malcom riley real estate commissions and fees/ deregulation

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

mr.riley@bigpond.comwww.malcomriley.com.au 0438406932