Home : Blogs : Loreena Yeo - Realtor(R)/Broker proudly serving Frisco TX Real Estate : contributing Frisco Real Estate Opinions, Ramblings & more!

Commission Guilt - Does It Ever Happen To You?

I came across a very interesting debate recently about commission guilt. An agent who admittedly feel that he went into a transaction feeling as if he did not quite deserve every penny he makes. Many For Sale By Owners feel exactly the same way - that realtors are not worth what they ask because all they do is to stick a sign out in the yard and wait for the Buyer. Many Buyers feel that their realtors are pretty doormats and door openers and to deserve several thousands of dollars for doing that is just far fetched.

So, what would you say to this? Do you ever feel guilty for accepting a paycheck? Would you accept less if the house you put on the market goes into escrow 24 hours later since you did not spend too much time and money marketing it?

Well, my answer is:

You - the client is paying me mostly for the knowledge and experience that I bring to the table. Not really for the sheets of paper or the amount of ink that went into printing that flyer.

Knowledge: With the constant previews of new and existing homes that I do, I could pretty much tell you if the home is over-priced, valued price or if it was in line with the market. I know so much about my market inventory long before you, the client had thoughts about purchasing or selling a house. And I say this very respectfully.

Experience in Negotiations: With my roots from Asia, we (ie. Asians) negotiating when purchasing is just another activity we do very commonly. I have been a salesperson at my father's store since I was 12. And my father sold jewelry. So, I understand the sales and emotional side of the sales process as well as how to negotiate effectively from a very tender age. I stand firm on my principle that the best negotiation (and the type I always strive for) is a win-win negotiation. As much as I understand about human psychology in sales and negotiation, it is not my style to take advantage of a situation so that the other party bleeds. After all, it is me that I need to go to bed with every night and there is just something about the peace I need to take with me. So, when my clients use me in this area, they are "buying" the years and experience of winning negotiations.

Experience in Transaction Coordinations: I learn at least one thing new in every transaction. On the Seller's side, I have learned to probe for the "right" questions (of the Buyers) prior to accepting a contract right up to ensuring that every activity has been checked to ensure that (1) closing with happen and (2) closing will happen on time. On the Buyer's side, there are also checks and balances to make sure that all the necessary contacts and information are shared with the Title company.

Experience in Contracts: Granted that I am not a real estate attorney, knowing the right contracts to use is more than what an average Seller or Buyer knows. Most Sellers may feel that selling houses is not rocket-science but their knowledge of contracts are often not sufficient.

Education & Training: There are more to understand about this business than just sticking a sign in the yard or opening a front door.

So, when I place a house on the market and receives a contract two weeks later, what does this truly mean?

I have placed all my education, knowledge, training and experience into the only acceptable and satisfactory outcome.

________________________________________________________________________________________

For your Frisco, Plano or other Dallas metroplex community needs, please contact:

Loreena Yeo
Broker/ Realtor of 3:16 team REALTY
Email: loreena@loreenayeo.com
Mobile: (214) 783-2210

Whether you are selling (you would need to know where to put your money's worth) or purchasing (so that you are purchasing a great value/ features), I proudly serve the Frisco, Plano, McKinney, Allen, Little Elm, The Colony, Richardson, north Dallas, Celina, Prosper, Arlington, Mansfield, Coppell, Irving, Las Colinas real estate markets. To begin your home search or find out how much your home is worth, please click on the button below.

Posted by Loreena Yeo - Realtor(R)/Broker proudly serving Frisco TX Real Estate on 04/05/2008 07:38 AM

Comments (22)

This post has been included in Texas Information Collin County, TX Information Frisco, TX Information

22 Comments on Commission Guilt - Does It Ever Happen To You?

I seem to have to write two contracts to get a buyer sale through now because of various issues. Working with buyers I really always feel I earn my coomision.

04/05/2008 07:47 AM

by Chuck Carstensen (Re/max Associates Plus/The Discovery Coach)

Loreena, I have never once felt guilty about accepting a commission. I have added to the value of every transaction I participated in - and there have been many situations where I didn't get paid at all even though I worked hard.

04/05/2008 07:52 AM

by Brian Schulman - Your Lancaster County, PA Real Estate Professional (Coldwell Banker Select Professionals)

I have never felt guilty. We work hard, we make people a lot of money, we find people's dream homes and we deserve to get paid.

04/05/2008 07:59 AM

by Gary McAdams (GMAC Schwartz Property Sales)

I had a wonderful opportunity very early in my career to watch a top producer handle this situation. The home sold in 48 hours and the seller immediately asked for a reduction in the commission. Her response?

"How much more would you have paid me to market the property for months, while you endure hundreds of showings and pay more mortgage payments? I should get extra for saving you so much time, money and inconvenience. I'm the best at what I do ... that's why you're holding that contract in your hands."

That was the end of the conversation. She shared later that she also got two referrals from that particular client.

We might be in business for ourselves .... but we are also running a business. No other profession reduces their charges when they do a great job!

