Why Are Estate Agents So Bad At Getting Fees?
Why do Estate Agents in North America, Australia, New Zealand, South Africa and many other westernized countries charge significantly higher commissions? It is because they are valued. And not just by their clients but also by themselves!
Agents in these countries have set themselves up as highly skilled experts in their community and their customers see the value and don't mind paying higher fees in return for their qualified expertise. If you missed my article on transactional vs fiduciary agents, read it here.
So why is it different here in the UK? Sure, we could blame the industry. However, it all begins with one thing; Mindset.
Mindset is everything (at least in the beginning). And too often, the mindset of many Estate Agents in the UK is that they do not believe they are valued. And because they don’t think they are valued, they do not show value. And because they do not show value…the customer does not see value.
Of course it’s not ALL mindset. It is mindset PLUS action that delivers results. And so, this is where we need to see a big shift in how Estate Agents behave and what estate agents DO before we can expect the consumer to see value and pay more. And so, it’s begins with the right mindset needed to take the right course of action to get the results needed.
As sales professionals, we live in interesting times; people want and expect the best and they want results FAST. And with a flight to quality, they are willing to pay the big bucks to get the results they want. However, they also do NOT want to overpay. Therefore, now more than ever, the focus needs to be on VALUE and showing value. Most Estate Agents aren’t taught or trained to show value. They have not learned to do the work required to establish value. Value that, when shown and then delivered, leads to higher commissions.
Bottom line; we have to show people that we are worth it. This comes down to learning, training, coaching, mentoring, and as I said: a change of mindset. Watch the video above to learn more about shifting your mindset, creating your elevator pitch, asking great questions, truly understanding what your client wants, and how to deliver results.