|
• Home • Up • Prospecting • Internet Farm • Internet Leads • Web Content • Ethics • Zero-Based Marketing • Web Content • Internet Dialog • Mastermind • Buying A Website • Efficiency • New Agent Advice • Web Ideas • Agent Skills • Learn Skills • Listings • Listing-Prep • Listing Presentations • Adding Value • Tech or Technique? • Choosing A Broker • Broker Identification on the Web • Internet Standards Proposed • Changing real estate markets • Best Real Estate Agents USA - Brokers and Real Estate Resources. • CANADIAN REAL ESTATE AGENTS AND BROKERS. Best real estate agents in Canada. •
Increase Your Bottom Line By Adding Value
by Jim Crawford
Sometimes it is not closing more deals that make a difference in our profit
margins, but rather it is about increasing how much we retain from our deals
that counts. It is all about profit, and how much we walk away with at the end
of the day.
Real estate across the country and market conditions may vary a little, but how
we get the job done does not. Some of us battle a shortage of inventory, while
others in our business suffer from a glut of homes to sell. Before we begin, we
must place a value on ourselves and the services we offer. Then we must be able
to demonstrate our market knowledge and skills and prove their value has weight
and substance.
Full service is not free. If the seller perceives our skills are worth more our
competitors...then we are the person to hire. All they need is proof. They will
pay the difference as long as we demonstrate that our performance and perceived
value is different from the competition's. So rather than discounting our
services, it is possible we may net more dollars from each deal. Make more
money, and do less deals! What a concept!
Think about this. Everyday in our society, we have choices as consumers. We can
buy the same product at different stores. One store may offer the product at the
lowest price, while another is priced normally. However, some shoppers would not
be caught dead in a discount store! Why? Because it is a perception of value.
They may feel the higher price is worth the service they get. There is peace of
mind in service, company reputation, quality, and they know that if they have a
question, want to return the item, or have an issue or concern, they know their
needs will be addressed! It is peace of mind that closes the deal. It is all
about satisfying the consumer.
Our industry is currently besieged, and is changing at the speed of light on
many fronts. First, the advent of the Internet, major portals with aggregation
offerings of homes for sale, and broker reciprocity (IDX) have all vastly
diminished our real estate reputation as the keepers of information. Consumers
want instant information, and via the Internet, personal computers, instant
communication via e-mail and cell phone they have it. Over 80 percent of home
purchases will now start on the Internet. At this point, we must concede it is
now the consumer on a research quest that is driving our industry! But does that
mean we have to give our services away at reduced commissions, flat fee, and
fee-for service menus?
Some in our industry think so, and accommodate by offering these services.
However, all that means that you will sell twice as much, and earn less. This is
not an insurance that you will survive and be profitable; all it means is that
you are stretching your resources to the limit. This is a major stress
territory! The major contributor to this current dilemma of ours is the
technology gap. It exists because the first-time home buyer is 25 years old and
the average real estate agent is in his/her early 50's, many of us are in over
our heads, and in a panic to regain market share at any cost. We are driven by
fear and not logic. We must not go into a scramble to take whatever business we
can at any price!
Agents that employ the right technologies, understand it, and use it effectively
will control more and more of the real estate business. So for those of us that
did not like the old "80/20" rule it has changed. I am told recent surveys now
suggest seven percent of all real estate agents/brokers account for 93 percent
of all business transactions. If we are to survive and be profitable in our
industry, we must make an effort to understand the fundamentals of our business
and what drives it! These younger tech savvy potential clients do! They want
answers, and they want them quickly! They also need someone that can effectively
and quickly communicate with them.
We must acknowledge these younger potential clients grew up with technology as a
way of life. They know how to use it effectively! Most in our industry do not.
From an early age, these potential consumers grew up with it. They use it for
entertainment with games, chatting and communicating with friends, and use the
Internet to do fast and informative research. Technology is second nature to
them, and to the average real estate agent in their late 40's or early 50's, it
is not. We still think it is magic, and it's not! It is a reality. It is not
something we can just delegate if we do not understand it, and success is not
purchased in a software package. We cannot deceive the consumer. They'll size us
up real quick! We can close the technology gap by providing those expected
services.
We must be able to demonstrate our abilities, and make them tangible. After and
during a presentation, if the seller perceives that we have a solution they will
pay for it. Our professional presentation must cover all bases, and leave no
doubt in the seller or buyers mind that you are the agent they need to work
with. Our presentation must encompass all of our talents. The demonstration of
abilities, our professional appearance, experience, skill, abilities, and a
concise plan must be the one to beat! Our polished presentation must include:
designations, company awards, achievements, testimonials, an encompassing
assessment of price and market, and a plan to get the seller from point "A" to
point "B!" We must be careful not to promise more than we can deliver, because
that will harm our business reputations. An honest market assessment is always
best. The seller and agent must always be reading on the same page.
It is better to follow-up post listing with weekly progress reports. Keep the
seller in the loop via email, phone calls, and copies of marketing materials in
print or on the Internet. It is so pathetic to see that most of our competition
in our industry will not do this. A quick search of the MLS and Realtor.com will
show you that most agents do not even include multiple photos, a virtual tour or
even an enhanced description of the subject property. Remember, this is a
tech-savvy seller in the new millennium. If we can demonstrate how our service
is different from the competition up front and even online … then we'll get the
listing on our terms. They'll appreciate the candor, and your ability to cover
all marketing bases.
For added value for the home seller, we can demonstrate our abilities
historically from past closed deals, testimonials from past clients, days on
market, customized marketing materials we used, and final sales price. Your past
performance is a comforting reassurance of your abilities. A well formed
presentation will leave no doubt in the seller's mind that you are the bench
mark from which they will hold the competition.
Remember, it is important to pay attention the smallest detail. Our abilities
will be judged on appearance, our body language, the quality of our
presentation, and how we present it are what will make the difference. It does
not take rocket science to list a home, put a sign in the ground, and place a
listing in the MLS. However, it takes skill of a successful real estate agent
acting on the seller's behalf to negotiate the best terms, get the highest
price, sell it in a reasonable period of time, and negotiate through financing
issues, and the inspection amendment. Remember, perception is everything. You
are who you think you are!
Published: December 4, 2003
|
