Know Your Worth and Defend Your Fee: Real Estate Lessons from Kate D'Addabbo
How Real Estate Agents Can Know Their Worth, Defend Their Fees, and Sell with Purpose: Lessons from Kate D’Addabbo
If you have ever felt the urge to discount your commission the moment a client pushes back, this episode is going to change the way you walk into your next listing appointment. On a new conversation with The REI Agent, luxury real estate specialist Kate D’Addabbo — a 20+ year veteran with Coldwell Banker serving Connecticut and Rhode Island, and ranked in the top 5 percent of Coldwell Banker agents internationally — breaks down how relationship-based agents can stop apologizing for what they charge and start selling like the trusted advisors their clients actually need.
Kate’s path is unusual. She started in commercial retail real estate in her early twenties, stepped back from full-time selling to raise her children while renovating and flipping homes for “record-setting profits,” and then re-entered the industry on the luxury residential side. The result is a hybrid skill set that most residential agents never develop: the analytical eye of a commercial investor combined with the design instincts of someone who genuinely loves fabric, tile, and flooring. That blend is the through-line of this entire episode — and it is the foundation of every piece of advice she gives below.
Why Should Residential Agents Think Like Commercial Investors?
Most residential agents approach a home as a place to live. Kate approaches it as a place to live and a financial vehicle that has to perform. Her commercial background trained her to evaluate every deal through one lens first: return on investment. When she moved to luxury residential, she did not leave that lens behind — she sharpened it.
That investor mindset shows up the moment a buyer falls in love with a house. Kate walks them through the math out loud: How is this house positioned in the market? If you put $50,000 into the kitchen, what kind of return can you actually expect? You may love this house today, but what happens if you change jobs, upsize, or downsize in five years? Will you be over-leveraged or well-positioned? She tells the show that 10 or 15 years ago, very few residential agents talked to clients this way. Today, with housing increasingly viewed as a primary wealth-building vehicle, agents who cannot speak the language of investment are leaving an enormous trust gap on the table.
Her advice for agents who came up purely on the residential side is to learn the commercial frame, even if you never sell a single commercial property. Read zoning agendas. Pay attention to office parks, apartment complexes, and which retailers are coming or leaving the local mall. That information turns a friendly agent into a strategic advisor — and strategic advisors do not get fee-pressured the same way.
What Does It Actually Mean to “Ask for What You Want”?
Kate’s origin story is a masterclass in this principle. She walked into a commercial real estate office at age 20-something looking for a receptionist job, was bored within a month, asked for more, and ended up running marketing and bookkeeping. She asked her boss how to become an agent. She bought 10 maps from a convenience store, started cold-calling retail corridors, and asked a retailer in Philadelphia for lunch — even though she had no plans to be in Philadelphia. She got the lunch, secured the account, and became their account rep for all of New England.
The lesson she returns to over and over: if you don’t ask, you don’t get. And the place most agents fail to ask is the place that costs them the most money — their own fee.
“You would be the only person standing in the room that if you ask for a fee and cut your fee, you’d be the only person standing in the room that just took half a paycheck off just because you had a conversation.”
Kate’s framework is direct. She puts her fee on the table at the beginning of the conversation, not at the end. She explains exactly what the fee covers and why she charges it. And in 20+ years, she says she has never had a client tell her afterward, “I wish I paid you less.” More than once, clients have told her the opposite: “I can’t believe you do all this for this fee.”
If you cannot negotiate for yourself, she asks bluntly, who exactly can you negotiate for?
How Do You Price a Home So It Actually Sells for More?
When Kate is asked for her “golden nuggets” near the end of the episode, pricing is at the top of the list — and her instruction is simple: do not overprice the house. She frames pricing as the single most controllable lever an agent has on the listing side, and getting it wrong almost always costs the seller money rather than earning it.
Why? Because buyers today decide whether they want a home before they ever step inside. They scroll listing photos on their phones. If the price doesn’t match the perceived value of what they see, they skip. The home then sits, gets stale, and the only way back is a price reduction — which signals weakness and invites lowball offers. A correctly priced, beautifully presented home creates competition. Competition is what drives sale prices above ask.
This is also where her hard conversations live. Telling a seller their house is worth less than they think is one of the most difficult conversations in the business, but Kate’s view is that it is your job, not an optional kindness. Bring the comps. Bring the data. Show them on paper why the number you are recommending is the number that will actually maximize their net proceeds. Sellers do not pay you to validate their feelings — they pay you for an outcome.
Why Is Presentation Worth More Than Sellers Realize?
Kate is unambiguous on the ROI of paint: more than 1,000 percent. She tells agents to repeat that statistic to every seller they sit with. It is one of the highest-return improvements in residential real estate, and it is the cheapest signal a seller can send a buyer that the home has been cared for.
