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Joint business deals becoming more and more important!
Topic: Joint business deals
The value of cross-border real estate business in today's globally networked world exceeded
EUR 90 billion in 2012 – and continues to grow.
(Source: study by the BNP Bank, Paris)
The study revealed that:
▪ Germans are buying more than ever in the USA
▪ Chinese in the UK
▪ Spanish in France
▪ Poles in Germany and the UK
▪ and so on.
Who would have thought it? So why shouldn't you share in this business?
With the Casa United network, your portfolio will reach a regional, national and global audience and you will profit from many additional sales opportunities.
Casa United will also facilitate joint business deals with colleagues who may not speak your language but who have interesting holiday, residential, commercial, or investment properties in areas matching your search profile.
Joint business deals are normally transacted via one of two models:
It used to be normal practice for estate agents to divide commission 50/50 with their colleagues. At Casa United, we do not consider this division to be a realistic one, as the agent offering the property is always the one responsible for it while his colleague only passes on the details of potential buyers.
At Casa United, the agent offering the property submits an offer for the amount of the secondary commission – which can be a fixed sum or a percentage of the agent’s commission. We consider a 60/40 split to be reasonable, as the costs of the property agent are substantially greater. The offer of secondary commission is binding. The agreed amount must be paid upon successful completion, regardless of whether the final purchase price is higher or lower than expected. This avoids any possible disputes after the event. To be on the safe side, you should therefore not submit any 50/50 offers. If your offer of secondary commission is too low, however, your colleagues are unlikely to send you any buyers.
MLS Multiple Listing Systems
MLS systems are generally fee-based and limited to the domestic market. Most MLS systems allow agents to include properties from other agents on their websites. At Casa United we do not allow this, and for good reason.
The property owner does not necessarily want his property to appear on websites of agents he does not know because this could cause his property to lose its exclusivity. Only the property agent is in a position to respond professionally to an offer, or to discuss local conditions or the details of completion. Furthermore, a suitable offer should be made separately for the secondary commission of each individual property.
We do things differently. At Casa United, members can place a Search banner (Agent Network Properties) on their own websites. Interested parties can use this search facility to look for additional properties through Casa United. However, all inquiries go to the agent whose website was used to locate the property. This presents the trustworthy impression of a property being offered by a colleague. The agent can then pass the inquiry on to the agent offering the property and thereby earn the specified commission. You can replace the standard wording of “Agent Network Properties" with your own text before downloading. You will find the section “Agent Network Properties" in the Menu Bar on your desktop. Casa United thus enables you, for example, to sell a property in England to a Spanish customer.
How joint business deals are organised
At Casa United, language is never a barrier to successful joint business deals. As soon as an agent is approached with a joint business deal, our system generates a listing agreement for both parties. The agreement is kept in our system under "Deals" and acts as a legally binding agreement. Casa United is not involved in the business transaction between the two agents, but only organises its execution. As a Premium or Premium Plus member, you can always track the progress of a joint business deal right through to payment of the secondary commission.
Ratings system for estate agents
Under "Profile -> Ratings", agents can evaluate their colleagues and check out their ratings history.
Extend your portfolio and offer additional properties on a regional, national and global basis. More choice means more completed sales and more revenue!