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Realtor Success Hub/You Can’t Go Broke Taking a Profit … Or Can You: A Realtor’s Perspective

You Can’t Go Broke Taking a Profit … Or Can You: A Realtor’s Perspective

Monday, November 18, 2024

Hey there, fellow real estate pros! Today, I want to chat about something that's been bugging me lately - this idea that "you can't go broke taking a profit." Let me tell you, in our world of real estate, that's a dangerous mindset to fall into.

My Wake-Up Call

A few years back, I found myself in a tight spot. The market was tough, and I thought, "Hey, if I just lower my commission a bit, I'll get more clients and make it up in volume." Boy, was I wrong!

The Hamster Wheel of Low Commissions

Before I knew it, I was working around the clock, juggling way too many clients, and still barely making ends meet. I was exhausted, stressed, and honestly? My work was suffering. I couldn't give my clients the attention they deserved, and that didn't sit right with me.

The Hidden Costs

Here's the kicker - by trying to undercut the competition, I was actually hurting myself AND my clients. I didn't have the time or resources to market properties effectively, my negotiation skills were rusty from lack of sleep, and I was missing out on opportunities to really advocate for my clients.

The Turning Point

It took a near burnout for me to realize that by devaluing my services, I was creating a lose-lose situation. My clients weren't getting the best deals, and I was running myself into the ground.

Finding Balance and Delivering Value

Now, I've learned to stand firm on my worth. But here's the crucial part - I realized that if I'm going to charge a higher fee, I need to make sure my services are worth every penny. This meant a complete overhaul of my business:

1. I invested in top-notch systems and technology to streamline my processes.

2. I developed a comprehensive marketing strategy for each property.

3. I created a client experience that goes above and beyond, from first contact to long after closing.

The Premium Service Difference

By charging what I'm worth and delivering exceptional value, I've seen a dramatic change. My clients are happier, my business is thriving, and I'm not constantly on the verge of burnout. I can focus on quality over quantity, giving each client the attention they deserve.

My Advice to You

If you're thinking about slashing your commission to stay competitive, take a step back. Consider the real cost - to your wellbeing, your service quality, and ultimately, your clients' satisfaction. But also remember, if you're going to charge premium rates, your service needs to be premium too.

Invest in yourself, your skills, and your business. Create systems and processes that truly set you apart. Make sure your client experience is second to none. When you do this, you're not just justifying your commission - you're providing value that clients can't find elsewhere.

Remember, we're in this for the long haul. It's not just about closing a deal; it's about building a sustainable career where we can truly make a difference in people's lives while also taking care of ourselves.

So, let's change the narrative. Instead of "you can't go broke taking a profit," how about "deliver exceptional value, and the right clients will happily pay for it"? Trust me, your future self (and your clients) will thank you.

What are your thoughts on this? Have you ever felt pressured to lower your commission? How do you ensure your services match your fees? Let's chat about it in the comments!

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