How to get a FULL Commission

 

Commission is a very sensitive subject.  Let me start by saying that most agents make way too big a deal about the commission objection.  Let’s get right to it.

 

In many cases the seller isn’t “committed” so saving money by paying discounted commission.  Often, they are simply asking if it is possible.  The difference between the seller asking you if you’d be willing to take a lower commission and the seller who refuses to list with you at a full commission is a big distinction.  If you’ve made a strong presentation and they ask you about commission… simply say, “Mr. Seller, I appreciate you asking but in fairness to all of my clients… my fees are always the same.”  Then continue as if they never asked.

 

The problem is NOT that they aren’t convinced… it may be that you are not convinced so let me continue.  How much are we really talking about in most cases?  One percent?  Two Percent?  Translate that into dollars.  If you were to list a $200,000 home, then even 2% is only $4,000.  Would the seller take a cash offer at $196,000?  In most cases with a huge smile all the way to the bank!  Yet, they are going to choose the person to bring that offer or worse yet… negotiate that offer over the first $4,000 of negotiating room.  As the average sale price goes up, the commission the seller is trying to save becomes less and less significant yet in the mind of most agents… because of the size of the commission, they are more and more likely to cut it.

 

Speaking of the negotiating process…  Have you ever sold a home to a buyer that would have paid thousands of dollars more than they had to because of you got them a great home at a great negotiated price?  Yes.  Have you ever sold a listing for a negotiated price greater then the seller was willing to take?  Yes.  So you ARE worth a percent or two more!  Start taking about the buyers and sellers who have saved thousands, even tens of thousands with you and you’ll stop feeling like you should compromise your value.  How to get a full commission is a secondary issue to your belief system that you can and deserve to get paid for the service that you provide.

 

Having said that, the next thing we need to understand is why so many agents and even companies will discount the commission as a business model.  In making an argument for your value, it is often important to help the seller understand why the others do what they do.  In this case, offer a discounted commission.  It is simple really… have you ever had a great listing in a nice neighborhood and your phone rang off the hook with sign and ads calls?  Have you ever decided not to put up a “PENDING” sign because you wanted to keep the buyer calls coming?  What commission do we normally get if we have a buyer- controlled sale?  Usually a full 3% or more, right?  In truth, we can make a lot of money getting buyers of our inventory even if we don’t sell the listing or make money on the listing side.

 

So, educate the seller.  Do the math for them.  “Mr. Seller, If I were to take a 4% listing and give 3% to the selling broker, I’d make $2,000 as your listing agent.  I have expenses, a split with my office and taxes.  That doesn’t leave much, does it?  So why would an agent or company agree to do that?  If the home doesn’t sell and each month I can pick up just one buyer off the sign or my ads… I will make a full 3% or $6,000 every time I sell a home to that buyer.  The majority of buyers will purchase a home other than the one they called on so the listing can be the best source of new business the agent has. 

 

In a market where the majority of homes listed do not sell month in and month out, do you really want to hire an agent that has more financial incentive to keep the home on the market than they do if they get it sold?

 

This is just a start but remember… you are worth it.