Who Created the Discount Real Estate Broker?
July 5, 2017 | Development
July 5, 2017 | Development
Let me first say, I’m a full service guy. A full commission guy.
I expect to pay handsomely for great service / great product. I expect value in return. Whether it’s the car I buy, the dealership from which I purchased, the coffee shop I frequent, or the gal who cuts my hair cut.
I also expect to be paid extremely well for the service and product I deliver AND I will always offer more in value than what I receive in compensation (Read The Go-Giver if you have not already).
The problem with the real estate industry IS NOT discount brokers. Yes, the majority of discount agents out there are not very good at what they do. And, consumers don’t understand that paying less for a “discount” often costs tens of thousands more in missed opportunity and mismanagement (details for another post). So, I do not subscribe to the discount broker model, in fact I despise it for the harm it generally does.
Want to know what does more harm and what I despise more?
Full commission brokers who provide a discount service.
The reason discount real estate brokers exist is; most full commission real estate brokers are terrible at what they do. Think about it. As a consumer, if you are going to receive marginal service, an unreliable outcome, and a less than pleasant experience, you want to pay a lot less for those results. We all do.
Full commission brokers providing a discount broker experience are the norm in real estate. Sadly, this experience is what consumers have learned to expect. And they expect to pay less.
To The Rescue:
Here is how we can differentiate ourselves. Here is how we can change this industry.
Don’t blame the discount broker. They are the inevitable existence of our industry incompetence.
So what do we do about industry incompetence?
Patiently educate consumers to demand more.
By Matt Hudson
Matt Hudson is a performance and business coach, founder and CEO of Colorado Home Realty and a passionate champion for excellence in the real estate industry.
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