Thomas J. Nelson, Realtor, ePRO, CRS, RCS-D, & Host of Postcards From Success Podcast (Big Block Realty 858.232.8722)

Spam prevention
Rainmaker
1,150,026
Carol Williams
U.S.: I specialize in helping agents who have been in the business 2 years or less create a thriving business. - Wenatchee, WA
"Customized Mentoring & Marketing Services"

The discount brokers give the perception they provide the same service. One such discount broker uses the tagline "Full service for less."  It is NOT full service.  You need to make them understand the difference. 

A Kia and a Lexus are both vehicles that will get you from where you are to where you want to go.  Neither is better or worse than the other.  It just depends on what the consumer is looking for and how much they are willing to pay for the comfort, convenience and image they wish to portray. 

Sep 14, 2018 07:53 AM
Ambassador
3,787,093
Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

It's rare that it comes up. I let them know what I provide them, but also the experience and knowledge I bring to the transaction. If they want discounted services they can call a discount brokerage.

Sep 14, 2018 07:47 AM
Rainmaker
4,608,265
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
"Franklin MA Homes"

when they ask the team members if they will reduce their commission, the answer is NO.... it's simple...if they continue to attempt to negotiate, our answer is to seek out the service of a discount agent/broker and tread water.... and we will sit again after the listing expires.... it's not a personal thing, it's good business sense to earn what you're worth..

we get the listing....always....always....always....

Sep 14, 2018 07:40 AM
Rainmaker
1,425,320
Bob "RealMan" Timm
Tivoli Custom Homes - Minot, ND
Bob Timm, Project Coordinator for Tivoli Homes

At the end of my career I was only listing with Builder/Developers and they typically did ask for (and received) a 1% discount of me Thomas J. Nelson, Realtor, ePRO, CRS, RCS-D It was always worth it to me as they provided a wonderful work space for me and endless inventory. As far as single family listings I did not give a discount, I simply did not need their business so I could have cared less if they signed with me or not.

Sep 14, 2018 07:36 AM
Rainmaker
2,697,946
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

A hot topic for certain.  We do get what we pay for. Some folks just want it all and do not want to pay anything! Some people actually expect others to work for them for "free".  Shocking, I know. But it is true! 

There is a sense of entitlement with some people ... those are not my people.  

Sep 14, 2018 08:35 AM
Rainmaker
2,680,188
Richard Weeks
Dallas, TX
REALTOR®, Broker

No, next question

 

Sep 14, 2018 07:42 AM
Rainmaker
4,050,214
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Thomas,

I agree with Barbara Todaro .  We never discounted our commissions.  If they wanted that type of service, we moved on.  In the worst of times, we asked for a higher commission, so that we could give the cooperation broker a higher split to bring their clients to our listing.  Have you every seen Tiffany's discount their products?

Sep 14, 2018 08:01 AM
Rainmaker
923,841
Valeria Mola
SIB REALTY - Sunny Isles Beach, FL
305-607-0709 SIB Realty

In our area we have one only with % from seller. I don't see they have many listings. 

Sep 14, 2018 08:21 PM
Rainmaker
1,342,610
Evelina Tsigelnitskaya
SIB Realty - Sunny Isles Beach, FL
www.SIBRealty.org 305-931-6931

We know this game - discount brokerages are for the sellers who think they are Realtors without license - they know everything...

Sep 14, 2018 08:20 PM
Ambassador
3,733,138
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams fox cities - Stevens Point, WI
Forestland Experts! 715-204-9671

I make sure that they know the difference and make sure that they really want a professional rather than a clerk.

Sep 14, 2018 09:35 AM
Rainmaker
347,871
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

Carol Williams has a really good answer. What are you actually getting with a discount broker? Any service at all? Professional photos? Professional marketing? Professional service? You get what you pay for.

Sep 14, 2018 09:32 AM
Rainmaker
2,723,907
Nina Hollander
Coldwell Banker Residential Brokerage | Charlotte, NC - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

I never discuss commissions before reviewing my services thoroughly. People get the value I bring to the table. And if they don't, tant pis... as the French would say. (At the end of the day, it's my job to make certain they understand we are not providing the same services.)

Sep 14, 2018 09:25 AM
Rainmaker
2,355,908
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

People who base it all on money outcomes leave themselves open for a few surprises. Another problem? Their mind is set a danger to anyone who doesn't remain open to change, growth and grace. When someone comes at an agent with a "how come" money scenario, it puts one on the defensive (not good) automatically. What then? I finish what I start and when things get rough, I am paid to see it through. Mess with that and the seller self-sabotages. Places that discount wash their hands of any problems for the obvious denial i.e. I am not getting paid for this only to sell the product. On something as big as a lifetime purchase...PAY FOR GOOD HELP or pay for not having it!....

