How to avoid discounting your fees in real estate sales….

One thing that is prevalent in the real estate industry is a belief that one must discount their fees to get the listing.

This is an epidemic in the real estate industry.

And the agents who believe this know that there is something better for them out there.

It draws them down so that they live a life of poverty, mediocrity and silent misery, because they know that they could achieve more.

The agents who charge a good fee, feel empowered to get the highest price for the seller because they have not given their own money away.

Let’s put this into perspective and compare two financial advisors:

1. Works from an office with a team, drives a Mercedes, and has successfully made a good amount of money following his own strategies for wealth management. Charges a good, healthy fee that they are proud of.
2. Works from home, has an old car and no team and has obviously struggled with making money using their own wealth management tools. Is willing to discount fees on the first meeting and reeks of desperation for the business.

Who would you choose to handle your finances?

I was with an agent who was taking me to the airport one day.

He mentioned that every single agent in his area was fee cutting at the listing presentation.

I asked how he introduces his fees at the listing presentation; he said: “I tell them my fee and then I let them know straight away that it is negotiable.”

The levels of fee cutting are at epidemic proportions, so here are the three tools I shared with this agent to counter this problem:

1. Be proud of your fee

Does your Accountant or Lawyer mention that their fees are discountable?

Do they say “My fee is $400 per hour, but it’s negotiable?”

No, they don’t.

By you mentioning it, you are inviting it. Just don’t do it!

2. State your fee and move on

State your fee, be quiet and move on.

Don’t dwell on it because a lot of agents make a bigger deal about the fee than the sellers do.

3. Be the best you can be

Be confident that you are the agent who will get the seller the highest price for their home.

Be the best negotiator, the best communicator, and the hardest worker, so that you get the highest price. This makes you the best value agent in town.

The agent I was speaking with in the car that day put these three things into place and hasn’t cut his fee since. This has made him thousands of dollars and allowed him to get on with being the best agent he can be for his clients.

I have a doctor who saved my life.

I had leukaemia and if he had not intervened I would have died within three days. Needless to say I trust this doctor with my life from this day forward.

Do I ever ask him to reduce his consultancy fee? Absolutely not!

You are the same – you are saving the sellers’ financial lives by being the best negotiator, the best communicator and getting the highest price for their greatest financial asset.

You do this and you will get a lot of referral business.

If you want to use the system that I used to average 12 listings and 11 sales per month, then you should consider attending the next Success in Real Estate, which is being held in February in Sydney.

At Success in Real Estate I show you exactly what to do every day to become unstoppable and how to get to the top in real estate, so that in ten years from now you will have financial freedom and have the choice to work or not.

So if 2019 is the year that you want to see great growth in sales, book a call with me and we can run through where you are at, and map out where you can be in 12 months from now.