Real Estate Broker/Owner with Royal Lepage Kelowna
I am always confused why so many real estate agents over the past few decades have the mindset of less commission versus more commission in any of their marketing strategies. Why do so many of us go into a listing just thinking a basic rate of fee for service instead of going in thinking of higher or smarter rate of fee for service? This simple but powerful shift in an agent’s mindset can put tens of thousands of dollars into your bottom line each and every year just by giving the seller the choice!
That’s right give the sellers a choice!
Here is a simple but powerful strategy many top producers have discovered and implemented into their business. You need to present effectively and simply by giving the seller the choice and just “ask and you will receive” more instead of always taking less or the going fee for service.
I always felt as an agent the majority of the population believe they get what they pay for. I believed as a top producing agent I delivered more than the average level of service and also believed we should get paid for delivering more as well. In my waiter, serving days if I delivered a higher level of service then my gratuities and tips reflected on the level of service I brought to my guest… make sense?
So I am going to use fees, numbers and rates in this post as just a guide or an example and they are by no means my telling you what you can and cannot use in your marketplace. Let me begin by asking you this question. Who does the seller pay us to market their home to? The most important person they want us to market to I believe is the cooperating selling agents in our trading area, agreed? If I can get the cooperating agents with all the buyers excited about my sellers property and in turn they get their buyers excited about buying my listing and paying whatever it takes to buy it, then I believe I have done my job! I believe the fastest, most effective way to get a cooperating selling agent excited about my sellers listing is to offer and pay them more!
So let’s say the Basic or trending rate of fee for service in my trading area is 2.5% to the cooperating and selling agent. 5% for the total fee. What if you offered a Smart marketing fee to the cooperating agent at 3%? The total fee for service for Basic Marketing 5% and Smart Marketing 6%. Educate them on the differences and benefits to them and give them a choice. Here are some very powerful statistics from top producing agents and what they found giving a seller the Basic Marketing rate or the Smart Marketing rate.
7 out of 10 sellers chose the Smart Marketing Fee Option
100% SOLD – Listings with Smart Marketing Plan All Sold. Not all Sold with basic.
3-4% Higher Net Sale Price to Seller with Smart Marketing Plan. Do the math for the seller.
Motivated Buyer Agents in turn creating motivation with their buyers.
Less Cutting Of Commissions and never on the listing sides fee.
Win-Win Situation For Buyer, Seller and All Agents. Everyone wins.
Giving 2 Options allowed sellers to make an educated decision and feel more in control
If each home sold for $500,000 that meant $2,500 more for buying-selling agent
10 listings a year at the Smart Marketing means $25,000 more commission to you a listing agent a year
So there you have it, a simple but powerful strategy to allow you to work smarter and not harder. More importantly set yourself apart from the competition and go into a listing looking for more and getting it 7 out of 10 times. Take the time to create visuals for this strategy and don’t just tell the seller but “show and sell” the seller on the smart marketing plan and the benefits to them and their home and their wallets!