(3) I am a real estate broker

Trade is an ideal way to get new listings in the real estate business. James is an agent for a large brokerage company. When he obtains a new property listing it is virtually guaranteed that he will receive a listing commission, regardless of who sells the property. Listings, therefore, represent almost certain income and are, of course, much sought after by all agents and brokers - and therefore hard to get.

To increase his number of listings, James negotiated with his broker to offer prospective sellers to accept the listing agent's part of the commission in trade. Here is how it developed when the Browns decided to sell their house: Seeing a For Sale by Owner sign, our agent James stopped and knocked and spoke with Mr. and Mrs. Brown. James failed to convince them to list the house with his company. They told James that many brokers and agents had been by for the same purpose.

After determining that Mr. Brown owned a small trucking company, James said he had a special program for business and professional people whereby if the Browns listed the property with his company, they would take the entire listing fee in trade, thereby saving the Browns several thousand dollars at closing. James had a printed memo to this effect that he left with the Browns. "If you decide to list with a broker, please consider us and the real savings we can offer over any other broker." The very next day, James received a call from the Browns and got the listing. When the house was sold and went to closing, James had prepared several thousand dollars in Private Trade Dollar certificates on trucking services for the Browns to sign. James and his broker then split the trade just as they would have split the cash.

As with most professionals, real estate agents find trade a striking way to get new business. Some brokers and agents trade the entire brokerage commission in a property transaction. When a broker offers to take trade for the commission, then that broker is far more likely to get the listing than are brokers who are asking cash. For the broker, it is new business and perhaps 100% profit. Never forget that trading a product or service to someone is much, much easier than selling the same product to them for cash. People everywhere jump at the opportunity to trade and save their cash. Once we fully understand that trading should be entirely new business for both parties and not a substitute for a cash sale by anyone, we will know its power.

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