I walk our neighbourhood 3 or 4 nights a weak with my wife and we have been noticing more and more that there are a lot of Sold signs everywhere. This makes me happy to know that the Agents were successful in helping families realize their goal of getting their home sold quickly and with little disruption to their every day lives.
The striking thing was, that many of the homes that were still for sale, were listed with unknown brands or discount brokers. These homes were still left for sale 30 or 60 days after the sign went up. What causes this? Why are the larger well branded companies getting the house sold yet smaller or discount companies are not as successful.
One big reason I believe is the fact that these agents are not well trained and have a very poor Value Proposition. They show very little value when compared to a well established Real Estate Brand.
FIRSTLY what happens is, they take the listing for a lot less commission to offset their weak value proposition. They can not show enough value to compete with the well trained Branded REALTOR®. This is likely because of the lack of training at their office.
SECONDLY because of their weakness when it comes to commission objections, the Vendor now bully’s them into pricing the home way to0 high. The weak agent still takes the listing hoping to get the home sold to an out of town agent with little knowledge of the area or perhaps a new agent that doesn’t know the sale prices of homes in their own market.
The home then sits on the market longer and longer as the Vendor refuses to budge from what they think is the correct price. Buyers instruct their REALTOR® not to show them these very over priced listings. Real Estate Agents point out to their clients that this listing is priced very high and the Buyer doesn’t want to view it.
If the Agent was a well trained machine, who could easily show their Value and offer insight into marketing strategies, this would get the home sold quickly at market value or even higher!
Don’t get me wrong, I understand that their is a portion of the world, that only wants the lowest price. It is hard to reason with them without a strong argument of your value’s worth. But if you can overcome this and show more and more value in your services. You will be able to get the homes sold quickly without much disruption, put more money in your pocket for your business and have a steady stream of clients who will refer you time and time again as a Real Estate Pro who can get the job done.
So are you a Strong or weak Real Estate Agent?
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