Often you hear Real Estate Agents talking about giving it 100%. Or doing the extra 10%, but what does it really mean? Well in sales, it can mean as much as getting the deal and getting paid. I often talk to our agents about Value Proposition. What value are you offering your clients that sets you apart from your competitors? Why is it so great to work with you? What is it that you are doing differently that allows you to charge what you do and why do you consistently get people to pay you?
A value proposition is simply this…
This is a list of things I am going to do for you and this is what I charge for it. This is the difference between your services and other Real Estate Agent services. Now if you are able to go the extra mile and under promise and over deliver regularly, this can be a real rewarding experience for your current client and they will likely go out of their way to refer you to one of their friends. It is such a good feeling to pass along a referral for something that was excellent. A great movie, an amazing restaurant and yes, even a great REALTOR.
Here is a little Value Proposition story to illustrate my point.
Me and my wife had just met up with our long standing business partner for one last night of dinner and drinks as they are sadly moving back to their home country. Naturally they needed to sell their home and went with a local agent who knew their area well.
The area they are in as most places in North America has quite a few REALTORS. So when we got together I asked him how the sale went. His face lit up with excitement as he told me their house sold quickly and it went for OVER asking price.
I asked him to explain to me what techniques did this gentleman use to get the house sold and why he picked him over the other 2 agents that he had interviewed. My friend quickly left the room and returned with 2 top quality feature sheets in hand. He showed them to me and they were virtually the same except for the pictures. In feature sheet #1 it clearly showed my friends house as I had seen it many times before with his beautiful furniture and decorating touches that I would associate with him and his European background. Honestly it was very tastefully decorated and I would have no problem living in his home as it was.
When he showed me feature sheet #2, two striking things were different. The walls were all painted white or near white and all his awesome furniture was removed for very plain “nothing to see here” decorating. The agent had repainted and re-staged the home assuming he could sell it to the clients that were predominantly moving to that area (an Asian background area). The REALTOR was from that culture as well and explained to my friend that his culture preferred a much more conservative and plain style of finishing for homes and that if he marketed it to them in that way, that it was likely to sell.
He had a crew come over and move my friends furniture into storage and re staged the home with very plain unassuming furniture after repainting the kitchen, hallways and living and dining rooms. He then ran an open house on the weekend and elicited 4 offers by the end of that weekend. The home ended up selling in less than a week and for top top dollar!
My point is this…
The Agent not only knew his area (which all REALTORS should) but went above and beyond with his service. His Value Proposition was very different from the other agents and it not only resulted in the home selling, but opened a huge opportunity to be referred as an agent that does the extra 10%.
Oh, and by the way, he charges top commission for his services.
But you can see why he can charge top commission and expect to receive it. I don’t know many Agents that would have separated themselves from their competition this way. By charging full commission he easily covered the cost of painting and storage. The Agent was able to make more money for himself than just getting the listing by severely cutting his commission, even covering the painting and storage costs.
All in all everyone is happy. The Agent got the home sold and bolstered his worth and can expect to receive referrals in the future. My friend is very happy to have sold quickly and for over asking price. He is not inconvenienced with showing after showing for months on end, and his experience was smooth and not too much trouble as the agent handled everything.
So the question you can ask yourself is what is your value proposition? Are you able to separate yourself from your competition? Are you able to confidently charge full commission based on your value and expect to receive it? This is just one of many ways to do so. Remember, it is not always just about how much it costs, most people will gladly pay more based on results.
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