Just when you think you’ve laid out the best marketing plan to get a property sold- and everyone is just about ready to sign on the dotted line, that dreaded request comes from that seller. “We’ll give you the listing, but we want you to reduce your commission.”
Why is it that everyone wants to cut your paycheck?
The question might never come up if you have done a more effective job of setting up the value of your services at the get-go.
Far too many agents continue to rely on what has always “worked.” You know the drill: your company creates a lovely marketing package that explains their extensive network, MLS exposure, national marketing and more. Herein lies the challenge: Today’s sellers have heard it all and remain unimpressed with a long list of features, but are more focused and interested on what is in it for them and how you plan to market their “special” property.
As interest rates rise, and the competition for inventory continues to grow, listings become tougher to list. Today’s agents face adapting to more targeted and measurable marketing, that also must be more revolutionary and differentiated in the process and results.
If you expect to get paid- think about this. You must consider that most consumers look at real estate services as a commodity– a basic service available from multiple sources. There are over a million licensed agents, and a plethora of online do-it-yourself sites, discounters and more. What the consumers see is multiple options to get their property sold. The problem is that most sellers don’t have a clue what questions to ask to make an informed decision. NAR reports that over 62% of listings come from referrals. But that certainly doesn’t guarantee that the agent services they choose are the best solution for their needs.
What are you doing to be better than or different from your competitors?
How you address this concept is the difference between premium and standard. How you respond will pay you your “value” through the eyes of the prospect. Your job is to demonstrate beyond the ordinary what you do and how you do it. Literally knock their socks off and impress them so much they don’t even consider the issue of compensation!
In his book, “Selling Value, Key Principles of Value Based Selling,” the two-time #1 NYTimes/WSJ best- selling author Don Hutson states that when you have crafted a highly comprehensive, unique and value-laden initiative, asking for a lower compensation is often eliminated. All too often the real estate agent doesn’t provide creative and effective specificities to make a property stand out and get sold fast.
Here are some top tips to help you create a WOW experience at your next listing appointment:
- It starts with how you respond to the inquiry. Demonstrate your immediate response program that connects your prospect to you in real time.
- Develop and deliver a pre-appointment package with a delivery that requires a signature. If the seller is out of town, use an electronic version. But initiate a process that clearly shows your interest, and helps you to stand apart from your competitors. Include seller’s homework sheets, and set the seller up for expecting contacts from your team.
- Develop a premium marketing plan. If you simply rely on MLS exposure, company networks, etc. although great, it limits you to what everyone can offer. Depending on the property type, offer programs that target and attract the buyer for this specific property.
- “Wow” them with your unique video marketing. Include drone technology or high-level views for tough-to-see gated communities or waterfront properties.
Stand out and offer such a specialized, value-loaded proposition that sellers have to have you as their agent!
Contact Terri Murphy: www.TerriMurphy.com or www.MurphyOnRealEstate.com – Email: Terri (at) TerriMurphy.com
12 thoughts on “Learn to Sell Value and Never Cut Your Price!”
Good points, informative
Thank you Susie – much appreciated!
All Good Wishes,
It depends on the local market. In my market there are 976 of us and average sell price is up from 205k to 290k in a year. Cuttng commission from 6% to 5% was prudent and the industry did it. I have cut my commission to 4.7% by offering the client choice in cash back programs. $1000 for the sale and $1000 for the purchase as well as $1000 for their loyalty with a mortgage. I market the program through HR departments with good success. Yes, my client aquisition cost is $1000 but who cares when your making $8000 30 to 40 times per year?
Hey Brian at the end of the day you need to do what’s best for you in your marketplace,
Thanks for commenting.
All Good Wishes,
Great advice Terri!!! Thanks!!!
It was great!
Thank you Elvira!
All Good Wishes,
Very good points. Everyone in So Cal seems to be discounting!
Thanks Suzanne – really appreciate the comment.
All Good Wishes,
Your article was short and to the point but didn’t go a whole lot into detail.
Thanks for the comment Don! I think you’ll find lots of value in our years of free articles- you can take a look here: https://agentinnercircle.com/homepage/
As usual, your posts are very motivating. The best way to start a day!