The standard 3% commission is just a little too much for some home sellers to handle at first. Here’s a fresh approach to the situation that will increase your odds of getting your standard commission.
I recently received another question about commission structure from an agent that I felt I just had to address. This agent went on an appointment with a seller and couldn’t get the seller to budge from wanting to pay a 2% commision, which is much lower than the standard 3%. The problem was that this agent didn’t know how to attack the situation. Here’s what they should have done.
When you’re dealing with a seller who doesn’t want to pay full commission, you need to approach the situation differently. First, find out what their motivation is for selling. Then you need to find out what price they’re looking to get for the home.
“Show them you’re worth your commission.”
Instead of starting out with the question, “Will you pay a 3% commission?”, start by asking “What price are you looking to net on your sale?” After you have that number, here’s how the conversation should go with that seller:
“If I was able to net you the amount that you’re looking for, would you consider adding the 3% commission on top? You obviously want to net the most money possible, that’s why you only want to pay 2%. Do you have a plan to get that full price? I do, and if you let me assist you, I will give you a full-service experience while netting you the price you desire.”
I’m not saying this strategy works 100% of the time, but what I am saying is that switching up your approach by initially demonstrating value to your potential client is smart. And it does work. When I’m able to charge a 6% or 7% commission on a home, it’s because the homeowner knows and sees the amount of work and effort I’m putting in to ensure that we achieve our goals together.
If you have any questions for me about commission structures or anything else related to the business, give me a call or send me an email. I would love to hear from you.
