We asked author Jennifer Allan-Hagedorn to answer questions based on her teaching and experience in the real estate industry. Jennifer is also a regular contributor to Realty Times and other online media outlets.
"Dear Jennifer,
Lately I am running into sellers who "have to get every nickel out of their home." They ask me if I’ll reduce my commission because there are other agents in my market who will list their homes for a flat fee. I find myself talking too much, trying to defend my commission and how hard I work for my sellers. I argue that in this slow market, sellers need an agent who shows up every day with a strong marketing plan and a commitment to see it through til the end.
How can I convince a seller prospect that I cost more because I’m worth more?”
JENNIFER'S RESPONSE:
Well, as you're seeing, defending your commission isn't working. Arguing isn't working. What does work is a quiet confidence that you are TRULY worth your fee. Not because you need it and not because your broker doesn't allow you to charge less, but because you bring that much value to the table. You must know this yourself before you can convince anyone else.
You may not be doing a good job communicating that confidence to the seller. You don't communicate confidence with arguments or graphs or charts or lectures. You do it by walking into that appointment with a sincere desire to help and the knowledge that you can help. Not as a salesperson trying to "win" a listing, but as an expert advisor who is very likely the best (wo)man for the job.
I'm sure you've heard the old adage - "People don't care how much you know until they know how much you care." If a seller feels you are there in his home to truly help him, over and above your desire to get that agreement signed, he'll be much more willing to trust you. And once he trusts you, he'll be more open to hearing about why you're so wonderful. But you can't actually tell him you're wonderful, you have to show him.
How?
By knowing your market cold and being able to discuss it intelligently and calmly. By letting him do most of the talking and really listening. By having a plan to sell his home that is thoughtful and personal to him and his situation.
This may sound a little vague, but it's an attitude shift that is truly magical once it clicks. In short - as soon as you go into defense mode, you've shot your credibility.
Stay tuned for more tips on defending your commission!
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Have a question or comment for Jennifer? Email it to info@vaned.com!
Guest Author Jennifer Allan-Hagedorn has authored five books and multiple courses designed to teach agents her Sell with Soul philosophy that centers on four interrelated principles: Respect, Competence, Confidence and Enthusiasm. The latest release of her book is available in the VanEd bookstore. You can also visit her online at www.sellwithsoul.com or attend one of her free teleseminars on a variety of topics of interest to the real estate community.
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