This week's episode of the RealTrending Podcast features KW Maps coach Craig Goodliffe, founder and CEO of KW Maps. Cyberbackeris a company that provides administrative support and virtual assistant services to real estate companies.
Craig and Tracy discuss the misconceptions and misinformation plaguing consumer perceptions of commissions, commission litigation and subsequent settlements, and strategies for agents to have transparent commission conversations with their clients. We also discuss market and industry opportunities, and the importance of education and financing options.
A summary of the learning content is as follows.
- Consumers and agents are confused about how to pay settlements and fees.
- Agents must accurately explain the value of their commission and their services to buyers.
- Buyer agents should focus on understanding the customer's needs and setting clear expectations. Listing agents should emphasize the benefits of higher commissions in attracting more buyers.
- Agents need to educate themselves about financing options and affordability in order to better serve their customers.
Here are some of today's interviews. The transcript below has been lightly edited for length and clarity.
Tracy Belt: I've never heard of fees being built into the home price. Housing prices are a function of supply and demand. The market determines the price. To me, that's a great explanation for the consumer as well.
Craig Goodliff: That's exactly right. The seller does not choose the price of the home. The buyer does so. Yes, the seller sets the commission, but the home sells for the price the highest buyer is willing to pay. And to that seller, it may be worth much more than other buyers. Therefore, the buyer determines the price of the home. It has nothing to do with real estate brokerage fees.
Tracy Belt: I think most sellers think their home is worth more. As a homeowner, I would feel that my home is worth much more than it actually costs.
Craig Goodliff: Well, isn't it true that things that allow us to be more emotional have higher value to us as humans? It applies to your home, it applies to your family, it applies to a lot of things, and there's nothing wrong with that. Other people just aren't as emotionally attached to you as you are, and that's okay.
The RealTrending Podcast features some of the brightest minds in real estate. Each week, brokerage leaders, top agents, team leaders, and industry experts share their secrets to success, trends, and lessons learned to navigate this ever-changing industry. Hosted by Tracy Belt, produced by Elissa Branch.
