VanEd Newslog

Q&A with Jennifer Allan - How to Compete with a Minimum Service Real Estate Company, Part II

We asked author Jennifer Allan 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 industry media outlets. 

“Dear Jennifer,

“I seem to be competing with flat-fee or minimum service agencies more and more these days. I understand the appeal of such arrangements to an equity-poor seller, but I’m having trouble explaining why a seller might want to consider a contingency-based agreement, even though on paper, it appears to cost significantly more.

When the seller says something along the lines of: ‘I'm sure you're worth your fee, but I simply can't afford you,’ how can I respond?”

JENNIFER’S RESPONSE:
First, as I discussed in an earlier Q&A, you should never argue with a seller about your commission or your value. Arguing makes you look insecure and somewhat desperate. And it doesn't work. So don't do that. Neither should you put down your competition - that will only subtly criticize the seller's judgment; after all, he chose to consider going to minimum service route.

But how about saying something like this?

"I hear ya and I understand. You have a tough decision to make. On one hand, you can pay this other company a much lower fee upfront and hopefully retain more of your equity. On the other hand, you can hire a full-service agent, whether it's me or someone else, and due to the increased exposure and marketing expertise, you might end up with even more of your equity. Either way, there's no guarantee that your house will sell for what you need it to. I'm sure you'll make the right decision. Do you have any questions for me that might help you in making that decision?"

The fact that you're sitting there in the seller's home means that he hasn't ruled out paying a full-service company. In fact, he probably wants full-service; he's just not convinced of its value. But if you first show him that you care about his situation and you trust his judgment, he'll probably give you the opportunity to persuade him.

Subscribe to "The Daily Seduction: Tips & Inspirations to Generate Business from Your Sphere of Influence." (a free newsletter)

Guest Author Jennifer Allan 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 Sell with Soul is available in the VanEd bookstore. You can also visit her online at www.sellwithsoul.com.

Q&A with Jennifer Allan - "How Can I Compete with a Minimum Service Real Estate Company?"

We asked author Jennifer Allan 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!

Subscribe to "The Daily Seduction: Tips & Inspirations to Generate Business from Your Sphere of Influence." (a free newsletter)

Guest Author Jennifer Allan 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 Sell with Soul is available in the VanEd bookstore. You can also visit her online at www.sellwithsoul.com.

Q&A with Jennifer Allan ~ Listing Exclusions

We asked author Jennifer Allan to answer questions based on her teaching and experience in the real estate industry. Jennifer is a regular contributor to Realty Times and RE/MAX Times. This week she answers the question of whether or not to agree to a "listing exclusion."

Question: "What if the seller asks for a 'listing exclusion?'"

JA: For those who haven’t encountered a “listing exclusion” yet, it’s simply a request from a seller that if a certain person or persons buy the home after it goes on the market, your listing commission won’t apply. For example, perhaps the seller knows a guy at work who says he’d be interested in purchasing the house, but he’s still thinking about it. Your seller doesn’t want to wait for him to make up his mind to go on the market, but neither does he want to pay you if the guy actually ponies up. So, the seller asks you to “exclude” this particular person from your listing agreement.

Should you do it?

My advice? Sure. Don’t argue, don’t explain, and don’t make a big deal out of it. Write in the exclusion and get on with putting the house on the market. The chances that this guy is actually going to purchase the house are slim, but if he does, the seller will probably need your assistance to get the contract written and to closing. For which you most certainly may charge a reasonable fee.

No reason to go to battle over this. Save your energy for bigger things!

Subscribe to "The Daily Seduction: Tips & Inspirations to Generate Business from Your Sphere of Influence." (a free newsletter)

Guest Author Jennifer Allan 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 Sell with Soul is available in the VanEd bookstore. You can also visit her online at www.sellwithsoul.com.

Q&A with Jennifer Allan - "Does My 'Friend' Owe me a Courtesy Call When She Hires Someone Else?"

We asked author Jennifer Allan to answer questions based on her teaching and experience in the real estate industry. Jennifer is also a regular contributor to Realty Times and RE/MAX Times.

Question: I understand that I won’t always get my friends’ business, but when I don’t, is it reasonable to expect a courtesy call explaining why they hired someone else?

JA: It’s tough when someone you know entrusts their real estate business to another agent, isn’t it? When you’re new, the disappointment can take days to get over, but even for Old Fogies like me, it’ll still sting for an hour or two.

As discussed in an earlier Q&A, it’s best to give your friend the benefit of the doubt and assume that she had a perfectly good reason for her decision not to bring you in on her real estate transaction. Trust in that, swallow your hurt and move on. Don’t risk the friendship (or future business!) by demanding an explanation, complaining to mutual friends or sulking the next time you see her.

I don't think the general public realizes how hurtful it is when our friends hire someone else - I doubt they even give it much thought. In most cases, it's not AT ALL personal, so they don't even think to feel bad about it, or feel they owe you any explanation.

So, does your friend owe you a courtesy call? No. If you get one, dandy. But if you don’t, please don’t fret. More than an hour, anyway.

Subscribe to "The Daily Seduction: Tips & Inspirations to Generate Business from Your Sphere of Influence." (a free newsletter)

Guest Author Jennifer Allan 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 Sell with Soul is available in the VanEd bookstore. You can also visit her online at www.sellwithsoul.com.

Q&A with Jennifer Allan - "Does My 'Friend' Owe me a Courtesy Call When She Hires Someone Else?"

We asked author Jennifer Allan to answer questions based on her teaching and experience in the real estate industry. Jennifer is also a regular contributor to Realty Times and RE/MAX Times.

Question: I understand that I won’t always get my friends’ business, but when I don’t, is it reasonable to expect a courtesy call explaining why they hired someone else?

JA: It’s tough when someone you know entrusts their real estate business to another agent, isn’t it? When you’re new, the disappointment can take days to get over, but even for Old Fogies like me, it’ll still sting for an hour or two.

As discussed in an earlier Q&A, it’s best to give your friend the benefit of the doubt and assume that she had a perfectly good reason for her decision not to bring you in on her real estate transaction. Trust in that, swallow your hurt and move on. Don’t risk the friendship (or future business!) by demanding an explanation, complaining to mutual friends or sulking the next time you see her.

I don't think the general public realizes how hurtful it is when our friends hire someone else - I doubt they even give it much thought. In most cases, it's not AT ALL personal, so they don't even think to feel bad about it, or feel they owe you any explanation.

So, does your friend owe you a courtesy call? No. If you get one, dandy. But if you don’t, please don’t fret. More than an hour, anyway.

A Special invite from Jennifer: "Join me this Wednesday, April 22nd at 4pm (Pacific) / 7pm (Eastern) for a FREE teleconference panel discussion on the often uncomfortable subject of the Negotiating Your Commissions. REGISTER FOR "THE ART OF COMMISSION NEGOTIATION"

Guest Author Jennifer Allan 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 Sell with Soul is available in the VanEd bookstore. You can also visit her online at www.sellwithsoul.com.

 

 

We asked author Jennifer Allan to answer questions based on her teaching and experience in the real estate industry. Jennifer is also a regular contributor to Realty Times and RE/MAX Times.