From Listed to SOLD - How to Sell Those Listings You Work So Hard to Get!

I've been a real estate agent for twelve years. The entire twelve years, I've worked the traditional model... I get paid when the house closes. Sometimes I get paid BIG time, which sometimes doesn't seem proportionate (in a seller's eyes) to the amount of work I actually did.

But a significant part of why we make the money we do is that we agree to work on contingency - if we don't get our buyer or seller to a closing, we don't get paid, regardless of how hard we worked or how smart we worked. If we don't perform... we are not compensated.

Not many industries work under these conditions.

That's not really the point of this blog today, however. After all the fun a few weeks ago debating the value of our services, I got to thinking. Maybe I could offer a third fee option (I currently offer two; click here to read about them) - How about an upfront fee that is non-refundable, but significantly less than the seller would pay under a traditional commission structure?

Let's say, illustratively, the seller pays me $3,000 at the time of listing instead of, say, 3% at the closing. If my average sales price is $300,000, this saves the seller about $6,000. ($300,000 x 3% = $9,000 - $3000 = $6,000)

So, I was thinking I was pretty smart. I get paid upfront and in a world where a For Sale sign in the yard is certainly no guarantee of a paycheck in the bank, I might come out ahead. I was all ready to talk to my broker to make sure he was okay with it.

But... whoa, Jennifer, slam on the brakes.

I know how I feel when I pay upfront for something and don't get the results I expect. I'm mad, I'm disappointed, I'm frustrated. I'm certainly not feeling warm and fuzzy toward the person or company I paid upfront.

I don't want my clients to feel that way about me. If I take their $3,000 and then can't sell their home... do you think they'll be philosophical about it and happily refer me to all their friends? Probably not. They'll resent me and the fact that I took their money and didn't perform. Is this fair? Probably not, but it's how we human beings are wired.

So... I dunno. I'm kind of used to the idea of Pay for Performance and I feel good about it for myself and my business. I may not mess with something that's working...

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Stand your ground on pricing. Confidently, respectfully, politely. But firmly.

You're not doing anyone any favors when you take a listing you can't sell. Not you, not your seller, not your market.

You may be pleasantly surprised by the outcome.

You could be the best thing to ever happen to that seller.

(GO, YOU!)

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I recently had a listing expire after three months on the market. Nothing has sold in my client's neighborhood for almost a year, so it wasn't a big surprise. We gave it a shot and it didn't work out for us. No biggie. She was prepared for the possibility and has no hard feelings toward me.

But that's not an accident. I always prepare my sellers for the chance that their home won't sell, despite our best efforts (by "our," I mean mine and my seller's joint efforts to prepare and present a great product to market). I don't make a big deal about it and I certainly don't lecture them or otherwise insult their intelligence; I just ask a simple question:

"What will you do if the house doesn't sell?"

Then I shut up.

If the seller doesn't have to sell (and I'm happy to take those listings if they're reasonable on price), then I've planted the seed that I/we don't control the market and if the house doesn't sell, it might be beyond our/my control. If the seller does need to sell, it forces them to think about the unthinkable - that they'll own a house they don't want and can't afford.  The next thing you know, they're asking me what they need to do to ensure that doesn't happen. Suddenly, I'M THE EXPERT and they'll listen to me!

It also works beautifully for sellers who want to test the market at their price. A similar approach - "What if the house doesn't sell at that price? Will you be okay with that?" often works wonders in getting the seller to really think about what he's doing.

I don't consider myself a salesperson; I consider myself an advisor. Therefore, I don't try to convince my sellers that I can "sell" their homes. With the above words, I am relieved of the personal responsibility of selling a house that, for whatever reason, may not be sellable today. 

For the record, my listings are always priced well, always staged and always easy to show. That's my job - to help my seller prepare and present their home to market in the best possible light.

That's all I can do.

During the now-becoming-infamous Real Estate Radio USA interview earlier this week, I made the comment "I'm the Best Listing Agent I Know." Arrogant, eh?

Not really. It's not as if I said "I'm the prettiest girl I know" or "I'm the smartest girl I know." It's more along the lines of "I'm the hardest worker I know." It's a choice.

I choose to be a terrific listing agent. It's not a God-given skill or something I was lucky enough to be born with. It's a choice.

I choose to spend time (and gas money) properly pricing my properties. I choose to have relationships with exceptional home stagers and responsive home improvement contractors. I choose to be respectfully upfront with my sellers as to what they need to do to help me get their homes sold. I choose to own a great camera with a wide-angle lens. I choose to write killer MLS descriptions and ensure that they are accurate. I choose to work for a company who offers a 7 day/week showing service and to pursue feedback from all showing agents. I choose to frequently update my seller on the competing market activity. I choose to build and maintain rapport with my sellers so that they trust me when I offer advice and recommendations. I choose to keep my brochure boxes full. I choose to be prepared for and attend my appraisals. I CHOOSE TO CARE MORE ABOUT THE CLIENTS I HAVE TODAY THAN THE CLIENTS I HOPE TO HAVE TOMORROW.

I'm a heckova listing agent. Are you? 

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