Sunday, December 8, 2013

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Friday, October 25, 2013

Real Estate Agents & Realtors Stop Being Reactive by Lowering Your Fees

Are new Realtors or Real Estate Agents jumping out from everywhere? Is your response to lower your fees? Have you not just diminished all the value that you bring to your potential customer?

How many years of experience do you bring when you sit in front of a potential loyal customer? What is all that experience worth? So why in the world would you consider lowing your fees?

The recent turmoil in the housing industry has created some desperate times for some real estate agents and realtors. Even though most within the industry knew that some of the poor lending practices were eventually going to come home, these same people now are crying poor me and taking reactive behaviors.

The authors of the Blue Ocean Strategy talk about how lowering fees places you in the "Red Ocean" of high competition. If you can find a blue ocean, where it is calm and smooth, you will be able to maintain your fees, possibly even raise them.

Lowering fees results bottom line in lowering your value and does not increase sales in for the long term. Nor does this reactionary behavior improves customer loyalty.

By maintaining your fees, you are showing your value when compared to your competitors. Given the high drop out rate within the real estate industry, chances are those competitors will not be around this time next year. And let us not forget that this potential loyal customer can use your services up to 7 more times given what research from the real estate industry reveals.

A local Realtor I know whose real estate business is 100% referral told me that when meeting with a husband and wife for the first time and the subject of fees comes up, she takes this action. Looking directly at the woman and asks if she shops at Wal-Mart. The woman usually responds "Yes." Then my Realtor friend asks: Why? The response is because of "value." The wife can buy food to clothing that have a good value at a fair price.

Now this very smart real estate agent and Realtor asks: Would you buy your mother of the bride wedding dress or wedding gown for that very special day at Wal-Mart. Always the response is "Absolutely Not!" The subject of lowering fees is never brought up again. For the woman now appreciates the value that this real estate agent is bringing to the table.

Lowering your fees to sell more homes or to list more homes is simply speaking not a smart practice especially if you want to increase sales. Taking such action makes you work harder not smarter. Look to the value that you bring to the real estate transaction. Then find a way to demonstrate that value to your clients so that they never bring up the subject of lowering fees again.

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Real Estate Agent-Realtor - How To Find One

Whether you are buying or selling a home or property, you will likely want to work with a realtor. How can you find a real estate agent to assist you? Here are some suggestions:

Word of Mouth

Personal referrals are a great way to find a realtor. Ask friends, family members, neighbors, and co-workers if they know someone. Be sure to ask if they have dealt with this individual personally. You will want to find out the following information:

Was the agent courteous and professional?

Was he or she a good listener?

Did the agent attend meetings and open houses on time?

Contact a Real Estate Broker

If you are unable to find a real estate agent through personal referrals, contact a real estate broker and explain your needs: Are you looking to buy or sell? What style of home are you looking for and in what price range? Would you like to live in the city or are you interested in rural properties? Do you want to purchase a building lot, a farm, or a multi-family building? Based on this information, the broker should be able to recommend someone in his or her office who has experience with the type of home or property you are interested in.

Check Out Local Signs

Make note of the agents who are working - and selling - in your neighborhood (if you are selling) or in the neighborhood you are interested in moving to (if you are a buyer). You will want to work with someone who is able to deliver results.

Visit Open Houses

One way to meet a real estate agent is to attend an open house he or she is holding. You will be able to get an impression of this person's working style and start to consider whether this is someone you could work with for your own purchase or sale.

Find an Agent Online

A number of online directories provide listings for real estate agents. In addition to the agent's name and contact information, you may find a statement about the person's areas of specialization. A link to the realtor's web site will likely be provided. This gives the potential client an opportunity to get an idea of how the realtor markets his or her listed properties.

Interview Potential Real Estate Agents

Once you have found some potential real estate agents, it's a good idea to meet with each one separately and interview them. Buying or selling a home is likely the most expensive transaction the average person will ever be involved in and it's important to find the right real estate agent.

Start off the meeting by asking the agent to tell you a bit about his or her experience in the field. Then take some time to tell the agent what your plans are for selling your property or what you are looking for if you are a buyer.

Sellers will also want to find out exactly how the real estate agent will market their home. The interview stage is the time to find out what percentage the real estate agent charges as a commission.
Use these suggestions to help you find the right real estate agent to fit your needs. Do take the time you need to find someone who you will be able to work with effectively.

David Burch specializes in articles about the Clovis, NM Real Estate market [] For more articles on real estate in Clovis, New Mexico [], please visit his website: []