Wednesday, June 07, 2006

I’m Looking for You, Are You Looking for Me?

By Peter C. Fyler - Exclusive Buyer's Agent

I'm constantly working to create more ways of reaching and attracting prospective real estate buyers to my exclusive buyer service. I'm not hard to find on the web. I work very hard at conveying my image in an open and forthright manner and it is not hard to figure out who I am or what I do.

Have you ever come upon an internet website that promises to connect you with the best real estate agent in the area where you want to buy property, if you'll just fill out their information questionnaire? I’m sure you’ve seen these websites, but did you know these companies are not in the real estate business, know nothing about the real estate business or the agents they refer? They share none of the liability of the real estate broker.

But many real estate people are enticed into subscribing to these lead referral companies. The companies charge big bucks for distributing all the so-called leads they capture. The lead referral fee can amount to as much as one-third of a broker’s commission on a sale. Furthermore, if these lead referral companies don’t make any money from the agents they refer to, they will cut them loose. As you can see, there's some added pressure to sell, sell, sell. There are dozens of these internet lead referral companies trolling around hoping to attract real estate agents who want to increase their business. However, does this service really benefit the consumer? I think not.

People ask me why I represent buyers exclusively, especially since it's their understanding that by working to get the best deal for my buyer clients, which also means getting the best price for my buyer clients, I will make less commission. That’s generally true. However, it works like this. If I do a good job and my clients are happy, comfortable and satisfied with the purchase they've made, they'll want others to have the same experience. Therefore, they refer prospective buyers to me, and that's how I make more money. I work very hard for my buyer clients and I’m comfortable with my commission arrangement as stated in my agreement. But what about the guy who is working for the same commission as I am, but knows that he's going to be giving up 30% to some entity he has no relationship with, who just sends him cold contact information? Is that guy going to work as hard for the buyer or harder for himself? Finding a good real estate agent is as easy as typing in your browser address bar.


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