It was never about the money. Real Estate, for me, was about the people. (Which was helpful because the first few years were pretty lean!) I chose Real Estate because I am excited to meet new people and help them. Sitting over steaming coffee with a client and catching up on what’s new since we last spoke… it’s one of my favorite workday perks. One of the biggest thrills for me is watching a grin spread wide when I hand over the keys to their new home. I love connecting with people! It’s what I live for!
Thumbs Up by Petr Kratochvil
But business is about making money, not friends, right? Too often the goal is a sale, even at the expense of customer service. But in a competitor-rich business climate, it’s vital to keep our clients, and keep them satisfied. Friendship and business do mix, and this is where my desire to meet and help people actually helps me excel in business.
“Every great business is built on friendship.”
That’s why I put together this four part series on Providing Legendary Customer Service. I want to help you satisfy the daylights out of your clientele! Let’s raise the bar! Extraordinary service doesn’t have to be a legend – it’s real and it’s out there and you can deliver it!
This 4 Part Series will highlight some Key Elements of Providing Stellar Service:
Getting Started: Establish Personal Contact with Clients
Maintain Contact With Clients Without Losing Your Mind
Discover What Your Client Really Wants
Personal Attention: The Crowning Jewel of Legendary Customer Service
Yes, I am from STEINBACH! I know the people, the churches, the shops, the streets, the schools, and the Steinbach Real Estate market!
Tina Plett, Sutton Group-Kilkenny Real Estate
What is the reason someone puts a for sale by owner sign on their yard instead of listing with an agent?
They believe that they will have more money in their pocket after the sale if they don’t have to pay commission to a REALTOR. After all, the commission paid to the agency is a lot of money!
So, let me ask you, what does the buyer expect when buying a private sale?
That’s right! They expect to get a massive discount from market value because they know that you are not paying an Agent!
I know investors who love to buy private because they are skilled at bullying down the price on a private sale. I assure you, that by the time the negotiation is complete, the seller has not made any extra profit! The seller’s advantage becomes the buyer’s advantage.
Serious buyers are already working with an agent! Up to 99% of local houses for sale are listed with an agent. In order to view these homes, the buyer needs to make an appointment with an agent. Their agent can show any house listed on the market, regardless of which agency it is listed with. These buyers are pre approved for financing and shopping within their budget! These buyers are willing to pay market value for a house! These are the buyers you will want to view your home!
I have shown private sales to my buyers. Buyers are used to going into a vacant home when shopping with an agent and feel very uncomfortable when the owner is in the house. They don’t feel free to voice objections about the property in the presence of the owner. That makes it hard for the agent to overcome objections.
I have successfully sold several private listings. In all cases, the seller left for the showing! In all cases, the negotiating was done through me.
Buyers also do not trust a private sale. They are afraid that the seller is hiding something about the house. For example: renovations done without permit or inspection(no electrician), foundation cover ups, grow op history, mould, or other defects.
When writing an offer on a listed house, the buyer is educated by their agent to know that they can ask for a disclosure statement and a home inspection if they choose.
Why are agents hesitant to show a private sale? For starters, we don’t want to work for free! Secondly, it is frustrating. We would prefer to see a listed house, know in advance what the commission payable is, write an offer, deliver it to an agent and then get paid. We want to enjoy the experience of the sale.
Do agents get paid too much? Let’s do the math. 30% of their pay goes to income tax. 30% of their pay goes to the overhead of running their business. Most REALTORS work on a commission split. If they keep 60% and give their office 40% that totals their costs to be 100% of their income! If I was on a commission split like that, I would not be able to afford to advertise your property! Most offices do offer a better pay split once the agent reaches a certain level of sales. Do these numbers help you understand why some agents are so pushy?
In conclusion, it is not likely that you will end up with more money in your account through a private sale than if you list with an agent.