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Why should I pay full commission when I can get so much information on the internet?

Services for Real Estate Pros with Crye-Leike, Realtors

July 09, 2007 02:03 AM

Advice for Realtors

How do you address the question - Why should I pay full commission when I can get so much information on the internet?

Advertising, "I offer free CMA's" won't get it anymore. Zillow, Lending Tree, FSBO.com and other internet models claim that they can help sellers see with or without an agent; find the value of their home or at least view comparable sales online; assist buyers who will get a gift card up to $1,000 or more.

How do you compete?
Where's your value in real estate transaction?
What can you provide that can't be outsourced or done online?

Unfortunately, newspapers such as USA Today and The New York Times reinforce the notion that Realtors are grossly overpaid. They want to compare us to travel agents or stock traders; "Real estate can be bought and sold without an agent; it's all about information and we've got it now on the internet."

Remember this: buyers and sellers will ALWAYS need:

Trusted Advisors to guide them through the paper work; encourage title insurance, surveys, warranties, various inspections.
Excellent Negotiators Sales are lost or made when inspections and repair are negotiated; when price is the sticking point; when title issues pop up.
Skilled Interpreters of Data What's a tax appraisal worth? (Many internet values are based on public data). We understand (or should) understand the MARKET because we're in it every day and we have access to trends, experience, temporary gluts in a particular price range etc.

Are you marketing yourself in a way that buyers and sellers understand your value in the transaction? This is becoming more important every day. Adjust. Change your slogan. Think about it.

From the desk of Steve Brown, Crye-Leike General Manager, Scripts/Tips & Quotes

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New Jersey Real Estate James Boyer Morris, Essex & Union County NJ Realtor

RE/MAX Properties Unlimited, Real Estate - Morristown, NJ

Very good, Many people do have this attitude.

The News Media seems to be at war with the Real Estate industry. In most areas newspaper advertising for Real Estate does not work well anymore. It would be great if more in the Real Estate industry would take the attitude of not feeding the hand of the monster that is biting us.

Jul 09, 2007 02:14 AM

Lorinda Ward

Keffer Realty - Norfolk, VA

Serving, Hampton Roads Virginia. Norfolk, Chesapeake, Va Beach

My response for that would be, Can the internet show you trust and loyalty? Will the internet negotiate a contract for you and be fair to both seller and buyer? How about return a phone call in a timely manner? we can go on and on but there is no internet service that comes close to a Realtor.

Jul 09, 2007 02:16 AM

Anonymous

Very good post. We are very firm in what our commission is and we do not negotiate our fee. We make it very clear that we are worth our fee. When you go into a listing presentation with a positive attitude and come from a place of helping the other person whether you get the listing or not, this issue of reducing your commission does not come up because you are not attracting it. When you come from a point of need, begging, or desperation; fee reductions will always become a part of the conversation. Rarely is it even brought up in our conversations. When it does, we say, If you can negotiate me down in my fee how good of a negotiator am I when I will negotiate in your behalf when an offer is on the table! They always say, "AH!" You get what you pay for.

Jul 09, 2007 02:21 AM

Patricia Aulson

BERKSHIRE HATHAWAY HOME SERVICES Verani Realty NH Real Estate - Exeter, NH

Realtor - Portsmouth NH Homes-Hampton NH Homes

There is a place for the internet for sure. In the early stages of looking for homes it cuts down the time for the buyer. However, nothing replaces the 'real person' someone who will go the extra mile for you if needed, someone who is there for you during every phase of the process. The internet can't do this.

Patricia AUlson/Lic.REALTOr/NH/ME/MA

Jul 09, 2007 02:44 AM

Jay Wurlitzer

Distinctive Realty - Marlborough, MA

Buyers and sellers are only involved in the real estate market for the short time frame that it takes for them to buy or sell their home. Realtors are involved in the market constantly and know how to use their experience to serve their clients. No amount of internet based data can take the place of an experienced agents expertise in taking a contract to a successful closing. There is a whole lot more involved in real estate transactions than those who are not involved in the industry will ever know.

Jul 09, 2007 02:45 AM

Armando Rodriguez

QUEST REALTY SERVICES - Orlando, FL

Orlando Homes 4 Sale, Real Estate Broker-GRI

There will always those that can't or won't want to do it themselves. There are still those that use travel agencies, and high priced stockbrokers. They may be fewer, but they'll be some. It'll make it that much more competitive.

Jul 09, 2007 02:51 AM

Teresita "Terry" Pollard

Exit Realty Excel - Riverview, FL

With this being the buyer's market, they think they can just put a sign out there or advertise and do an open house that they could sell their home themselves. The FSBO will always negotiate the commission because they do not like to pay more, and what they do not understand is that the commission is not all one way. It has to be split up to offer the buyer's agent.