She recommends light, bright neutrals for most listings. She allows that a beautifully executed dark room — a moody library, a saturated bar — can be stunning, but she warns sellers that selling is not about your taste. It is about the middle of the market. The middle is what brings the most offers, and the middle is constantly shifting. The four-bedroom colonial on the cul-de-sac used to be the hottest girl at the dance. It isn’t anymore. Floral patterns are back. Trends move, and the listing agent’s job is to track them.
Presentation extends beyond paint. Kate’s smallest, funniest rule: do not leave a sponge in the sink. Buyers walking through a million-dollar home should not have to look past a sad, used sponge. It is a tiny detail that telegraphs a much bigger feeling — and feelings are what drive offers. Every showing is a chance to either build or break that feeling.
For sellers who refuse to paint or stage? Kate doesn’t fight them. She manages their expectations in writing about the price they should reasonably expect. The market will collect on what the seller refuses to invest.
What Does “Deep Local Expertise” Actually Look Like?
If presentation is the visible part of an agent’s value, deep local expertise is the invisible part — and Kate argues it may be the single most important quality buyers should look for. Twenty years in the same Connecticut and Rhode Island markets has given her a layered knowledge base that no agent covering five counties can replicate.
She rattles off the questions a great local agent should be able to answer cold: Are property taxes slated to double in the next three years? Is gas being run down the street, so this oil-heated house can be converted in two years? Which schools are closing? Which mall anchors are leaving? Which coastal neighborhoods are flooding on full moons or losing access to insurance? Are septic-system upgrades being mandated, and is your buyer prepared for the roughly $30,000 hit? Is a major employer rumored to be leaving the area, which would shift housing inventory and pricing within six months?
Buyers — especially buyers relocating from out of state — usually cannot answer any of these questions. A great local agent doesn’t just answer them. She volunteers them before the buyer thinks to ask. That is what transforms a friendly tour guide into an irreplaceable advisor — and it is exactly the kind of value that justifies the fee on the listing agreement.
How Should Agents Position Themselves as the Expert, Not Just the Order Taker?
Kate’s final golden nugget is the one that ties everything else together: be the expert. Clients are paying you to know the contracts, the law, the market, the street, the roof, the mechanicals, the renovation costs, and the trusted professionals who can handle every one of those pieces. Her website tagline literally is “I’ve got a guy.” When clients ask for an architect, a tile installer, an oil-tank removal team, a landscaper, or a good gutter guy, she has the name on her phone — vetted, with permission, ready to text in seconds.
She gives this information away freely, even to people who have not hired her, and even to people who never will. Her view is that generosity compounds into credibility, and credibility compounds into referrals. The next time someone in town asks where to find a great architect, the answer is “Call Kate D’Addabbo — she’ll text it to you in two seconds.” That is what being the expert sounds like in practice. It is not a credential on a business card. It is a reputation built one introduction at a time.
She also makes a sharper point for agents who are too soft in their listings. “You are a sales agent, not a show agent,” she says. Showing the house is not the job. Selling the house is the job. If your listing isn’t moving, pick up the phone, call the buyer’s agent who toured it, and ask exactly what didn’t work. Then fix it. The agents who treat themselves like a sales team — proactive, accountable, allergic to passivity — are the ones who close.
Conclusion: Build the Business You Actually Want
Kate D’Addabbo’s career is a working example of what happens when an agent refuses to compete on price and instead competes on clarity, expertise, and courage. She knows what she is worth, she says it out loud, and she delivers. The result is record-setting sale prices, a top-five-percent international ranking with Coldwell Banker, and a roster of clients who actively thank her for charging her full fee.
If you are a real estate agent listening to this episode wondering how to apply the same principles to your own market, start with one specific thing this week. Open your next listing presentation by stating your fee and why. Tell one seller about the 1,000+ percent ROI on paint. Walk one of your existing buyers through the ROI math the way a commercial investor would.
For more frameworks like these — and for a deeper system for building a relationship-based real estate practice — visit REI Agent Advisor and subscribe to The REI Agent wherever you get your podcasts. Keep building the life you want.
