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Can You Explain Your Commission?
The internet has multiplied competition in real estate. Instead of competing against Realtors® from your immediate area, you’re competing with folks from all over the state and even country offering to help buyers and sellers.
As a result, there’s been downward pressure on commissions. A lot of agents are offering extremely low commissions – of course, for cut-rate service. But that can be hard to see when you’re a seller fearful of costs.
As a professional full-service Realtor®, what can you do to help sellers understand your value – and your commission?
Here are some tips.
Explain the Commission SplitSome sellers think that if they do an FSBO or low-cost selling service, they’re saving 6% commission. Of course, they aren’t – they are only saving some of the 3% that would go to a listing agent.
They still need to pay 3% to a buyer’s agent when the deal closes.
Many times, once the seller understands that they aren’t saving nearly as much as they thought, the dramatic loss of service doesn’t seem as acceptable.
You can help them understand that you provide far more value than your 3% portion of the commission.
Offer Premium Real Estate MarketingA low-cost agent isn’t going to offer much more than an MLS listing and ... more
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