The internet has multiplied competition in real estate. Instead of competing against Realtors® from your immediate area, you’re competing with folks from all over the state and even country offering to help buyers and sellers.
As a result, there’s been downward pressure on commissions. A lot of agents are offering extremely low commissions – of course, for cut-rate service. But that can be hard to see when you’re a seller fearful of costs.
As a professional full-service Realtor®, what can you do to help sellers understand your value – and your commission?
Here are some tips.
Explain the Commission Split
Some sellers think that if they do an FSBO or low-cost selling service, they’re saving 6% commission. Of course, they aren’t – they are only saving some of the 3% that would go to a listing agent.
They still need to pay 3% to a buyer’s agent when the deal closes.
Many times, once the seller understands that they aren’t saving nearly as much as they thought, the dramatic loss of service doesn’t seem as acceptable.
You can help them understand that you provide far more value than your 3% portion of the commission.
Offer Premium Real Estate Marketing
A low-cost agent isn’t going to offer much more than an MLS listing and the transfer of that listing to online marketing portals.
When you can lay out a comprehensive, premium marketing plan, you’ll really stand out. The seller will immediately realize that you’re providing a great value.
Here are some elements of a premium plan:
- Print Marketing. By using a series of postcards to generate interest in the property, you’ll be able to target specific types of potential buyers in a place with little competition – the mailbox. We recommend a series that includes “coming soon”, “just listed”, “open house”, and “just sold” to maximize exposure.
- Social Media Marketing. Go beyond the MLS and portals for your clients by letting them know how you’ll promote their listing on social media. Mention professional photos, Facebook strategy, and more.
- Connecting With Other Realtors®. You can find a buyer even more quickly when you connect with other agents. Tell the seller how you’ll network to help them find a buyer fast.
When you explain all the value you bring to their home listing, they’ll understand that you’re well worth your commission.
Talk About the Work of a FSBO or Using a Low-Cost Agent
When a homeowner chooses a cut-rate agent, they naturally end up doing more of the work themselves. However, they aren’t trained for, or familiar with, real estate, so it takes them much longer and they are much more likely to make mistakes.
Many times a seller doesn’t realize how much goes into selling a home. Ask these types of questions:
- Are you a well-trained negotiator? How do you think you will fare with a buyer’s agent who is?
- How do you plan to promote your home and reach those most likely to buy?
- Do you intend to send your own postcards or do your own open houses?
- Are you prepared to handles dozens of calls and questions from people who don’t even end up seeing your home?
- Do you have the time and energy to arrange for dozens of home showings?
These types of questions can help open a seller’s eyes to exactly what’s involved, and it will help them understand why you’re worth your commission!
How do you explain your commission in today’s market? Share in the comments!
This post originally shared on PrinterBees' Real Estate Marketing Magazine.