QUESTION: Sir John, I am a licensed Broker. Me and my agents/salespersons work exclusively as an external broker for a marketing division of a Developer. My girlfriend is also a Broker and she works as in-house of the same developer. My question is, is itfair that the Developer offers the same/equal commission rate for the inhouse and external?
ANSWER: The Developer subsidizes the office-rent, utilities, and overhead expenses of the in-house Broker because the in-house principal place of business MUST be inside the corporate facility of the developer. The external Broker spends for his own office rent, utilities, and overhead. The external Broker must have a bigger commission rate compared to the in-house Broker. A Developer has zero financial risk on external Brokers because it doesn't spend for office space, utilities, and overhead for external Brokers who does'nt perform.
The BIGGEST problem with external Brokers is they don't perform for the following reasons:
(1) In terms of Security of Tenure, the external broker is self-reliant and is not pressured the same way as the in-house broker.
(2) In terms of Direct Supervision, the external Broker is independent and the Developer cannot monitor his activities because the office is remote.
(3) In terms of Reach-Out Capacity, most traditional external Brokers don't have much sales agents for "many reasons", that is why they don't make so much contact with potential buyers.
The solution to most of these non-performance issues on external brokers is a JOINT SUPERVISION AGREEMENT. The Developer provides the (so much number of) Salespersons to the external Broker that will be managed JOINTLY by and between the marketing experts of the Developer and the external Broker.
The Natural Corrective Mechanism of the Joint Supervision Agreement
The Joint Supervision Agreement (JSA) has a fair way of determining who's to blame for the non-performance. If the Salesperson will not perform, the Broker and the Developer can attest to the absenteesm or habitual tardiness (for example). Given a max-20 salesperson policy, we have to weed out the lousy agents to open up doors for the new promising ones.
If the Broker will not perform (say, for alcoholism), the Developer can transfer the Salesperson to other Broker. Profession yang pagka Broker, hindi dapat pagsayangan ng oras ang mga Brokers na hindi seryoso mag trabaho (kasi retirado na pala ang edad hehehe).
If the Developer is unfair to the Salesperson (say, sexual harassment or favoritism), the Broker can reassign the Salesperson to another Developer. Tsismis among Brokers ay mabilis kumalat -- Developers who doesn't pay commission in a timely manner should be put out of business.
QUESTION: Sir John, paano po kung ang Developer mabilis mag bayad ng commission sa Broker, pero ang problema eh ang Broker ay mabagal magbayad ng commission sa Salesperson?
ANSWER: IN the Joint Supervision Agreement (JSA), the Developer will release two checks for commission. Split Payment yan, so the Broker and Salesperson should be getting it at the same time either by check or direct deposit.
QUESTION: Sir John, paano po ang ratio ng commission sharing between Broker and Salesperson?
ANSWER: Hindi pwede na pa-iba-iba ang sharing kasi maglilipatan ang mga salespersons and Brokers, gagamitin yang ratio sa competition magiging magulo. A industry standard will be set and published. Pag-uusapan yan ng mga IPORESP Directors for Policy ng IPORESP Brokers and Salespersons Society. Gagamitan nila yan ng SCIENTIFIC approach para maging fair.
QUESTION: Sir John, kung ikaw masusunod, ano ang initial sharing between Broker and Salesperson?
ANSWER: Make the commission 10% at 50/50 sharing. Maganda ang real estate sector kasi hindi regulated ng government ang prices ng real estate commodities. Hindi dapat pagtalohan yang commission sharing kasi napaka-flexible yan, pwede yan itaas anytime, pero dapat moderated din kasi hindi rin pwede masyadong greedy.
Napaka simple ang rationale nyan. RESA is an UPGRADE OF SERVICE, so the industry has all the right to charge it on the price of properties. We spend for training and licensed to upgrade our services, the consumer is willing to pay for it.
Meralco nga, konting upgrade lang ng service, magtataas agad ang presyo. LTO nag computerize, ngayon merong nang computerization fee sa resibo natin. Ganun din sa real estate, we upgrade our people, we computerize the Philipine National Listing Service (PNLS) Program of IPORESP, we have all the right to charge the COST OF IMPROVEMENT to the consumers in form of increase of commission rate and other mechanism.