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1,771,405
Noah Seidenberg
Coldwell Banker - Evanston, IL
Chicagoland and Suburbs (800) 858-7917

Explain the value you offer in listing that property. You get what you pay for and I know that the level of marketing, knowledge and advertising you get when I list a property is worth that commission.

Apr 19, 2015 01:19 PM
Ambassador
1,565,645
John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

Explain how commissions work.  A couple of times I've said well how you would you like to work 40 hours and only get paid for 20?  Oh yeah..... Light bulb moment.

I have cut my commission when it was the only way the home could be sold due to debt etc. 

Apr 19, 2015 11:54 PM
Rainmaker
3,912,090
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

I never discuss my commission until I'm done with a full marketing presentation. Based on that I virtually never get a request for a commission cut. But if I do, I simply say no and reiterate what it costs me to market their home and then ask them what they'd like me to cut out of my marketing program.

Apr 19, 2015 09:33 PM
Rainmaker
3,532,459
James Dray
Fathom Realty - Bentonville, AR
Exceptional Agents, Outstanding Results

Sure I'll cut my commission.  Now just tell me what services that I provide do you want me to cut?  That usually gets their attention.    

Apr 19, 2015 08:49 PM
Rainmaker
5,372,309
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Debbie,

One of our clients says, "If you can negotiate my commission down, then that would show you that I would not do a proper job on your behalf!"  

I think that great agents are worth it, because in the long run they save their sellers money by doing all the things a great agent does, from pricing a home perfectly, staging, etc...Time is money!  A

Apr 19, 2015 02:28 PM
Ambassador
4,312,167
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

I learned a trick in one of the BOLD training session Debbie Reynolds . Let the seller choose one of the three numbers, X, X+1, X+2% (and you usually charge X+1.) The seller is most likely to pick the number in between.

There are number of ways you can handle commission objection. Floyd Wickman taught the dollar bills method, Mike Ferry would say 'No' - any other question and other coaches have their own way of bypassing this question.

Bottom line is - if you expect negotiations, you'll get negotiation.

Apr 19, 2015 01:16 PM
Rainmaker
379,689
Cindy Davis
SD Home Source Realty - San Diego, CA

You response really depends on whether you want the listing or not. Are you as a listing agent prepared to negotiate your commission?  The conversation flows from whatever your policies are about commissions. I might start by asking what the seller thinks is appropriate and go from there.

Apr 19, 2015 10:42 AM
Rainmaker
3,297,999
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

What would you like to pay? Then i hit them with what i offer and often have them ready to hire me at that point. Rarely does anyone balk and when they do, i tell them some of the good stories about rescuing sellers who tried discount brokers. 

Apr 19, 2015 10:39 AM
Rainmaker
3,333,298
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

You get what you pay for.....and list what you do...much of what may not be what other people do for less commission and why those services are important.

Apr 19, 2015 10:19 PM
Rainmaker
869,411
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

Knowing that during the presentation I thoroughly answered the five question they really have, and referring them to the booklet that lists the five question on the cover and having them acknowledge the questions have been thoroughly answered, the conversation that follows is:

"We want you to be our listing agent. But I feel obligated to ask what are your fees?"

"That's a great question! My fees conform to area standards and are less than some corporate run franchises. Selling costs are shown on line 23 of the listing agreement which I will prepare for you right now. Did we agree the List Price should be $428,000?"

Apr 19, 2015 10:18 PM
Rainmaker
1,707,347
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

If they want a commodity go to the farmers market and shop for the best price on an orange, and if they do not want to pay for professional service, do it yourself. They I wish them luck and walk out the door.

Apr 19, 2015 10:15 PM
Ambassador
2,759,387
TeamCHI - Complete Home Inspections, Inc.
Complete Home Inspections, Inc. - Brentwood, TN
Home Inspectons - Nashville, TN area - 615.661.029

 I have heard several real estate agents talk about commission structures. Many folks just do not  understand the expenses involved in real estate.

Apr 19, 2015 10:03 PM
Rainmaker
6,375,259
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Tell them that your commission policy is the same for all clients and that your policies have resulted in great success in the area market. Fair compensation is expected for exceptional service.

Apr 19, 2015 09:46 PM
Rainmaker
1,445,227
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Debbie Reynolds I do not cut my fee. Sellers expect full service even with a reduced fee. Why work harder for less.

Apr 19, 2015 09:15 PM
Rainmaker
1,683,050
Larry Johnston
Broker, Friends & Neighbors Real Estate and Elkhart County Subdivisions, LLC - Elkhart, IN
Broker,Friends & Neighbors Real Estate, Elkhart,IN

You can always compensate the cost in the price of the home.

Note: What happens when they go to the gas station?  Do they say "That's too high"?   We all do that, but we still pay the price, if we want some gas!

Apr 19, 2015 01:34 PM
Rainmaker
5,570,688
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

we are paid the same fee by all of our sellers, and we continue to receive referrals from them for a job well done....why would we charge a lesser fee to anyone....that would be a slap in the face to everyone who previously hired us....we're fair and our marketing is worth every penny...we're well versed with listing and marketing real estate....

Apr 20, 2015 12:49 AM
Rainmaker
1,624,472
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Lend Smart Mortgage, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

Debbie Reynolds I agree with Larry Johnston with this one. In fact you can increase the price of the home and also increase your commission by 1-2% points to more than offset the differential. Then see what the seller has to say when every agent in your market is fighting to show the home.

Apr 20, 2015 12:09 AM
Rainmaker
4,799,356
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

I can always work on an hourly basis at $75.00 per hour if they wish.  And, then explain the amount of time I need to take pictures, write up the listing, talk to prospective buyers, other agents, accompany showings, work on contracts and negotiations, etc.  Typically, they will choose the commission instead.

Apr 20, 2015 03:48 AM
Rainmaker
3,961,251
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

If you want to choose the commission you pay me, I get to choose the price you will accept.

Seriously and I mean seriously folks -  Ron and Alexandra Seigel's client has the response I use in those situations -- if you can out-negotiate me on commission how will I best represent you in the difficult negotiations that will surely follow?

Apr 20, 2015 01:38 AM
Rainer
55,246
Tabitha Rector-Richardson
Premier Homes Realty - Owings Mills, MD
Premier Homes Realty (443) 415-4215

I usually provide a Seller net sheet with the commission already calculated in along with the estimated tranfer charges, Seller closing cost help and adding in a warranty.  Based on the number, I will determine ahead of time what will work and what will not work.  Sellers usually don't have a problem once they see their bottom line number. 

Apr 20, 2015 01:34 AM