Typical Commission – Negotiating Realtor Fees

The typical commission a realtor charges can be anywhere from three to seven percent depending on the area and realtor competition in the marketplace.  In most every case the typical commission can be negotiated if you know how.

The challenge most consumers have when it comes to negotiating real estate commissions is they are negotiating against a professional negotiator. Realtors negotiate for a living and you’re hiring them to negotiate for you when a buyer is found.  When a realtor meets with you to talk about listing your property they fully expect you to ask or try to negotiate a lower commission.

Well, the truth is, nearly all realtors spend thousands of dollars during their career on education and training.  It’s safe to assume the realtor your interviewing is easily and fully prepared for the “Can you lower your commission” question. It’s not the first time they’ve been asked.

Sure, you can ask for a lower commission and you might even have a few reasons why to solidify your position.  But what happens when the realtor comes right back at you and responds with something like “I understand you want to save as much money as you can. Who doesn’t, especially in this market, right?  However, I have a proven track record in this town with the highest amount of sales. Even at my higher commission you will net more with me than any other realtor.”

Are you prepared for this?  Do you have a response?  Maybe, but probably not. Most consumers have not thought this far ahead.  Maybe you’re the exception and can come up with a brilliant and effective response and get a lower commission.

But, wait. Not so fast.

Remember, the realtor has spent time, money and energy to overcome your objections.  Don’t think one measly, brilliant comeback is going to make the realtor crumble to the floor, beg you to stop negotiating and throw in the towel.

Hardly.

In order to negotiate and pay less than the typical commission you need to learn the ‘lower my commission’ objection handling techniques that realtors learn. Secondly, you’ll need to come up with responses to those objections handling techniques. Only then do you have a chance.  Only then can you negotiate from a position of power.

In summary, the typical commission is three to seven percent and it can be negotiated. If you take the time do the research you’ll find negotiating real estate commissions is not hard. Once you can anticipate the responses that a realtor is most likely to give when you ask them to lower their commission the more likely it is you’ll pay less than the typical commission.

Learn how today.

The Presenter’s Dilemma – 5 Ways to Make Your Training Stick

OK, so it’s time to talk about an ugly little secret that nobody who does presentations really like to talk about. What’s the secret? Most of the time what we tell our audience goes in one ear and out the other. It just doesn’t stick.

In fact, if you are presenting training or a new way of doing business to an audience, some studies have shown that only 10% – 40% of what you tell your audience will ever be used by them on the job. Ouch! What are we doing wrong?

Dr. Harry Martin teaches at Cleveland State University in (of course) Cleveland. He is an expert in both management and labor relations. He’s got some thoughts on what is going wrong here…

Take heart – it’s probably not all about you. When we try to train our audiences, we are really talking about having them change their lives. Change has the unfortunate side effect of creating anxiety in our audience and they will actively seek to avoid change at almost any cost. So is this a losing game?

Good news – the answer is no. However, you’ve got to start doing some additional work. You need to make sure that a workplace environment that will actively encourage your audience to continue to change is set up and exists long after your presentation is over. In a nutshell, this means that the training can’t end when your audience walks out the door. So what’s the trick to doing this?

It turns out that there are five simple things that you can either do during your presentation or cause to occur after your presentation is over that will dramatically boost the use of the information that you delivered:

  • Write It Down!: Everyone should recognize this one from all of those goal setting / time management programs that we’re always studying – just getting your audience to write an action plan on how they are going to use what you’ve covered makes it more likely that they’ll do it.
  • This Will Be On The Test: If you tell your audience that they are going to be tested on the material that you’ll be talking about, then they are much more likely to use what you are talking about. The test doesn’t have to be a written test, it can be as simple as having them observed and given feedback on their performance. I like it best when the audience is measured before your presentation and then two times afterwords – this always seem to produce the greatest results.
  • Peer Pressure Is Good: It turns out that having your audience get back together in “peer meetings” is a great way to have them self-motivate to use what you’ve taught them. What’s even more interesting is that this works even better when your audience’s management is only lukewarm in their support for your message.
  • Boosting Bosses: Having managers who are both supportive and actively involved does a lot to increase the odds that your audience will retain and use what you’ve taught them. This, of course, means that you are going to need to make sure that the bosses are involved in your training.
  • Ask The Expert: Finally, having the ability to reach out and ask an expert for help in solving a sticky issue or resolving a problem goes a long way in helping your audience use what you’ve told them. More often than not, you are the expert – make sure that you make arrangements so that you can be contacted after your presentation is over and done with.

Should you invest in Gold Funds in India

Physical gold such as gold jewelry or gold coins has several drawbacks such as storage in safety vaults and the associated locker charges. They also demand price markups due to the design and making charges. Apart from these, purity issues and lack of flexibility in investment amounts can make buying physical gold inefficient. In contrast, Gold ETFs and Gold Fund of Funds have become popular forms of investment. Gold ETFs have received rising net inflows from investors. The number of folios in Gold ETF surged by almost 10% in June to Rs. 18.32 lakh from Rs. 16.68 lakh in May as per monthly data from AMFI. Another way of investing in Gold digitally and overcoming the drawbacks of investing in physical gold is by investing in gold fund of funds instead.

The meaning of Gold Fund of Funds is an open-ended fund which has an underlying investment in Gold ETFs, that in turn is backed by physical gold and tracks the domestic price of Gold. The NAV is declared at the end of the trading day similar to other mutual funds. One can invest in a Gold Fund of Funds via an SIP, where you can invest a minimum of Rs 500. When comparing gold funds vs gold ETF, one doesn’t need a DEMAT account for investing in a gold fund of funds. The capital gain arising out of redeeming Gold Funds within less than three years is subject to short-term capital gains tax which will be taxed as per Income Tax slabs. For capital gains arising for a holding period of more than three years, then it will be long-term capital gain, which will be taxed at the rate of 20%.

Gold acts as a strategic asset in an investor’s portfolio, given its ability to be an effective risk-reducing portfolio diversifier. It helped alleviate losses for investors who owned them during the pandemic.

With the fall in gold prices in response to the strengthening of the US dollar in Jun 2021 and talks of interest rate tightening as early as CY 2023, investors can consider allocating a portion of their portfolio to Gold.

While selecting a Gold fund of Funds, just like any mutual fund, investors need to analyze the fund based on certain quantitative and qualitative parameters, that one can use to arrive at the best gold funds as per their requirements. Additionally, it would be best if one were to keep their financial goals, risk appetite and investment horizon in mind.

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