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?
Seller: No, that’s about it. (BE SURE TO GET THIS COMMITTMENT BEFORE YOU PROCEED OR THEY WILL RAISE ANOTHER OBJECTION).
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?
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?