Wednesday, August 29, 2007

Cancellation Fees

Did you know that on this date in history...

Chop Suey was invented in 1896.

First Scout Camp Opened in 1934.

The Goodyear Tire Company was founded in 1898.

The Beatles performed their last public concert at Candlestick Park in San Francisco, 1966.

Ingrid Bergman was born on this date in 1915 & died on this day in 1982 from breast cancer.

Cancellation Fees

Now to cancellation fees. I have never charged a client a cancellation fee, nor have I ever entered it on a listing agreement. I've always felt that if the client and myself are not a good fit, than I am not going to hold them and their property hostage, nor will I be held at that same time if that may be the case.

Yes, I know the arguments that a realtor should be compensated for their work and costs. I can agree with this partially, but have to disagree on the whole. This is a part of the business. This is a part of being an independent contractor and salesperson. If you have a problem with this, than you might wish to reevaluate your decision to be a realtor. I know that a lot of people will totally disagree with me and feel that I am too harsh. But, I really feel that this is the reality of the business.

I could even possibly deal with a cancellation fee if was at least reasonable. But the new manager of the office in which I work and some higher management personnel are obviously on another planet. We are told to institute a $1500 cancellation fee. Let's be realistic, who the heck is going to sign a listing agreement with that policy? I'll tell you right now, that I surely wouldn't. This is whacked! I'll get back to my new manager shortly. Oh, by the way, did I mention the fact that when I spoke with my regional manager about this, because I did not think that this was the company's philosophy, I was informed that they never checked with the competition to see what they were doing and how much they were charging. I was totally blown away by this response. This is just a basic business principle - know who & what your competition is and what they are doing. Duh!!

One of my main reasons for never even thinking of instituting a cancellation policy, is that I feel that there has to be a matter of trust between my seller & myself. This is what I build. We have a relationship. To me being a realtor is basically that of building trust between my clients & myself. I am there to educate and lead them through the process to make sure that they make the right decisions for themselves. Aren't I supposed to be the professional?

Many of my sellers have become friends. In fact recently, I had a home that was just not selling and we took this home off of the market. These people have become such very dear friends. I care for them so very much as I know that they do for me.

So my new manager comes into the office. She is a very effervescent person. I do believe that she has a lot to offer. It appears that she does not have a lot of management experience, but sometimes that is a plus. Well, unfortunately, she also has two bad habits. Let me preface this by stating that she seems to be genuinely interested in helping. But, then again, her salary is surely corelated to the business that the office produces.

When she told us about the cancellation policy, it was just that. Not that it was talked about and this is the decision that her bosses came up with and that we will have to implement this. No, we were TOLD! Great management style - think we might just need a little bit of work here. Her other habit, which I understand drove her boss crazy during the interview process, is it is always 'I, I, I, or me, me, me.' Can you imagine how infuriating it is to hear this consistently.

Granted, I can only come the conclusion that she is probably egotistical to some degree and most likely also very insecure. Unfortunately, at present, I am dealing with a brother in the trauma center due to a motorcycle accident and twice in conversations with her, I came away with the feeling that she had to 'one-up' me with tales of woe that she has encountered.

Even through most of this and the fibs that we've encountered I have tried to just let it rest and go on, but this cancellation policy is so totally against my grain. I can't do this to people. I really do believe in the common good of all people. Yes, we know that there are others out there. But, let me ask you, why should the general good out there pay for that? I can't go through life looking for the evil in others and watching my back & being wary. I will give almost anyone a chance - a chance until they prove me wrong, then they won't get another chance.

I am not saying this is right or wrong, for it isn't. It is just the way that I tend to live my life. I would love to right more at this time, but am running late for I have to catch a plane.

See you here tomorrow again, when we'll do a little more on this date in history.

Til then - Marc It Sold!

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