Sep 14, 2018 08:49 AM
Rainer
506,570
Steve Higgins
RE/MAX Kelowna - Kelowna, BC

I tell them why they should pay more, they are paying for my service and expertise. If they want discount they can take there business there. You get what you pay for as with anything in life.

Sep 14, 2018 06:00 PM
Ambassador
2,898,531
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

I rarely get that but, when I do, I ask them which of my services they would like eliminated - as the discount broker doesn't do A FOURTH of the marketing that I do...nor can they negotiate a better price as well as I can!

Good luck, Thomas!

Sep 14, 2018 10:21 AM
Rainmaker
929,592
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

There's a simple formula to follow: SP/LP, sale price divided by list price means many things to many people. To a Seller it should indicate the effort one makes to provide the highest return for their client based on ALL previous listings they've had the pleasure of closing. A seasoned full service agent should know this number off the top of their head without hesitation. Wheras, the "discount" broker may not know or worse yet take its value with a grain of salt. Comingled with the Days On Market stats and you'll have a formidable retort. Facts are often pesky!

Sep 14, 2018 10:12 AM
Rainmaker
700,456
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

"you get what you pay for"... in  so many words

Sep 14, 2018 09:46 AM
Rainmaker
4,967,744
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

Do what is best for your business.

Sep 14, 2018 08:34 AM
Rainmaker
1,778,762
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

I try to determine how important this is to the Seller

Sep 14, 2018 03:01 PM
Rainmaker
590,740
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

We discuss our experience, our success, our value-added features and decline to take less than we expect to be paid.

Sep 14, 2018 12:45 PM
Ambassador
2,289,117
Fred Griffin
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

   This is what I charge; this is what you will receive.  Sign here and let's sell this house.

Sep 14, 2018 11:34 AM
Rainmaker
1,185,136
Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor

Ditto, Carol Williams answer.

Sep 14, 2018 10:50 AM
Rainmaker
2,937,679
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

They charge what they charge for what they do and the value they place upoon it. So do I and superior service  seems to cost more upfront and less in the long run. Next question!

Sep 14, 2018 10:41 AM
Rainmaker
700,854
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

When people ask for a reduction?

An agent should assume this will come up. 

If it does, the agent should KNOW they did not answer the sellers REAL questions. 

Assuage their real concerns and what you will hear is, "I want you to know we want you to help us sell our house. But, I feel I really must ask what your fees are simply to do my work."

When the agents SEE they have been reduced to a price competitor they must accept they did not demonstrate their real value.

REAL VALUE does not exist in the 'Success Theater," "Vanity Metrics," and "Surrogate Endpoints" that is the currency of real estate agents.

Agents must challenge themselves to know the five questions, and there are only five questions, that every sellers needs answered.

Does this qualify as a 'Non-answer'? 

 

Sep 14, 2018 07:48 AM
Rainmaker
3,855,996
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I talk about generic foods, usually brings them to reality

Sep 15, 2018 06:47 PM
Rainmaker
4,318,628
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

The sellers should make up their mind based on what service they need.

Sep 15, 2018 08:52 AM
Rainmaker
2,851,549
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Just prove to them that you have a better track record then the discount people.  You pay for what you get.

 

Sep 15, 2018 08:51 AM
Rainmaker
4,638,240
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

A simple no works for me.

Sep 15, 2018 06:48 AM
Rainmaker
1,437,591
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Calabasas CA

You do not. No ~is a full sentence.

Sep 15, 2018 12:05 AM
Ambassador
4,293,736
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Thomas J. Nelson, Realtor, ePRO, CRS, RCS-D - we know (and I think Brian shared this quote) -

Price is Only an Issue in the Absence of Value

Sep 14, 2018 10:49 PM
Ambassador
2,813,306
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

Basically I explain what I do for my fee and where the money goes.  But it's not a common request

Sep 14, 2018 10:11 PM
Rainmaker
3,835,888
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

I start my presentations with all the duties I provide without fail, and have not had an objection to commission in a very long time.

Sep 18, 2018 10:03 AM
Rainmaker
3,642,567
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

I do not discount my service but am seeing many who want to make sure they have the best deal and I have let them go. That is not who I am or what I do. It's rare that it comes up but I am starting to see it more.

Sep 16, 2018 04:28 PM
Rainmaker
1,156,436
Ryan Huggins - Thousand Oaks, CA
www.HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

I explain the difference between a discount broker and me.  If they don't see the difference, then I walk.

Sep 16, 2018 11:49 AM