Low consumer confidence and declining commissions is a trend that continues to plague real estate investors.
In trying to understand why this trend is on the rise, there are a few myths that are being perpetuated and as a result, forcing real estate investors to reduce their commissions as well.
Still, here are 3 myths why you shouldn’t reduce commissions:
#1: Large Commissions Repel Clients
This is hardly true at all. Even if real estate agents fear being seen as the most expensive agent, when you position yourself correctly, it will only attract a better list of clientele. Before you think that your charges will repel clients, price, is, in fact, a psychological trigger. In other words, costlier is better!
#2: Only strong closers make the big bucks
Unlike what you would have thought, strong closers are usually poor marketers. Overcoming objections at the end isn’t the way to sell to your prospective customers but that should be dealt with from the time you touch base with them. It should done in such a manner that buying what you have on offer should seem the logical thing to do. In this way, closing will be easy and natural instead of being forced.
#3: A Good Listing Presentation is Necessary
A listing presentation only showcases agents as a commodity. What it also tells the customer is that you’re a person of low influence and status. If you turn up to your customer’s home with a good listing presentation but trying to gain their approval. This, by itself, will reveal the above truth to the customer, giving them a bad impression right from the start.