Full Episode Transcript
Welcome back to The REI Agent. My guest today is Kate DiAdabo, a luxury real estate specialist with Coldwell Banker serving Connecticut and Rhode Island with over 20 years of experience. After building a career in commercial real estate, Kate transitioned to the residential side, where she combines her sharp negotiating skills, eye for architecture and design, and deep market knowledge to consistently sell above ask in record time. She’s ranked in the top 5 percent of Coldwell Banker agents internationally and has built a reputation as one of the most trusted luxury agents in the region. Kate, welcome to the show. Thank you for having me. Glad to be here. Kate, it’s interesting. We talked about it a little bit, but you came from a commercial real estate background before transitioning to luxury residential skills. I’m sorry, residential side of real estate. So what skills came with you? What did you use in that transition? I just have to say, I normally see it the other way around, where somebody might have started in residential and they ended up moving into commercial because they felt like it was a better fit. So it’s not often that you see it the other way around. I know, but I actually felt like I had so much background knowledge from my commercial real estate days, where you look at a deal basically strictly from an investment standpoint. I specialized in retail real estate, so we were either looking at it from a sales, you know, return investment for an investor, or we were looking at it through the retailer’s eyes, where is this a location they want to be? How much money can they make? How many sales, what’s the sales volume like? Does it serve their customer? Everything was about return on investment and sales. But I felt as though, so I did that, you know, I was very lucky that I walked through a door one day and I was introduced to that world and I took off in that world. It was, you know, it was very exciting time. I was in my early twenties. It was a very exciting time. We did, it was hard, a lot of hard working. And I learned a ton. And so as a residential, when I decided to step back into real estate, taking some time off with my kids, I thought, what am I deeply connected to? What have I been doing my whole life? Well, I’ve been in selling homes, designing those homes, renovating those homes, you know, selling those homes for an investment. I really understood the investment side of residential. So I felt as though I was really connected to the design aspect of selling, but I also really wanted to educate my buyers on the investment side. You know, what, you know, if you put in a new kitchen and it costs you 50,000, what kind of a return can you expect? How is this house positioned in the market? You’re young, you’re going, or you’re not young, or, you know, this is an investment vehicle for you. What can you expect long-term out of this investment vehicle? Yes, it is your home, but you know, you may change jobs. You may decide to upsize or downsize. You want to make sure you’re well positioned in the market that at any given time, you’re not over leveraged in your house. And so I felt as though there was a real need in the marketplace for a residential agent to understand all of those aspects of the business. I do feel a lot of agents now have really caught up because just because of the rapid fire market situation where housing has exploded, a lot of people are looking at housing right now as an investment vehicle and, you know, a trajectory to wealth, basically. But that wasn’t necessarily happening 10 years ago. You know what I mean? They were, a lot of people were, you know, in 2008, 2009, you know, buying at the top of the market, doing renovations and being, you know, underwater on the value of their home. So, you know, I felt as though I could be basically a trusted advisor. And I was, I was. Throughout my whole life, I’ve been renovating and selling properties always for a pretty massive profit. I mean, record-setting profits. Because I haven’t, and that’s the other thing I was able to, I knew that I could bring to this industry that I couldn’t bring back to commercial real estate was design. What are buyers looking for? Because I love design. I mean, I love fabric, I love tile, I love flooring, I love wall color, I love design. I love a new kitchen, I love a new bathroom. And I sort of, you know, because I love it, I’m really up on exactly what’s in, what the retailers are selling for furniture, what furniture looks good in what style houses. I mean, that’s why you see that the split levels have really come back into favor now because all of the retailers are selling furniture that looks great in those homes. You know what I mean? I mean, so that is really, I tried to bring the business side to home ownership. And I still do that on a daily basis. I mean, I’m in a multiple offer today that I have said to my client, I know you want this house, but we’re only going to this number because in six months, if you pay over this, you will never talk to me again. And I don’t want that for you. I will make the commission, I’ll walk away, I will make the commission, but I will not have served you best by allowing you to overpay for this property when I know we will always get another property. Walk away, put your hand on the doorknob and walk away. As you know, that’s who I am as a person. I was like that in commercial real estate. I would analyze the deal. The deal was a good deal. I’d advise my client, I think it’s a good deal. This is a good location. And I do the same thing for my residential buyers. You know, I mean, I look at a lot of multifamilies. I have a lot of multifamily buyers and I’ve advised a lot of my multifamily buyers, right, not a great time to buy multifamily necessarily in certain markets because the returns are just not high enough. You know, you’re just, there’s no return in certain markets because the property value is escalating so quickly. So I don’t think a lot of real estate agents approach it that way, but that’s how I approach it. Well, you know, I think it’s kind of, it reminds me of like, you know, the two sides of the brain, maybe the head and the heart, the analytical, the creative. And I think, you know, what you’ve done is you’ve married the two. You’ve taken skills in both hemispheres of the brain. And I think