Jul 09, 2007 05:46 AM

Gary White~Grand Rapids Home Selling Pro Call: 616-821-9375

Flexit Realty "Flexible Home Selling Solutions" - Grand Rapids, MI

Real Estate Services You can Trust!

Angie a very nice thought provoking post. If you can not answer the question of why you offer value you are certainly not going to be able to stay in the business. Great post Angie.

Jul 09, 2007 02:23 PM

Karen Hurst

RICOASTALLIVING.COM - Warwick, RI

Rhode Island Waterfront!

Angie,

Excellent questions and I rated this a 5...Agents need to look at themselves to be able to answer this question. FSBO and unrepresented buyers, of course can navigate through the transactions themselves, but in the end they are never sure if they did the right thing, without the knowledge of someone guiding them, regarding price, location, mortgages, lawyers, inspections, etc. To me, using a Realtor is Piece of Mind!

Jul 10, 2007 03:15 AM

Mike Fotiou

First Place Realty - Calgary, AB

Calgary & Area Real Estate

Nice post! It's true the "free CMA" line just doesn't draw in customers anymore. You have to market yourself as to what you can do, that the internet alone can't provide.

Jul 14, 2007 02:07 AM

Angella Greenwood

ShellTree Realty Group - Liberty, SC

Great Post! I love getting information from the internet too but when it comes to handing over money and trusting that it gets to where it needs to go IN MY BEST INTEREST I want to at least have a real person;( an agent ) to build a trusting and loyal relationship with. Real Estate is Local AND Personal!

Dec 19, 2007 06:33 AM

Gene Allen

Fathom Realty - Cary, NC

Realty Consultant for Cary Real Estate

I love people trying to get a CMA from Zillow in our area. Right now its a laugh but as more agents buy into the hype and input their sold info online it will become more accurate.

Dec 19, 2007 07:25 AM

Anonymous

James Oberhaus

Realtors ARE overpaid. Good ones, anyway. I make a fortune doing what I love. I have NEVER pretended that I work hard for my money. I picked peaches that itched my skin like crazy, worked on a farm sorting tomatoes on a conveyor belt while sweating to death, cleaned houses, sold shoes & cars...and NEVER made this kind of money. So what? I have a fantastic natural gift & my clients are the beneficiary. I tell them they can pay me or pay someone else the same money. They get more with me. They like that. There's no pretending about our money & I do not try to hide it or ignore it. I tell them they are going to get excellent service & then I keep my word. They make a decision right then to rely on me and not even try to do anything else themselves. They can read about a disease on the internet, but they are still going to go see the doctor. I tell them I am their partner & ask "What can I do to make this work for you? " It works every time. Understanding and acknowledging that we do make phenomenal money ( I do anyway) and promising to do my best to get them top dollar for their home shows I understand their thinking. They deserve that ackowledment.

Dec 19, 2007 01:44 PM

#14

Angie Vandenbergh

Crye-Leike, Realtors - Memphis, TN

A Crye-Leike Blogger

Hi James - I think the perspective on being over/under paid as a realtor would vary depending on the property prices sold for and commissions charged....

Dec 20, 2007 01:32 AM

Tina Maraj

RE/MAX One - Fullerton, CA

Celebrating 30 Years of Real Estate Sales

The main thing is that you can not put a price on the service and knowledge of a professional REALTOR!

Dec 20, 2007 03:21 AM

Stephen Meadows

Coldwell Banker - San Antonio, TX

Brand Ambassador

I specialize in BPOs in Southern Middle TN. Because of that, I realize the value of a CMA. I want to talk to IT about removing the "complimentary CMA" link off my site. I don't give that away unless they are ready to sign with me.

Also, I think a lot of CL agents take our services for granted. We have some of the best marketing in the country, yet some agents act like it is old hat and wonder why they can't get full commission. To have value, we must show value.

Dec 21, 2007 12:50 AM

Angie Vandenbergh

Crye-Leike, Realtors - Memphis, TN

A Crye-Leike Blogger

Hi Stephen - Nice to hear from you. It's not been that often that I've had Crye-Leike people comment on my blog. Nice to see you here on the site. As for removing your cma link... we are not able to remove the link just for your site. It is a standard feature across all the sites to include that.

Dec 21, 2007 01:36 AM

Stephen Meadows

Coldwell Banker - San Antonio, TX

Brand Ambassador

Hi Angie- It's great to be in a group with other CL agents! Thanks for starting the group. I figured the CMA was wishful thinking. Thanks for saving me a phone call to IT and sounding like a moron. I guess if I ever get a request, I'll have to grin and bear it. Thanks again!

Dec 21, 2007 02:16 AM

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