Hi folks. Today I'm going to write a follow up to my last post "Sally's eyes will make a grown man cry". It is a pretty intense and a very sad post but there was a reason I wrote it. First, I want the consumer to be able to see what it is we really do and secondly I want my peers to understand what it is we really do.
In this day and age of Internet based real estate companies and Alternative Business Models(ABMs), that charge a fee, to give Sellers access to the MLS and offer other tools to get their properties sold, it has never been more important to us, who choose to work as "traditional REALTORS®", to be able to show the consumer our value. There are many folks who feel we charge too much and are asking us to justify our compensation.
Personally, I feel they are asking a valid question and we need to be prepared to answer it. So, "What do you do to justify your high commission?"
OK, the rest of this post has been extracted from a post I wrote in November of last year. This was not my intention when I started writing today but this post started sounding very familiar. So, what the heck…..it was true when I first wrote it and it's still true today.
The beginning of previous post:
So let me ask it again here. "What do you do that justifies your high commission?" Why would the consumer want to hire you and pay your fee, when they can find all the information they need on the Internet (disintermediation)? "What can you do to justify your high commission?"
Well folks, I am here to tell you, you best be prepared to answer this question. And you best have a better answer prepared than your 25 step marketing plan and access to the MLS. This will not cut it in this day of disintermediation and discount, web based, Real Estate agencies. If all you can bring to the table is your marketing plan you will find yourself either out of business or drastically reducing your commission to be able to compete in this market.
So, what do we do? Well, here's what I do. I build value in something that the consumer cannot access over the Internet. "Broker Bryant, that's pretty vague, can you expand upon that?" Of course. I thought you would never ask.
- Be a trusted advisor. All people want to feel good about themselves and their decisions. You can provide that. You can help people decipher all the information that they have available. You can help them apply this information to their situation. Together, you and the consumer can come up with a game plan that will help solve their problem.
Be a calming force. Selling or purchasing a home can be one of the most stressful things a person ever goes through. You can remain calm and help them through this. This can be achieved by constant communication and by constantly being there for them when they need to be reminded of why they are selling or buying. When the going gets tough, you can be there for them. You can let them vent their frustrations, on you, without taking offense. When they are all done, you can get them to return their focus, on the end result.
- Be their friend. You can have honest and sincere, care and concern about their situation. You can lead them down the right path without placing your commission in first position. You can make them and their situation feel important to you. This cannot be faked. It must be genuine care and concern. Folks can tell the difference.
My point here, is to understand that folks' emotional needs cannot be satisfied over the Internet. As Realtors, we need to position ourselves, to be the one person, that will take the time to make sure that their emotional needs are met. If you can achieve this, I can assure you, that your business will take off and your services will be in high demand. And the consumer will be more than willing to pay the price for this kind of service. Quit trying to sell them something they can get over the Internet for less money.
OK, that's the end of the portion of this post that was extracted. And as luck would have it, it's also the end of my post. I do want to add before I finish though, the comments in the original post are OUTSTANDING! If you have the time…..go through them. It is one of the classic ActiveRain comment threads. I promise it will be worth the read.
So…..how DO you justify your high commission?
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