it’s, that is more rare. And I think when you think stereotypically, you think, you know, commercial is all analytical, right? And then if you think about a residential, it’s a lot more emotional, a lot more feeling, a lot more, you know, that’s how you sell a house. It’s like, you know, somebody gets, they tell themselves a story about living in the house. They have an emotional connection with, you know, your staging or your renovations. That’s what really draws them to it. And it sounds like, you know, the ideal is to have both. You know, it is the biggest financial transaction that most people will be doing in their lives. And yeah, you’re able to do that with both skills. So that’s awesome. Let’s rewind real quick and ask, like, what was that door? How did you actually get started in real estate? Like what door opened for you in the commercial world? I mean, how I got started in real estate was a story that probably wouldn’t happen today. I answered a want ad to work in the office of a commercial real estate office. And I walked in, I got the job. And this is sort of typical for me. I think it was a receptionist position. And I just walked in, it was a commercial real estate company. I didn’t, I actually planned to move to California and the job was Weathersfield Connect. And I thought this would be a great job until I moved to California and start my life in California. As every, like, young person on the East Coast thinks to move to California. Yeah. So I started working in the job and a month in, it was, you know, it was just so boring. And I just started asking, is there anything else I can do? Is there anything else I can do? And then before long, I was in charge of marketing. Then I was in charge of bookkeeping. And literally eight months in, in charge of everything other than selling real estate. And I said to my boss, listen, I gotta go. I’ve done what I can do here. I gotta go. I gotta find something that I’m good at, like, that I wanna do. I’m good at all of this stuff, but I don’t really wanna do it. And then he said, well, why don’t you become an agent? And I said, okay. Well, the one thing I’m not that good at is direction. So do you have to be really good at directions to be a real estate agent? And he said, well, that’s what maps are for. So this is back in the day when I bought, I went to the local convenience store and I bought like 10 maps. And I just said, okay, you know, how do I start? And he said, okay, call everybody in this retail quarter and ask them if they wanna list their property. And that’s how I started. I mean, that is literally how I started. I called and I called and I called and I got a listing. And then I called a very specific, and I was so new to the business that I didn’t know that if people didn’t need you, they don’t call you back. I didn’t know that. I thought everybody had to call you back because Kate Jocelyn at that time left them a voicemail that they would have to call me back. And so there was a one specific retailer that I called three or four times. And I said, you know, I’m really offended that you have not called me back. And he actually called me back and he said, you know, I would have called you back, but we are next door, but they were just a different brand. I didn’t know that was the same company that I was calling. And then I said, oh, okay. And so I just, this is a big thing with me. I asked for something. And this is what I tell every real estate agent starting in this, if you don’t ask, if you don’t ask a question, if you don’t ask for what you want, you will never get anywhere. So I, to him, he was located in Philadelphia. I said, oh, well, do you have any other locations that you’re looking for? He said, yes, actually, we’re expanding throughout the Northeast. I just said, well, I’m gonna be in Philadelphia next week for business, which was not the case, but I said, I’m gonna be in Philadelphia next week for business, and would you like to meet for lunch? He said, sure. So then I had to go buy another map. And I drove down to Philadelphia, and I secured an account, and I was their account rep for New England. So I had to buy a lot more maps, and that’s how it started. That’s awesome. That’s how it started. And so then that just opened so many doors. I met so many people, so many experts. I met lawyers and engineers, and I met retailers and developers, and every last one of them, I asked them a million questions, a million questions. I learned so much about zoning and development and wetlands and buildings, and all of that information was transformational for me as a 20-something-year-old entering into my life, owning, developing buildings and properties. And then it also is so important to my buyers today that I have that knowledge. For example, I’ll give you an example of what my commercial real estate knowledge brings to residential, specifically in my area of West Hartford. I pay attention still to this day to all new developments coming and going, office parks, apartments, residential corridors, because cities, towns are transforming yearly. They’re creating new markets all the time. So I’m able to pay attention to that, and I know who the big developers are, look at their webs, and my husband happens to be in development. I hear what’s coming, what’s going. I mean, I actually look at zoning notes and all this stuff, but zoning agendas, so I can see what’s coming. I can advise my clients, listen, this is a buy and a hold in this area, soon to be a walkable retail corridor that every young person coming into the market will want to walk to get a coffee or walk to buy a book or whatever they want to walk. So I think that’s a lot of value to what I do. It just is, I’m lucky, I’m so lucky. I’m just very lucky I had that experience at a young age. I’m very lucky, because it definitely informed the rest of my life. So how long were you doing the commercial sales, and then you took a step back to raise kids? How long were you away? So I was doing it for about 10 or 12 years. I did it for about 10 or 12 years, and then I took a step back, and I was very lucky, and I had two beautiful children. And while I was at home with the kids, I was also keeping myself busy as well, buying, renovating, selling properties that I really just love for myself, and we utilized those properties for the time that we needed them for our