Price Fades, Value Lasts: Know Your Worth

Back when Sarah sold cars, they had a deal book. It showed two numbers for each vehicle. The top number was the markup and the bottom number was called hold back, which was the amount the dealer was guaranteed to get for the car. When she was negotiating a deal for someone buying the car, she used to take the markup off the price right away. This was actually counterproductive to Sarah making a good commission, but she cared too much about the buyer. The dealership took away the deal book and just told her the price. How does this relate to real estate? When you're helping buyers, it's not up to you what they're willing to pay for any given home. You give them their choices and they make the decision. It's not up to you to decide if they're overpaying. You're an advisor, not a decision-maker. To take it a step further, we all know things have changed for buyers agents in the last year or so with the NAR agency and buyer agent commission. We now have to articulate our value and charge our value. We've been doing this on the list side for a long time. When asked about their commission, the best listing agents will say "Here's my commission, do you have any questions." The worst listing agents will say, "Here's my commission, but if that's too high we can negotiate." They're undermining their own value. Know your worth. In the absence of value, the only thing you can compete on is price. You have to add value to the client experience and be able to articulate it. Also, long after the price is forgotten, the quality remains. At the time of the transaction, the client is aware of your commission and the cost. But years later, what will actually stick with them is the quality of your service and the value you provided.