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Pricing strategies to prove an agent’s value

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Real Estate Professional | 04 Mar 2015, 08:52 AM Agree 0
With cut commissions, rebate programs, and other pricing strategies taking over the market, how can traditional agents prove the value of their services? REP readers have their say.
  • | 04 Mar 2015, 01:27 PM Agree 0
    I don't have a problem with the newer business models but am not interested in going that route. Let's face it, if you cut your fees then you need volume. There is only 100 cents in a dollar so I prefer to give really high service and frequently include staging consults, always professional photography etc. Really, is it discount or low service and do seller's know the difference.
  • Mel | 04 Mar 2015, 02:32 PM Agree 0
    I am not sure why we feel other business models exist because they need to discount their commission to get business or its because they are only worth a discount price. Our company offers a "for sale by Owner" program, on top of our traditional model, so that we can offer those clients who want something different than our traditional model an option. It also gives organized real estate the ability to still be in the game and compete with marketing companies versus just walking away from a segment of the market. We won't walk away from a business opportunity...why would anyone want to do that? The fact is real estate agents have been walking away from business for years and that's why other models have come along...there was and is an opportunity for them. To think otherwise is foolish!!!
  • | 04 Mar 2015, 02:44 PM Agree 0
    In Toronto where properties sell in one week, can realtors, hand on heart say the work they did to sell that house is worth $25,000? Or $50,000 for the dubious double end?? (assuming 1 mill selling price) More to the point, does a seller feel he/she got value for the commission. Some market research would provide some more insight in tot matter.
    Don't get me started on the education factor!
  • Joe Williams | 04 Mar 2015, 04:16 PM Agree 0
    We are in the sales business. If you can sell a million dollar house in a week - and provide a buyer - you have done a good job. You should not look to work more hours than needed for the property. The idea is to get top dollar for the client - and often that means selling the house in a quick manner. I am proud to collect a healthy commission if I skillfully guide a multiple offer process and help my clients obtain top dollar.
    If I don't handle the situation properly - or list the house too high - than I may end up working for a couple of months (believe it or not, many houses take more than a week to sell). Even if I work for a month or 2 - I get paid the same amount. Better for the client that the house sells in a week and for top dollar - vs toiling for a couple months. If we were paid on an hourly basis (as your post suggests) than I would want all the buyers and sellers I spend time with to pay me - even if our interactions don't end in a sale (which is quite common actually).
  • MORE AGENTS | 04 Mar 2015, 09:47 PM Agree 0
    More Commission Wars!! MOre Agents!!
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