are the kinds of things the public needs to know, and these are the kinds of things that make the obvious plain: a full service professional is worth whatever they charge.

For more information, contact Mike Parker, at mparker@TheBlackwaterCG.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.