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I thought that this would be a very good topic to talk about and figured maybe everyone will learn something. When I go on listing appointments I think I am pretty good at closing the deal commission wise but I wanted to see what others have said when people say they are not paying, 6%, 5%, etc. Feel free to post stories, scripts, etc. ENJOY!
I have a top notch listing presentation /good systems/ flexible commission schedule (not discount though) well known in my market so I really don't get many objections. Actually I charge my sellers a little up front which is refunded at closing and they don't even have a problem with that. I had one seller this year ask if would work for less and I told him no and he said that's fine he just wanted to check. I listed it no other questions. The common responses involve negotiating skills or services.
Brandon, I like the response. I like the idea of charging up front. Willing to elaborate? I would think this is just to cover your costs, but would love to know more. I must admit it is very creative!
Brandon, I like the response. I like the idea of charging up front. Willing to elaborate? I would think this is just to cover your costs, but would love to know more. I must admit it is very creative!
Anyone else have insight?
It's just $150 to cover some of my initial expenses/time so that if they don't sell it for one reason or another I'm not left hanging with nothing to show for it. At closing, the commission is reduced by $150 on my side.
I wonder how many clients are willing to pay for that...I wouldn't! What if the realtor isn't doing anything and you want to change realtors....another $ 150.- for another realtor?
IMO a realtor who knows he is good should only except reasonable listings and people who want to list for outragous listing amounts should do it on their own...with a reasonable listing, a good agent should be able to sell it or something very bad should be going on with the house or location which might make it harder.
How about we talk about how much a used car salesman makes when he sells you a car? Why always is it about the real estate commission. I would really like to know what other commissioned salespeople earn and do they have to pay to "go to work"...you know....agent fees to broker, desk fees, sign fees, buy their own paper products, business cards, stationary, pay for all the marketing and I mean all...pay various webmasters, pay 2x fica, pay quarterly taxes.....all that kind of stuff. Would be interesting to know. Maybe we can talk about what others earn...because a realtor today is working very hard for very little.
I wonder how many clients are willing to pay for that...I wouldn't! What if the realtor isn't doing anything and you want to change realtors....another $ 150.- for another realtor?
IMO a realtor who knows he is good should only except reasonable listings and people who want to list for outragous listing amounts should do it on their own...with a reasonable listing, a good agent should be able to sell it or something very bad should be going on with the house or location which might make it harder.
You would pay for me if you interviewed me and I don't do nothing. It's all in writing including the services offered and it's refunded at closing. I also offer a commitment to service that allows you to fire me if don't market the home as agreed in writing, and it's refunded. I haven't been fired from a listing yet and people pay it w/o questioning so I must be doing something right. If the home doesn't sell it won't be my fault, it will be you the sellers fault because my marketing is excellent. If you price it right and condition it like I tell you to I'm gonna sell it. If you don't, well I ultimately have no control over that. If you can't afford it, then that's another issue. I've waived it for short sales, younger couples w/o money, etc, I don't even bring it up with them.
There is TALK among the real estate community in my area that if a Realtor takes a commission that is lower than the company policy, the company will not split the difference with that Realtor.
With the economy being what it is and homes taking longer to sell, I won't work for free!
Seller: How much is the commission you are going to charge.
Agent: Well my company usually wants me the charge 7% but this is negotiable.
seller: wow that is high.
Agent: Ok listen I can do it for 6% but i really can not go lower than that.
Seller:Well Joe Real Estate down the street said they will do it for 5%
Agent: Let me ask you a question Mr. or Mrs. Seller do you know what service he is offering you at 5%
Seller: yes he is going to a sign out and put it on realtor.com
Agent: Mr. and Mrs Seller please look at the commission as a marketing fee. If Joe real estate is going to charge you 5% that is all he is going to do. As you can see from my marketing plan I offer way more than Joe Real Estate. Hence the higher "marketing fee". I understand that you are trying to save money but in the long run you are losing money.
Seller: How is that?
Agent: at 5% your property is not going to get the exposure it needs in order to sell. Now your property sits on the market and in 2-3 months Joe is going to come to you and ask you to lower the price. Now during this time you are paying taxes, mortgage, and insurance on the property and he is now asking you to lower the price. With me your property gets over the top exposure and along with the proper pricing your property is off your hands sooner than later. Now which scenario would you rather have? Lose the money you are trying to save gradually over time or go with me with the 6% marketing fee and know your property is going to sell?
Seller: I see your point ok we will go with the 6%
That is how it usually goes. Always take the term commission out and replae it with marketing fee. It eases the sellers mind.
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