I found this paragraph within an article on the Consumer Reports website and you can read it further by clicking on Consumer Reports.

"You can negotiate the fee. The usual 6 percent commission that agents charge sellers has been standard for so long that many homeowners apparently don't realize it's negotiable. But 46 percent of the sellers in our poll attempted to negotiate a lower commission and roughly 71 percent of that group succeeded.

RE/MAX and independent agents appeared to be a bit more willing to deal; 77 and 76 percent, respectively, of sellers who tried to negotiate with them were successful. Sixty-seven percent of Century 21, Keller Williams, and Prudential agents also lowered fees, as did 64 percent of the Coldwell Banker agents.

We found that paying an agent a lower commission rarely had any effect on the sales price. And readers who paid commissions of 3 percent or less were just as happy with their brokers' performance as those who paid 6 percent or more. People who paid extra, in fact, were more likely to say they had regrets about the selling process. The biggest regret? Nearly one-third said they should have been more assertive in negotiating their agent's fee."  Consumer Reports, Sept 2008

The point of the post is to be prepared with your scripts when the consumer starts this discussion.  What is your marketing plan, what is your technology plan and how much value do you bring to the table and display the differentiation to justify the increased commission.

Make it a profitable day

Make it a profitable day!

Scott Hoen

SHoen@FirstAM.com

Direct:  (714) 250-5014

Cell:  (714) 270-9607

"The Views expressed herein reflect only the individual's personal views and are not the views of the author's employer."

 
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9 Comments on Consumers successfully negotiating fees

AUG
05
2008

My answer is simple to the reduced commission question. NO!! Some agents may reduce their commission, but I just don't do it. Which part of my job would youi like me NOT to do? Advertise? MLS? Open Houses? Wanna show it yourself?

2:09pm • #1

Good add.. makes sense..

2:09pm • #2
104,927 Points

Thanks for the tip on the article.  We, as realtors, need to be prepared to justify what we are paid. 

2:10pm • #3
321,262 Points Localism Sponsor Outside Blog

Scott,

If asked I am ready to defend my position....if I am unsuccessful then I consider the individual situation........and yes I have walked away too.

2:12pm • #4
761,236 Points 13 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp

In this day of ever increasing prices i am saying we hare holding the line and resisting higher fees and netting less. The best defense........

2:18pm • #5
698,114 Points 84 Featured Posts Localism Sponsor Outside Blog Hit Router Attended Rain Camp

Scott,

Great post !  It is what it is, commissions on average are coming down.  We expect it and are okay with it.  However, we will not come down right away and will work hard to protect the integrity of the 6 percent, besides, we believe we are more than worth it.  Also, with the real estate market being much more difficult, I would not be suprised to see the trend go the other way.  I have had much less people try to negotiate recently than we did 2 years ago.   Also, now there is less resistance for sellers because they know it is more difficult and they know we market a lot !!!  I agree though, listing agents better be prepared to answer that question !

Philadelphia Real Estate

8:14pm • #6

I take consumer reports with a grain of salt.  They do a good job for what they do but they aren't always on the mark and give short shift to important stuff.

10:00pm • #7

Another good post reminding us to BE PREPARED and have a plan in place.  It's a smart move to anticipate what objections, if any, you may get on the listing appointment and prepare and rehearse the correct repsonses.  One little tip:  when someone gives you an objection, be sure to restate it back to them and then wait for their response.  This will help you get to the real objection. 

Great post as always, which is why I subscribe to your blog.  Thanks for another good one.

10:23pm • #8
AUG
06
2008
193,829 Points 2 Featured Posts Attended Rain Camp

Dennis -- I agree on the grain of salt but these types of publications are in front of consumers and their perception of these articles end up becomming realty -- At least these publications are covering the market in a positive way and not always so negative today.

4:53am • #9


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Scott Hoen, Scott Hoen, MBA e-Pro (First American Title Company)

Scott Hoen

Scott Hoen, MBA e-Pro

Yorba Linda, CA

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First American Title Company

Address: 2 First American Way, Santa Ana, CA, 92707

Office Phone: (714) 250-5014

Cell Phone: (714) 270-9607

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