One conversation that can come up as you're out there taking listings is, of course, centered on commissions.
And here's a great script to help your sellers look at the commission, not just cost, but as a marketing incentive to encourage showings and to encourage more offers.
So the script kind of goes like this:
"Hey, Mr. And Mrs. Seller, one thing I wanna talk to you about is the commissions that we charge. Now, I charge a listing marketing fee of X [fill in the blank, whatever you're charging]. And all we have to decide now is what we're gonna pay the buyer's agent. Now there's a little secret sauce here that a lot of people don't understand. Which is, that marketing fee that we're paying to the buyer's agent to bring that buyer in can actually incentivize them to show your home.
"Let me show you an example:
"I did a commission survey in your market area where your home is. I went out about a mile two miles, and I looked at every listing that...
My friend and superstar REALTOR Adam McGrew recently shared a unique concept that he uses when talking commissions with sellers. He focuses his script around what the competition is offering and how the seller can be more competitive in the market.
His first step is to print a map of the area along with a list of properties that are currently for sale near the new listing. He then researches the compensation offered to buyers agents and highlights this information in his presentation. Next he asks the seller a simple question "So, you do want to be competitive, right?"
Not only do most sellers want to match the current compensation offered to buyers agents in the market, many want to incentivize buyers agents and encourage more showings by offering a higher compensation percentage.
Watch the video for more details...
What do you say when a seller asks you to discount your fee or worse the buyers agent fee when responding to an offer?
Your answer can set the stage for how the seller will approach all negotiations through out the sale. It can also impact how cooperating agents view your brand and future working relationship.
Watch this quick video for ideas on how to respond effectively and also how to respond when the seller complains that you sold the house so quickly they shouldn't pay you the full fee.
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About Jim Remley
Jim Remley is a nationally recognized expert in the field of residential real estate. Entering the real estate industry at the...
What do you charge?
You will hear this question hundreds of times during your real estate career. How you respond can determine if you actually take the listing, your earnings per hour, and how much you value your time as a real estate professional.
When you fumble or fold by offering a discounted commission you not only do a disservice to yourself, you do a disservice to the industry, and your colleagues. Why? Because it signals to potential clients that fees aren't based on actual costs of doing business but on an arbitrary number that is negotiable.
Professionals set their fees based on the value of the time, the cost and structure of their business operations, and their expenses associated with each client. As a real estate professional you should be doing the same. Check out these easy scripts for making those conversations easier:
What do you charge?
It’s a success fee. I don’t charge anything unless I bring you an offer and we bring it all the...
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