Questions about fees should be greeted with conversations, not quips.
Rich Sands, CRS
Okay, I was bored. I admit it. I recently found a link to a real estate blog, and out of curiosity followed one of the threads: “My commission rates are not negotiable.” Within minutes, I was appalled.
First, let’s get a couple of things out of the way:
- There are no “set” or “normal” fees in the real estate business as per the Sherman Antitrust Act.
- I believe in a fair fee for full services.
- The key to obtaining a fair fee for your (or my) services is to show value.
- Sales is a relationship phenomenon.
I was taught at a very young real estate age that while fees were negotiable, that didn’t necessarily mean my fee had to be negotiable. I am free to set my fee wherever I please. If I can show enough value, the sky is the limit. I don’t have a problem with that and it is not my point.
The reason for my state of appalled-ness is some of the statements I read in the blog representing what an agent might actually say to a potential purchaser of their services. A potential client asks if your fee is negotiable and we say things like: “My fee is not negotiable,” or “Sure, I’ll take more.” And then, if they have the audacity to mention that another service provider would perform services for less, the reply is, “Well, some people know what they’re worth.”
These are cute (and classic) real estate quips. But I wonder if anyone who actually says some of these things would ever get repeat or referral business (let alone get their butt kicked out the door).
Let’s look at three reasons the quip may not be any salesperson’s best option.
- These are real people on the other end of the conversation—in many cases, people who are struggling in today’s economy. If you’re a consumer, every penny counts. We’re scrimping. We’re trying to do our best to get by. We’re genuinely questioning whether the fee an agent charges is worth what we are getting. And we get a quip? And often it’s delivered with condescension, sarcasm or both. Empathy, the ability to understand life in someone else’s shoes, is a great sales tool.
- Given the circumstances outlined above, the quip is disrespectful, rigid and clearly illustrates the agent is concerned only with their own world and not the world occupied by the consumer. A key step in sales is the interview—getting to know the potential client’s motivation and needs. Once known, the salesperson is better equipped to serve.
- There is a better way. Sales is a relationship business and to practice the art of the quipster is to damage the relationship. Fee dialogues should be welcomed as an opportunity to validate value. The consumer’s question should be clarified and their motivation further explored.
In the end, we may not cut our fee (it isn’t written anywhere that we have to). In the end, we may prevail by illustrating value commensurate with what we charge. In the end, we may not make the sale (or want it for that matter). Hopefully, we avoid being the quipster and instead engage in serious conversation with the consumer, maintaining the opportunity to develop a better relationship with them.
Sales is about relationships. Save the quips for your next classroom role play (guaranteed you’ll get a laugh).
