As independent contractors, we each have our own business models; and clearly my first priority is to think in the best interests of my clients. There are no cutting corners while representing a buyer/seller in residential sales and it does not rely solely on….money.
Clearly we all have our own opinions; we are only human and do not think the same. Therefore, our business models will not be the same. The following points were made from a series of blogs I’ve read during my time here on ActiveRain and are clearly NOT what I agree with and are NOT part of my business model:
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We are no different than any other professional (i.e. doctors, attorneys etc.) and therefore, should not ever negotiate our commission. The reasoning is that doctors and attorneys don’t ever negotiate their fees. Uh, yes they do. I worked for a Family Law Attorney for many years and she DID negotiate her fees for those in need. There are doctors who do the same for those in need as well.
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We are the same as the utility company (cable, electric etc) and therefore, should not ever negotiate a meeting time. This writer’s reasoning is that utility company GIVES you a specific time, so we should be able to TELL them a certain time or too bad. HUH? The utility company has employed workers and they have a set schedule. WE have the flexibility to work around a client’s schedule and our own!
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Another agent that negotiates their commission will not be able to negotiate for their client. That’s ludicrous! Paying out a referral fee is also ‘negotiating’ our commission! Giving something for a referral or negotiating commission does not mean my or any other agent’s ability to negotiate for our clients is somehow tainted!
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We all got into this business to make money and helping people get their dream home is a side benefit. WE ALL are working to make a living although MANY of the agents/brokers that I know put their client’s needs first. It is not a side benefit…it’s the main priority! Our reputation is built on our services to our clients and the side benefit is the ‘paycheck’!
Closing doors eliminates the possibility for future opportunities.
As independent contractors we have the flexibility to work with our clients or pick and choose. It doesn’t mean any one agent’s business model is better than the other. It just means that I will get the clients the others refused to meet at a certain time, refused to answer their phone for (or return a call), refused to negotiate on commission, refused to give a referral fee to or refused to chip in on when a client doesn’t have money for a few minor repairs.
It just means this Mililani Real Estate Agent:
Will have opportunities from other agents or brokerages for referrals.
Will keep my doors open for future opportunities this client will bring.
Will not close my doors for one who is in need of my services.
...Because I am.... A PROFESSIONAL.
Celeste "Sally" Cheeseman is a Realtor-Associate® and Certified Residential Specialist (CRS) with Century 21 Liberty Homes in Mililani, Hawaii. With a sharp understanding that a listening ear is the key to a client's needs she serves the island of Oahu (Honolulu County) and all Hawaii Military Relocations, Hawaii Retirees, Hawaii Job Transfers and Hawaii Residents, Home Buyers and Sellers.
© 2007-2013 Celeste "Sally" Cheeseman's Hawaii Real Estate and Relocation Blog.
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66 Comments on Are You Closing Doors for Future Opportunities?
@ chanda: YES...I really read that statement. And THAT'S why I got into the business as well....to help others understand the process and feel comfortable making one of the most important decisions in their lifetime.
Now..my business model says I have to get ready to go to the office lol
Have a wonderful day...and a great 2012!
i am always amused by the agents that like to say they "never negotiate commissions". of course we all know that's boolshite, but the bigger point they miss is the one you make about tossing in a few bucks to grease a deal. especially in high cost areas, how smart do you have to be to realize that tossing in a few hundred, or even a few thousand, is the shortest distance between opening an escrow and closing one? to those agents i say, 100% of nothing is nothing.
in my years in the trade i can say that, as an industry, i have met FAR more agents practicing real estate that genuinely put their clients interests first than in any other business i have encountered. doctors and lawyers included.
Good points about negotiating fees. I'd like to negotiate mine, with the listing agent, who decided I should participate in the low ball fee he/she agreed to in order to get the listing. I didn't agree to help you out. Why cut my side?
Rant, rant.
If an agent is at a point in their career that they can choose which clients to work with because there are more opportunities than there is time in the day, then they can and should choose those that are willing to work on their terms. A prospect is not a CLIENT until they engage you. Once someone is a client, they should get an agent's undivided loyalty. However, that undivided loyalty is paid for by meeting the terms of the agent's agreement.
I don't offer commission reductions unless 1) I will or have been paid on more than one transaction by this client; or 2) the price range (e.g. $2.5mil+) will result in satisfactory commission even if lower than the commission I would typically negotiate for. Once we agree to the terms of our agency relationship (i.e. the client has contracted for my services), then they can expect me to put their interests ahead of my own.
With regards to the comment about scheduling, the person who wrote that clearly doesn't understand customer service. We work very hard to accomodate our clients and our customers. In the end, that's only good business sense.
I agree with much of what you have written. We don't want to undervalue our services, but if I am too rigid, then it sends a message that maybe I just don't need the business. People have complicated lives and sometimes our clients lives might be out of our realm of experience. If a broker can reasonably accommodate a client, then why not?
I came from another field when starting out I took jobs I didn't want from necessity. Within a short time, I didn't have to take those jobs anymore and could pick and choose how and with whom I spent my time. One time, I bid a job on it being a difficult task with difficult people. It ended up well within my comfort range and the people were lovely. I billed the clients lower than the bid. Do you think they remembered me to their friends?
