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We're a dime a dozen to these companies!!

We just had one of our clients take us off "Preferred Status" because we stood up for ourselves. About a month ago we noticed the listing agreements started coming in with the listing commission at 1.75%. At first we thought it was a mistake but then it happened again for 1,5%. We put in a call to see what was going on and they simply told us that it was an executive decision that if we wanted to be taken off their preferred list to just let them know. Also, they said it would just be on Chase properties but then it started happening on all listings. We weren't just a broker that had one or two listings with them but around 50 and we produced great results for them. Our CFK is unrivaled in our area at over 95% success and our team speaks 4 languages.

It just goes to show what they really think about agents and how much they value us. The last communication we got from them stated everything was ok and they looked forward to doing business with us. Fast forward a week or so and one of their clients calls us and ask us if we still want their listings because that company isn't going to be giving us anymore. At least they value us enough to give us the heads up. Luckily they made it mandatory that they use us for their listings.

The point is that we were so replacable, in their minds, because they know other agents will take the listings for any commission. This was a long time coming and my main concern is that this will become a trend but it can only happen if we let it. They will find out the hard way, as well as the agents that take on these listings, that you truly get what you pay for and REO's are anything but free listings. I hope to work this out with them and get our preferred status back but I really have a feeling that this is a sign of things to come. So any AM's out there that need a good team in NJ please contact me. And agents, STOP SELLING YOURSELVES SHORT. Your time and expertise is worth something. They can only do this to us if we let them,

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Comment by Mark McMahon on December 19, 2009 at 11:15pm
Weighing in:
George. agree: If we whore ourselves out. the price will drop. Look at manufacturing. Deysma, would like to see our % drop and stay there when things turn around? You speak dangerous words to our profession. Everyone has a choice, but it is in any of our best interests to keep our % as high as we can. I work the same hours as all of you, and do not want to work more to make less. Kirby and George, agree also that we now do more and put more upfront than in the past. Look at bpo's: $50 for an appraisal. And we do it to keep the banks happy. We in CA have not had to drop our % as much as in other areas, but the % we pay for a listing is just as tough. Sorry for the ramble.
Comment by Deysma C. Kettering on November 25, 2009 at 10:31am
I would disagree with all as long as we are getting the volume of the lisitng with that company. and not a drizzle here and there.
You have the choice of not doing business with them. But always remember, some always will appreciate their business, If not you. It may be me.
Comment by George Bellino on November 17, 2009 at 8:57pm
Agreed Kirby. We may have overreacted some but it was more about the way the handled it. Also, the tasks for these properties are getting more tedious and they are demanding more and more from us.
Comment by Joe Kirby on November 17, 2009 at 9:21am
Not to be crass or negative..........but I believe that "a dime a dozen" might be to high of a value. Look at it this way, they know that somewhere, somehow, someone will take it for a lower rate. Therefore we as REO Brokers have diminished our value and they have increased their bottom line! I don't mind the preferred Broker status for an agreed upon lower fee as long as I know that we can make it up in volume. If it's just going to be one here and there, then we polietly refer them to another Broker. In the last 7 years the bottom line (actual net) for the REO Broker has diminished rapidly...........and we only have ourselves to blame for it. KIRB in MD.
Comment by George Bellino on November 13, 2009 at 9:52pm
Thanks Gerald. I wasn't trying to be negative towards you in any way. I'm just frustrated and need to vent. Everything happens for a reason and maybe this did to. Because of all this we woke up and started looking for other clients and picked up 1 new one while bringing life back to a dead one. The good part of the whole situation is those same agents that don't value themselves are busy doing bpo's for practically nothing which leaves the doors open for us to get some of the few opportunities available.
Comment by Gerald C. Seegars on November 13, 2009 at 8:07pm
It was a figure of speech George, clearly you are only standing up for yourself. But I applaud your action regardless.
Comment by George Bellino on November 11, 2009 at 10:27pm
We finally got some feedback as to our situation and one of the higher ups said they don't know why we were taken off the list and that we should be back on by next week. Hopefully that's true but now I see some of their listings going to one of the REO kings in our area that wasn't on their preferred list before. I interviewed with his company about a year ago and that one particular account he didn't have yet and he was actively pursuing it. The one thing we had going for us was they are just a servicing company and some of their clients we know personally and have been doing work with them before they employed that servicer. In fact, it was their clients who got us that account and also it was their clients who told us that we wouldn't be getting anymore listings from them. Also, those clients weren't aware that they were cutting the listing commissions and they didn't like that too much. That's why it pays to go the extra mile for companies because some will show their loyalty when it's needed most. Either way there's still a huge problem out there that will continue to get worst unless agents wake up.
Comment by Billie Dalessio on November 11, 2009 at 9:12pm
George-that just is not right. I give you alot of credit for standing firm, and knowing your value. Just possibly someone with some sense will review the situation and realize you get what you pay for,and that they will lose more money on 1 deal that goes bad with the cheap agent, then they would've spent in paying their best agents what they're worth. I wish you the best in obtaining new accounts
Comment by George Bellino on November 9, 2009 at 9:12pm
Me and my team took a stand and it got us temporarily (we hope) booted but that's the risk you take if you take your work serious and believe in yourself. There are downfalls but I believe that if your willing to take that risk that's it's a step in the right direction even though there's some negative ramifications. This has been a wake up call for us that made us switch gears and put more of a emphasis on creating new accounts. Never keep all your eggs in one basket.
Comment by Michael Yarnes on November 9, 2009 at 6:25pm
George, I am in absolute agreement, your comments ring true in the REO world and all other facets of the real estate industry. If we as professionals do not stand up for the value of our profession then why would anyone else?

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