Explain why you are worth your commission
Posted by David Bennett Sat, 17 Jun 2006 16:50:00 GMT
Create Value In The Eyes Of Your Consumers:
Most home buyers and sellers throughout the country believe that real estate agents and brokers do little to earn their commissions. This is our fault because we should be educating them about how hard we work before ever accepting them as clients or customers.
Keeping my commission firm was a problem until 1983 when I started tracking of all the different duties required to earn my commissions. Then, I developed four separate lists of over 100 activities I do to close transactions for sellers, buyers, expired listings and FSBO’s. This literally astounds clients because most have no idea how complicated a real estate transaction really is.
My list for sellers runs 120 items and makes it clear that it takes a lot more than just putting a sign on the lawn and an ad in the paper to sell a house. It includes such activities as:
- Order and review a property profile.
- Develop a targeted marketing campaign that maximizes your home’s value.
- Tour your property from the "buyer’s standpoint."
- Develop "just listed" postcards.
- Reduce your liability by providing appropriate disclosure forms.
- Implement marketing activities.
- Respond to buyer questions about the property.
- Screen-out unqualified buyers.
- Negotiate on your behalf with agents and potential buyers.
- 111 other activities to get your house sold.
My list of value-building activities to help buyers purchase the home of their dreams is even longer because it’s more complicated than selling. This list includes:
- Explain the benefits of a Buyer-Broker Agreement to you.
- Provide a list of loan brokers who can get you qualified for a loan.
- Explain all the steps in the home buying process.
- Save you time by helping to narrow your search parameters.
- Locate appropriate properties for you to view.
- Act as a "sounding board" in your decision-making process.
- Write an offer which meets your needs and protects your interests.
- Negotiate on your behalf with listing agents and sellers.
- Obtaining the inspections you want and need for your home.
- 116 other activities to help you own the home of your dreams.
My FSBO list shows owners the many things agents do that would be difficult for them to do themselves. My list for owners whose listings have expired shows them how to get their home sold faster and at a higher price.
When you create your own list, if a seller or buyer asks for a discount, simply show them the appropriate list and say, "Here are just some of the activities I must complete to earn my money. Why don’t you point out the things that you’d be willing to do instead of me. If you save me time then we can talk about saving you money because I earn every penny I get."
When confronted with a list that runs nearly ten pages long their eyes glaze over and they usually respond with something like, "You’re the real estate professional I expect you to do this work!" To which I simply say, "If you want me to do all of these activities on your behalf then you need to pay me what I’m worth. If you want to pay less, I’ll see if I can find someone who will do less and maybe they can save you some money."
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