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Commission - How Do Clients Decide if YOUR Worth it?

By
Real Estate Agent with Broker/Owner, Keller Williams 100000008

Approximately 15% of sellers make decisions based on an agent's commission rate, and another 5% to 10% are willing to pay full commission to get the best service. But how do they know they are getting the best service and the benefits that come with it? To put it simply, you have to show them.

A great way to do this is to create a business strategy that is easily explained to clients. This shows them exactly what you do for the commission, and also gives you the option to take less (although no one wants that) commission for less services offered. If its layed out it is a lot harder for clients to ask so much more of you if they aren't willing to pay.

What about the sellers who say they don't have the $$$ to cover the commission? Agents could show them a list of expired listings, most of which have lower commissions, and/or explain that they pay commissions only when the home sells and it is a moot point if the home languishes on the market.

Finally, if sellers point out that another agent has a lower commission rate, agents should ask them how well could they negotiate on their behalf if they cannot negotiate a full commission for themselves, using a question to remain in control of the negotiation and to help sellers come to their own conclusion.

Basically, be honest, tell them exactly what you do for them to help sell their home, and make them feel comfortable with the transaction. If a client knows you're going to do whatever it takes to sell their home, they will likely be okay with the commission. Especially if they are aware that the commission doesn't get paid until the house sells.

 

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Ben Blonder

Owner/Managing Broker, Kapital Real Estate Inc

Office: 970-797-2190

Cell: 970-420-6166

ben_blonder@yahoo.com

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