Well, I wasn't planning on putting this post up until I have too much time on my hands sitting in the Kroger's parking lot, with a stalled car and waiting for my Prince Charming to come rescue me. So, what would a dedicated blogger do at this time??? How about another post... Duh. What could you expect otherwise?

So right outside a grocery store and thinking about value and pricing, this topic seems fitting. What differentiates one real estate agent from another? It seems that every agent has a website, every agent has access to MLS, every agent is honest and a local "expert" and so they claimed. Then, why is it surprising to us when we attend a listing appointment that fees is always discussed? It is natural for a home seller to use "price" or "fees" as the differentiator when they feel that everything else is the same.

Classic story about price versus perceived value: Hiking down Mount Haleakala in Maui was one of the coolest thing I did. It was a 13-mile hike which takes about 6-7hours. About 4 1/2 hours into the hike, I would have paid anything to a pilot who would rescue me off the mountain instantly while just a few hours prior, a helicopter ride around the mountain for $300 may seem "expensive" in my mind. Again, price and perceived value can change in an instant.

The topic of reducing fees is constantly negotiated at the dining table especially when a Seller could not see the perceived value that an agent brings to the transaction. If that is the case, more likely than not, you have not communicated your value proposition effectively so that the PRICE is no longer an issue.

Home selling is emotionally driven, then logically supported with hard facts and data along with the selection of whom to use in the process. If you sell your service as a commodity, then the Seller is right. It boils down to the price as the differentiator.

Sales should be about perceived value - if that is your business model.

30-40% of people will select price as their determination factor no matter what you present. But better yet, the rest of 60-70% will select VALUE.

Adding Value can often be misunderstood in some sales professionals' minds, let alone providing it. Most think of Value as "something" to add. Additional service - tacked on to the original for a small fee or even for free. These are sales tools, not value.

Value is something done for the client, in favor of the client.

I do think it's important that you spend some quality time thinking about your VALUE PROPOSITION. It goes beyond just claiming that you are honest, experienced and a great negotiator on your website or your blog. Your VALUE PROPOSITION is your market differentiator. Otherwise, there is no difference between selecting you than that guy you went to real estate school with. Carefully examine what they are.

Then, you must know how to present your value proposition in a unique and compelling message like no other.

 Isn't real estate much more flavorful if we each present ourselves in a unique and compelling message?

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Contact:

Loreena Yeo
Realtor®/ Broker of 3:16 team REALTY
(214) 783-2210
loreena@loreenayeo.com

Super-serving Frisco, Plano, Dallas, McKinney, Allen, Little Elm, Prosper, Celina, Richardson, Dallas M-Streets, Dallas White Rock Lake area communities and other surrounding areas.

Copyright © 2009 by Loreena Yeo (3:16 team REALTY).
When There is No Value & All That's Left is PRICE