Why Should I Work For LESS, When I'm Doing MORE?

By
Real Estate Agent with Long and Foster REALTORS®, Gainesville, VA VA License # 0225089470

Why Should I Work For LESS, When I'm Doing MORE?

I know I am not the only listing agent out there being tried by sellers who want major discounts because "it's so easy to sell homes these days."  The reality of the situation is this, we do the same amount of work for every listing regardless of market when it comes to preparation.  When it comes to reviewing dozens of offers in a tight time frame and picking the best one for a seller's net that poses the least risk, that's MORE than we do in a buyer's market.  

Our effort should not be measured by days on market.  Just my thought this evening after talking to four sellers this week that fell in two camps of thought on perceived effort for offered compensation.  I hope you'll stop by and read my personal blog on the subject.

Comments (21)

Deepak Chauhan
Versailles Property - Irvine, CA
Irvine, CA ... the place to be

Bold and straightforward with no sign of insecurity, like it.

Mar 26, 2021 07:14 PM
Ed Silva
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Avoiding the traps of a real estate transaction takes experience and expertise whether working for  seller or a buyer. We are worth all the apples we earn for our efforts and if we do it right either type of client will realize we were the buffer that made it go smoothly

Mar 26, 2021 07:23 PM
Chris Ann Cleland

I told one seller we were like talent agents.  Someone isn't less talented because they hired an agent.  They will just make more money when it is time to cash in on the talent.

Mar 27, 2021 11:25 AM
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Chris Ann - ah, but these days properties sell themselves, right?  How many times have we overheard this nearby conversation?  Or faced this in a potential listing appointment?  Some people do not understand that putting a sold sign(or a pending sale status change) is just a part of the process.  There's so much more.  Where to begin. . .   

Mar 27, 2021 04:07 AM
Chris Ann Cleland

If there was an actual glimpse into the reality of what happens in these multiple offer situations from the listing side, sellers may "get it."

Mar 27, 2021 11:26 AM
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Hi Chris - this is where education and understand value is important.  With your job as with mine the question for them is what value and what results.  Educating them on the results is sometimes difficult in this sellers market.

Mar 27, 2021 04:47 AM
Chris Ann Cleland

Showing our value is so important.

Mar 27, 2021 11:26 AM
Bill Salvatore - YVP Blog
Arizona Elite Properties - Chandler, AZ
Realtor - Valley of the Sun / golfArizona@cox.net

Chris Ann so vital.  Why only in our profession, and not a doctor or lawyer? Great info, thanks for sharing. Bill Salvatore

Mar 27, 2021 05:11 AM
Chris Ann Cleland

I was thinking about this today.  Can you imagine a cut rate lawyer taking on clients to represent in court that they just can't?  Not to their fullest ability.  That's what some of these sellers are getting when they hire the chop shops.

Mar 27, 2021 11:27 AM
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Chris Ann. Time is indeed money! I want to be paid for my expertise. When a property sells and closes quickly, the seller has the freed up equity to use as they please. And the cost? Enjoy your day.

Mar 27, 2021 05:32 AM
Chris Ann Cleland

Effort is money and there's a lot more expended in shorter time periods now.

Mar 27, 2021 11:27 AM
Brian England
Vacasa - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

Well said and I find it very disheartening that so many agents seem to be very willing to give discounts, do a terrible job and yet the seller is still pleased because they don't know any better.

Mar 27, 2021 05:33 AM
Chris Ann Cleland

If the result is the house sells is the only metric for success, then sellers are losing out.

Mar 27, 2021 11:28 AM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, eXp Realty - Kalispell, MT
Helping your Montana dreams take root

Many sellers do think selling homes is a piece of cake especially in today's market. It's not.

Mar 27, 2021 05:49 AM
Chris Ann Cleland

It is easy to find buyers.  Maxing out profit and getting the BEST deal is not.

Mar 27, 2021 11:28 AM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

The amount of time, effort, and work that goes into preparing a listing, as well as all the paperwork and disclosures, can be measured. It is also a measure of how many people view the property and make an offer.  

There is nothing to discount ... if anything, sellers need to pay more.

Mar 27, 2021 09:58 AM
Chris Ann Cleland

I agree.

Mar 27, 2021 11:28 AM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

FEATURED IN CRAP-TACULAR

 

 

 

Mr. Crappy Says …

If you want a Discount

Go to Walmart!

💩💩

💩

 

Mar 27, 2021 10:01 AM
Chris Ann Cleland

Thanks for the feature in your group.

