By Michael Kies

Need more listings? click here and view the one hour training session aimed at helping agents to add an extra $100k per year to their personal income.

Overcoming the “I can get it cheaper objection” for real estate fees

Why is this important: Almost every agent I speak with tells me how it’s tough to compete on real estate fees in their area.

Imagine have a tool kit for overcoming this objection regarding real estate fees at every listing appointment, how do you think it would affect your listing appointment to listed property ratio? In my experience this one tool has a huge effect.

If we are unable to overcome the common objections that arise around real estate fees, we must attend way too many listing appointments to get listings. If you have a listing appointment to listed property ratio of below 50%, this means you have to complete 200% more in terms of lead generation tasks than those who have got this right.

In many cases the tools to overcome objections like these are the key to move from 1 sale per month to 4 sales per month. With a high listing appointment to listed property ratio, this is only 1-2 listing appointments per week, for 6 listings per month and four sales.

Three ways to overcome the “I can get it cheaper objection” for real estate fees

1. Demonstrate that “Cheap things are never good and good things are never cheap!” You must have stories to demonstrate the value of your real estate fee. If you don’t you can use mine, which potentially lost one vendor $13,000 by going with the cheaper agent.
2. Demonstrate value: Another way to do this is to demonstrate using statistics that you are better value despite your higher real estate fee. You can show that you have been able to achieve higher comparative house prices than the other agents in your area. If you can’t do this statistically – you can run through scenarios where you have got the buyer up to a certain price – and then explain how you do this with negotiation skills – like how you answer: 
- Why are they moving? What will they take? Compare this to a poorly skilled agent.
3. Demonstrate that cheaper real estate fee doesn’t mean more in their bank account.
   You do this by saying:
   ‘That may well be true Mr. and Mrs. Seller. And after all, in today’s market and economy we all want the most for our money, don’t we?” Then discuss the difference between cheaper fees, and more money in their bank account.

It is important to set the foundation and demonstrate your higher skill level so that they can compare your skills with those of the other agents they are interested in.

You see not having these tools in your arsenal is like trying to drive a car with a flat tire. Your career will progress slowly, you absolutely must take these tools and make them part of your repertoire, so that you can get back up to full speed.

Obviously the tools within the sales process play a massive role in growing results.

For this reason, I have recorded a more in depth one hour training session aimed at helping agents to add an extra $100k per year to their personal income. Click here to view the training now…

Feel free to leave a comment below or send me an email at support@michaelkies.com.au.