Saying No to Commission. Yes to Professional Service Fee

Although I learned from the Four Agreements not to take things personally, I would not refrain from traversing back to the blog I wrote two years ago refusing strongly against being branded or called "Salesperson." I am not a Saleswoman!

 

This blog generated interesting comments from the members. Dissenting and concurring opinions were expected.

 

What I believe in does not need affirmation but having an NAR recognized speaker making this as an emphasis in her class yesterday fortified the value of a Realtor...not as a salesperson but as a service professional. 

 

How do you quantify, explain and secure your value? Close your eyes and ponder for a moment. If you were to put an hourly rate for your service, how much is your worth?

 

This was an exercise we did yesterday. Nobody opened his eyes until the instructress told us to do so. She started with" Raise your Hand if you think you are worth $25 an hour." Then she did not stop asking until she reached $450 and above. 

 

She said, "Those of you who think that you are worth less than 3 digits, shame on you. Do you think you should earn less than the home inspector or any other service people?"

 

Well, I raised my hand when she belted out $100. Inside, I already felt good about it. But after listening further, I changed my mind. I am worth more than $100.

 

Early this month, I rejected two listings when I was offered a discounted professional service fee. However, they called on the same day and agreed to pay me the percentage I demanded.

 

Three weeks after listing them, I sold their two multi-family homes.

Both units were listed twice. First, with a large firm.  And the second was with a firm offering discounted service.

 

Why did they change their mind? It is all about Your Value!  So how do you present your Value? In securing the listing for the two properties, although I knew I would not take less than what I charge, the whole perspective of "The Value Proposition" evaded me. The sellers' trust was the securing factor. But since yesterday, I have a better grasp of why I  am worth more than $100/hour.

 

To share with you what I learned from Adorna Carroll of Dynamic Directions,  below is The Value Proposition Overview

 

1) Quantifying your Value

2) Explaining/Defining your Value

3) Securing your Value

 

Quantifying Your Value

 

"Whether you are a listing agent or a buyer's agent, all clients expect a lot for their investment. Agents need to justify the services they provide for the price that is paid."

 

Explaining Your Value

• Identify the activity
• Determine Your Hourly Rate
• Multiply that by the times it takes to do that activity

 

Securing Your Value

• Know what your value proposition is
• Be able to articulate your value
• Stop calling the fee a "commission

 

Every agent has its own or unique style and system in securing their listings or buyers. No matter how you do it, don't let anybody diminish your value. You are worth what you think you are worth. So you better put the RIGHT PRICE TAG for your service.

 

 

The Ability to Make a Difference! That's What Differentiates ME Maria Gilda Racelis
	MariaMakesItHappen.com
	Personal Blog: Real Estate News and Musings in Connecticut