Try these strategies the next time a prospective seller asks you to cut a deal on your commission.
- Ask why. The obvious reason is to save money, but a seller’s answer could give you insights into other options you can offer that have nothing to do with commission, such as the length of your listing agreement.
- Show your worth. Explain the services you provide that sellers would find tough to navigate on their own, such as comprehending each party’s responsibilities in contracts and addenda.
- Detail the data. Share statistics about your success rates for sellers. If a prospect finds out your homes sell more quickly than others or typically get top dollar, they may see the value in your fees.
- Throw in some freebies. Offer free services useful to sellers, like a visit with a home stager or time with a handyman. These services may cost you, but not as much as lowering your commission.
- Just say no. Don’t be afraid to decline. Undervaluing yourself before signing a listing agreement isn’t a great way to start a new relationship. Spend your energy finding sellers who are on the same page instead.
These tips appear in the July Texas REALTOR® magazine. Read this issue of the magazine online for more information relevant to your business.
When we were in Minnesota, discount or rebate was illegal. Because of that, agents compete on good services to attract clients, and that’s why their agents there did a better job in the entire transaction from putting up a for-sale sign to closing.
Ninety percent of agent do a good job! Don’t lesson yourself by reducing your commission. All the agents that I have seen do a good/fair job so don’t be fooled by small talk. Home’s sell yourselves if their maintained. Just get in front of a potential seller as soon as you can and be honest. People do not ask the grocery store or the doctor to lessen the price if the value of the service is selling their home !
Good info thank you!
When asked about lowering commissions I always ask my client “what do you do for a living” they may say “I’m a Surgeon” then I ask “what is my discount for heart surgery?” They Get It!
Tell the seller that if they are looking for a discount broker, that you can refer them to one, but they will give you discount service!