Sellers often rail against paying any sort of commission to get their house sold, let alone a traditional 6, 7, & 8% fee (at least mine often do, maybe yours are more generous) ;-)
I find that if you break down your costs and demonstrate to them what you actually do, then more times than not they understand where their money is being spent and are happier with paying for services rendered (especially if you get their house sold quickly for a good price).
Here's a link to an article I wrote for Realty Times in 2001 detailing what sort of typical expenses a Realtor incurs to market to a successful closing a typical home. Since I actually wrote this article I'm assuming it's probably OK to quote from it.
"So how do the numbers add up? Let's take a look:
- First Visit. It's important to visit with a consumer. Figure one hour for the first visit, $40.
- Comparative Market Analysis. If I'm representing a seller, or if I'm helping a buyer bid on a property, then I need to do a thorough market analysis. This typically takes two hours minimum, $80."
A few things have changed in the past 5 years but the basics remain the same.
http://realtytimes.com/rtcpages/20010111_costs.htm
"Inside Scoop: Breaking Down Broker Costs
by Jim Lee"
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