Listen to Episode 6: The “C” Word
In this episode, we are talking commission and talking about how to talk to your clients (sellers or buyers) about commission!
I kind of get nervous during listing appointments because it is so competitive! I believe I deserve 3% and the buyer’s agent deserves 3% but it is hard to communicate.
There are some places that have a 1% listing fee if you also buy with them. But our office does way more than other offices so we need to communicate that to the potential seller.
How do we convey our value?
First of all, know your value, even if you are new to real estate. You deserve it even if that isn’t conveyed by others. If you can’t justify your value to a client, why would they pay you that?
- Show professionalism
- When you go over commission tell them everything that is in it for them (we market the listings well, hire a photographer, we network, etc.)
- Show them you will go above and beyond
- Break down all the costs that go into it if needed
- Explain to them that you have a team or managing broker with X amount of years of experience helping (2 for 1 deal)
There is this idea right now in this market that offers will come in right away so what does the agent do? The complexity and amount of work it takes to sift through all the offers, checking in with agents, going over details, schedule all the showings, make sure you’ve done your due-diligence, there’s a lot more time and effort it takes in this market even more than in other markets!
Even more than that, making sure you price it correctly is everything! Clients are seeing how high houses are going for and expect theirs to be that high, but we have to make sure we aren’t pricing it too high so it doesn’t just sit on the market.
How to price a home correctly in this market:
- Reach out to 10+ agents with similar houses that are pending and see what they got
- Do a thorough CMA
Cassie may be a yes man! She had a spackle this morning! I took the handrail off and moved the screws to put it in a better place and fix it.
Underpromise and overdeliver
A lot of agents overpromise what they can do so just be honest and genuine with your clients. Don’t give them false hope. Explain why you are listing it at a certain price (more offers, it will get more competitive and drive the price up, etc.) instead of shooting for the sky and then it sits. In this market sitting for a week is terrible.
Buyer side of commission has been knocked down! Seattle has 0% commission! I try to have that conversation with my buyers beforehand. I tell them that my office has a 3% commission when we are filing out the paperwork. Most of the times the seller will cover it, but that doesn’t always happen so in the case that they don’t cover the fee it may be on you. Every time I have that awkward conversation I try to tell them I don’t get paid hourly, I only get money if the deal closes. The money may seem like a lot, but this is a breakdown after office fees. Plus insurance and taxes, etc.
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ABOUT US -🎙 Agents Unfiltered is a podcast with the goal of connecting and building community between realtors nationwide. Get ready for some relatable and relevant information about “The Do’s, the Don’ts & the What The Fuck’s of Real Estate.”