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.