family. So, I mean, at the age of 27. So you moved in, you did a live-in flip kind of thing? Yes, but I also own rental properties, and I rental properties as well. But at the age of 27, I bought a house in Glastonbury, Connecticut. It was a 1908, 10,000 square foot Greek revival. That was basically the movie, The Money Pit. And I didn’t know that much when I was 27. I thought it needed paint. Yeah. We were the third family to own it since 1908, and we did a four-year renovation on it. That was very informative. I learned a lot on that project. Sat on, had eight acres of gardens. Wow. Crazy, it was crazy. Could be an amazing place. It was, it was fun, and then I sold it to a guy who always admired it as a little kid, and said, someday I’m gonna buy that place. And I sold it to him, and he still has it to this day. So maybe, the whole experience made me very happy. Yeah, that’s really cool. I think, yeah, you’re talking about all these different aspects of real estate. I mean, if you were to have a buyer’s agent for a used car salesman, you know what I mean? If you had a buyer’s agent, if there was that kind of equivalent, instead of just going to a lot or whatever, it would be like that person being a mechanic. And also being able to, I don’t know, advise you more on the business of selling, buying and selling cars. It’s just kind of understanding things a little more deeply. I’ve also found my interest in, I haven’t been a full-time commercials agent. I’ve done some commercial deals, some commercial leases, that kind of stuff. But my interest in renovating houses and flipping rentals, that kind of stuff, definitely helps me with my clients a lot as well. And I think it is just kind of a deeper understanding of the business and of what a house is and how it’s built and what expenses are. The ROI, all that kind of stuff. I know that you could use these kits for X amount of dollars if you did it on a budget or whatever, and that would increase the value of your house by X. Do you know what the ROI is on paint? That one’s one of the best ones. I don’t know the stat off the top of my head, though. It’s over 1,000%. It’s over 1,000% return on investment on paint. I tell that to my clients. Every real estate agent should tell this to their clients, paint, paints. Most of my buyers today, I don’t know if you find this with your buyers, most of my buyers are so busy that they are overwhelmed by the thought of painting. Well, that and people just don’t have the vision. If you’ve gone through, if you’ve done a renovation, if you’ve done a flip, and it’s hardwood floors and paint, once you get past that stage, it starts becoming exciting. You start feeling excited about the project. Before then, it also often feels like, oh my gosh, what is this mess? What am I doing? I know it’s going to be good, but even if you’re not actually anxiously calming yourself down with that, that’s just in the background. And you may not even think about it. It’s subconscious. But then you walk into the house after the floors are done and the walls are painted, and you’re like, oh my gosh. It’s transformational. Honestly, it’s transformational. And I always advise my clients, my seller clients, light colors. If you are an expert interior designer and you know how to really nail a dark room, light, bright colors, it makes everything open, every shade, turn on every light. It makes the place feel just so much more pleasant. Bigger space, just 100%, 100%. I mean, I’m all for a beautiful dark bar or something like that, or a gorgeous library, but you have to really nail it in order for it to not feel just too dark. 100%. And you have to go for the middle. When you’re selling a house, you have to go for the middle. You can’t go for the exotic buyer or the buyer that is looking for all wood. You have to go for the middle. What is the middle looking for? And the middle shifts constantly. Have you noticed that? The middle shifts constantly, what they’re looking for. It used to be the four-bedroom colonial on the cul-de-sac was the hottest girl at the dance, but that’s not the case anymore. It shifts constantly with all the design trends, all the furniture, all the color. Floral is back. It shifts. It really does. What do you tell a seller that doesn’t want to paint and says, they’re just gonna paint themselves anyway. What’s the point? They’re just gonna paint over what I did. I will say that all of the information that I have says that the buyers will skip over your house and not look if it doesn’t hit them when they’re looking on the internet. That buyers make their decision based on what is presented to them on the internet about when they decided whether or not they want to buy your house before you even stepped in. They have a pretty strong feeling either way and that you want to present your house in a way that attracts the most buyers so you get the most offers, so you get the most money. And anything to the contrary just costs you money. So I mean, you have sellers there that don’t want to paint. And I say, okay, then we need to manage your expectations with regard to what you’re going to get for the house. So I mean, and by the way, I’m not always right. I’ve been surprised either way. I’m not always right. But I just give them my best advice based on my experience. It also depends on, and I tell this to my buyers, my sellers and my buyers, the market, whatever market happens to be when you are looking at that moment. If we put a house on the market and there are no other houses on the market, you’re going to get buyers because of scarcity and they have to buy your house. But we could put the house on the market next week and there could be 30 houses that pop up that compete with yours and then you’re shut out. That’s just, the market is whatever the market is when you put it on. And the same thing with buyers. We’re going to look at what’s on the market and you’re going to base your decisions on what we can get, like what’s out there and what we can get and what your timing is. I mean, I have buyers call me all the time now, we’re in May and they’ll say, we need to close by the end of June. That is not a lot of time in a competitive market to buy and close on a house. So we have to look at all sorts of things and we have to see what’s out there. So, it just depends. But if someone has a big job and they’re