I wrote two unrelated blogs yesterday - one about how I would rule the (real estate) world and another about how we real estate-types are put in an awkward position when negotiating our commission with sellers.
After a day and night to ponder my blogs and the commentary, I realize that these two blogs are indeed, very closely related!
To summarize blog #1 - I am currently negotiating a contract for a book deal. The person I’m negotiating with will also be my editor, if we come to agreement. So, this guy has to first wine me and dine me (cyberly-speaking) to pique my interest, then he has to put on his a&&-hole hat and negotiate against me – but after that, we have to work closely together over the next year to produce a killer product (my book). So, he has to build my trust, then shatter it, then build it again.
Blog #2 was a little ditty about how if I were Queen (that is, a managing broker), I would require my agents to convince me that their listings are worthy of my sign in the yard. Thus, any seller who wants to be honored with my sign has to sell US on HIM! Instead of the other way around.
So here’s my point.
We real estate agents are in the exact same position as my potential editor. We have to build the rapport that encourages our prospects to like us and trust us. Then we have to risk trashing that rapport and trust while we negotiate our commission and list price. If the seller hires us, we have to somehow rebuild the trust and rapport so that we can work together to get the home sold. It’s a tough job description.
What might be really cool would be to apply the car dealership technique of requiring management approval on any deal struck between buyer and seller, that is, listing agent and seller prospect. Here’s how it would work...
Agent meets with seller and builds rapport. Once rapport and trust are established, the financial discussions begin (commission and list price). Agent and seller work TOGETHER to come up with a proposal for the Queen to approve. The agent cannot accept a listing without that approval. Together, the agent and his new best friend, the seller, create a marketing plan which includes the list price, the agents’s commitments to the seller, the seller’s commitments to the agent, along with a proposed commission to be paid upon success. Both parties know that they have to present a reasonable proposal to the Queen or it will be rejected.
Let the Queen be the bad guy! It lets the agent off the hook, while bringing the seller more into the process of selling the home. Best of all, the agent never has to switch hats!!!
Under this scenario, I, as Queen, would be tickled to market the hell out of any listings that are deemed worthy.
I love it. Do you?
Copyright Jennifer Allan 2007