Google

The Commission Question: What to Do When Asked to Lower Your Commission

Sep 9, 2019 by

Regardless of how long you’ve been in the industry, you’ve probably had at least one client ask you about your commission. How do you handle this question in a way that protects your income and grows your clientele? Here are some thoughts to consider when asked to lower your commission.

Mulling Over The Commission Question
When potential clients ask you to lower your commission, you need to remember that it’s just that: an ask, not a command. They want to find out if a lower commission is in the realm of possibility.

It’s your job to begin an open dialogue with any potential client who raises the issue.

Find Out Why They’re Asking
It’s important for you to determine the client’s motivation for asking. The client may know someone else who got a deal, money may be tight, or they just might not have a full understanding of what real estate professionals do.

Listen to Them Carefully
Clients want to know that they can put their faith in you and you’re not just looking to make some easy cash. When you ask your clients why they want you to cut your commission, make sure you genuinely listen to their answer with empathy.

Restate Their Concerns
When handling the commission question, John Grimes, a REALTOR® with Better Homes and Gardens Real Estate Metro Brokers, scales back the situation: “I paraphrase their statement to make sure that they understand I’m hearing them. That often calms people down. People are desperate to be heard and understood.”

Acknowledging your clients’ concerns aloud will make them feel as though you understand where they’re coming from.

Address the Issue
If your clients’ problem is financial, help them understand how much money they’ll potentially spend and earn at the close of the transaction. They may feel better about the commission when they realize what they stand to gain.

When the issue is that your clients don’t fully comprehend what agents do, you must walk them through the process. Your clients may think that your job begins and ends with listing their home on a multiple listing service (MLS) and putting a sign in their yard. You need to explain the value you bring to the table.

Demonstrate Your Worth
Be sure to up your merit with evidence.

Show them proof of your recent sales, including what your houses sold for compared to the asking price and how long they were on the market.

Providing your clients with testimonials from those you’ve previously worked with is another excellent way to help convince them of your worth.

The commission question doesn’t have to be a point of contention. If you pay attention to your clients’ concerns and explain your business clearly, it can be an opportunity to impress them.

For more information, check out the full article on the Quicken Loans Zing Blog.

The post The Commission Question: What to Do When Asked to Lower Your Commission appeared first on RISMedia.

RISMedia

read more

Protecting Your Commission

May 12, 2019 by

Are you ready, willing and able to convey your value to a seller, or are you stumbling over the age-old question “Will you cut your commission?”

If you don’t have the right mindset, your words and techniques aren’t going to help you hold the line. One of the biggest mistakes agents make is saving the commission conversation for the end of the appointment, rather than starting the conversation the moment they walk in the door. The better you are in establishing value, the easier it is to command higher commissions.

Never address commission until you’ve established value.
One mistake agents make is answering how much they charge when asked on the phone. You should never address commission until you’ve built rapport and trust, and sellers fully understand the value you offer. If you can create a high perceived value with a seller before you tell them the fee you charge, it’ll be easier to command a higher commission.

Selling a house is a complicated process worthy of hiring a professional.
Explain that agents are licensed professionals and share an example: “If you were sued, you would call an attorney. If you were sick, you would call a doctor. In each of these important areas, you would call a professional, so why would you do anything different when it comes to one of your most important assets?”

Identify the tools that successful agents use.
This includes the MLS, public open houses, broker open houses, etc. If you focus on selling the industry, and the seller buys into it, they’ll list with you because you’re the one delivering the message. Plus, when you take this approach, your conversation comes across as less self-serving. The seller will feel that you care more about serving them versus selling them.

Explain your marketing plan.
Successful agents market properties to create exposure so that every buyer in the price range knows about what’s available. Explain how you’ll do this through your marketing tools. The more tools you use, the more exposure a property gets. This leads to more buyers coming through the front door, which usually results in a higher price.

Remind them that you’re a full-time agent.
If they plan to sell the house themselves, they’re getting a part-time unlicensed employee rather than a full-time licensed professional. Which one is more likely to get the job done right?

There’s no law that says you have to negotiate in 1-percent increments.
If you have to adjust your fee because the seller feels they need to win something, consider adjusting your fee just a quarter of a percent. If the seller has bought into you, this should be sufficient to soothe their ego.

Remember, you’re worth what you’re paid, and you bring real value to the table. Don’t sell yourself short.

Darryl Davis has spoken to, trained and coached more than 100,000 real estate professionals around the globe. He is a best-selling author for McGraw-Hill Publishing, and his book, “How to Become a Power Agent in Real Estate” tops Amazon’s charts for most sold book to real estate agents. He is the founder of the Next Level™ real estate training system The Power Program®, which has proven to help agents double their production over their previous year. Davis earned the Certified Speaking Professional (CSP) designation, held by less than 2 percent of all speakers worldwide. To learn more, visit www.ThePowerProgram.com.

The post Protecting Your Commission appeared first on RISMedia.

RISMedia

read more

Realtor Gets Slapped for 8% Commission

Apr 17, 2014 by

In a world where lenders commissions are micro regulated, real estate agents seem to be off the radar.  Well, they are for the most part but sometimes even they get snagged. Housekeeping items first.  Pretty easy today.  Geneva Financial is expanding and they are looking for branch managers and loan …
National Real Estate Post

read more
Sitio web optimizado por: Posicionamiento en Google
Plugin Modo Mantenimiento patrocinado por: Wordpress modo mantenimiento