Okay, so seriously, this happens because buyers get cold feet, or get told a whopper from another unscrupulous agent which just so happens to be what they buyer wanted to hear - not what the reality of the situation is.
So this post from my friend Bryan says it like it is. I especially like his by the hour plus comission idea! Of course, it doesn't all boil down to how much we make, but if we as agents have to be loyal and responsible to our client, who not the buyers and sellers as well?
As always, if you have comments, please head on over to Brian's original blog and make them there - he deserves all the credit!
What's the price of loyalty? I'll bet every agent has had at least one client tell them they've decided to work with another agent, or were already working with another agent and shown a complete lack of loyalty. These clients have little or no regard for our time because we give it away for free. They see no reason to be loyal because agents, in their view, are all rich, don't do much to earn their commissions, or some other ill-informed rationale.
I got a message from a very experienced agent who told me that, after having looked extensively for a very specific type of home in a single market, that they're working with another agent. This agent spent dozens of hours with this client looking for a home and their compensation - $0.
As an agent, if you have nothing invested in something - a product or service - do you care if you quit the service or throw away the product? No. That's my point. Clients have no "skin in the game". Sure, you can get a buyer/broker agreement signed but that's no better than forcing them to work with you. If they change their mind, they still have nothing invested in the relationship.
What's your time worth? In my book, given what I'm paid in commissions, an hour of my time is a very high three-digit number. What are the chances my clients would pay me that same rate a top-end attorney charges? Not good. Even the ones that like me won't pay that rate. So here's an intellectual exercise:
How about charging with a hybrid compensation model - a base hourly plus commissions?
There's no need to talk specifics but I would like to know how you feel about the idea of clients getting some "skin in the game". It might lead to the end of "I'm working with another agent".
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Bryan Robertson, Broker Associate | T: 650.799.9951 | Email: bryan@serenogroup.com | Website: http://www.BryanRobertsonHomes.com |CA License: 01191946 | Sereno Group - Los Altos branch | 369 S. San Antonio Road | Los Altos, CA 94022
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