starting, they got to do it, they have to pull the trigger. So it just really depends. But I just try to give them all of the information that I have historically so that they make an informed decision. And even with all that information and my expertise, I still say to them every single time, this is one of the most stressful processes you’re going to go through in your entire life. But in the end, when we’re done, you’ll be glad you went through it, but it is going to be hard. Because it is, right? It is hard. It’s so hard to move. Yeah, and I think my broker often says that it would be a good idea for every agent to move themselves every like seven years or so just to kind of remind themselves of what it is they’re going through. Yeah, I tell new agents all the time, if you have bought and sold a house, you have a very hard time empathizing with what your clients are going through. But it is hard to buy a house these days. So it’s not an easy task. But if you’ve been in a house for 30 years and you are cleaning it out and someone’s telling you to paint all the walls and let’s get rid of all this furniture, and it’s so hard, it’s so stressful. And then you feel like it’s an invasion of your privacy when people come through and they look at the house and then they leave a comment. It’s so hard, it’s really hard. Yeah, but then we have probably the opposite problem too often in our market where people are too sweet. They’re like, they’re not giving you the real feedback that is kind of needed. Like if a house isn’t selling and it could be really helpful to have agents or buyers give feedback, direct feedback about things that they didn’t like about the house so that we can maybe try to make adjustments. And it’s nice to have that at times coming from other voices, not just the listing agent, right? Like you don’t always want to be the bad guy or just- No, I never want to be the bad guy. I want to be the relayer of bad information but I never want to be the bad guy. You know what I mean? But I will say this, when I get feedback on a house that doesn’t directly tell me, I’m old fashioned, I call that agent, I call them and I say, okay, tell me what didn’t work for your client just so I know, I just need to be informed. And I do this all the time. I mean, I reverse search call for my houses and I say, what did your clients think? Why aren’t they, you know, I see you sent it to 1300 people but you didn’t book an appointment, why not? I mean, I’m in the business of selling. And I do sell that to agents as well. You are a sales agent, not a show agent. You have to sell. No one’s gonna like you if you don’t sell. Well, speaking of being proactive, you mentioned this in the real estate or the commercial side but you talk about the importance of asking for what you want in your business. What does that actually look like in practice on the residential side? And what is the moment you realized most agents were leaving money and opportunities on the table by not asking? I think that the hardest thing for an agent to ask for is their fee. And it’s, you know, it’s a very difficult thing to ask for their fee. And, you know, whether it be from a buyer or a seller. And the other thing that’s hard for an agent is that a lot of your customers are your friends, families, they’re in your sphere, right? So it’s hard to ask a client or a seller or a buyer for your fee. And a way you have to think about it is, is anyone that you’re talking to in that room working for nothing? Or are they giving up half their paycheck to work to have that discussion with you? Is there anyone there that isn’t getting a paycheck every two weeks, every month or every week? You would be the only person standing in the room that if you ask for a fee and cut your fee, you’d be the only person standing in the room that just took half a paycheck off just because you had a conversation. So it’s really like know your worth and ask. So what I do is I put it out there. I don’t wait until the end. I put it, I’m very upfront about my fee. I say, this is what I charge. And this is why I charge this. And in the end, I’ve never had someone say, I wish I paid you less. I’ve never, I’ve never. In fact, I’ve had many clients have said, I can’t believe you do all this for this fee. We’re so grateful. I think that’s the number one hardest thing for agents to do. And also the other hard thing is to tell sellers what their home is actually worth versus what they think it’s worth. That’s a really hard one too. But you have to have all the questions. You have to have information back up and show them on paper. That’s a, you know, you really need to do that to show them on paper why their property is worth X, what you hope to achieve. If you do this, this, and this, we think we can leverage this at a higher price. But those are tough discussions to have, but that’s your job. That’s your job. And I always say to an agent as well, this is my number one thing. And I think this in my head too. If you can’t negotiate for yourself, who can you negotiate for? I have that in my head all the time. It’s a good perspective to, I don’t know if you point that out to a seller client or whoever. You know. No, I do. No, I don’t say that to myself. Well, I have said that, you know, when I have sellers say to me, well, you know, so-and-so will do it for X. And I’m like, well, I’m not sure why they so easily discounted themselves. Are you going to expect that in their negotiation process? Right. I don’t know. For that too? Yeah, no. I think it’s very important to know your worth and you better work hard for your fee and you better earn it. But you have to stand up and say, this is what I charge. That’s all. And on the listing side, you know, I think another thing that can be, well, I recently worked with some people that were very upset about real estate commissions and all this kind of stuff. And they kind of bought a house that was, you know, bidding war, ended up, you know, doing cash on inspections, two week close. Then they saw the amount that buyer agent got paid, wasn’t me. And they were kind of like, that was so easy. There’s nothing. The agents get paid too much. And then wanted me to list their house, you know, at a discount for that same logic. But, you know, in my head, I’m like, you know, if we’re getting your house ready, if we’re doing everything that we need