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Yes, Real Estate Agent, You Are Worth Every Penny
At least, I know that I am worth every penny.
It’s not uncommon for me to see posts to real estate agent Facebook communities where other agents share text messages from clients asking for a commission credit. I’m gonna let it all hang out when I tell you that my general thoughts are, “Give me a break. Your service is worth every penny, and often plus a little bit more.”
Here’s my problem: We make it look way too easy. You see, if you’ve been around the block more than once, nothing surprises you. Buyer cancels, seller gets incarcerated, surprise child support liens, newly discovered mold under the kitchen, buyer cannot close on time: those are just a few of the things that I hear about almost all the time. Like you, nothing shocks me; I know how to solve most problems without batting an eyelash. When you make it look easy, the client thinks your service is not worth what is being paid. (Angry emoji)
I recommend the method that I call, “Set expectations accordingly.” Explain to buyers and sellers that you are like a pilot. “Have you ever been on a plane that has turbulence?” I ask.
“Of course,” most respond.
“Well, a real estate agent is like a pilot on a plane with a lot of turbulence. The real estate transaction can be unpredictable and have a lot of ups and downs. My job is to help you avoid as much turbulence as possible.” Usually, this conversation helps buyers and sellers to understand that the transaction is not smooth sailing.
I then pull out a handy list of 199 things that an agent does for you. I review some of the items and give some examples. Some of you have asked me for my list. Of course, you’ll agree that we all provide slightly different services, and so I believe it is best if you make your own list. Below is a screenshot of a few of the items on my list:
As an aside, number 174 on my list states “Assist in solving any title problems…”. Last week I spent 2 hours on the day of closing resolving some last minute issue that the title company couldn’t handle, assisting an agent in my office to assure an on time closing.
If you have the mettle, try saying “no”. It’s liberating and sets a precedent for you and also for the industry as a whole.
It’s not uncommon for me to see posts to real estate agent Facebook communities where other agents share text messages from clients asking for a commission credit. I’m gonna let it all hang out when I tell you that my general thoughts are, “Give me a break. Your service is worth every penny, and often plus a little bit more.”
Here’s my problem: We make it look way too easy. You see, if you’ve been around the block more than once, nothing surprises you. Buyer cancels, seller gets incarcerated, surprise child support liens, newly discovered mold under the kitchen, buyer cannot close on time: those are just a few of the things that I hear about almost all the time. Like you, nothing shocks me; I know how to solve most problems without batting an eyelash. When you make it look easy, the client thinks your service is not worth what is being paid. (Angry emoji)
What should be done about this?
There are lots of ways that you can “educate” home buyers and sellers on your value. The one that is easiest, of course, is to tell them every single solitary thing that you do for them as you do it. “First I called the agent, then he called the buyer, then the buyer called the inspector, then I called the inspector… blah blah blah.” That is not the method I recommend.I recommend the method that I call, “Set expectations accordingly.” Explain to buyers and sellers that you are like a pilot. “Have you ever been on a plane that has turbulence?” I ask.
“Of course,” most respond.
“Well, a real estate agent is like a pilot on a plane with a lot of turbulence. The real estate transaction can be unpredictable and have a lot of ups and downs. My job is to help you avoid as much turbulence as possible.” Usually, this conversation helps buyers and sellers to understand that the transaction is not smooth sailing.
I then pull out a handy list of 199 things that an agent does for you. I review some of the items and give some examples. Some of you have asked me for my list. Of course, you’ll agree that we all provide slightly different services, and so I believe it is best if you make your own list. Below is a screenshot of a few of the items on my list:
As an aside, number 174 on my list states “Assist in solving any title problems…”. Last week I spent 2 hours on the day of closing resolving some last minute issue that the title company couldn’t handle, assisting an agent in my office to assure an on time closing.
Everything you do has value. When and if you agree to lower your commission, you are setting a precedent that impacts not only your income but the income of those around you.This is because consumers will start saying, “You lowered your commission for so-and-so; I’d like you to lower it for me.” Or, “My friend’s agent reduced her commission, and I’d like you to do the same.”
If you have the mettle, try saying “no”. It’s liberating and sets a precedent for you and also for the industry as a whole.
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