Do You Display Those 6 Attributes of Value-Added Service?
Carla Cross, CRB, MA
New Threats to Your Commissions Demand You Prove your Value
Agents have several threats to their commissions (and, indeed, their businesses as they know it) today:
•· Internet-based companies are promising a high level of service for a relatively small commission
•· Banks and mortgage companies are getting into the real estate business, with a built-in clientele
•· Lead generating companies are asking agents to pay them for leads-and, surprise, surprise, these lead generating companies end up owning the leads (commonly because real estate agents don't follow up or go out of the business)
•· Companies like Costco are forming alliances with real estate companies to provide leads-at a price
•· The shifting market makes agents vulnerable to lack of trust issues (the seller wonders why his home isn't selling; the buyer wonders why he/she ought to buy today)
In summary, a real estate agent's commissions are going down!
And, according to consumer surveys, agents don't realize that the level of service they are providing is actually judged by consumers as sub-standard, not even standard.
Counter the Threats by Proving you are ‘Value-Added'
What's ‘value-added'? As I teach around the country, I am stunned that agents can't explain what ‘value-added' is. They all say, though, that they are actually a ‘value-added' agent. But, guess what? If you don't know how to explain it, it's a sure bet your buyer or seller doesn't know why you're worth the commissions you want to charge.
At least, value-added must mean that I do more than what the public thinks a ‘standard' agent does.
But, you say, I'll just prove it during the time we work together.
Sorry. It will be too late! Some other agent will have proved it prior to the buyer and seller making their choice. You just won't have the opportunity.
They Don't Believe What you Say
Before you even start, don't think you can get savvy buyers and sellers today to believe you if you tell them
I am trustworthy.
I am honest.
I work hard.
Sure. Everybody tells them that. And, to hear the cut-rate real estate companies and agents today, they'll do everything you will do-and for less money.
Being Believable
"The customer doesn't know what he's getting-until he doesn't."
Communication is rampant. There are billions of pieces of information on the Internet. Your junk mail and your junk emails are growing. Yet, consumer trust with real estate agents has never been lower. (We actually rate 19 out of 25 in professionalism-with 1 being "most professional"!).
So, we all must counter that with credibility, not promises. Here's my list of 6 attributes of the value-added agent:
•1. Works full-time. It is amazing to me that 65% of agents are part-timers. Personally, I don't want a typical part-timer trying to juggle another job and juggle all the time-sensitive actions I expect my agent to take to get the job done. Sellers and buyers aren't aware of the large number of part-timers. You must let them know your commitment to them.
But, you are a part-timer. Okay. Then, you need to show the buyer or seller how you are going to be fully dedicated to them and their transaction.
- Fully and continuously educated. To gain the client's trust today, you really need to continuously educate yourself in the legalities and technical aspects of real estate. It's amazing to me how many agents just aren't up to date on their jobs!
- Has all the communication methods and uses them. Buyers and sellers' biggest complaint about agents is that they don't return phone calls/email! In fact, study after study shows that agents simply don't communicate even at a basic standard level with buyers and sellers. No wonder buyers and sellers are frustrated at those huge commissions (in their eyes). According to a Womens' Council of Realtors study, 40% of agents today don't have a database!
•4. Works for a legitimate real estate agency who is committed to hiring and retaining good agents. Until you tell buyers and sellers differently, they think most agencies are the same. But, you and I know they are not. Be proud of your real estate agency. I don't mean that some real estate agencies are not legal. From traveling the country speaking and coaching, I know the financial resources great companies put into educating their agents. I know they are careful whom they hire. I know they are careful whom they keep. Share your value-based culture with your clients. That differentiates you from the ‘I'll just try to get a couple of sales', or ‘I'll just start a real estate firm to snag some easy bucks' kind of people (yes, they're out there!).
- Is committed to real estate career long-term. 50% of the agents who come into the business are gone within a year. 75% are gone within 2 years! No wonder buyers and sellers distrust what we tell them! We don't communicate, and we disappear after we make all kinds of promises............
- Has created full systems, processes, and checklists to assure a high level of service throughout the transaction and after. No more of this running by the seat of your pants! The client wants us to provide
Prioritized knowledge
That means we develop the full systems and processes for buyers and sellers that show we are more than the ‘fly by night' standard agent. For example: Less than 20% of all agents today use a written interview process for buyers and sellers. (See Your Client-Based Marketing System and The Complete Buyer's Agent Toolkit for comprehensive interview processes and questionnaires).
That also means that we know all the statistics about our market. Not only do we need to know them, though, we need to prioritize them and educate buyers and sellers about what they mean. That's the difference between ‘value-added' and cut-rate. We value-added agents take the time to prioritize and educate.
What the Public Wants from Us Today
Studies show the public wants from us
Prioritized knowledge coupled with a high level of trust
That's value-added.
Please don't underestimate your client today. Respect your client's knowledge, his time, his money, and his right to the highest level of service. For your own satisfaction, master your craft. You'll build a career for tomorrow, no matter the market, and differentiate yourself from the competition.
Carla Cross, CRB, MA, is an international real estate speaker and coach, and president of Carla Cross Coaching and Carla Cross and Company. She is the author of 6 internationally published books and 20 programs for agents and managers, including Your Professional Portfolio, which shows agents how to prove they are ‘value-added'. She specializes in increasing production in challenging markets. Contact Carla at www.carlacross.com or 425-392-6914.
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