By Kevin Wagstaff • June 11, 2020 • 3 min read
Realtor commissions should be lower.
Think about your immediate reaction to that statement.
You feel a little emotion right?
Why?
“I’m worth it. I have years of knowledge and experience."
“I have a high touch approach focused on customer service.”
I’m not saying you don’t. I used to work with (and know) tons of great Realtors that are worth every penny.
This is what you’re doing to home inspectors when you ask for a discount for your client.
If you are in this for the long haul, you benefit by home inspection companies being sustainable. Being sustainable is charging a price that allows them to stay in business and grow.
Why shouldn't they get paid what they're worth?
Reframe How You Think About Home Inspections
Think about it - many home inspectors have worked in construction or "the trades" for 10-20 years. They've accumulated decades of experience.
They've seen the ins and outs of major systems of homes. They know how to fix things from doing it themselves.
Home inspectors find issues that allow you to negotiate for thousands in credits or repairs. They give guidance on issues that might save your buyer 10s of thousands of dollars.
And we're still balking at what they charge? It's a bargain either way!
Trust me, I know the plight of the homebuyer (remember, I used to be an agent and have bought homes myself):
"They are already spending X on a home, this will set them back" or "They are already stretched buying a home that costs Y".
They are adults making a financial decision based on your counsel. It's your job to prepare them for future costs.
Why should a home inspector's business be affected by that?
Real estate agents should prepare their buyers on ALL the costs involved in buying a home. Then you won't feel the pressure to ask for discounts when it comes time to book. Set expectations that you buyer doesn't want the cheapest inspector. Paying for quality is a logical investment.
Get past thinking about the home inspection of something that stands in the way of your payday. It's education for your client. It's a means to saving them money.
Searching for the cheapest home inspector creates a ripple effect that hurts everyone.
Inspectors taking concessions leads to them feeling the pinch to remain profitable. This means booking more inspections. Which means less time spent with your clients.
Less time leads to lower quality inspections and potentially missed defects.
Missed defects leads to unhappy clients.
Unhappy clients come back to you and the inspector (if they're still in business). We all know how unpleasant that is.
Prepare your clients ahead of time. Make sure they mentally prepare to pay for quality for a home inspection and additional services (Radon, Mold, Termite, etc).
And please do not put your partners in the same position that new flat-rate brokerages are trying to put Realtors in.
You're worth it and so are they.
Do you agree? Disagree? Tell me why!