Tag Archives: realtor

What To Say When You’re Asked To Cut Your Commission

 

What do you say when you’re asked to cut your commission?
Are you regularly asked to cut your commission?
Do you immediately “cave” and cut your commission when asked?

(Nina Hollander) In my personal experience, when prospective sellers ask Realtors to cut their commission it’s more often than not because the agents have not properly presented and defined their value to the seller. This means having a very detailed and specific listing presentation that leaves no doubt about what you will do to market their home, along with impressive statistics such as your average days on market versus your market’s average agent’s.

Then, there are those sellers who read on the internet that they should always ask for a commission reduction up front. What always amuses me is that when I ask why they’re asking and say no in a nice way, these sellers typically smile and say “well, you know we had to ask.” I always smile back and answer “yes, I know.” Then I steer the conversation on to other topics. More often than not, sellers drop the conversation about commissions right there and then. But you should always ask why they are asking… you can’t respond properly until you know what’s behind their question.

Let’s face it, you don’t want to lose a potential listing client,  but you also don’t want to immediately slash your rate and devalue your worth. Since the commission cutting conversation never seems to go away, here’s a link to some great scripts from McKissoc Learning to show prospective listing clients why you’re worth every penny of what you earn without sounding defensive. These scripts address the three primary reasons home sellers ask for a commission cut according to McKissoc Learning:

  1. The sellers don’t have sufficient equity in their home
  2. The sellers are being “savvy” consumers, looking for the “best” deal they can get.
  3. The sellers don’t see the true value of what you bring to the table.

Clearly, there’s not much you can do about the lack of equity. And maybe that is a listing you don’t want to be handling The two second reasons are totally in our control to handle in the listing presentation/conversation.

Script: HOW TO RESPOND WHEN YOU’RE ASKED TO CUT YOUR COMMISSION

Meantime, keep those scissors for cutting hair, not your commission!

Source: Active Rain

Realtor Steps Outside For Cigarette, Lights House On Fire

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Losing a listing can be a huge hit to a realtor’s psyche, reputation, and pocket book. It is common for a seller to switch real estate agents if their house does not sell in the time frame of the listing agreement. Sometimes the realtor does a poor job at marketing the property and other times the house is just overpriced. Neither situation was the case for Jason Bruce, a 34-year-old real estate salesman in Cincinnati. During a general inspection, Jason stepped out to the backyard to have a cigarette. “I only smoke when I’m drinking or if I’m stressed,” Jason claimed. “I had a showing across town and the inspector was taking forever. I thought I might have to push back my appointment, so I decided to rip a heater.”

According to the Cincinnati Fire Department, Jason flicked his cigarette into some native foliage that flowed into the wooden deck out back. After his smoke, Jason went upstairs and ended up having a lengthy conversation about the air conditioning unit with the inspector. “I had no idea what the hell he was even talking about. He went on for like an hour about the dirty filter or some sh** and before I knew it the den was in flames,” said Jason. The pair immediately called the fire department, but it was too late. The house burnt to the ground in less than two hours as the firemen managed to save the guest house. Nobody was injured. The seller has remained silent, but is taking legal action on Jason, who blamed the incident on the inspector. It is safe to say that Jason will not be getting an extension on the listing agreement. 

Source: Broke Agent