04/05/2008 08:04 AM

by Mary Parrish (MAP Realty & Investments)

I am with you all the way, If we do our job well we should get a contract sooner rather than later, and shouldn't feel bad about getting paid.

04/05/2008 08:05 AM

by Steve Loynd, Alpine Lakes Real Estate Inc., Loon Mt, NH.

Good post.

I think we've all been down the road of handling this objection. Although I've never once felt guilty of the broker fee that we charge.

Thanks for sharing that objection handling by the top producer, Mary. That was a great reply by that agent.

04/05/2008 08:14 AM

by Owen Zweiback (Coldwell Banker Residential Real Estate)

Americans are horrible with negotiating. We negotiate on very little so therefore, are afraid and likely to avoid a negotiation. Kudos to you for learning early on from your father the art of negotiation.

Tina in Virginia

04/05/2008 08:21 AM

by Tina Merritt - Virginia Beach Real Estate (Long & Foster Oceanfront - Virginia Tech Hokie)

Nope, I never feel guilty for something I honestly earned, whether it took two days or twelve months.

04/05/2008 08:58 AM

by Lake Wallenpaupack Pike County PA Real Estate | Karen E Rice (WEICHERT, REALTORS® Paupack Group )

No! Never! We earn our commissions!

04/05/2008 09:04 AM

by Jim Crawford ~ Atlanta Real Estate-ABR E-PRO (RE/MAX Greater Atlanta)

Loreena, In my opinion a job done quickly is a job well done. I have never felt guilty about being compensated for getting the job done. I have also never heard a complaint from one of my sellers.

04/05/2008 02:40 PM

by Bryant Tutas-Tutas Towne Realty, Inc

WOW! You go girl! In the corporate world employees get bonuses for finishing projects early. Why should we agents get penalized for doing our job well? Even though the house sells fast you still have to work hard. All the home inspections, 100's of pages of disclosures to be taken care of (calif has lots of disclosure paperwork) final walk thrus, loan problems to be solved WHEW! We work Hard for our money!!

04/06/2008 01:14 AM

by WINDY HIXSON~Riverside Ca~Tarbell Realtors (TARBELL REALTORS)

Kim D. and I were talking about you this weekend & your blogging skills - nice entry and love the buttons for MLS, Frisco and your website - awesome!

04/06/2008 11:42 AM

by Nathan Scott (TBD)

Kim D. and I were talking about you this weekend & your blogging skills - nice entry and love the buttons for MLS, Frisco and your website - awesome!

04/06/2008 11:43 AM

by Nathan Scott (TBD)

Kim D. and I were talking about you this weekend & your blogging skills - nice entry and love the buttons for MLS, Frisco and your website - awesome!

04/06/2008 11:44 AM

by Nathan Scott (TBD)

Kim D. and I were talking about you this weekend & your blogging skills - nice entry and love the buttons for MLS, Frisco and your website - awesome!

04/06/2008 11:44 AM

by Nathan Scott (TBD)

Nicely done post. It sometimes feels hard to "justify" our pay. But as I say...you get what you pay for!

04/06/2008 12:27 PM

by Sarah Eubanks ~ Preferred Oregon Loan Consultant & Notary Public (Hill Valley Financial Services)

The "easy" ones balance out the transactions from hell. And the FSBO's that promise to list and don't, after they pick your brain. And the buyers who never buy....

04/06/2008 12:56 PM

by Erica Ramus - Realty Executives Schuylkill - 570.622.6006

Loreena, what a excellent post. What we do behind the scenes and how we got behind the scenes is something a lot of sellers have no clue about. Let's hope they understand how hard we worked to get to the point in our careers to help them sell their homes. We definitely do more than put a sign in the yard.

04/06/2008 07:18 PM

by Bob Cumiskey, US Army Retired, Your Sun City Center, Florida ~ Realtor (A 1 Connection Realty, Inc.)

This is an awesome post. I felt like this when I first got into the industry. However, I work hard and am working hard to serve my clients. If I get an easier transaction, that's just a blessing. I still serve them just as much, but I can focus my energies to my top clients and the difficult deals. It's always our prerogative to give away part of my commission. Anyway, good post....I don't regret my commissions.

04/06/2008 08:53 PM

by Larry Bettag - Cherry Creek Mortgage

Loreena, Great Post and I LOVE your buttons!!

04/06/2008 10:51 PM

by Marchel Peterson Spring TX Real Estate E-Pro ABR (Results Realty)

Very well written and you bring points that majority of people would understand. Unfortunately there were agents out there at the height of the market who knew nothing, did nothing and still got highly paid. They are not busy now.

04/06/2008 10:58 PM

by Melanie Ross, GRI Benicia Ca & Vallejo Ca Real Estate (Coldwell Banker Solano Pacific)

Thanks so much for all the comments. It does validate some of my early years of being in the real estate business.

04/07/2008 09:11 PM

by Loreena Yeo - Realtor(R)/Broker proudly serving Frisco TX Real Estate (3:16 team REALTY)