Value vs Price

Discussion in 'General Industry Discussions' started by PTP, Jun 19, 2007.

  1. PTP

    PTP LawnSite Bronze Member
    from Tulsa
    Messages: 1,398

    Within the past couple of years, my wife and I have started investing in real estate. Things are going well. We are buying and selling a reasonably large number of properties. At first, you wonder how you can ever find enough good deals and then, when you get established, you wonder how you can handle all of the deals that you are finding. We are in the second stage.

    But here is my point. We have decided that we need help in the selling end of things. We are fairly adept at selling properties but we simply don't have the time anymore so it seems best to us to get a good realtor. We know several of them but none of them seemed like a good fit for our business so we looked at a couple more.

    The first guy was a broker and a realtor. He wanted to close on the home and on the loan for the new owner. He showed up at the property about 20 minutes late but was helpful in his suggestions on how to go about selling the property. He later sent me an email with the comps and his suggested sell price. He offered to take a mere 1/2% for the listing and suggested that we offer the selling realtor 2.5%. That's half price from the standard around here.

    The second guy showed up on time and gave me a book on his company. He already had all of the comps for the area so he could give a good estimate of what the property would sell for. He also gave suggestions on what we could do to get a better price - what would be most cost efficient. He gave me the facts on what their average days on market was for their company - it was 1/2 of the usual for the city. He showed me what the average % of asking price was that they got. He told me about their marketing plan and their follow up plan. They also want 7% commission.

    Guess who I am going with? The higher priced one of course.

    So, for those of you who offer full service, landscaping, etc. act like a professional and charge what you are worth. Show the customer your credentials and convince them that you are the best. There are a lot of people out there that are not concerned so much about the price as they are about the value. Play the part of the professional and request the compensation that goes with it.
  2. inHaliburton

    inHaliburton LawnSite Member
    from Picton
    Messages: 197

    Soli Deo Gloria, I think more than a few of us would have taken the first offer. That's one of the smartest pieces of advice I've read in a long time! Thanks for sharing.

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