Earn Your Commission. Don’t Defend It.

By
Real Estate Broker/Owner with Tutas Towne Realty, Inc and Garden Views Realty, LLC BK607690

A Pretty Picture

 

How do you react when a Seller or Buyer asks you to give them a portion of your commission? Do you immediately get defensive? Do you start explaining how your commission is split and how many expenses you have as a licensed Real Estate agent?

I recently read an article about a Seller asking their agent to make up the difference between the contract price and a low appraisal. The article had over 350 comments and all but a very small handful were blasting the Seller for having the nerve to ask such a thing. The comments went from just saying “No” to outlining exactly how we get paid and what we spend the money on.

 

 

Why not offer solutions to their problem instead? "Problem? What the heck are you talking about Broker Bryant? The only problem they have is that they are cheap and they expect me to work for nothing. They don’t value what I do!!"


Do you believe that? I don’t.

I believe they DO have a problem and they are looking to their agent for a solution.

This particular Seller had a problem. Her problem was that the appraisal came in too low and she was getting ready to lose the sale over it. Her gut reaction was to use a portion of the commission to bridge the gap. Her agent, instead of offering her solutions, immediately became defensive. Fortunately the agent slept on it and didn’t send the nasty email she wrote to her client.

 

My suggestion was to offer the Seller solutions. There are actually several solutions available when an appraisal comes in too low.

 

  • The Buyer can just move forward at the agreed upon price. Unless the contract is contingent upon a satisfactory appraisal the appraisal is really nothing more than an “FYI” event.

  • The appraisal can be disputed.

  • The Seller can come down on price and move forward.

  • The Buyer and Seller can split the difference.

  • The Seller can just place the property back on the market.

 

So....instead of getting defensive about your commission why not just let the Seller know of the possible solutions? My guess is that if you handled it this way the Seller would completely get off your commission and get on to solving the problem. Don’t you think?


Earn your commission. Don’t defend it.

Posted by

 

Join Our Facebook Fan Page Check Us Out On Google+ Follow Us On Twitter

 

***I am NOT an Attorney nor do I play one on TV. Click the button below for my Bio.

The BIO for Bryant Tutas

 

 Tutas Towne Realty, Inc handles Florida real estate sales, Florida short sales, Florida strategic short sales, Florida pre-foreclosure sales, Florida foreclosures in Kissimmee Florida Short Sales, Davenport Florida Short Sales, Haines City Florida Short Sales, Poinciana Florida Short Sales, Solivita Florida Short Sales,  Orlando Florida Short Sales, Celebration Florida Short Sales, Windermere Florida Short Sales. Serving all of Polk, Osceola and Orange Counties Florida. Florida Short Sale Broker. Short Sale Florida.

 Copyright © 2017 http://www.brokerbryant.com/ | All Rights Reserved

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Real Estate Best Practices
Tags:
seller tips

Spam prevention
Show All Comments
Rainmaker
2,175,992
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker

Good morning Bryant. Don't make a Seller's problem your problem. Enjoy your day!

Apr 06, 2016 08:39 PM #1
Rainmaker
3,050,558
Dorie Dillard
Coldwell Banker United Realtors® ~ 512.346.1799 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good morning Bryant Tutas ,

Love your post. I rarely have someone question the commission I charge because I don't defend what I charge..I show them how I earn it. I'm a business and marketing manager of their home sale and I'm worth the commission I charge..my past clients will attest to that unequivocally.

Apr 06, 2016 09:22 PM #2
Ambassador
2,563,551
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

I agree those are the solutions, but the seller may see using the commission as another possible solution and it's hard to put that topic away to a seller once it's been opened.

Apr 06, 2016 11:31 PM #3
Rainmaker
2,536,203
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Bryant. I always told a seller up front that there was never a case where I would contribute to their sale period. Moreover, an appraisal problem should always be addressed up front too and can be avoided if thehome is listed right and if the agent meets and prepares a package for the appraiser.

Apr 07, 2016 02:07 AM #4
Ambassador
1,818,435
Gary Woltal
Keller Williams Realty - Flower Mound, TX
Assoc. Broker Realtor SFR Dallas Ft. Worth

There is more than one way to skin a cat. Some people just think to simply and often ONE of those other solutions is the best.

Apr 07, 2016 03:43 AM #5
Ambassador
681,410
Mimi Foster
FALCON PROPERTY SOLUTIONS - Colorado Springs, CO
Voted Colorado Springs Best Realtor

I have been out of the Rain for a while but just saw your redneck counteroffer, and remembered how much I enjoyed your down-to-earth outlook. This is a great post.

Apr 16, 2016 09:27 PM #6
Rainmaker
290,343
Peter Mohylsky
BETTER HOMES AND GARDENS REAL ESTATE - Destin, FL
Your Bucket List Broker in Destin, Fl..

Great post and a good example of why it makes sense to work with an experienced agent.

Oct 02, 2016 08:49 PM #7
Rainmaker
2,382,372
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

If you find yourself having to beg for what you deserve, you probably don't have confidence in yourself and in what you do.

May 28, 2017 03:34 PM #8
Rainmaker
2,382,372
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

To clarify, I agree with the premise and believe that most of us do you have the ability to be confident in what we do for others.

May 28, 2017 03:34 PM #9
Rainmaker
82,198
Ernest Villafranca
Better Homes and Gardens Real Estate - Oakland, CA
3923 Grand Ave. Oakland CA, 510-418-9443

Yeah, give them options. No, my commission is not an option.

May 29, 2017 04:51 PM #10
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
1,135,761

Bryant Tutas

Selling Florida one home at a time
Ask me a question
*
*
*
*
Spam prevention