Clients want the best commission deal they can get. Who can blame them? If you can make a believable case that 7% or even 8% is the best deal, then they will list for 7% or 8%.
Is it ok for Clients to ask for a discount or reduction? Sure it's ok for them to ask. How can you blame them for asking? They are just trying to get the best deal they can.
HOWEVER, If one of you is a Realtor, and one is a client, then somebody better be better at negotiating than the other, (FYI: it should be the Realtor) !
BTW: If two Realtors talk about commission rates, in person or online then that is illegal price fixing.
HOWEVER, I am no longer actively selling, so I can talk about commission rates in detail, as a coach or journalist - even if two Realtors cannot.
The amount you can charge is tied to your ability to fully explain the benefits of your service. Basic service will never be more than the 'discount rate' while great service will always be worth more than average. I offered clients choices between 6 and 10 percent. For each level of commission, I painted a picture of how much more work I could do, and how much more advertising and marketing I would be able to afford - and most importantly, how much I could offer a Buyer AGent. Most of my listing clients chose 8% because it was in the middle. Nobody wants to be cheap and nobody wants to pay too much. : )
WHAT IF THEY WANT A REDUCTION BECAUSE THE HOUSE SOLD FAST?
I used to deal with the inevitable "fast sale commission reduction request" AHEAD of time, in the listing presentation. When finishing up the commission negotiations...
One more thing... I want you to know I do most of the work of selling your house in the first 10 days and the last 30. In between, we answer the phone, schedule some showings - etc. Just so you know, once I take photos, write the marketing copy, do the online marketing and online listing syndication, get you in the MLS properly, then there is a lull in the middle. It's not a lot more work until an offer comes in. Many people don't understand this and it has caused some confusion, so I am sharing this information with you now - just in case. I do a good job for all my clients but some sell faster than others due to circumstances beyond all control. I have had clients for whom all the stars aligned, and we sold really fast. These clients sometimes asked if I would reduce my commission because we sold so fast. I used to tell them, Here I am feeling like a million bucks, because you did not have to sit on the market for 6 months or a year, and we are about to enter the hardest part - the last 30 days, with inspection, appraisal, closing preparations, and you want to cut me off at the kneecaps? So, I just want to make sure, if we sell your house extra fast, will you want to celebrate my good work, and refer me to friends, or will you want to cut me off at the knees?
Never again did I have that commission reduction question come up after a fast sale. : )
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