Is it time for Realtors to ask for listing retainers?
There are many misnomers around the process of selling a home and the role that the Realtor plays in the process. One of the most misunderstood elements of the process is the MLS system. Realtors and consumers are often surprised when they discover that typically 3/4 of the listings on MLS at any one time do not sell. This becomes a very interesting fact when you consider the emergence of mere postings on the heels of the Competition Bureau's campaign to allow various service levels; posting fees are non-refundable.
Whether you are a fan of posting fees or not, they are a nod to the reality that there must be a value placed on the actual service of placing a property on the MLS. As an entity, the MLS is a direct result of the investment of Realtor time and money. The board fees, the national and provincial organizations, the collection of data and the structure of policies and by-laws all culminate to provide a reliable valuation system. This arguably sustains the market place for the largest consumer investment of all.
Is it reasonable to expect access to this expensive, labour intensive system on a contingency basis alone when the failure rate is so high? Couple board fees, virtual tours, collaterals, staging, photos and advertising and the financial burden can become onerous for the Realtor if the property doesn't sell. Perhaps a posting retainer will soon become the norm for those Realtors who would like to operate a sustainable practice and an elevated, consistent level of service.
Tina Gardin is the Broker owner of Sutton Group Quantum Realty Inc. with offices in Lorne Park and Oakville. Exclusive home of the The New Age of Real Estate Program TM
Associate Broker Remax Sabre Realty
10 年Brilliant discussion - we have the Service Retainer Agreement already on Webforms - "I will provide you with the services outlined in Sched. A in return for the remuneration outlined in Sched. B" Simple! I use retainers for consulting, lease renewals, and Tenant / Buyer Agency Contracts. For a successful transaction I usually credit the amount of the retainer to commissions earned - it's fair, and I'm paid either way without double dipping.
B2B marketing leader passionate about building high performing teams.
10 年I don't think it's a bad idea. But they have to be able to demonstrate value for those retainers. For instance on the listing side a vendor would likely get better marketing services if they cover the marketing expenses (photography, advertising etc). These are currently hard costs that usually fall on the realtor. As a result the quality of real estate marketing is not at the level it probably should be. Realtors tend to skimp on this spend as it's coming out of their pocket. Next time you list a property consider asking for an up front marketing contribution; you might find out how serious they are about selling!
Sales Representative at EXP
10 年This is a great idea. We as agents should get a retainer fee from the buyers as well. Just in case they have decided not to purchase anymore. .
Founder (Former CEO) Spark Real Estate Software Connecting the built world to technology
10 年It's a simple question; why doesn't MLS allow for full bore syndication of listings?
Vice President, Sale and Marketing
10 年Agree with Tony and Ingrid only in the instance that they cancel prior to the end date of the listing agreement and basically pull the rug out from under you. As for Karen's comments I dont agree as I believe that comes with the job. Also, one word of caution, when realtors start looking to recover these costs the clients will also start putting fees under a microscope, i.e - should you be paid the extra 3k+ in commission on a 1.7 million dollar home vs a 1.5 million dollar home. Was there an additional 3k worth of work involved. (3k is a fictitious number and only used as an example.)