In the Real Estate market, the most common way to be competitive is to… cut commission. We all saw a bad market for several years and the most common way to compete in a bad market is to cut commissions because desperation becomes a major factor. I’m being asked almost every day by our clients… “How do I compete with agents cutting their commissions?” In some cases you cannot compete… but in 75% of the cases, not only can you compete, but you can win the commission rate you would like to charge. Think about securing the best commission for yourself by doing the following. First, the more professional you are in your approach… the stronger your presentation skills… the more you upgrade the aspects of the listing process… the easier it is to receive the highest commission possible whether it be 6% or higher. In most cases, your competitors are not strong presenters and as a result, the sellers recognize their weakness and ask for a commission cut. Second… the higher the value of what you are telling the seller, and their understanding of the value in relationship to getting their home sold creates the highest commission. People are willing to pay the higher price for higher value. I can give you a very simple example of this. You can buy a new Ford automobile for $35,000 and you can buy a new Mercedes automobile for $80,000. Both cars will have a V6 engine, 4 wheels, 4 doors, and both will get you to the same destination in the same amount of time. As we both know, Mercedes presents us their car in such a manner that people are happy to pay a higher price… people see value in the presentation Mercedes makes and value in the quality. Both cars will get you to where you want to go. If you want to keep your commission at a high rate, spend a portion of your time in improving your presentation and spend a lot of your time looking carefully at the value that you present in relationship to the seller understanding the process. Give these ideas some thought and l look forward to talking to you next week.
Mike Ferry
CEO - The Mike Ferry Organization
800-448-0647
Comments(1)