I thought it would be interesting to start a 2cent Wednesday series.  Each Wednesday moving forward, we’ll discuss some not-so-pleasant experiences and share our thoughts on how we would handle them so we are better equipped for the future.

I’ve had the pleasure of listening to Real Estate Sales Representatives share their experiences with me.  Some stories moved and inspired me. While others…not so much.  I believe, sharing is a great way to learn and grow together.

Experiences Define Us

I have given a high-five to a REALTOR® during their biggest triumph and have hugged it out when a REALTOR® sadly lost a deal or even worse, a client.

Through it all, each Sales Representative’s experience and lessons learned are different. How one person handles a particular situation will differ from another. It goes without question – we are all unique.

It is important to share knowledge, learn from each other and grow as people.  The same stands true for the real estate industry.

Hypothetically Speaking

You have a client who has listed their home for sale. It has sat on the market for a while. You’ve received a few showings but overall, nothing promising. You realize the price of the home needs an adjustment. You make the decision to set up an appointment with your home seller to discuss pricing.

Ladies and Gentlemen, Let Today’s Lesson Begin! When you propose a price reduction, your client says: “If we reduce our price, will you reduce your commission?”

How would you handle this tough question?

So, here you are asking your client to agree to a price reduction.  You’re trying to sell their home and in return they ask you to reduce your commission. What would your response be?

Reduce My Commission? …NO DICE

Would you say something like this?

“…I’d like to bring to your attention, that when the sale price goes down, so does my commission. As my commission is purely a percentage of what you receive, I’m already agreeing to a reduced amount. In the meantime, my advertising and marketing costs are fixed, as are all the closing costs I absorb when you sell your property. So my potential income is already dropping along with your asking price…”

Reduce My Commission? …ABSOLUTELY!

OR…would you say something like this?

“…You are a valued client of mine and I strive to meet the expectations of my clients’ to make sure they’re completely satisfied with my services. As a price reduction is needed to leverage your home effectively in your current market, I will meet your request and lower my commission rate…”

You may or may not have already been dealt this card when working with your clients. How did you handle the situation?

Would you reduce your commission rate when asking for a price reduction?

I’d love to hear your two cents.

Happy Wednesday!