Meeting a seller for the first time to do a mandate presentation can be daunting. However, if you have prepared yourself, understand your value and the value of Golden Homes, you should be able to present yourself confidently and ensure a high success rate in closing your seller and walking out with your mandate.
Before you ever go to see a seller, whether you are doing a mandate or an offer, mentally rehearse your personal and company values to yourself, fix the purpose for your visit firmly in your mind, lift your head high, put a smile on your face, and get going. Your seller will often have his own needs as his priority, and you will need to be firm in what and why you are there.
You should be able to confidently answer the following question:
– What are my values and what sets me apart from some other practitioner?
Explain the value of Golden Homes:
During every listing presentation, you want to sell your company strong and highlight the things your company can do that others cannot. This is vital because your seller will feel more comfortable if they know that your company is behind them and can help them achieve their goals. Every single company has a distinctive value proposition.
Some things to consider that may set your company apart could include:
- What is your company’s marketing plan?
- What does your company do to ensure that the buyers are qualified? Not just financially, but also that you are not bringing questionable people into the home.
- What is your company’s ability to take control of the overall process?
- What are your company’s internet and social media programs, and how do they work for sellers?
- What is your company’s local marketing strategy
Analyse everything your company does and determine which elements set it apart from the competition.
Communicate your personal value:
Just as you differentiate Golden Homes from others in your marketplace, you also need to differentiate yourself from other practitioners, including the practitioners at your current company.
When you are at a listing appointment, it’s all about aligning your specific skills and areas of expertise to the needs and desires of your prospective seller. If you can prove upfront that you are more valuable than someone else, no one will ever question you or your commission again. Some things to consider that may set you apart could include:
- Do you have any qualifications and skills?
- Do you speak any other languages?
- Do you specialise in a particular type of listing, such as the luxury market, condos, or beachfront properties?
- Have you taken any specialised classes, such as negotiation?
- What are your personal internet and social media strategies?
- What is your service policy?
- What is your local marketing strategy?
- How often do you communicate with your sellers?
- What do you do to know what is taking place in the market?
- What websites do you subscribe to?
- What news sources do you read/watch/listen to?
No matter who you are or how long you have been in property practice, there are things you do that enable you to stand out from other practitioners. Pinpoint the uniqueness of what you offer and highlight it prominently.
The commission is never based on price. It is based on the unique value propositions of your company and yourself.
The more you differentiate Golden Homes and yourself from the competition, the more value you will be able to offer your seller. With your value clearly defined and communicated, you will never hear the commission objection again.
Show gratitude:
Always thank your seller for considering your services. They are obviously interested in hiring you, and you appreciate their time in meeting with you. For example:
“Thank you for asking about my commission, Mr Seller. I am so glad that you value my services and you invited me to list your house for sale. It’s a big task and I am honoured to assist you with it.”
Compliment them:
Instead of being upset that they are asking for a commission discount, point out how their skill is a commonality. For example:
“I can see you are also a great negotiator, that’s what I like about you. We are going to enjoy working together, aren’t we?”
At this point, if they do not respond, you can simply drop the topic and move along with your presentation. “Sign right here so you can begin experiencing our excellent service.” But if they persist, keep going on to step 3.
Ask for more information to find out what the specific commission objection is:
Find out what they want, and most importantly, why. Guide the conversation gently to get to the bottom of their concerns. For example:
“When you say, ‘lower commission’, what type of reduction are you asking for?”
Address their reasoning:
If their request is because they think you make money hand-over-fist, be prepared to educate them on how you pay the other brokerage, your broker split, tax, your marketing expenses, office overhead (including MLS), and you get to keep the small slice of pie that’s left to feed your family. Some people simply are not familiar with how self-employment works, so you can educate them tactfully.
If their commission objection is because they are comparing your service to bargain discount partial-service companies, you will have to point out how your services are superior. Review your marketing plan of the many things you will do for them that other brokerages may not do. Then you can compare your services to an affluent, upscale luxury car that they can relate to. For example:
“When you drive a ___________________, you can relax because everything is done for you, and first-class too, right? They can’t offer all of those wonderful luxurious services for _____________ prices.”
That will infuse a bit of humour too.
If they are asking to pay a lower commission because they have very little equity to spare, or are on the verge of a short sale, that may require some creative solutions. Address their concerns with authentic, sincere resolutions.
Then again, next time they ask that dreaded commission objection, there is always the simple style approach revered by seasoned practitioners: “No. Any other questions?”