Use your Expertise to Justify the Commission You Charge
You don’t want to come off as self-important, but you do want to educate customers about what it is that you do, and most importantly why you are worth what you charge to coach them through the sale.
So what are the reasons YOU are worth the commission? And what will you say when a sellers says… “I’ll consider using you to list my home if you will reduce your commission”?
What are you going to say? The dazzling response of... “well… uhmmm” just isn’t going to get your point across. You have to be prepared to answer the hard questions:
#1. You have access to better information to assess the property’s value. A full time REALTOR’s intimate knowledge of the local market is priceless information. This is the first place you will earn your commission. A 1% decrease in commission on a $300,000 home is $3,000, but a $10,000 low miscalculation in pricing is a $7,000 gain!
#2. You know what makes homes sell and what buyers are looking for. You have a keen eye for the small changes in staging, paint colors, and needed repairs to bring maximum return for the seller prior to placing a property active on the market. You are skilled in portraying a storyboard with photos and room descriptions to highlight the attributes and attract internet shopping buyers.
You can market to agents with buyers who are actively looking in your area, and you may have have a full service relocation arm of your firm which is constantly bringing new buyers into our area. You will only market your listings to qualified buyers, and all showings will be secured through a ShowingTime Service, where you will know every time a showing occurs and feedback can be sent directly to the sellers phone via email or text.
#3. You understand the appraisal process. Many consumers don’t even understand why an appraisal is done on a home when it is being purchased. Federal rules now prohibit many forms of communication between the appraiser and the buyer, seller, and agents. A full-time knowledgeable REALTOR can give an appraiser “legal” supporting data to keep the appraisal up and in line with the contract price.
#4. You are a professional negotiator. Being able to negotiate your commission is the first indication to a seller of how good you are. Saving a seller $5-10,000 through proper negotiation skills will more than recover the commission reduction the seller is asking for. Also if they use you as their Buyer Agent, your mad skills in negotiating will save them money there as well!
#5. You do most of the thinking for your clients. You can supply peace of mind by handling the most taxing parts of the transaction for them. Your client’s won’t have to tax their brains to take the time to learn the ins and outs of the selling process because you already have the knowledge. They can focus on the bottom line while you engage with those who want to take a piece of it.
#6. You are properly trained. It’s impossible to do what you do, and at the skill level you perform without the proper training required to understand the nuances of the real estate industry. Not only are you properly educated, licensed, trained, coached, and managed to properly assist seller and buyers, but you are required to take regular continuing education classes to keep your skills in-line with current market trends. And in addition because you are a full-time REALTOR you have the years of experience to help your clients through even the toughest transaction.
The REALTOR Brand has been around for over 100 years, and you are carrying on a legacy of professional and exemplary service. You are backed by an industry with leaders who lobby for better training, private property rights, and laws which protect the consumer from fraud. So when you are asked the question… “will you reduce your commission” you can proudly and with confidence say “ NO, But let me tell you why”.