Helen Hodgdon’s Blog

Evidently many of my fellow agents and brokers have never heard of the Sherman Anti Trust Act. You know the one the prohibits price fixing. The economy in this country is based on open and fair competition and that should exist in real estate as well. We are now in a real estate marketplace that has a glut of supply and not a whole lot of demand. We as agents are all competing to get the same customers and those customers have many of us from whom to choose. To be creative by offering reduced fees or added services is not a crime, it is good business. Feature- Benefit- Point of Difference; marketing 101. If a company has good features that benefit the consumer and their point of difference is that they offer lower fees, well good for them; with all the “under the table” price fixing going on they are certainly different.

I am truly dismayed when I hear agents and brokers speak of customary fees and discuss how other discount agents must offer poor services. There is one local broker with a national company who says in his writings that the commission fees go to profit, overhead and marketing. He concludes that no company is going to reduce their profit, overhead is fixed; so the cuts must come from marketing. His insinuation, or actual statement is that by cutting marketing the seller is harmed so stay far, far away from the discount broker. Well, he is quite wrong. Many companies whose business is not being dictated by huge national franchises can and do cut their profits. They know this is the time to step up and give people want they want or in many cases actually need. Franchises can not do that, they pay too many huge fees to the parent company and can often not even make their own decisions.

I have been in this business many years and if there is one thing I have learned it is that you create value in yourself by who you are and what you offer. To say “hey, I’m the best choice because the other guy is this bad” is no way to sell.

Just because a company offers lower fees does not mean they offered poor service, it may mean they are smart enough to be responding to consumer demand. You should absolutely check out what you are getting for your money, every company is different, some give full service some do not. Decide what is right for you, ask the hard questions.

How much experience do they have? What is their list/sale ratio? What portion of the fee goes to co-brokes? Where and how will your property be advertised? One agent with a big national company sells by saying “we have a national company magazine that advertises our properties”. I had his former customer lament to me later “that’s great, unfortunately my property was never in it!” So ask the questions get you answers and don’t forget how Feature-Benefit-Point of Difference should help you!

I have been in the real estate industry over 20 years. I am a licensed broker in both Massachusetts and New Hampshire as well as a licensed real estate instructor in Massachusetts. Everyday I read information that contains people’s professional opinions about what is going on; what is right and what is wrong. Real estate experts, finance experts, everyone telling us how to think and feel and respond. I can handle it, I’ve been in this type of a marketplace before in the late 80’s, but for me something is missing.

Homebuyers, Homesellers……what do you want? What are you thinking? How can we best help you? I can give you years and years of very qualified knowledge, but sometimes I wonder if I am truly answering what you need to know,or pontificating to my own satisfaction.

So PLEASE tell me how to help you. My Company is offering commission discounts. Is that what you want. Do you want more attention…do you want less. Do you understand about financing? Do you want me to explain? Actually I need to do that, I’m sure you understand.

I have concluded that everyone has something to say……but are we telling the buyers and sellers what they really want to know?

If you are a buyer or a seller or may be in the future, please write in and tell me how best to help you. No strings, I really want to know from the horses’ mouth how best to service my customers.