Luxury Clues

Are You Worth a $120,000 Commission?

One of the biggest mistakes that most Realtors make is trying to compete on price rather than value. When someone asks you to discount your commission, what that means is that you haven't demonstrated to that client that you are worth the commission you charge. This is particularly an issue in the luxury real estate market. For example, if you take a $2 million listing at 6 percent, that seller will pay $120,000 in commission. 

The question is what can you do to illustrate your value. Here are some key ideas

1. First, you must have a world class marketing program. This means hiring an architectural photographer who knows how to shoot your listing to its best advantage. It also means hiring a professional videographer to make a video of the property. As part of this process, it would also be smart to have a video shot illustrating the lifestyle. This video is one of the my favorites and is one of the best illustrations on how to use video to market your listings. 

 

2. International marketing campaign

If you're not using Immobel.com to translate your listings into 13 different languages, it's important that you add this to your marketing. Many Multiple Listing Services already provide this as part of their value proposition. Immobel.com also has a new platform called Real Buzz which allows users to have visitors outside the U.S. see their listings in their native language. You can also chat in real time with someone in Japanese, Portuguese, or any of the other 11 languages that they support on Facebook. (The link shows you what this looks like for members of the Sarasota Association of Realtors.) 

3. Concierge Services

Many luxury clients want a turnkey experience. In other words, they write the check, you take care of everything else. Part of this process is knowing where the best mechanic is for their luxury cars, where to get their pets groomed, as well as where the best food is in town. 

4. Make their showings unique

While you may have a beautifully staged house, you can take it to the next level by making your showings special. Discover what type of music the buyers like and have that playing as they walk through the property. Purchase some high quality chocolate truffles and if they buyers drink, serve it with a small glass of a great cabernet or champagne. 

5. Discover what they collect

Many agents don't realize that a lot of wealthy people are into collecting. When you begin working with someone, discover what they collect. If it's cars, you're going to need a house with a lot of garages. If it's art, they will probably want a house that is extremely secure as well as one with lots of space to display their collection.

6. Make sure you have the best professionals working for you

It's extremely important if you're going to earn that big commission, that every touch point in the transaction process is top notch, whether it's the termite inspector, the plumber, or anyone else. Be vigilant about maintaining the quality. 

7. Up-to-date technology

If you're going to work the luxury market, you need to have a smart phone, a tablet computer/iPad, as well as the most up-to-date apps including transaction tracking, online marketing apps, Evernote, digital signatures. In fact, you should probably be paperless, especially if your target market is a younger demographic. 

Posted by Bernice Ross

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Take Time to "Work On" Your Real Estate Business--Not Just "Work In" Your Business

Michael Gerber in his book The E-Myth Revisited, distinguishes between "working in" your business vs. "working on" your business. "Working in" your business refers to delivering your real estate services. "Working on" your business means taking time away from your business to relax and plan. In fact, many of the best ideas on how to grow your business come at times when you are not working in your business.

For example, have you ever had a nasty transaction problem and the answer on how to cope with it came to you when you were taking a shower? This is a simple example of how that process works.

When you look at people who have major leadership positions, you will see that they take time away from their responsibilities. Most of the U.S. Presidents have taken regular time at Camp David. While the job follows them no matter where they go, being away from the White House and the D.C. hustle and bustle allows them the time to consider decisions and make plans in a less harried environment. 

The bottom line here is that there are hundreds of things that you could be doing for your real estate business. It's easy to become trapped in the day-to-day operation of your business. Yet the success or failure of your real estate business is really tied to how well you plan as well as how well you execute that plan. If you don't have a plan, here are a couple of quick suggestions on how to create a daily plan.

1. Each day, the number one thing to complete on your "plan" for the day is: "List or Sell a House Today!" While you may not always achieve this, stay focused on the activities that will lead to this results. 

2. Identify the three most important tasks that you must do today. Complete those before you do anything else. 

3. Prospect for new business every single day.

In terms of your long term plans, take time to spend at least one hour away from the office (and preferably a half or day or more) to look at what is working in your business, which listings need to repriced or released, which buyers are most likely to purchase, which buyers need to be fired, where you are in terms of achieving your goals, and which clients are most likely to transact.

The key point here is to take time on a regular basis to "work on" your business, not just "in" your business.

If you liked today's blog post, subscribe to our free newsletter on our RealEstateCoach.com website.

Are you ready to upgrade your social media and web marketing skills? If so, check out our 7 minute demo of our new 14 session online Real Estate Dough® Experienced Agent Online Training program that covers blogging, web and social media marketing, as well as the best of the tried and true strategies you need today to master how to be a wildly successful real estate agent tomorrow.