‘Will You Lower Your Commission?’ – How to Respond
NEW YORK – When a home seller asks if you’ll lower your commission, how do you respond?
Real estate professionals must balance a need to protect their income with a desire to grow their business. As a result, Realtors should frame any commission discussion around two goals: Educating customers on the reasons for a commission while trying to understand why the client is asking for a lower commission.
For instance, the client may know someone who got a commission deal, money may be tight, or they might not fully understand what real estate professionals do. When the client answers your questions, listen with empathy.
“I paraphrase their statement to make sure that they understand I’m hearing them,” says John Grimes, a Realtor with Better Homes and Gardens Real Estate Metro Brokers. “That often calms people down. People are desperate to be heard and understood.”
If the clients’ problem is financial, agents should 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.
If the issue is that the client doesn’t fully comprehend what agents do, the agent must walk them through the process. They should provide evidence that the level of commission is commensurate with the services they provide, such as recent sales and comparisons to the asking price, as well as client testimonials.
If handled properly, a commission discussion can be an opportunity to impress the client.
Source: RISMedia (09/09/19) Burris, Rachel
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