Mar 27, 2021 11:29 AM
Anna Banana Kruchten CRS, CRB, Phoenix Broker
HomeSmart Real Estate BR030809000 - Phoenix, AZ
602-380-4886

Chris Ann the amount of work handling multiple offers and dozens and dozens of showings is way more work than a normal market sale. I am just happy my phone is not blowing up today as they're pending as of last night. Thankfully our clients are particularily grateful for all we've done for them and have said so multiple times.  That makes it all worth it!

Mar 27, 2021 03:21 PM
Chris Ann Cleland

I've converted a commission focused seller to a more value oriented one as of last weekend.  Comparing me against a very respected team.  It's progress and at least he will have good representation either way.    Some sellers never get it.

Mar 27, 2021 04:34 PM
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

This is a very good perspective to share.

Take care, be safe and have a productive spring.

Mar 29, 2021 04:18 AM
Chris Ann Cleland

One not shared nearly enough right now.

Mar 29, 2021 07:08 PM
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Hi Chris Ann! INDEED, the amount of time is doubled on listings these days. You are spot-on. They totally forget about coningency discussions (repair & appraisals), discussions with multiple agents, multiple lenders, review of all of the documents for EACH Offer and more. I put together a spreadsheet to simplify THEIR review so they don't have to do what I am doing, going through the documents. THEN, the time spent communicating with them and securing the primary Offer and the back-ups...and heaven forbid there is a bidding war on the back-ups!! 

When we are talking dozens of Offers, there are DAYS put into communication alone. There is significant value there that sellers who ask for a break in pricing TOTALLY miss.

Mar 29, 2021 02:07 PM
Chris Ann Cleland

"But it's so easy."  Aren't you tired of hearing that?

Mar 29, 2021 07:08 PM
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Experienced Agent in Kansas City Metro area

You are so right!!  There is--or at least the way I do it--SO MUCH prep work that goes into getting a house ready for the market.  Not just the house itself but marketing, inspections, correct paperwork, etc.  I'm seeing a lot of deals flip these days and I think some of it is  because of poor pre planning

Apr 03, 2021 11:54 AM
Chris Ann Cleland

I think poor planning also just nets sellers less money.  Oh well.  You can lead a horse to water, can't make them drink.

Apr 03, 2021 03:08 PM
Adam Feinberg
Elegran - Manhattan, NY
NYC Condo, Co-op, and Townhouse specialist

For just a moment - let's pretend that the home sells itself. Just because the home sells itself, doesn't mean that it will result in the best offer for the seller. While my market has some different considerations (co-op boards can reject buyer's for any reason and not disclose why), the reality is that the seller's agent has a wider role in not only disecting the offer, but also making sure any and all offers are as strong as they can be. Not every agent can provide examples of how they accomplish this repeatedly and as a matter of process- and those that can are easily able to justify the difference between the brokers offering the discounted commission vs. the commission rate you have rightly earned. 

Apr 14, 2021 07:15 AM
Hannah Williams
HomeStarr Realty - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-820-3376

Chris Ann 

it is not the time it takes to get under contract but the time to complete the process.  How many issues do we need to complete from the time of signing until the time the keys and deed are handed over 

So glad Carol featured this as I missed your post 

Apr 17, 2021 02:35 AM
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Chris - in the end it is about value you receive and if they think they can save money they will probably have more frustration and may leave money on the table.

Apr 17, 2021 04:09 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Chris Ann:

 

Well said!! Time on the market does not determine the professional fee we earn. It's everything leading up to that contract, not to mention our years of experience and education that allow us to handle any situation that arises, and deal with all the issues behind the scenes that sellers have no clue about.

 

And in todays market tons of communication and coordination with numerous showings, multiple offers, and guiding sellers toward making an informed decision, then all that has to happen to get to the closing table.

 

Jeff

Apr 17, 2021 05:14 PM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning Chria,

Kowledge is power and it begins with educating out sellers. My listings are perfect perfect when they go to market and always derive the highest price which I can clearly show..numbers don't lie. I do get some who feel their house will sell without the necessary preparation and there is always an agent willing to discount and agree with that philosphy. There is enough business for everyone so if they won't listen that is fine..I always want to work with those who value my service..life is too short to be aggravated!

Apr 18, 2021 09:50 AM
Tom Bailey
Margaret Rudd & Associates Inc. - Oak Island, NC

Good post. You are so right, fast offers don't change what has to be done! I am not sure that making sure clients get the most money for their home is not more difficult now

Apr 19, 2021 10:02 PM