| The real estate industry is an ever changing one. | | | | assume you are in this for the look haul. You are not |
| Many companies try to come up with innovative | | | | just trying to make a quick buck and move on. The |
| ways to capture more market share. In many other | | | | long haul requires you to build relationships with your |
| industries a popular way of doing this is to lower | | | | clients so that you can get their repeat business and |
| prices or discount their service. This is a method that | | | | their referrals. When you close on a house with a |
| some have tried to use in the real estate industry | | | | client, it should be the beginning of a relationship, not |
| and has others very concerned. Here's why I | | | | the end. |
| wouldn't worry about it. | | | | As long as there is any kind of business, there will |
| There is an old saying; you get what you pay for | | | | always be someone trying to do it cheaper. |
| and this is no different when it comes to real estate | | | | However, I don't ever recommend this as a business |
| services. Many agents are worried that discount | | | | strategy because any client you get because of a |
| brokerages will destroy the market as they know it | | | | low price, you will lose when there is a lower price. |
| and cause them to lose their income. But what you | | | | No loyalty, no relationship. |
| may not realize is that with those reduced prices, | | | | Walmart is able to do this because they offer the |
| comes a reduced level of service. | | | | exact same products you can by elsewhere for less |
| If you take the time to research the discount | | | | money. You would have to be foolish to spend more |
| brokerages, you will see that they don't provide the | | | | for them. However, in real estate, the service you |
| same level of service as a full service agency. This is | | | | provide is uniquely yours, no one else can provide |
| why they can discount it. It's not an "apples to | | | | you but you. Your job as a real estate marketer is to |
| apples" comparison. Some advertise one percent | | | | show your clients why it is better for them to work |
| listings, but they fail to tell you that it doesn't include | | | | with you then someone else. You have to provide |
| the sales side of the commission. When you put it in | | | | more value to them which translates into prices. |
| the MLS you must offer a commission to a | | | | Think of it this way. If all that people bought were |
| cooperating broker if you are to expect anyone to | | | | low prices, than we wouldn't have so many different |
| seriously consider showing the house. They usually | | | | kinds of cars. We would only have the cheapest |
| have an escalating scale that comes very close to | | | | ones. But this isn't so because people will pay more |
| the same as what everyone else is charging. | | | | for a car if you give them a good reason to do so. |
| But let's look at it from another perspective. I | | | | The same applies to real estate services. |