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Insider Tips Script: The Trick to Negotiating Real Estate Commissions with Sellers


I have a really powerful way to have an honest conversation about commissions with a seller.

This is a great script from one of my top producers.

Here's what he says: "Hey, listen, here's my listing fee. My listing fee is [X, which could be 2.5%, 2%, 3%, or whatever number you choose.] I'm not trying to price-fix here. But what we really need to talk about is what we're going to pay the buyer's agent. We need to look at this as a marketing incentive to get buyer's agents to show the property.

To help you make a decision on what to offer the buyer's agent, I recommend doing a commission map survey. Put a pin on a map and look at every listing that sold within a certain radius, such as a mile, five miles, or half a mile. Of the listings that sold in the area in the last six months, you can see what commission they offered to the buyer's agent.

Based on that, you can decide where you want to be. You can be where most people are offering to buyers, or you can be an outlier and offer a little more or less

For me personally, I would tend to go right here because I want to get the property sold relatively quickly.

I want to be at the top of the list, not the bottom or even the middle of the list, especially in the market that we're in."

This is a great script and it really makes sense.

If I were on the other side of that script, I'd feel like, wow, this agent's done some homework here. And then the conversation moves away from the listing agent's fee and really towards the meat of the matter, which is the buyer's agent's fee. A lot of times, people hurt themselves when they discount that number. So check it out and see if that works for you.

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