Recently on the ACRE® Coaching Exchange, our coaching platform for ACRE® graduates, we had a very interesting discussion about where our value today lies as agents. It seems that in the tough market that we are working in, many agents are competing for listings by charging less than the competition and requiring less commitment in the way of an exclusive agency contracts with buyers.

This is so sad because you can never compete on price and stay in business. No matter how low you go, there will always be some desperate soul who will charge less. And when you don't require a commitment from those you work with, you only underscore that your time, experience, and expertise has no value.

In my book Ripping the Roof off Real Estate, I talk about the difference between a commodity, which can and should be shopped by price and a service where the quality, level of expertise, talent or experience makes a big difference in the outcome. When an agent or brokerage competes on price, they reinforce the perception by the public that agents are all the same, a commodity, and therefore they should be shopped by price. However, when a real estate professional understands and articulates their value, the consumer will beat a path to their door and the competition will be left in the dust.

ACRE® Wynne Achatz made a very astute comment about our value:
 
"WOW let's go back to 1996 - That is when my consulting really began full strength. I was bedridden for 3 months. Took 126 listings and negotiated 32 transactions. How? Clients wanted my help (consultation). They took their own pictures with my camera, measured their own homes, we looked at options, discussed what was needed to get the property ready for sale, action was taken, seller listed and put up their own signs...never minced about the fees. What it all boils down to is that when you have something of value, folks will feel compelled to want it. The "I have to have it" syndrome.

Be confident in yourself. By the way: I am now charging $195 up front, non-refundable to take a listing or go under contract with a buyer. This is not considered part of a commission either. I have gotten more than a standard commission by listening to what the consumer wants and then getting paid for it! WE never had it so good. Mollie, Merv and all the ACRE® Coaches, thanks, thanks and more thanks for the opportunity for such a great sharing experience with ACRE®."

Michigan Wynne

Many of you may have heard of or know Wynne Achatz, but for those who don't, she is one of the smartest professionals out there. Let me underline what Wynne said: when she was laid up, clients were obviously not paying her to run around doing functionary administrative type tasks...THEY did them! Her value was that of a fiduciary: negotiating, interpreting, troubleshooting. She was sought after for her expertise, not her busy work. Read the rest of the article...