A person calls me and the first question is how much do I charge in commission? This is a pretty basic question however it can be answered in so many different ways. I know the general area in which they may be selling but I don't know if they are selling vacant land or residential property.
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My competition for listings in this area only puts for sale signs out and calls that marketing. I do a comprehensive package with all my listings and feel that I give the most bang for the buck when it comes to marketing.
As a response to this question I relate all that I do for my commission. Several of my competitors only give the cost of a listing side of the commission. Now if the caller only wants to know what you charge on your side of the transaction this is the right answer. There are few clients who will understand the commission split way of doing business and are usually taken in when they compare a 3 1/2% commission and a 6 percent commission. This is hard to explain over the phone however the client has already told you the commission means more than what they receive for their money.
My preference is to break down all the costs and send them a copy of their net proceeds rather than giving a set commission over the phone. In this way I can explain the commission process and also what they get when they work with me. I'm not afraid putting what I will do in writing because it is the way I treat all my clients and listings. You'll find No hidden charges or surprises when you work with me.
So the question really is, are you shopping for service or cost of commission? Most of the time there can be a huge difference...
This post was authored by Paul Henderson. ©2011, All Rights Reserved, This content may not be reproduced or reprinted (Except for ActiveRain Re-blogging) without express written permission of Paul Henderson, RE/MAX Professionals, Tacoma, WA.
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