Saturday, March 31, 2007

Chad mcbain Chad mcbain is offline
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Join Date: Jul 2006
Location: Canada
Posts: 36
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Default Re: Exit Realty

Sorry to hear that. It reminds me of when I decided to leave. After several complaints to our broker, corperate sends some guy who is supposedly V.P. of marketing. He comes and listens to our concerns and promises me personally that we will not be out gunned in the field when it comes to fancy brochures about Exit or a stock listing package or any sort of standard material stating how wonderful this company is. He leaves and promises to return with "garbage bags full of stuff". Well 3 weeks goes by and he calls me on my private line to tell me he has just been to corporate and they have NOTHING! They have no fancy brochures...yet. No listing package for all telling everyone how wonderfull Exit is and please use our rep, no binders with lovely exit logos.....NOTHING. He admits he is embarrassed as he came from RE,MAX a year ago and knows this type of propaganda was readily available there. Long story short I head to RE/MAX, he leaves Exit and convinces me to advertise in a magazine (his own) that he actually pitched to me during our first meeting at the brokerage. I bite, and he stiffs me for $1500 plus taxes as I never hear from him again. Hard lessons for a rookie agent taught by one of Exits senior management team at that time. Been at RE/MAX for six years now and laugh everytime I see an Exit sign, which I only see when I drive for an hour because both the brokerages in my city and the closest neighbouring one long ago folded.

exit realty

EXiT Reality
Friday, November 11, 2005, 07:14 PM
I was going to write about all the new out-of-state job offers I got this week, but I decided that a good blog isn't one that is easily confused with a personal journal. A good blog is one that is editorial in nature. So I decided that I would write a blurb about marketing.

I went to a seminar recently that was put on by a rather wealthy individual. He touted a realty conglomerate (EXiT Realty) he belonged to as being the best thing in the business. As usual, the attendees bought it--even the question was asked: "What possible reason would anyone have NOT to join EXiT Realty?" I wanted to raise my hand and answer it.

How EXiT Realty sells itself is by exploiting every realtor's fantasy of being rich and successful. EXiT offers three things: One, if you make more than $100k a year, you get 90% of any revenue you bring in above that; Two, if you recruit someone to EXiT, you get 10% of their sells for life; and Three, there are no desk fees/monthly costs.

The catch? The commission you get on sold houses is only 70%. Standard commission from any other brokerage is 80%. EXiT bypasses this concern by stressing that they don't charge fees, and that if you were to go with any other group, you'd be bogged down with a ridiculous amount of hidden costs. Besides, once you reach $100k in commission, your cut goes up to 90%--no other realty group offers that.

Did you know that the average realtor makes only $47k a year? Did you know that 83% of realtors drop out of the business within the first two years because they aren't making money? Those two facts alone should tell you why EXiT isn't as amazing as the attendees of the seminar were led to believe.

Pretend you are an average realtor: You'd have to sell 1 house a month to reach $47k a year (assuming each house sold went at $200k-- Utah's average house cost). Since your earnings are below the $100k, you only received a 70% commission. At 70% commission, you make $600 less per month then if you were at 80% commission. I'm not an expert in the business, but I'm pretty sure that NO realty company charges their realtors $600/mo in desk fees and paper clips. Now lets say that you managed to recruit 2 people a month to EXiT. If you're REALLY lucky, maybe 1 of them didn't quit by the years end... and if you're even luckier, by the next year, that 1 person managed to make $50,000 in commission from selling. That's $5,000 in your pocket! -- Almost enough money to make up for one year of your annual loss from joining EXiT!

Now pretend you are twice as good as the average realtor: You sell 2 houses a month, or almost $5,000,000 in sells a year. By year's end, you'd almost reach $100k in commission, but not quite. Your earnings were still taxed at 30% instead of the standard 20%. Congratulations, EXiT realty made $16,700 more off of you than if you would have joined a different brokerage (minus the paper clip and staples fee of course).

In fact, you would have to sell FOUR TIMES the amount of an average realtor to make more money with EXiT than another group. And if you're THE realtor god everyone hears about and selling 5 houses a month ($12 million in sales annual); yes, you're going to be mighty glad you went with EXiT-- no question about it. And hey, you might have even managed to recruit 100 realtors into EXiT -- 23 of which stuck around... maybe 12 of those are selling houses regularly too, and maybe 6 of those are doing pretty well. In that case, I'd say you should send a big box of chocolates to the owner of EXiT for making you richer than the ACME brokerage down the street. Then again, with all the new recruits and sells you've been doing, maybe EXiT should be sending YOU the chocolates.

1 comment:

windjammer said...

Thought I would post our experience in dealing with Exit for winter rental in Myrtle Beach.

We rented a Villa at Kingston Plantation through Exit Realty in 2009 for a 2 month stay. That went fine, so in mid 2010 contacted Exit to rent the same unit again for Feb/March 2010. We signed the contract and paid a substantial deposit. 5+ months later just before were about to drive down to SC from Canada, we got a call from Exit to tell us our reservation was cancelled. They had double booked and would return our deposit. No effort to find a replacement unit. We eventually found a last minute rental ourselves, but at a higher cost. They would not compensate us for the additional cost. Yet if we had cancelled, we would have been liable for 50% of the total rental - in other words 1 months rental. Is this typical of how real estate rental agencies operate? Or is it just Exit?