The future of the real estate industry is at a tipping point. As commissions erode, so will our profitability.The danger in competing for listing inventory by discounting our fees is only a short-term solution, as there will always be competitors who will be cheaper. We must stop operating from a position of fear by reducing fees and instead adopt a new belief system which will make the listing broker the most important element in the real estate transaction. It is time for a paradigm shift – to focus on being a value to the sellers who pay us – not discounting our fees. We can stand by and do nothing, or we can be proactive and meet the challenge head-on with a long-term solution. In an NAR study, 87% of sellers surveyed believed their listing broker did not earn their fee on the marketing side of their home. Within this negative statement lies our greatest opportunity to implement the new paradigm.
To build that model we must be able to demonstrate the following:
– How are we different from our competition?
– Do the sellers see us as a value?
– Are we worth what we charge?
This approach, developed and implemented by Jay and Denise for their former company, allowed them to consistently command full fee and dominate the marketplace.
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