We have all been asked the question more times than we care to talk about:
“Can you reduce your commissions?”
Don’t they realize that Real Estate Agents work solely for commission? That fact is, they don’t think about that. They just think that more commission paid to you means more money out of their pocket. That’s why it’s important to explain the reasoning behind paying an agent commission in terms that they can relate to.
We put together this simple script that will help you get the full commission you deserve and avoid a potentially tense relationship with your client.
Here’s an example conversation:
Client: Can you reduce your commissions?
Agent: I’m actually glad you brought that up, but let me find out what your main concern is. Are you worried about the commission itself, or about your overall bottom line?
Client: My bottom line.
Agent: I totally understand. The reason we can sell homes for more than other Realtors is because of our marketing program, and the cost of that marketing program is in the thousands. If we cut your marketing back, I will not be able to get your home the proper exposure it needs. My main job is to make you as much money as possible. (Do the math on the back of your net sheet, in front of the client, showing the difference marketing makes on their sale). So, do you agree that by implementing our marketing program we will be able to maximize your bottom line?
C: Yes – Great sign here!
OR: NO – I have a friend who will sell it for less.
A: I can appreciate that, really. (Add your story about helping a friend that had a bad result). But let me ask you this: if you ever had to go in for brain surgery, would you use the doctor that is the cheapest? Or would you look for the best?
C: The best. (Possible eye roll).
A: Haha, me too. But the great thing about real estate is that if you hire the best Realtor, you will make the most money in the end. Selling is a numbers game. More buyers = more chances at a full price, or even over full price offer. The only way to get the numbers needed for that is to use our industry-leading marketing program. This is why we sell more homes than anyone else in our market!
C: Nope I need you to reduce your commission!
A: Ok, we can do that, but is it OK with you if we make this a win-win situation?
A: I have a VIP rebate program that I typically reserve for our repeat clients that can save you thousands. I can reduce my commission by $____________ in return for just a few reviews and referrals.
So for every five-star review you submit about my services, you will receive a $________ credit towards your closing costs up to $__________. And for every referral you send over, you will receive a $________ credit towards your closing costs up to $_______. Does that make sense?
A: Great let’s get started on the paperwork!
Now, it’s not going to go exactly like this of course, but at least you have something to stem from. The better they understand the value of your services, the more willing they will be to accept your fees. Working with a real estate professional is far superior to private sellers fending for themselves. You just need to make them aware of the benefits!