There is lots of agreement among realtors that soon thanks to the Internet, Realtors
will not be needed. I think the only thing that will make most realtors obsolete will be their lack of professionalism and if you look up the definition of a professional you will see that it defines a professional as one with learned knowledge. Yes, the Business is changing and in my opinion a Realtor must provide their clients with more information than they can get for free on Google.
The truth is that Buyers can buy without us and Sellers can sell without us. I've been in the business 35 years and this has always been the case. In fact I think today Sellers need us more than ever.
When I started marketing real estate Sellers could do basically the same things to market their homes that a Realtor could do. Sign on property - ad in paper... Open House.... Blah Blah..
That is no longer the case! Today the realtors have the advantage when it comes to marketing a property, in fact they have a tremendous advantage.
Sellers objections to not using a realtor 35 years ago were the same as they are today. and that was the fee... yet then as well as now the majority of home sellers use a realtor.
I think it is critical that agents internalize and passionately acknowledge the fact that the buyer pays the fee not the seller. Once an agent knows this and can sell it; it becomes much easier to convert a "For Sale By Owner".
I’ve use this dialogue to prove to sellers, realtors and buyers that the buyer always pays the commission - I begin with this question:
"Mr. Jones, have you ever bought a car from a dealership? (I know I'll get a yes most times with this question) Well the salesperson that sold you that car received a commission for doing so and most likely the manager of the dealership or the owner gave them their commission check. However you Mr. Jones gave the dealership the money to pay your salesperson? (At this point you want to shut up... smile... look them in the eye and wait for their response) "You, Mr. Jones may write the check for the realtors at the closing table but my question to you is where did the money come from?"
"Yes, Mr. Jones you can sell your home on your own, my question to you is why would you want to?"
Over the years Rich and I have bought and sold hundreds of houses and we always list them, and we always pay a realtor to sell them. Why??? Our main reason for doing so is to net more money. Other reasons, being that we love that third party negotiating platform. I love to tell the agent representing us, "Go back to them and counter with". I love to tell a buyer that is asking me questions about one of our properties, "Please discuss that with my agent". Now understand if anyone knows how to sell a house we do, and we are positioned to give all of our properties maximum exposure, which we do but we always use a selling agent and the buyer always pays them.
Years ago when I was not as nice as I am now and I saw an agent selling their home as a FSBO I would call them and say, "Hey now I know why you do so poorly in the business. I mean how can you sell what you don't believe in?" Needless to say this practice didn't make me well liked but in my opinion it spoke volumes. Many agents later shared with me that it did give them food for thought... I was never sure if it helped them financially or not.
Use the following to make a FSBO Handout… please don’t leave them at the door! When I say make a nice piece be sure you have your branding on it…
10 Reasons to us a realtor when it's time to sell your home:
1. Realtors are trained to sell. Many times a seller will say something inappropriate, which will turn the buyer away from the property.
2. Realtors are trained negotiators. Passionately obsolete.
3. Realtors can give the home more exposure, which drives the price up.
4. Realtors are in a better position to screen and qualify buyers.
5. Realtors can be objective.
6. Buyers are more candid with a realtor.
7. The buyer pays the fee, so the seller rarely, if ever, nets more money selling on their own, so there is no benefit to the seller who sells without a broker. According to national statistics, most private sellers end up netting 17% less than if they had used a broker.
8. With a realtor, you are not letting strangers into your home. Most homeowners give this fact such little thought. With the current crime rate, it should be their greatest concern.
9. Realtors are positioned to give their home maximum internet exposure.
10. Homeowners have been using realtors to sell their homes for over 100 years. The reason most homeowners give for not using a realtor is that they want to save the commission. They can’t save the commission because they don’t pay the commission. The buyer pays the commission. If this were not true, the Sellers would have figured out a way to eliminate the realtor a long time ago, right or wrong???