Discover these top 5 tips for Estate agents to increase their fees in a difficult property market

During a strong property market, each valuation would almost be a guaranteed instruction and a fee into the business. In fact, one of your main issues is not how to sell a property but how to manage all of the viewings.

But, the property market is getting a little more challenging, and those halcyon days when new instructions were easy to come by and buyers would fight over each property feel like a distant memory.?

As the market begins to quieten, every fee counts, so you must make the most of each sale.?

It's tricky, though, isn't it? You quote your fee right at the beginning, at the point of the valuation, when you are competing against other agents to win the instruction. If you quote too high, the seller will probably use someone else.

But if you can show the value that your firm can bring to a seller, demonstrate your skill and experience in selling homes in your area, and highlight your USPs, you may be able to increase your fees. This will filter through to higher revenue for your firm at the end of the year.

Here are a few tips to ensure that you are paid well for the excellent job you do for your sellers.

1. Shy bairns get nowt! (Northern for ''if you don't ask, you don't get'')?- Try going a little higher in the % that you quote. Not so much that it makes you nervous; you must still come across as confident. And make sure that you demonstrate what you do for your fees; simply tell the next valuation client that your fee is 1.25% rather than 1%. See what happens; you might be surprised!
2. Don't fill the silence.?When quoting fees, people often end up talking the price down themselves without the client saying anything. Whether down to nerves or perhaps even desperation, as you are keen to win the instruction, it is common to fill in the silence. The best tip for getting paid more is to quote your fee and then shut up. Don't feel the need to fill the silence (This is also a fantastic tip when negotiating offers!)
3. Look at your presentation - Do you show clearly how you work and what you will do for your fee? If you simply say, "we will put it on the portals and sell your house", how does that differ from what anyone else does? Why would a seller pay your fee when they can get that for free using companies like Strike?
4. Dare to be different?- Take a good look at what you offer to your sellers. Show them how you are different. They need to be able to differentiate between the agents. If they can't see any differences, then the decision comes down to whom they liked the most or who said that their home was worth the most money. This is a slippery slope as we move into a tough market and will lead to a race to the bottom on fees - the opposite of what you want to be doing to make a profit!
5. Can you upsell??- Virtual tours. Accompanied viewings. Perhaps a marketing budget is paid upfront so that your costs and expenses are contributed to, meaning that you are not paying out so much to market a property in the first place. Either limiting the costs to your business or charging more for additional services can have a very positive impact on your revenue.

Ultimately, you need to demonstrate how you are?different?from the other agents. You will always have to discuss your fees if you don't give the homeowner anything else to consider. If it appears that all agents do the same thing, the only point of comparison left is the fee.?

Instead, show them how, even though your fee may be higher than other agents, there are clear reasons why. Most people understand the concept of 'you get what you pay for', so if your track record/experience/marketing strategy is easily demonstrated, your fee should not be an issue.

To learn more about increasing your agency fees, download this free ebook, or get in touch.

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