Just about every real estate agent has been faced with home sellers who have commission questions. Usually, they want to pay a lower commission than your normal fee. It’s frustrating because sellers sometimes don’t realize all the knowledge and expertise that agents contribute to a successful home sale. Besides that, lowering your commission is just like losing money! Here are some ways to answer that “will you lower your commission” question most effectively.
No. 1 – You’ve Got Technology on Your Side
Part of your commission is used to pay for the technology that is a requirement in today’s digital environment.
- You have direct access to posting homes for sale on a wide range of online home websites because you pay an annual membership fee to participate in the local MLS organization.
- You maintain a real estate CRM system that helps you stay in touch with buyers and sellers in your area. As a result, you have a direct pipeline to potential buyers.
- You have automated appointment scheduling for real estate agents that makes life much easier for a seller.
- Your showing feedback technology provides you and your sellers with inside insight to what buyers who see your home are thinking. This is an invaluable tool in marketing a home for sale.
- You don’t just put a for sale sign in the yard, you use real estate SMS marketing on your yard signs. Buyers who are checking out your neighborhood and your home can send a text on their phones to get instant information. It’s a great way to encourage a potential buyer to schedule a showing.
There may be other types of technology you pay to acquire and maintain that will benefit a seller, and you can add those to the list above.
No. 2 – You Have Information to Set a List Price Right the First Time
One of the most difficult, but most critical, parts of selling a home is setting the price right when it’s first listed. You know what happens to overpriced homes. They stay on the market too long and often sell for less than they would have if they’d been priced right the first time.
You have access to detailed information about the sales that have happened in the seller’s neighborhood and surrounding area. You have the expertise to do a comparative market analysis to set a market price on a home. That knowledge will the homeowner realize the most profit.
No. 3 – You Know How to Solve Problems
If you’ve been in the business for any length of time, you’ve come across a variety of things that threaten a home sale – everything from not preparing the home to sell, to delays in obtaining a mortgage and more. You’re in a position to avoid problems that you see coming, and to quickly settle problems that have already cropped up.
No. 4 – You’re an Expert Negotiator
You’ve spent time learning how to negotiate issues related to a home sale. Emotions run high during a real estate transaction, for both buyer and seller. You have the expertise to make the transaction go more smoothly and save it from falling apart.
Only you can decide if you want to reduce your commission to obtain a listing. If you do, keep in mind that you may get into the habit of using price to get sales, and that will have a negative impact on your income.
There are many ways to handle commission questions when they come up. If you say you don’t discount commissions, the homeowner will often come back with, “Well, Jack, the other agent we spoke to was going to lower the commission.”
Probably the best response to that is, “Really? That surprises me. What services did Jack say he wouldn’t be providing at the lower commission?”