You are not the lowest price in the market! Nor should you be!
Your Low Set Fee consumer offer is designed to create a ‘tell-me-more’ inquiry only. It is not what will cause sellers to list with you. That takes something more substantial.
People contact you because they think you might be able to save them some money. They list with you because they perceive you are the best Value.
Value is the place where price and service intersect. A low price coupled with slashed service, i.e. Purple Bricks, is not a good Value. Great Service at a big price, i.e. many ordinary Realtors, is not a good Value. Great Service at a really good price, i.e. Help-U-Sell, is a good Value. All of which leads us to this:
What is the Value you bring to a home seller? What do you have – beyond your Low Set Fee and savings – that will cause a seller to say, ‘Yes!’
Right now your biggest competitors are in two basic camps. There are the new entries – Purple Bricks, Redfin and the like. And there are the old establishment – the ordinary Realtors.
They old guys have a business model that runs on high fees and big splits to agents. But current realities dictate that they cut commissions to be competitive. So when they cut commissions they are cutting the fuel it takes to run the business model. Their cut really is a CUT. The commissions are lower, yes; but what had to be cut on the service side to accomplish that? Less marketing? Less competent agents?
The new entries have a sleek model that emphasizes technology and minimizes the importance of agents. They take the listing, plug it into the technology and wait for something to happen. The agents are paid less and are really just clerking the listings leads created by the corporate marketing machine. Yes, they charge less. But the service they offer is also reduced. It is the service of a clerk and a computer, hardly a good Value.
Your Value is so much more than either of these! When a seller deals with you, they’re dealing with the owner of the company. You have years, even decades of experience. You have a track record and can document your success. You have systems that enable continuing contact during the listing period and beyond. You are their skilled consultant, guiding them through the largest financial transaction they will ever have. Yes, you charge less; because your business model is designed to run more efficiently (you are not dependent on high-split agents to grow your business). But the service you provide is the best available today. That’s the very definition of Value.
So, market your Low Set Fee and the savings it produces. That creates inquiries. But, once you have the inquiry, sell your level of service and the Value you bring to the transaction. That’s what creates signed listing agreements.