You want more business? Charge a fair price. You’ll have no competition. Word of mouth will spread like wildfire. All the Zillow ads and open houses in the world will not be able to touch you. Tom Ferry will not be able to coach your competition past you. You will be the rulers of your neighborhood and you will be the envy of your competitors. Of course you will have to deal with buyer steering, but hey, you chose to be in an industry that espouses ethics but may not actually have any.
You see, home sellers no longer believe the “you get what you pay for” crap when you’re charging 30 or 40 grand for 20 hours’ worth of work. And it’s only going to get worse when the millennials start selling homes.
Your problem is that you view charging anything less than 6% as a discount, like somehow discounting is a bad thing. Don’t knock it—it’s made Walmart one of the biggest companies in the world.
But what it is a discount of? A made up number from a 100 years ago that means absolutely nothing today. Twenty years ago it would have been a discount. Today’s it’s simply known as market pricing.
I don’t have to tell you the reality. There are dozens (or hundreds) or realtors in your neighborhood all trying for the same few listings AND all of you are top performers. So, how will you distinguish yourself? Become the bargain. Under price and over deliver. Or just keep slugging it out with your fellow realtors, indistinguishable from one another. The choice is yours…for now.
Also published on Medium.