Rule number one: You can ask me anything.
That said, many times you don’t ask me what’s on your mind, so I’ll go ahead and ask and answer one of your burning questions : “Laura, how is it you can be motivated to act in my best interest when you’re paid on commission? How could you possibly want me to spend less on a home, versus more?! That means you make less! “
Ok, this is so simple for me. I love this question!!
Here’s the deal: I do not let how much money I may or may not make guide what property and advice I give you… If I did, well:
A) you’d know that is exactly what I was doing.
B) you wouldn’t trust me.
and C) you certainly wouldn’t feel Fantastic about our process. You wouldn’t refer me to your friends and colleagues. And, inherently I’d actually make less in the end because I wouldn’t have ended up with your best friend as my client, or your best friend’s colleague, or your best friend’s colleagues boyfriend, etc, etc, etc…
So, do you get it? Being driven by each individual commission check is short sighted. .Yes, I am indeed in business to make money. So yes, I am driven by money and intend to make it. Period. That said, as long as I’m working in my clients best interests, I absolutely will make the most money in the long run, and I’m almost guaranteed to continually increase my business year after year thanks to all the referrals from clients (not to mention I get to feel darn fabulous inside!).
EXAMPLE: one client was willing to spend up to $180,000. Well, I took him to a condo listed at $145,000. It needed a little easy cosmetic work though, hardwood floors (easy), maybe stainless appliances (easy), a new paint job (easy…). So, my advice to him was instead of putting money down for a downpayment on a condo that could only provide a rate of return only equal to the market as he couldn’t earn equity with light cosmetic work, why not put that down payment money into some small upgrades on the lower priced condo and get some instant guaranteed equity. And he did. He got the condo for $134,000. He didn’t need a down payment for such a low priced condo. He put money into the condo and had instant equity. (And, yes, I made less money). So, who do you think he trusts enough to recommend to his closest friends, not to mention his parents? That’s right: me. AND, is this on my list of favorite client success stories? Yes, it’s in my top ten.
I feel great about this transaction, and not once did I think, "hey I’m going to make less money than if my client spends less than $180,000."
I love instant equity for clients. I love referrals.
My Best, Laura