After you pay your own bills, sometimes the reward of satisfaction is better than the immediate monetary reward. It might even pay greater dividends in the future.
Thanks for a truly great post.
we are REALTORS ... we set our own individual commissions .... and if we choose to do so we will negotiate them .. or at least I do .... i never work for the commission I am getting from a particular deal .. .I always work to exceed all expectations because I know that those referral commission will be worth far more than the deal I am in at the moment .. .that is my take on all of this
I would definately agree that we should strive to deliver the best possible customer service to our clients. Sometimes that can mean working weird hours or cutting commission. I would not make these things a habit but it does make since in some cases. I would also ensure that I made a deal with the client that if I did this for them then they would do something for me such as sending me referrals. That way they do not think that they are getting something for nothing and they may even feel morally obligated to tell others about you and your business. I think this can help you to have a win/win situation instead of feeling like you are giving up something.
Sally--I'm with you on this. I see agents/gurus telling other agents that the business NEEDS to be done this way or that way.... My experience has been that flexibility rules in this business!
I agree with you. My clients are not buying cable service from me. Will I go out of my way to meet a clients schedule when I can make 10 to 15K off that meeting - Yes I will!
Great post and well said Sally.
Clients come first and we preach about it.
However it doesnt have to be cutting commission or giving up something as signs of serving clients.
We could have many way to show the clients that we are doing the best job we could and always watch out for their benifits. As long as the clients see and in line with what we are doing, they are ok with it...i think
jimmy phan
Who is the driver and who is the passenger? With the amount of agents out there and good ones at that, I marvel at that the fact they choose me to work with and thankful for that everyday.
Flexibility - tempered with common sense. I think that's a good combination.
I see a lot of agents here who seem arrogantly inflexible - and I'm just thankful that I'm not one of their clients.
Another great post, Sally. Flexibility, thinking outside the box, and remembering that we are serving and educating our buyers and sellers is a must!
Hi Sally, great points and I agree to a point, but also think to be successful, you need to stick to your guns on most of these points.
I have gotten a lot of business answering the phone when others wouldn't and responding to email inquiries right away. You have to be flexible at times and be responsive.
Sally:
I have may decide to negotiate a commission or not. It all depends on how I feel about the client, the listings and if I know I will be doing a lot more work than I ordinarily do on a listing. It is strictly my decisions after consulting with my broker.
There are a lot of comments here using the word "client". That is true if you are in a fiduciary state and have fiduciary duty to the person you are in contract to sell their home or to find one for them to buy. But in Florida, we are presumed by LAW to be transaction brokers unless otherwise specified in writing. Nestor and I choose NOT to be fiduciaries, therefore our sellers are not "clients" but "customers". So depending on what state you live in, determines in what capacity you represent a seller or a buyer and if you have a choice, you have a choice so making assumptions that all agents must behave in a certain way is just not true. In Florida we can also choose to have NO representation and brokers can choose also to have NO relationship with a buyer or seller.
Of course we put our customers' first when we are negotiating a deal for them, we never look to our paycheck as part of that end during the negotiating etc. But we don't put our customers first before our family or what is best for our business at other times. Of course, I tell the kids to be quiet when I am on the phone talking to one of our sellers and yes, they have to wait for that snack. But on the other hand we don't clean the sellers' houses, we don't move their furniture and so on. The customer service that we offer is selling their property. At the end of the day, they don't even have to like us, they just need to know that we can sell their property. We sell marketing and negotiating skills. If a seller were to hire an advertising agency to create the ads for their home and then place all those ads on the internet, etc, they would be paying thousands of dollars just in retainer fees and still have no guarantee of the outcome. We don't charge retainer fees but we also don't guarantee the outcome but we do however use our skill set to apply and do the best in whatever the current market is.
Brokers who work this way don't need to be put down as somehow not caring and unethical. Like Sally says, each person can choose to run their business the way they want to and it does not make one person better than another. It is all about choice.
Hey Katerina:
Yup, we all can choose the way we conduct our businesses. I do however do not believe in the way a couple of agents who wrote posts....cut down those of us that choose to care, to be flexible and that those that do not think of the money first and the client second are somehow flawed. I definitely do not believe in another's statement that we are like the cable man, that the money comes first and selling a dream home (I presume the agent was talking 'buyer') is a side benefit.
Florida has their own real estate laws as EVERY other state. We also have different PC's than another and in Hawaii we have escrow companies. In fact, in Hawaii we DO NOT sign with both buyers/sellers and DO NOT hand over keys at that time ...but rather, wait until the loan funds escrow and wait until the Bureau records the deed. We hand over keys when we receive recording clearance.
Bottom line, you have a successful business for your lifestyle and mine suits me just fine too. Why some may think their way is the only way is beyond me. My bills are paid...and as Gary says, I love my life and love my wife LOL
Have a very Happy, Healthy and Prosperous 2012!
Sally,
Sadly, you're right. Someone could come across as very sincere on AR with lots of good posts, and still not be a trustworthy individual.
Jo
Sally- Well put! We need to be flexible enough to meet our client's needs. That is part of our job since we do not have the 9-5 (or whatever other hours) that we must be in an office. We need to work WITH our clients.
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