Let him know that you too believe it to be ridiculous and would not object to a 1% increase!! 

Hi Debbie - I explain all the ways we're going to help him get an equally ridiculous return on that investment.

I wish them well and move on to someone who appreciates our work.

I say you get what you pay for and with my services you are getting top of the line, full service.

Ask them what part of my marketing they would like me to remove

     I have an acquaintance in another state who is furious, because his $800K house was sold in a couple of days, and he has to pay full commission.

     The Listing Office sold it (both sides / double end).  They refused to reduce the $48,000 commission.  He told me they had shown him some "pie chart" that showed how the listing agent only made a small amount of money.  Now he wants to know why he has to pay $48K (I suggested that he read the actual listing contract that he signed).

     Maybe he will calm down, but yesterday he was talking about seeing an Attorney.  

No need to answer as Susan Emo and Dick Greenberg covered this beautifully

2 words.
Buh. Bye.

I refer them to my competition.  

#redflag

I will do a ridiculously good job for you - here's what will need to be done to get your home sold at that price, and the knowledge and experience I have to make it happen

Good morning Debbie. I'm sure it didn't take you very long to explain why it is a well worth expense. Foolish think on their part, but they are wise to have you handle the sale of their home.

Debbie Reynolds - I have given them the examples (Floyd Wickman style) -- do you want to take away this dollar, too?

(With the explanation that the value I provide is lot more than anyone else in the area!)

"well you don't have to hire me"

It may seem expensive, but I'm worth it!

I like Susan's answer

We explain where all the money ends up and that helps.

I am builder rep, so I do not get asked that but many of my realtors do and I tell them they work hard for their money...everyone thinks its so easy but it is not.

It is a lot of money and there is doubt or argument there however...that's what it takes. What can you do? Its either pay what it takes or take your chances like in Las Vegas where you outsource luck instead of create it. I will get you in or out of a Real Estate transaction successfully. Guaranteed. No luck just results! Now, lets get this Real Estate show on the road...shall we?

I haven't had that problem, but I now have heard some good answers.

Run, don't walk, out the door!

The ridiculous amount is what I will save him

And you're ridiculously good!

No one has said this to me, but I'm interested to see what kind of answers you get! (So I can be ready!)

OH MY, not sure if I could have an immediate response!   

I can defend my commission if the seller is remotely reasonable, or I can walk away. No one has time for unreasonable people. 

I show them the value they get... but I may start using Susan Emo's approach!

I would ask them to explain to me in as much detail as possible why they feel that way.  I would take notes ... and counterpoint to what the get (benefits) of paying my fee. 

Debbie Reynolds My feeling is if a seller is going to object to the fee, the seller will object to everything else during the listing period. A red flag that they aren't going to be easy to work with. Early in my career I once reduced my fee and the client ended up being a big PIA until the closing. Lesson learned, life is too short. Time to say good bye and move on.

I remind them of all the things I do to market and get their home sold for the highest price possible.

Ask them what they have been smoking??!! 

We charge everbody the same amount.

Absolutely agree with Susan Emo !!

That Susan Emo ; she is on the ball!

Compile a list that shows the different ways of time invested; show days on market for one that does and cops of the ones that do sell; that should get them back in line for your services.

Love Susan Emo's response! I've actually never had a seller say that once I've explained what I do for them and how much money I spend to market their listing. That doesn't mean some don't try to negotiate the fee down and then the answer is simply "no."

We just had a buyer of a $2,000,000 home say to us...You did all the work and deserve every penny you made, but what did the listing agent do?...

I have not heard that yet. It's only a matter of time. Many sellers are asking for discounts.  They are not seeing our value.  I think the Internet offers the illusion we don't have to work for that %. 

I think realtor service fee should be on a project or hourly basis.  We have too many lawyers, brokers and agents than consumers.