Chasing Real Estate Commissions vs Making Lifetime Clients
In my opinion, what follows below is the single best advice for new real estate agents or those thinking of a license that would to see regular real estate commission checks and build their real estate business correctly.
If you want to build a business, treat your clients like we do and be a first class, five star Realtor.
Marty, my business partner, and I have run a successful real estate business for many years in SW Ohio and the Greater Cincinnati area with bragging rights.
There’s a good reason why Cincinnati area home sellers and buyers in Southwest Ohio and Cincinnati choose to work with us. See our reviews.
That being said, I would like to share some personal experience with real estate agents that just got a license or thinking of getting one.
I could go into real estate websites, social media and networking, what to look for in a real estate brokerage but none of that matters unless you develop your business skills, hone your savvy and knowledge to razor sharp. There's a lot that goes into being a great real estate agent, I'll probably post more about this in the coming weeks.
Above all of that however, there is one crucial skill, well, it’s not really a skill but more like a behavior without which you’ll never enjoy decent or high levels of success: The Golden Rule.
Who hasn’t heard the maxims and quotes like “Remember the golden rule, treat others as you would like to be treated”. Sadly, many real estate agents rephrase this to “Remember the golden rule, he who has the gold makes the rules.”
I find this to be a critical short-coming with many real estate agents: Buying or selling, people want true, loyal, ethical representation.
Most buyers don't realize sellers pay all the commissions involved for the services rendered for marketing the home. Some agents are worth it, others are not. The only time a buyer pays an agent representing them as a buyer's agent is when they charges silly, expensive "additional real estate commissions" which we never do. The commission the seller pays is split between the listing agent and the buyer's agent. The services of both agents, however, is invaluable provided it's quality, ethical service and representation.
- If you were going to buy a house, and were nervous as it’s the biggest single investment you’ve ever made, have a spouse or family to look after and feel like you don’t have a clue where to start, wouldn’t you want a compassionate, understanding professional treating you as if it was his or her own life and transaction?
- What if you were selling the house you grew up in? What if was the first time you ever decided to sell a house? For some, the need to sell in a timely manner do to career relocation is critical. Would you want your home everywhere online and in front of thousands of local residents every week? Wouldn’t you want it to show the best first impressions possible.
Pursue a great reputation before real estate commissions
Now, wouldn’t that be better than a buyer’s agent chasing real estate commissions who stands in front of a crack in the corner, or willfully doesn’t point out defects or things that a new homeowner will find encumbering or problematic? Wouldn’t that be better than just posting a listing on the MLS with one photo.
Your quality of service matters more than chasing real estate commissions.
One of the most powerful marketing tools an agent can ever have is great testimonials and public comments from satisfied, happy clients. New real estate agents need to understand, pursuing real estate commissions without regard to quality service will only backfire. The power of great reviews, personal referrals and a great, growing reputation will ensure future clients
A great way to build your skills and increase your quality of service is to get mentoring and partner with an experienced agent with a great reputation.
Make sure you feature your reviews or testimonials on your real estate website and in social media.
That being said, there’s a lot of different features to developing the right behavior. For some real estate agents, it comes naturally but others will have to work on their mind-set, principles and practices.
- How do you feel when a real estate agent doesn’t return your call right away, taking a couple to several days? Do you work with them? Of course not. Being responsive and timely is a huge part of the right behavior that initiates a good working relationship upon which you can continue to build.
- If you were selling a home, how would you feel if you found out your agent didn’t present all offers, but was waiting on a personal buyer client to get his or her offer in so your listing agent could double-dip on the real estate commissions? You’d be most upset.
In closing, I'd just like to say maybe as a new agent or someone about to get their real estate license and excited about real estate commission checks, this is no sunshine job if you intend on succeeding. It's hard work, and if you correctly build your client base via great reputation you'll soon be working more than a regular 40 hour work week. When you own a business, your business owns you.
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