You’re getting what you paid for . . .

Do you shop at Walmart expecting Nordstrom‘s Service and quality?

While you’re there, do you belly-ache the whole time and tell everyone you see how HORRIBLE Walmart is?

So, let me get this right . . . You want to pay Walmart’s Low Prices and enjoy Nordstrom Level Customer pampering, right?

Your expectations aren’t realistic, and as long as you maintain this outlook, you’ll be consistently disappointed.

Of course, you could “fire” Walmart and go to Kmart or Target with your over-inflated expectations, and you’ll likely find yourself similarly disappointed and belly-aching.

By now, you may be rolling your eyes and thinking I’m stating the obvious to a fault, and I agree that I am . . .

Where is that line of reasonableness when it comes to “getting what you pay for?”

In my business of selling houses, it is not uncommon for a home seller to ask the Listing agent to “Cut commission” below their Brokerage’s rate . . . and expect FULL service.

Home builders/developers often do this using the leverage that they are bringing the agent multiple deals in the coming years . . . “Volume Discounting”

My observation from 22+ years in this business is that these sellers are creating a fertile environment for discontent and resentment both in themselves and in the Real Estate Sales Professionals they are hiring.

This sets up huge potential for conflict on the front end of the relationship that is sure to carry through to an often premature end . . . Seller wants the “whole 9 yards” in terms of service and marketing commitment . . . and the agent is “giving all she’s willing to give for the reduced pay.” There’s a distinct void betwixt the 2 that’s filled with bilateral resentment.

This conflict reaches a rolling boil, and the Seller Fires the agent . . . then finds another agent who will agree to cut commissions and promise to deliver full service which will (again) fail to meet the expectations of the seller  . . . and the cycle continues.

I write this as I think back and remember the number of times I’ve heard a House Seller (most often a builder) grumbling about dissatisfaction with their REALTOR’s performance . . . and in a majority of the cases, I learn that it’s a case of pre-negotiated reduced commissions.

This is a correlation – Discount Rate Yields Discounted Service!

Many of the most successful Real Estate Investors, Developers, Flippers, and builders attribute much of their success to their relationship with their REALTOR and are proud to say they “Pay their REALTOR well, and consistently get more than they expect in terms of service.”

Could it be, in part, that the more dialed in and knowledgeable agents will not agree to discount their commissions, so the builders are hiring “Less motivated or less experienced” agents.

When I asked these “Most successful people” what they mean when they say that paying their agents more than pays for itself?

  • “My agent is VERY aggressively finding me off the market properties at below market pricing”
  • “She knows EXACTLY what my “perfect buy” is and brings me ONLY properties that meet my criteria, so I’m not wasting time, energy, and money on the wrong properties.”
  • “He knows the Market and the Buyers’ tolerances for certain “Wants and Needs” . . . and helps me decide on floor plan and amenity choices.”
  • “He’s got great networking skills in the community and can help get things done (zoning and codes)”
  • “My agent helps me buy these properties RIGHT and sell them at premium prices – We all make more money together.

This principle is universal . . . in all industries.

Pay your specialist well.

 

 

 

 

Published by Barry Owen

Strategist-CEO of Pareto Realty Real estate sales Professional Inviter-Facilitator-Practicer of Open Space Technology Opening safe space for people & organizations to self-organize around issues & opportunities BarryOwen.US Invite-Listen-Love

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