malcom riley real estate commissions and fees/ deregulation
DESCRIPTION
Real Estate Deregulation of Queensland CommissionsTRANSCRIPT
Deregulation
Phones
EXITS
Questions
MONEY
PROFIT
LOSS
Secret Shopper
• By Phone 68% offered a discount • Only 5% followed up the enquiry • Listing presentations just offering a discount
before the client evens asks for one• Open for inspections – names not even taken
• 3 Agents all quoted the Seller the Same commissions $23,000
• The 4th Agent called in quoted Also $23,000 – then reduced it To $18,000 ?????????
Must Have a Plan
5% of the 1st $18,000 plus 2.5 % of the balance on a sale price of $500,000is $12,950.00
2.5% of $500,000 is $12,500 difference of $450,000
Com
• 5% of $18,000 plus 2.5% on the balance price• $500,000 = com total $12,950.00
• Example 2.5% up to $400,000 and 5% on the balance of $500,000
• $10,000 (2.5%) • plus 5% of $100,000 = $5,000• Total com $15,000 • Difference $2,050
SALES
option to charge 2% up to $500,000 and what ever you get over that figure charge 5% of the balance
•Points of Difference
Go Pro
Google Glasses
Let Fee
• One day of inspections – 96.2 km• 6 inspections – two no shows• 2 applications • Time -2hours 40 min• 96.2km @72cents = $69.27• One staff member $16 per hour $38.40• Total $107.67 – no return
19 Smith St - $320pw
• 7 Inspections time took 3 hours 15 min =$50.40• 56 km round trip x 7 inspections • Total of 392km @72c = $282.24• Process application Takes about 1 hour $16.00• Total $348.64• Loss of $28.64• Not Counting the Condition Report or
documentation
19 Smith St - $320pw
• One more inspection• Total 8 inspection time 45 min = $57.60• Another 56 km @72c = 448 = $322.56• Total to rent this property $380.16• Loss $60.16
• $400,000 • average value
• 100 • properties
•$40 Million
Property Portfolio
HOW MUCH
Preparation
Training and Practice