Three ways to prove the value of your fees in a competitive market

With the competition for new listings between agents as fierce as ever, it can sometimes feel like a race to the bottom when it comes to fees. However, a recent survey conducted by Acaboom found that ‘just 17% of people would choose the agent with the cheapest fees’, which suggests that it’s not necessarily the agents with the lowest fees that come out on top; it’s the ones that are able to communicate the value of their fees most effectively. So, how can you prove the value of your fees?

Highlight your investment in tools that make the process smoother

Consider what you have in your toolkit that helps to improve the service your customers receive. One of the most common criticisms of estate agents is a lack of communication and the level of service tapering off once a sale has been agreed upon. When pitching for a new listing, be sure to communicate your commitment to providing ongoing support and ‘good news’ updates throughout the entire process and explain how you will do this.

If you’re a mio-enabled agent, use mio to address any concerns your potential vendors may have based on negative past experiences with other agents. This is a tried and tested strategy employed by other agents, including the team at McCartneys in Newtown, who said: “Using mio to address the client’s past experience of sales progression [..] is a technique we now use on all market appraisals to help differentiate our service over the local competition.”

Draw attention to data that proves the value of your approach

It’s no good telling potential vendors that you’re the best if you can’t prove it. Provide data on what matters to your clients the most: getting the property from SSTC to exchange in the least time possible. This will help to demonstrate why your approach to sales progression is superior to your local competitors’.

According to the latest Zoopla figures, the average time from sale agreed to completion is between 110-115 days - with mio, the average is 103 days (according to figures from April-August 2021). This can be extremely compelling, especially if you can overlay supporting figures on how many properties you have sold in the local area, and how many were sold over the asking price.

Strive for referrals and recommendations

If a vendor comes to you off the back of a recommendation from a friend or relative, you’ll have to do very little to convince them to choose your estate agency. Similarly, bad reviews can have the opposite effect and mean that vendors will refuse to work with you, regardless of how low your fees are.

Recommendations are powerful, especially if there is little or no difference in what you’re charging versus your competitors, so it really does pay to go above and beyond. Don’t stop at the point of sale agreed; ensure you’re providing helpful updates throughout the entire process and make it easy for them to see what’s going on to give them the best possible experience.

Leveraging technology like mio to do this not only makes this process seamless, but it also demonstrates that you’re tech-savvy and forward-thinking. 13% of vendors say that ‘modern marketing methods’ are important when choosing an agent, while another 13% said that being ‘tech-savvy’ mattered most to them, so showcasing your modern and tech-focused approach to sales progression can really set you apart from the competition.

*Nick Ball is the Head of Sales & Client Service at sales progression tool mio