According to Real Trends, the national average listing commission is 5.08%. In this episode, hear why Kevin Foreman believes the average listing commission will drop 40% down to 3.64% over the next 7 years.
On this episode, Vice President and General Manager of the Enterprise Division at INRIX, Kevin Foreman shares his view on the future of the real estate industry.
Don’t worry so much about commissions going down: the volume will go up. -Kevin Foreman
Takeaways + Tactics
- Keep overhead costs down. There’s no need to pay for fancy offices- have your employees work from home.
- Stop worrying about commissions. While commissions may be dropping, lower prices attract more customers. We may make less commission per sale, but we’re bound to make more sales.
- Pay more attention to clients than the properties you’re selling. This helps build relationships long-term, and will serve you in the long run.
At the start of this episode, we discussed the ‘Tinder’-type option afforded to home buyers. Essentially, buyers are now able to select homes, unassisted by an agent. After talking about what this means for agents, we spoke about the benefits of operating in the luxury and high-end markets.
We also shared insights on:
- Focusing on your client- your services should be all about them
- Why you should act as a consultant
- How to stay in touch with past clients
The changes we’re seeing in the real estate industry can be alarming, but it’s important to look at the bigger picture. Commissions may be dropping, but there is a higher number of clients because of it. In the meantime, protect your business by keeping your overhead costs low and maintaining good relations with your clients.
Kevin Foreman is the Vice President and General Manager of the Enterprise Division at INRIX. With 20 years’ experience in sales, marketing and business development, Kevin is widely respected for his expertise. He is a specialist in social networking, social media, web 2.0 and community building.
To find out more about Kevin, find him on Linkedin at https://www.linkedin.com/in/kevinforeman
You can also find him on Facebook at https://m.facebook.com/kforeman1
To find out more about INRIX, head to http://inrix.com
And search ‘INRIX’ on YouTube