Real estate dysfunction

3 ideas to avoid the economic precariousness of agents

The year begins and everything goes up: shopping, electricity, transport passes... and yet you still get paid the same for your work. While many sectors update prices with the CPI, your real estate fees tend to stand still (or fall). Here are three actionable ideas for defend your real estate rates without losing commercial elegance.

The cost of living goes up every year and you always work at the same percentage of fees?

The context: life goes up, your fees don't

On Tuesday you are greeted with a "Happy New Year" and +1 € on the menu. Restaurants, communications and transport revise prices in line with inflation; this is normal. In Spain, the Consumer Price Index (CPI) measures this increase month by month and is the benchmark against which thousands of tariffs are updated.

At real estateInstead, we do not usually index. If prices go up, sometimes our commission goes up by dragging (because it is more expensive to sell). But when recruitment becomes more difficult, it is common to reduce fees to get the order. Result: your real margin shrinks just when your structure (equipment, fuel, portals, tools) costs you the most.

And, by the way, yes: housing is the "most basic of basics", but its price no rises with the January CPI, it follows its own dynamics. You know it all too well from "Glengarry Glen Ross" - yes, that movie about real estate salesmen in a fierce market -: either you take method, or the system takes you.

3 ideas for smart and sustainable fee increases

1) Breaks down mental structures

Who said commissions have to be round numbers? 3%", "4%", "5%"... they sound convenient, but also predictable. If a client asks for "a gesture", there is no need to jump from 5% to 4% (-20% all at once). Work micro-adjustments4,9%; 4,6%; 4,25%; including scaled by price brackets or instalments. The psychological effect is enormous: you maintain perceived value and you give the minimum.

Practical hint: document 3 closure proposals in your CRM (premium, standard, optimised) with their features and a real differential between them. In this way you negotiate on value packagesnot about a number in the air. If you need marketing ammunition to support that difference, here's a methodology "of less smoke and more heat"..

2) Redefines the fee format

Does everything have to be 100% variable and "to success"? Not always. In markets with more demand than supplythere is scope for mixed models:

- Phase 1 (fixed): analysis, business plan, home staging/photo and launch.
- Phase 2 (variable): success, with bonuses for objectives (deadline, price, NPS satisfaction).

What do you gain? Cash flow (you cover hard costs), increased customer engagement and a more professional relationship (both parties invest in the project). The client understands that not all operations cost the sameInheritance with several co-owners, an occupied dwelling or a property with encumbrances do not require the same time as a "clean" sale. For reference, home staging shows clear impact on time and price of sale; use it as a block of value within your proposal.

In addition, it recalls a basic legal-commercial point: in Spain there are no fixed fees by lawThe fact that they are free and negotiable, which reinforces that you can design your own scheme (transparently and in writing).

3) Deliver more value (and tell it better)

Charge more only makes sense if you bring something to the table that others don't. As in hotelsno-one is arguing that a 5★ costs more than a pension; the experience is incomparable. Translation into everyday life:

Your "5★ pack" (high impact ideas)

- Pre-market research with price assumptions + measurable marketing plan (channels, investment, timing).

- Complete production: tidying and preparation, home staging, professional photo/video, floor plan and virtual tour.

- Advanced document management: verification of charges, notarial co-ordination and after-sales service with checklist 30/60/180 days.

- Communication: housing report (copy + images) and fortnightly reporting.

- GuaranteesService commitments (SLA) and dashboard with metrics: visits, qualified leads, proposal, closure.

It's not just about doing more things; it's about do what has an impact in the result and tell the story clearly.

Typical objections (and how to respond)

"The other one does it to me for 3%".
Answer: "Perfect. Let's compare proposal by proposal: planning, production, reporting and warranties. If the objective is to maximise price and minimise time/stress, this is the route. If we're just looking for the lowest percentage, maybe I'm not your best option". (And you go back to your three packages, nicely closed).

"Why are you charging me a fixed share?"
Answer: "Because there is a real initial investment (preparation, contents, launch) which substantially improves the result. We will give you a clear quotation and compensate you with a variable adjusted to success. Both we risk and we both won.

"Can you apply discount?"
Answer: "I can adjust the package maintaining methodology and quality. I choose to remove what has less impact, not to cut what explains the result".

Mini-scene for your next meeting

Opens with context ("Essential services adjust with CPI; we look after price without passing all costs on"), reference cultural (a smile with "Glengarry Glen Ross" and the jungle of commercials) and close with methodThree value propositions, objection script and next follow-up date.

Inflation does not wait; your fees Nor should they. Design formats, break up the "round" and delivers differential value (and measurable). If you want more actionable ideas every week, subscribe to the Real People newsletter and become the agent who charges what you're worth-and proves it.