“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” Douglas Adams
Let’s start with a question: How long do you think Wal-Mart would stay in business if it began raising its prices?
What do you think? My guess is it would join the dinosaurs quicker than the Edsel, New Coke and all the other colossal blunders of business. Why? The day Wal-Mart began it was about price, and it’s remained about price every day since. And there’s nothing wrong with that. The company has cemented its place in the Hall of Fame of business based solely on that strategy. But here’s what all Realtors need to remember: Wal-Mart can NEVER raise its prices. It will forever be in the business of cutting costs at every turn it ever takes from now to eternity.
So what’s this got to do with you? Well, if you like your commissions on the higher side instead of the lower side, it has everything to do with you and your future in this industry.
If I had a dime for every time I heard a Realtor complain about sellers asking for them to lower their commissions, I’d be happily retired and swinging in a hammock in the Bahamas sipping on one of the expensive drinks with an umbrella in it.
So how do you deal with a seller who’s asking you to lower your commission? Well the first thing you can do is do exactly as you were asked – you can lower your commission. You can become the Wal-Mart or K-Mart of real estate. But just know this: You just jumped aboard the cost-cutting train, and guess what? There’s not a ticket off that train. Happy travels through the land of offering limited services to your future clients. Plus, you just showed your seller you cave easily in negotiations. If the seller has half a brain, he’ll ask, “Gee, I wonder how this Realtor will negotiate with crafty buyers?”
Now, if you’re more interested in not being a limited service provider, stick with me. Welcome aboard the train for professionals – where you distinguish yourself with your competence and unparalleled service. This is where, when the seller asks you to lower your commission, you’re able to say, “Sorry, I’m not a limited-service provider. I give my clients 100 percent of myself because I believe they deserve it, and over the years, I’ve learned I’m worth every penny.”
Then back up your position with these tips:
1. Do the math for sellers. Prove to sellers you are indeed worth every penny by showing your past performances of getting better sales prices for your clients. Good Realtors regularly sell for more than FSBOs and limited service providers. Why? Because in real estate, your experience and professional service matter.
2. Share everything (and I mean everything) you’ll be doing to earn your commission. A lot of sellers simply don’t get all Realtors do when they sell a home. Educate them.
3. Illustrate your understanding of the market. If say you’re worth the commission, prove it by sharing the intricate details of the current market with comps and local economic insights.
4. Let others speak for you. For some sellers you can talk all day long about the numbers and data and still not get the sale. Why? They want what in marketing is called “social proof.” In a word, that means testimonials. Always have them on hand at every listing presentation.
I’ll close with this advice: Sell yourself, just don’t sell yourself cheap, because when you do, you stay cheap.
Let me hear from you.
Article Source: http://www.abcarticledirectory.com
Bubba Mills is the CEO of Corcoran Consulting and Coaching Inc. (www.corcorancoaching.com/programs, 800-957-8353), an international Real Estate, Mortgage, and Small Business coaching company. Mills is a nationally recognized speaker, coach and mentor to the top real estate agents and mortgage companies. Visit us at www.CorcoranCoaching.com.
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