to, if we’re preparing, if we’re taking all my years of knowledge and research of the market and apply that so that you have a quick painless sale, isn’t that me doing my job really well? Like, don’t you want that to go fast and smooth? As opposed to being a long laborious process where you’re frustrated and it’s costing you a lot of money. Right, right. No, you paid me for that perfectly smooth transaction. And that perfectly smooth transaction only came about by my years of experience and able to orchestrate that for you. Yeah, that’s what you paid for. So you got the VIP treatment and that’s what you paid me for. Yeah, you want it to feel as painless as possible. You don’t want it to feel like it’s a lot of hard work. Listen, there’s a lot of them that are a slog to get through. I’ve never not sold anything I’ve ever listed, honestly. But some of them are harder than others. And I’m sure the sellers, it’s usually a seller, but well, sometimes it’s a buyer because if a buyer is in a very competitive market and they can’t waive a mortgage contingency and they won’t waive inspection, they end up looking for a very long time. And sometimes they can’t get a deal. I mean, it just depends on the market if they’re not willing to concede in some way, shape or form. But I’m sure all of the sellers that have gone through that arduous process of adjusting their house, adjusting their price or whatever would gladly pay more of a fee not to have gone through that. But they’re all happy when it’s over. Because it is, it’s so stressful. And you take it as a personal affront when somebody doesn’t want to buy your house. It’s a very personal stab. Even though it’s not personal, it’s really not personal. It’s just what is the market for? What attributes does your property have? And does it fit into their criteria? There’s really almost nothing that personal about it. Because I mean, every property that I sell is staged, laid out as best as you can. So it’s not personal, but it feels very personal. Yeah, totally. I know it’s hard. It’s not an easy job. You have spent over 20 years in the same market, which is rare. How has staying rooted in Connecticut and Rhode Island shaped your business and what advantages does deep local expertise give you over agents who try to cover every market? Well, I think that deep local expertise is probably number one in what you need in a real estate agent. I really think it’s probably number one. I mean, you do need a real estate agent that can negotiate on your behalf. But deep local expertise is critical to figuring out where you want to be and why you want to be there. You know what I mean? I mean, your agents need to know what’s coming and going in a town. Like I said, where are the developments? How is that going to impact the roadway? Where are the new, what’s happening in the town? What is the tax situation like in the town? Are the taxes slated to double in the next three years? You need to know that. Because if you’re looking at your monthly payment and all of a sudden your taxes double, that’s not going to compute for you. You’re not going to be very happy. Are they running gas down the street? Do they have plans to run gas down the street in two years? So the fact that you don’t want to buy with oil, you can convert gas. All of this, you know, are their schools closing? Are their shopping centers closing? Are you moving closer to an area because they have a massive mall, but you know that two of the anchors of that are pulling out in six months? Or is there a major employer leaving the area, slated to leave the area? Is the housing going to open up and therefore you’re competitive on your house today, but you’ll not be competitive on your house in six months? Whatever it is, like, do you want to be able to walk to the local park? Do you want to, whatever it is, what’s happening at that local park? How many, you know, are you looking for a community that has a lot of events? Whatever it is that you’re looking for in a town or a community, does your agent know about it? And then can they inform you? Can they, you know what I mean? Are you looking like, for example, in Rhode Island, are you looking for something waterfront? Are they having huge erosion problems where the water is? Can people not get insurance in that area anymore? That’s something that’s pretty impactful. Does that area flood when they get a big rainstorm? That happens in a lot of areas where they are coastal. Does, and the same thing with the Connecticut shoreline. You know, does the street flood when there’s a full moon and nobody can go out and get their groceries? Well, you probably should know that before you buy the house. All sorts of things. Are they requiring, especially in a coastal market, are they requiring that all septic systems be upgraded in that market? You should know that too, because the septic system is about $30,000. All of these things are very, very important to buyers, very important to buyers, you know? And specifically buyers, because buyers are usually coming in from out of the area. Like for example, in West Hartford, West Hartford’s one of the hottest, I think it’s the number one hottest market. The Hartford County market’s the hottest market in the whole country for real estate, according to every metric. And, you know, people are coming in from all over and they don’t know the area. Someone to tell them about the area. But you should have, you know, that’s very impactful. Very impactful. I would think that, you know, community, taxes, you know, happening, employment, all that is very important. I have a little fly here. Absolutely. No worries. I couldn’t agree more. I mean, I think that’s really something that is, you know, intangible for an agent to provide to their buyers and to their sellers. And I mean, even if they do live in the area, I mean, there’s definitely things that people, the normies don’t pay attention to that an agent can really help them with. Kate, I want to transition into the golden nuggets portion. What golden nuggets do you have for us today? So I would say that my golden nugget is, well, I thought I had three, but I’m going to say four. Number one is ask for what you want. Ask for your fee. Say you want, I want this listing. I’d like to sign this today. A lot of times people will leave buyers and sellers with paperwork and, you know, almost