Seems like a random thought but I keep hearing the same internal struggle coming up from buyers and sellers about Realtors® and commissions in real estate. This is the best analogy that comes to mind.
You go to a restaurant. You have a phenomenal server. They’re engaging. They’re making you feel great. They’re helping you navigate the menu, the wine. You name it, they’re on it.
The server is responsible for making sure your experience is top notch.
We’ve all had service like this and DANG it feels good.
If that server has added value to your dining experience, would it be fair to say that you would tip them well and feel good about it?
I’d say so.
The server went on the journey with you. The server was your guide. The server built a relationship with you. The server was your partner.
But. Let’s not forget. Your primary purpose for being there was food. And the food runner, not the server, brought what you came for to the table.
So my question is this. If your server was the person largely responsible for your dining experience, would you feel better tipping them or tipping the person that brought what you came for to the table?
95% of your experience was a result of the server. 5% of your experience was a result of the food runner.
What you got from the server, was an overall experience. What you got from the food runner, was what you came for.
So. Who earned the tip (commission)? Do you tip for the server for overall experience? Or do you tip the food runner for the food?
It may seem like a stretch, but stick with me. I’ll explain.
Similar to how a server earns their tips,
Realtors®, earn their commissions.
Think of a Realtor® as your “server”. In buying and selling, they’re guiding you from
one step to the next. They’re part of the experience with you. Behind the scenes, they’re fighting for you. They’re advocating for you. They’re acting as an extension of you.
This is how Realtors® earn their commission. They’re your partner through the entire experience from start to finish. Just like your favorite server.
So let’s bring it back to the analogy. Your primary purpose is to buy a house. The same way when you go to a restaurant, your primary purpose is to eat food.
At a restaurant, the server earns their money by adding value.
In real estate, the Realtor® earns their money by adding value.
If you wouldn’t be willing to give away your server’s tip to the food runner just because they were the one to bring what you came for to the table, would you be willing to give away your Realtor’s® (server) commission to the person that simply “brought the house to the table” (food runner)?
This is what happens when we sometimes lose sight of the bigger picture and focus only on the house itself. If I found the house, why am I paying my Realtor®? If I found the buyer, why am I paying my Realtor®? These are questions we all ask ourselves.
Anytime you have these thoughts, I encourage you to revisit this analogy and answer honestly, who has acted as the server and who has acted as the food runner? What value has the server delivered beyond just the food?
A Realtor’s® job is to be a phenomenal partner the same way a server’s job is to be a phenomenal partner.
The more they know, the better they can partner.
So take a few minutes to engage with them so they can give you the five star partnership you deserve and “be the server” who earns your business.
RACHEL DEVINNEY REAL ESTATE 