Two Ways to Beat Discount Brokers

Tough economic times represent the perfect atmosphere for discount brokers who work for a flat fee or low commission rate.  But does the fact that these offices become so prevalent during recessions mean that you need to compromise your own pricing in order to attract sellers?

Absolutely not!

As with any potential client challenge, you can convince homeowners that you’re the right person to sell their homes through your words and actions.  When objections are raised, it’s up to you to know the right words to persuade your potential sellers to work with you over the competition.

Practice the following objection handler scripts to use when you wind up competing against a discount real estate brokerage:

Objection handler #1 – Question the wisdom of the crowd

Say you encounter a potential client who’s thinking about working with a discount broker – either because he’s heard about these types of services or because he’s already met with one of their representatives.

The key here is to get the customer to recognize that discount brokers offer a different type of service than full-service brokers.  Give the following objection handler script a try in these situations:

“I know you’re thinking about working with a discount broker – that sounds like a great deal, doesn’t it?  It’d be great to sell your home for a 4% commission rate instead of a 6% fee.  We all have to be pretty value conscious these days, so if a discount broker can get you the same results as a full-service broker, why wouldn’t you go with the cheaper option?

But let me ask you this…  If both agents get the same results, then why isn’t everybody using discount brokers?  The reality is that only a tiny fraction of homes are sold by discount brokers.  You get what you pay for when you hire these types of realtors.”

By reminding clients that not all brokerages are created equal, you can help them to see the value in hiring an agent who brings more to the table.

Objection handler #2 – Think about best results

Now, suppose you’re in a situation where you’re in touch with a prospective customer who has stated that he or she intends to work with a discount broker.  Don’t give up yet!  Instead, I want you to use the following objection handler:

“Have you thought about the kind of buyers that a discount brokerage attracts?”

Remember, when people are trying to sell their homes, they aren’t just trying to get the most possible money out of the deal.  They’re also concerned with the length of time it will take to sell the property and the amount of hassle they’ll have to go through to get the job done.

Basically – they want results.  And the hard truth of the matter is that, if you want the best results (whether in terms of sale price, time on the market or any other metric), your buyers need to be working with the best real estate agents.  Nine times out of ten, the “best” isn’t going to be a discount broker!

Remind your potential clients that discount brokers attract discount buyers.  Ask them how brokers who specialize in “less” can actually get them “more”?  Then, let them come to their own conclusions about which agent will ultimately get them the results they want when it comes to selling their homes.

Deliver your words with the confidence that comes from knowing that you can back up your higher commission rates with demonstrable value.  Don’t hedge and don’t compromise – no matter how much pressure you might feel from discount brokerages and their flat fee contracts.  Sellers know that their homes represent their most expensive assets and – in the end – they’ll choose to work with the people who bring the most value to the table in these transactions.

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Tough economic times represent the perfect atmosphere for discount brokers who work for a flat fee or low commission rate.  But does the fact that these offices become so prevalent during recessions mean that you need to compromise your own pricing in order to attract sellers?

Absolutely not!

As with any potential client challenge, you can convince homeowners that you’re the right person to sell their homes through your words and actions.  When objections are raised, it’s up to you to know the right words to persuade your potential sellers to work with you over the competition.

Practice the following objection handler scripts to use when you wind up competing against a discount real estate brokerage:

Objection handler #1 – Question the wisdom of the crowd

Say you encounter a potential client who’s thinking about working with a discount broker – either because he’s heard about these types of services or because he’s already met with one of their representatives.

The key here is to get the customer to recognize that discount brokers offer a different type of service than full-service brokers.  Give the following objection handler script a try in these situations:

“I know you’re thinking about working with a discount broker – that sounds like a great deal, doesn’t it?  It’d be great to sell your home for a 4% commission rate instead of a 6% fee.  We all have to be pretty value conscious these days, so if a discount broker can get you the same results as a full-service broker, why wouldn’t you go with the cheaper option?

But let me ask you this…  If both agents get the same results, then why isn’t everybody using discount brokers?  The reality is that only a tiny fraction of homes are sold by discount brokers.  You get what you pay for when you hire these types of realtors.”

By reminding clients that not all brokerages are created equal, you can help them to see the value in hiring an agent who brings more to the table.

Objection handler #2 – Think about best results

Now, suppose you’re in a situation where you’re in touch with a prospective customer who has stated that he or she intends to work with a discount broker.  Don’t give up yet!  Instead, I want you to use the following objection handler:

“Have you thought about the kind of buyers that a discount brokerage attracts?”

Remember, when people are trying to sell their homes, they aren’t just trying to get the most possible money out of the deal.  They’re also concerned with the length of time it will take to sell the property and the amount of hassle they’ll have to go through to get the job done.

Basically – they want results.  And the hard truth of the matter is that, if you want the best results (whether in terms of sale price, time on the market or any other metric), your buyers need to be working with the best real estate agents.  Nine times out of ten, the “best” isn’t going to be a discount broker!

Remind your potential clients that discount brokers attract discount buyers.  Ask them how brokers who specialize in “less” can actually get them “more”?  Then, let them come to their own conclusions about which agent will ultimately get them the results they want when it comes to selling their homes.

Deliver your words with the confidence that comes from knowing that you can back up your higher commission rates with demonstrable value.  Don’t hedge and don’t compromise – no matter how much pressure you might feel from discount brokerages and their flat fee contracts.  Sellers know that their homes represent their most expensive assets and – in the end – they’ll choose to work with the people who bring the most value to the table in these transactions.

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The 3 Magic Words to Get More Listing Appointments

This approach works in almost any situation with any type of lead whether it’s a Seller or a Buyer. It is especially powerful at breaking through the initial resistance with FSBO’s and EXPIRED LISTINGS.

Your information will not be shared with any third party

The 3 Magic Words to Get More Listing Appointments

This approach works in almost any situation with any type of lead whether it’s a Seller or a Buyer. It is especially powerful at breaking through the initial resistance with FSBO’s and EXPIRED LISTINGS.

Your information will not be shared with any third party