We recently had one of our clients, who is an asset management company, increase their fee to 1.25% and 1.5% in one case. That means the listing commission gets decreased to anything over that 1% mark. It's only on their Chase properties but those are the ones that are the most work. We sent emails to management trying to plead our case but they simply said if we don't like it they'll reassign those listings.I don't think it's good business to treat their agents that way and we don't just have one or two listings with them. My real concern is that this is just the beginning and their testing this out to implement on all their listings. It reminds me of BPO's and what happened to them. Back when I was doing BPO's they were around $65-70 for an exterior and now at $45-50. It's like that because there's so many agents hoping to get listings they their even doing free bpo's.We all know that if we refuse to do the work for that lower fee they'll easily find other agents that will and it will also effect the other listings we get from them. It's like being stuck between a rock and a hard place with no arms or legs. I really hope this doesn't become the norm but with so many agents trying to break into REO's they'll have no shortage of people that will take the listings for any commission rate.We're definitely not done fighting this but we have to come up with a game plan to ensure we don't hurt future business from them. Does anybody have any suggestions and also is this happening to anybody else?
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Jason Harper > Jose Rivas (DGRA) CDPE, SFROctober 22, 2009 at 3:23am
Im reference to NAR: All I meant was they would like to see REO more evenly distributed among agents. The more REO competitors in the market place, the lower the commissions. That's all... simple as that.
George, you are 100% on point. I remember $80+- BPOs and now it's $30+- SUPPLY and DEMAND :)
George Bellino > Vitaliy MikshanskiyOctober 21, 2009 at 6:13pm
I know this will never happen but I wish agents would put more value on their time and expertise and stop letting these companies do this to us. They can only do these things if we let them. We're digging a pretty big hole for ourselves.
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