Do you Charge for your Services?

I had a caller today that wants to sell their home and doesnt have much time to act.  They have a balloon payment due in May of $16,500 and they have no money.  I was somewhat dismayed when I asked if they wanted to list their home with me, She said no.  They are trying to FSBO it.  I then asked what they are going to do when they sell and where they are wanting to move to.  She said they have "A Guy" that charges $85 to help them find a home to buy...UNBELIEVABLE!  What a scam.  I told her it costs her nothing for me to represent her as the Buyer's Agent. She didn't want me to be her buyers agent, doesnt want to list the home.  WHY IN THE WORLD DID SHE CALL?  Just to pick my brain?  I guess I need more training in psychology.

Any Comments?

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Doug Voss, KC Improved

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Doug R Voss, Real Estate Consultant for Platinum Realty of KC, 913-227-0798 x813 - http://www.platinumrealtykc.com/

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7 Comments on Do you Charge for your Services?

It might be a good idea to put together a list of all the services that you provide "FREE" to buyers. And then present these services to buyer prospects and CHARGE them for it.  When we did this and started charging $199 we have people standing in line to be one of our clients. I've heard of some agents that get as much as $595 per buyer client, and that price is only for a six month buyer's agency agreement. It helps you get serious buyers who are ready to pull the trigger within six months.  Best of luck to you!

02/21/2008 06:09 PM by Tami Roberts (MyFavoriteAgent.com LLC)


Wow...it really does happen elsewhere. The public looks at us like we are the library. Check us out for free. Just keep giving because what you give is what you get. This is why you must be looking constantly on who you want as a client and refer or decline the ones who don't look like a good match for you.

02/21/2008 06:10 PM by Gary & Melynda Wolter (Skogman Realty)


I've developed the attitude that I don't want to work with someone who doesn't want to work with me.  Maybe they were hoping you'd give them some 'magical gem of wisdom' that would solve all their problems.

02/21/2008 06:16 PM by JenRan Realty, LLC


I like TAmi's idea about showing what you do provide for free.  I usually say something like  there is a net price and gross price, what you (client) should care about is net.  Who really cares about gross- it is what is in your pocket at teh end of the day - net.  So if i can net you mre then I am worth it, right?  Check out realtor.org's 16% better return if they use an agent.  It is already prepared  for you

02/21/2008 06:26 PM by Krista Bolf Ashland Agent, Ashland Real Estate & Medford Real Estate (Coldwell Banker Pro West)


Tami does state what many have said for the last 3 decades that I know of - if we don't see ourselves as true professionals worthy of being paid , others won't see our tru value either.  Until we can say with the same level of confidence that other professionals use that we deserve to be paid up front (at the time of service) for services rendered and/or require a Buyer Service/Representation/Listing/etc. to be signed if we are going to work on commission/speculation then we can't expect the buyers to take us more seriously.  It's just human psychology that something has no value when given.  It is only when we earn/pay for something that we see it has value.  Go figure - but Tami's would seem to prove that theory beyond a doubt! 

02/28/2008 05:06 PM by Cynthia (CJ) Sleppy


I took a class last week on Real Estate consulting and found it incredibly eye opening. There is a definite need out there esp for FSBOs who do not want to pay a commission or use a buyers agent, but want help immediately and are willing to pay a few hundred $$ for it.

I'm sure I'll get blasted here (I'm wincing already) but we are using a pretty ridiculous business model of getting paid only when the deal is done.  Doctors still get paid even if the patient dies, attorneys get paid even when their clients go to jail so why do we have to wait? Why not charge for our time and advice to customers who want it? This is a far different model than discount brokerages and has nothing to do with cutting fees. Fee for service just breaks up what we do into task and packages and sets a price for them. 

The teacher cited a company in California (?)(can't remember who) that began using this model as a side of their business. They found a split in their demographics of people under 40 willing to follow a new model of fee for service and over 40 to follow a more traditional model.

 It's something I'd like to learn more about.

 

02/28/2008 07:35 PM by Jessica Klein (Houlihan Lawrence)


Doug- My Broker has a fee sheet for all services that might be of assistance to someone trying to sell on their own. I like to think of it as the A La Carte Menu.

03/07/2008 11:35 AM by Dana Forster Realtor, A Home 4Sale Inc, Va (AHome4Sale)


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Real Estate - Other: Doug Voss (KC Improved Homebuyers, LLC)
Doug Voss
Kansas City, MO
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