Are Real Estate Agents A Commodity? How To Stop Consumers From Choosing Based Upon Price.

How To Compete OnlineTell me if this sounds familiar. You are working with a buyer, or maybe it’s a seller – and its been awhile. You’ve shown the buyer multiple homes (with no buyer broker of course), on weekends, after hours etc and gave the seller tips for getting their property ready for sale. Then it happens. The buyer or seller chooses another real estate agent.

Maybe the buyer walked into an open house and purchased a home with the sitting agent, or maybe the seller chose a family friend – either way, you are out of luck and you’re pissed. Buyers are liars! You think. Well, maybe it’s not their fault. Maybe you need to look in the mirror and ask yourself this one very important question: Are You A Commodity?

You know commodities, not the kind traded on Wall Street necessarily but the kind you buy at the grocery store. Like Bacon and Orange Juice. The kind where you shop based upon PRICE and not necessarily QUALITY. You know what I mean. One Sunday at the grocery store you choose Tropicana because it’s cheaper than Sunkist. Next week it’s Minute Maid because it’s on SALE. We all do it. Why in the world would you pay $1, $2 more for a product that appears to be exactly the same as the others? Well, you wouldn’t. And neither do buyers and sellers.

You see, when things look the same, when we can’t tell the difference between one product and another, one service and another, one real estate agent and another we often resort to shopping based upon price. Which is cheaper? This same principle, one you use every day when you shop in the grocery store or online, is often the same one buyers and sellers use when choosing a real estate agent.

But not all products and not all services are the same are they? Why does one consumer choose Lexus over Toyota? Infiniti over Nissan? Acura over Honda? They are essentially the same exact car. The difference is perception. The difference is often what we feel Lexus or Infiniti or Acura says about us. Is it really a better car? Sure it has leather instead of cloth, parking sensors, Satellite Radio, blind spot awareness sensors, maybe a back-up camera but is it really a better car?

Apply this same methodology to real estate.

In my experience, most real estate agents say and do the same exact same things. “Search the MLS like a REALTOR”, “Call for a FREE CMA” “Get a FREE home warranty when you buy with me”. But what makes you different than other agents? What makes you better? Do you even know? When I was a sales exec in title I met all kinds of real estate agents. Big ones and little ones, the top of the hill and the up and comers. The interesting thing is, many real estate agents have no clue what their value truly is. Meaning, they have no clue how they are different and better than their competition. If I was a buyer or seller, why should I choose you? I’d ask them. Most would talk about their brokerages “Well, we are one of the top…..” or even better – they would list intangibles. I have integrity. I’m passionate. I love helping people. None of these are tangible or even measurable. And do they really add value for the consumer? That is a commodity.

Let’s look at a real world example. Let’s say you found out you were getting divorced, and you have children. A long road is without doubt ahead. What would you do? Would you look for the least expensive divorce attorney you could find or would you seek out the very best? One that specializes in working with men or women? I bet you would not try and find a divorce attorney that just started in the industry. You’d want the very best you could afford. The stakes are just as high when comparing the scenario of a divorce and buying or selling a house aren’t they? Both can result in huge losses without the right professional guiding them through the process. This is where EXPERTISE and EXPERIENCE come in.

Most buyers and sellers have NO CLUE what services, guidance and experience a professional real estate agent can provide for one simple reason. You are not talking about it. You’re saying the same things as your competitors and forcing the consumer to choose based upon PRICE. And both parties are paying a heavy price because of it.

You can help the consumer FIND you, CHOOSE you and ultimately HIRE you by talking about the content they look for online. Stop saying and doing the same things as everyone else. Pick a niche and leverage it. Educate consumers on the communities and markets you serve. The building styles, new builds, market trends. How? Write articles like this one, make targeted community and property videos and optimize them so your ideal client can find them and begin to see you as the go to, like the divorce attorney scenario above. As luck would have it – you just found the video marketing equivalent of the divorce attorney above. We can help you leverage video to educate and inform your target audience to help them choose you over your competitors. Fill out the form below. Let’s talk.

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Stephen Garner

Hub Media Company is one of the few media companies dedicated to real estate video marketing. We create beautiful cinematic real estate video tours, lifestyle, community/subdivision as well as green screen video. We have over 13 years experience in the real estate space working with some of the top agents in the Phoenix Metro area.

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