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Beat Commission-Cutters with the “O.J. Simpson” Close

Have you ever found yourself baffled by clients who ask you to reduce your commission at a listing presentation? Then baffle no more! Here's a step-by-step script to help you negotiate the best commission rate. Larry Hoffman gets a little bit "in your face" with his client - but it works! Read on…

"The dialogue goes like this.

Seller: What is your commission rate?

Agent: Other than the commission rate is there anything else that will prevent you and I from working together?


Agent: So let me understand what you are saying, If we can agree on the commission rate you are prepared to sign the listing TODAY?

Seller: Yes

Agent: Tell me, what is your concern about the commission rate?

Seller: I have been quoted by "ABC Realty" that they will charge me a total of 3.5% to sell this home.

Agent: (My answer is said in a firm, mildly combative tone of voice.) Why would you pay 3.5% for selling your home when I can send you to a company that will list your home for $1,000.00? You have to do all the work, book the appointments, pay for ads and promotion, prepare and negotiate your own contract, deal with unsavory people walking through your home, etc. Is that what you want? (NOTE: No matter what the answer, except "I'll pay you what you want", continue…)

Tell me, is selling this home at the highest possible price important you?

Seller: Yes, but we don't want to pay too much or get ripped off.

Agent: NO ONE DOES! However, when something is very, very important, do you think most people want the solution, not necessarily just the lowest price? Don't you agree?

Agent: Have you ever heard about O.J. Simpson or Michael Jackson?

Seller: Yes.

Agent: What kind of lawyers did they choose? The 3.5% lawyer or the 6% lawyer? (Or whatever rate you want. Now, shut up and wait for their answer.)

Seller: 6%

Agent: You said selling this home at the highest price is important to you is that right? (Say this with great confidence) I am the 6% Lawyer and you will be thrilled with when we finally sell your home. No one ever regretted using top quality service, don't you agree?

…tell me what is the closing date or what else are you including in the purchase price are you taking the fridge or including it. (Take out your listing agreement and take the listing.)

Hope this helps someone. It's made me a lot of money."

Next Article: Make a Movie, Close a Deal…

Issue #1106