Among homeowners, there is often the idea that by using a big name brokerage, they will be guaranteed bigger and better results than if they used an independent broker’s agent. This article dives into why that is not always true.
Now, before we get started - know that we have nothing against big-name brokerages! We love brokerages of every size and shape. For THIS article's purposes though, we wanted to spotlight a question that we had on a coaching call from a member who was from a small brokerage and concerned that they would not be able to compete.
“Name brands are better than generic brands.” That’s what we’re often told in advertising, right? While I often say “you get what you pay for” (and it’s usually true), how many times have we bought something expensive, only to have it break or fail a short time later because you paid for the name brand and didn’t get the quality you expected? How frequently do we buy the generic version because it’s just as good but half the price?
It’s like that in real estate, too. How do we coach the homeowner when they are hesitant to use an agent from a small, independent brokerage when they believe they will have better results with a big brokerage?
The Scenario
One of our Power Agents® came to me asking how to handle her potential client, who owned a luxury home but was hesitant to list it with a small boutique office. The homeowner was reluctant because she believed that her house wouldn’t sell unless it was listed with a large, well-known brokerage.
The Power Agent® asked a few clarifying questions, trying to understand the source of this assumption, and learned that this homeowner had already listed this home with a Big-Name Broker, and the listing had expired. She had listed with a big brokerage, the house had been priced too high, and the previous agent hadn’t done much marketing of the home. The concern really came when the homeowner still seemed more intent on the bells and whistles than on actually selling her home. This Power Agent® was at a loss on how to address this.
Hard Lesson Learned
As this unfortunate homeowner learned, going with a large brokerage doesn’t guarantee the successful sale of her home. Of course, there is no guarantee that a small brokerage can sell the home any better because the truth is, the size of the brokerage doesn’t matter; it’s the work ethic, marketing reach, and the pricing smarts of the real estate professional that will get the home sold.
That being said, when coaching homeowners who are in this position, you will need to be upfront with them, even if it’s hard for them to hear. You can say this:
“You have to decide whether you are committed to selling your home or looking good to the neighbors. I know you’re committed to selling your home, and I promise you that you’ll look good. Right now, you aren’t looking so good, and this is why: You listed based on the pretty packaging of the big brokerage and their agent rather than listing with someone who had valuable content and the ability needed to sell your home. You should be looking at me. Do you think I’m the best skilled to get your property sold for what you need to make this sale a success? What you don’t want to do right now is hire another agent or company JUST because of their name, especially if they don’t have the skill and ability to get the job done. Now your listing has expired, and you are losing valuable time. This market is hot, but we don’t know how long it will stay that way. I don’t think you should gamble a second time.”
TIP: Check out our related article, “Skills vs Popularity: Why Skills Are More Important Than Social Media Followers”
Metaphors and Analogies
I love using metaphors and analogies when talking to homeowners, particularly about their occupations or families. It’s about taking an idea that they already know to be true and applying the parallel to this current situation so they can see how what you are saying is also true. How about this one:
“If you were going to hire a heart surgeon, would you hire someone who is on the news all the time and loves the limelight, or would you want a heart surgeon with the best skills, even if they have never been on TV?”
Or maybe this one:
“What if you needed to hire an attorney? Would you want a celebrity attorney who’s all over the TV, or someone who is the best skilled? I can tell you off the top of my head about a few celebrity attorneys who have lost their licenses over the years.”
A Balance of Confidence and Attitude
Going into a conversation like this requires a lot of confidence because you are focusing on your skills and abilities, and you need to sound like you believe in yourself! People are exceptionally good at sensing insecurity, so as a skillful real estate agent, you will need to take control to feel secure about going into this conversation.
In fact, your internal mindset should be something like this: I am the best agent for the job. I have a passion for what I do, I know I can help these sellers, and I am committed to serving on a high level.
TIP: For some inspiring strategies for building your confidence, check out Tony Robbins’ article, “18 Tips for Being Confident from Within”
What’s Next?
Are you ready to start taking things to the Next Level®? If you don’t already know what you need to do to get to your next level, we can help!
Power Agents®, for all the tools, resources, and strategies for ensuring you are prepared with skillful answers to any objection your potential client might raise, head to the Objection Handling tab in the Classroom. Whether you need a boost of confidence or empowering dialogues, we are here to help you get the skills you need to be the go-to agent for the buyers and sellers in your farm area.
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