like get to it when you feel like it. Like I’m busy. I have a lot of clients. I only work exclusively for my clients that I have under exclusive contract. If you want someone to sign a listing agreement or a buyer representation agreement, ask them to sign it. Say, are you signing? Here you go. Let’s, do you have any objections? Is there anything we need to talk about? Let’s get this signed so we can start the process because we can’t start the process without signing it. And then when selling a house, I think the most important thing is pricing. You can’t overprice a house. It is critical to selling a house for actually even more money than what you listed for. Pricing is so critical. So don’t mess up the pricing on a house. I mean, we’ve all done it, but try not to mess. I think that’s critical to being successful. And then presentation. I, especially since I love to renovate and I love design, I think presentation is absolutely everything. Presentation, visual presentation, how a house presents to a buyer makes all the difference between yes and no. Presentation is absolutely everything. You know, don’t leave a sponge in the sink. That’s a big thing for my sellers. Do not leave your sponge in the sink. Put it away. And they all laugh at me, but think about it. You walk by a sink in a house that’s a million dollar house or a million and a half dollar house, and you walk by and you see some terrible sponge in the sink. What do you think? It’s not good. It’s not a good look. And then the other one is be the expert. You are the expert. They are hiring you as their expert in renovating. You need to understand the contracts. You need to understand the paperwork, the law, the real estate, everything about the house, the house, the roof, the mechanicals, the market, the street, the area, be the expert. Because they are hiring you and paying you to be the expert. You have to be the expert in the process. You have to shepherd them from day one to closing day. And even after closing day, you have to, because they’re gonna have a ton of questions. That’s why my website says, I’ve got a guy. They’re gonna have a ton of questions. They’re gonna need people. And I, by the way, give expert advice to anybody that asks me. If they want, I don’t just say, you have to hire me for me to give you an answer. If somebody calls me and they say, hey Kate, you know, I’m looking for XYZ guy to do this. Do you have somebody? I said, yep, here you go. Here you go. And I think everybody should do that. I share information because I just think it gives you more credibility. And honestly, that comes around more than it goes away. I, you know, I’ll say, here’s a great architect. Here’s a great tile guy. Here’s a great guy that can take out that old oil tank. Here’s a great landscaper. Here’s a good gutter guy, whatever it is. I just, I’m like, here you go. Here are my people. I don’t expect anything in return, but you’re just building your credibility as an expert. Say, you know, because they’ll say to the next person, oh, you need that? Call Kate DiDabo. She knows, she’ll just text it to you in two seconds. That’s what I do. I just, anybody that I, but I vet them. I don’t just give them anybody’s name. I vet them. And if they’re good, I say, would you mind? I always ask them. Would you mind if I pass your name along? And they, I mean, I’ve had one or two people say no because they’re so busy, they don’t want any more business. But other than that, pretty much everyone say, sure, pass my name along. But I’m the expert. So pricing, presentation, be the expert and don’t be afraid to ask for what you want. But if you don’t ask for it, nobody else will. Yeah, I love it. That’s so true. I think being that, yeah, that go-to person that is for everything housing, like you need something, they’re gonna have a good suggestion. Makes a ton of sense that you would wanna be that person for people. We wear a lot of hats, we wear a lot of hats, right? Always, totally. What about a favorite book, a fundamental book you think everybody should read or one that you’ve currently enjoyed? Well, I mean, to be fair, I don’t really have a favorite book, but I have a book that I’ve always thought of that I would always recommend to someone. If that’s what you would consider a favorite. It was a book that I read a really long time ago. It just stayed with me. I don’t have, I have a club, so we read a lot of books and they don’t all stay with me. But there was a book called The Red Tent and it’s just about, it’s kind of, it’s about the Bible, but it’s really about the shared female experience from the women in the stories. It’s just about shared female experiences and shared female places. And it just was, it just has always stayed with me how women need that. Women need spaces and conversations with each other. I mean, they need that to be strong and live a healthy life, I think. I think, I mean, I don’t know why, but I mean, I have a lot of friends. I have a lot of close friends, a lot of great female relationships. Maybe that’s why it resonated with me that it spoke to me. This is what I’m supposed to be doing. I am married and I have two children. It’s fantastic, but I really, all my female relationships as well. And I don’t know, that one sort of stuck with me, but I think, I mean, anybody could read it, but I just think it was certainly an excellent read, but it was, that’s really what I thought about it. Okay. Yeah, and then Kate, if people want to follow you for more, what social medias are you active on? They can follow me on KJ Real Estate on Instagram, and I’m on, my website is katediodavorealestate.com. They can follow me there. And I’m under Kate Jocelyn Diodavo on Facebook as well, but I’m not on TikTok. I should be on TikTok. Not yet. Well, Kate, thank you so much for being on the show. It’s been a lot of fun talking to you. Thank you. So great talking to you. Talk to you later. Thanks for listening to the REI Agent. If you enjoyed this episode, hit subscribe to catch new shows every week. Visit reiagent.com for more content. Until next time, keep building the life you want. All content in the show is not investment advice or mental health therapy. It is intended for entertainment purposes only.
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Why producing agents have an unfair advantage as investors — and how to use it.