How to Negotiate and keep your rate consistent. 💰
➡️ In this industry, we all get the dreaded question from the consumer… Would you reduce your commissions? Seems like more and more sellers are asking how to negotiate with a realtor to reduce the commission. We all have had to tackle tough conversations and overcome objections when it comes to commissions. So, learning your way to more profit starts with you. Are you willing to do the things that top agents do to keep their fees consistent? 🤔 Just curious, what is a fair commission for a real estate agent? Here are a few tips on defending your real estate commission.
One of the best ways to keep more of your hard earned dollar is this simple thing, KNOW your listing presentations INSIDE and OUT.
The first thing to learn is this, never discuss commission on the phone. Let the seller know you have a flexible commission rate and that at the end of the day the seller will drive that conversation. Then wait to talk about percentages until you sit down at that listing appointment. Now, at the appointment, make sure you are sitting at their dinner or breakfast table. Do not sit in the family room or on a couch. It isn’t the right spot to share your success tale with them. Make sure every decision-maker is there AND paying attention. Go through your presentation each and every time. Even with friends and family, this will go a long way toward explaining the value you are bringing to them. If you are not giving them everything at this appointment, why should they be willing to pay you what you want them to?
Here are some common objections and tips for how to handle:
Objection #1: The other agent said he would charge less.
“Agents who discount their fees are often desperate for business and also cut the price of your home in negotiations to just put the deal together. I commit 100% of my services and effort to getting your home sold for the highest price, in the shortest amount of time, with the least amount of hassle. I don’t compromise on my service, and I won’t sell your house short. That’s the kind of agent you want representing you, isn’t it?”
“Let me ask you, have you ever purchased an item in the past based primarily on price and later found out the value and quality was not nearly as good as you thought?”
“Since your home is likely one of your largest assets, doesn’t it make sense to go with the best service and company you can find? Besides which is more important, the commission you will pay, or the net proceeds you will receive at closing?”
Objection #2: Other agents will cut their commissions, will you?
“Let me tell you why that concerns me.”
“Do you own anything more valuable than this home?” (No)
“Could you say that it is one of your most valuable possession?” (Yes)
“My concern then is the other agent has already shown you his/her negotiation skills – one of the things we already agreed is perhaps the most important reason behind hiring us as your agent.”
“If the other agent can’t even negotiate a full fee for their value and themselves, can you imagine what might happen when you’ve put that person in control of negotiating your home’s value, or your equity?”
“Is that the right person to sit across the negotiating table trying to fight for you and your most valuable asset?”
“They may feel they are not worth their fee. If they will reduce their price at the listing table, what will they do at the negotiating table? I will be tough and professional on both my fee and the price, particularly at the negotiating table.”
At the end of the day, know your value, and know your worth! It is so important to be a professional. Remember, you can buy a shirt at Walmart or at Nordstrom’s. Go the extra mile, and earn your commission check!