How to Respond When Sellers Ask You to Lower Your Commission
If your in Real Estate, you will be asked this question at some point,
- Seller: What do your charge if I list with you
- Seller: Can you lower your commission
- Seller: Is your commission negotiable
- Seller: Can you give me a deal if I list with you
- Seller: How much commission do you charge
So this is so easy to answer but it seems no one until now,
have thought of the right things to say.
- Answer : What are you trying to net
- Answer : My commission will not come out of your net profits
- Answer : Sure if your price is market value
- Answer : Yes I will give you the best deal
- Answer : Depends on your list price, but always the best deal for you
For example, the script would work like this,
- Seller, so what do you charge if I list with you
- Answer, well what are you trying to net, seller, you mean what is my selling price, realtor, no what do you need to walk away with, seller well I would be happy with $price, realtor ok, so if that is what you need then my commission will not be part of your net profits, seller o really, yes I will guarantee that my commission will not come out of your net profits.
- Now for you to use this type of script, you must know your comps for past sales and days on market, and then set price on listing to be 3% over net price, and a little more for negotiations.
Script for when they say, Discount Broker
- Seller will I was thinking about using a discount broker for 1% listing fee, can you beat that,
- Realtor, well yes because my commission is not based on your selling price, realtor, also a discount realtor will always post on MLS 2% which will not drive any traffic to your listing and will not be showed, due to discount brokers name and commission posted in the MLS .
- Realtor, also most of the time a discount realtor will promises you a selling price, to make you list with them, but after sitting on the market for 4 weeks, you then will have to lower your list price to sell it fast, which is the case with most discount realtors.
- Realtor, so now your are netting a much lower price and still paying commission to the discount broker
- Seller, o wow, I never thought of that, Realtor, so now your losing over 15 thousand dollars and still paying commission, because you lowed your price in desperate mode, to sell fast.
- Realtor, so in reality you’re paying more in commission, if you had to lower your price from listed price promise to you, from discount realtor.
- Seller, ok now that you have explained how things work, I think I will list with you
So as you can see, learn to say, what are you trying to net, and then be ready with the big script I posted here.
Hope this helps all of you, do your home work, always before you use this type of script.
Thank you
RRP