So, how do I pitch the transaction fee?

Posted: October 10, 2007 in Virtual Assistant
Tags: ,

Listing Presentation

Every agent knows that a good listing presentation is essential if you want to carry any clout in front of the potential client. Well, actually it starts at the PLP (Pre Listing Presentation). And unfortunately the PLP is quickly becoming a forgotten tool in todays real estate market. But I digress.

Ok, so back to the Listing Presentation. During the listing presentation there is a time and place when it gets to just exactly how you are going to service the client, above and beyond everyone else. I mean, what value do you give that Agent Y does not give? It’s a logical and pertinent question. But what does this have to do with the transaction fee? I’ll tell you.

Hypothetical Dialogue:

Seller – Well, I’m really liking what I’m seeing so far. But to tell you the truth, the other agent from (insert company name) does the same things that you do. Yeah, there’s a difference or two in marketing and stuff, but nothing that really separates you from another agent.

You – Let me ask you a question. When (insert agents name) has finished putting your home on the market, maybe they’ve created a flyer, and they call you to let you know that the process has begun and that you need to start expecting showings, what do you think that they do next?

Seller – Well, they probably are working with other folks, or having to do paperwork or something. Why?

You – You are right. They are working with other clients, both Buyers and Sellers. Who is it that is making sure that you are taken care of while they are out working with other clients? Really! Who is it that is calling for showing feedback, inputting that data into the showing website, adjusting for price changes, and calling you regularly with updates?

Seller – I’d hope that the agent would do that. I can see how that would be a problem though if they have more than one or two clients, let alone 3, 4, or more.

You – I agree. And can you imagine what it is like for (insert agents name) when your property goes under contract and they have to work with a multitude of people on a constant basis? Imagine (insert agents name) having to call the Title Co, Lender, other agent, and you, to make sure that everything is running smoothly – WHILE they are working with their other clients and transactions. Can you see how things…you…might fall through the cracks?

Seller – Yes, I do. So what do you do in order to ensure that this doesn’t happen?

Agent – Well, this is the main reason that I charge a nominal transaction fee to all of my clients, which is really a common practice today anyway. This transaction fee pays for my staff. Once I list your home it does not just sit on a desk. When I list your home I have a trained Listing Manager to who takes care of you personally. This is what I hired her and her team to do. And once your home goes under contract I have a team of transaction coordinators who are both licensed. They are your personal transaction managers throughout the entire process.

The whole thing is web-based so that you can view the documents and process at anytime, day or night, throughout the entire time we are working for you. It’s incredible. I’m aware that there are quite a few agents out there who have hired people to do the same thing that I am doing, but you have to ask yourself if they have the same caliber of people that I have? This is important. Have they hired someone who is licensed? Have they hired someone who has years in the business? Have they hired a team vs. a single person trying to carry a huge load?

Client (they are yours as this point) – Yes, I can see how this would be an advantage. So are you charging this transaction fee in addition to the commission I am paying?

You – Yes! Keep in mind though that my commission isn’t a flat fee that I get. I pay taxes, insurance, general overhead, and things of that nature. Were I to try and function off of my commission alone at the caliber that I wish to function, giving the caliber of service that I do, I’d be broke. It really is that simple. So I ask for this transaction fee to give me the ability to service you at a level that most others cannot. And quite honestly, this transaction fee saves you money. Imagine your home sitting on the market an extended period of time because (insert agents name) doesn’t have a licensed and well trained team assisting them. One extra mortgage payment on your part is twice what I ask as a transaction fee.

Client – I see the value. That makes sense to me. Where do I sign, ya big stud!

Ok, so maybe the last part is a bit altruistic. But the client will see the advantage in your presentation. If you have a paper listing presentation, then we will give you a paper insert with pictures, bio’s, and services. If you have a power point presentation, then we can give you jpg’s and other information to insert into a slide.

Snag

Please understand, I am not so naive as to think that every dialogue will go so easy. I know that there are snags. But once you have the knowledge, half the battle is won. And once you believe in the product, helping others see it’s value is easy. Take for instance my writing this blog. I am fully confident in my team’s abilities. I am fully confident in Diana’s abilities. And I am fully confident in the value of what I am sharing. As a result, it is very easy for me to talk with others about this and to teach others about this. It will be no different for you.

I am looking forward to anyone else’s thoughts and/or comments about this. If you charge a transaction fee, then share that. If you have a better “script” that mine, please share it. I am always willing to learn. Information is an awesome thing!

Dustin Curlee

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