Are You Feeling the Squeeze?

Education & Training with Berman & Pollinger, LLC.
  Are You Feeling the Squeeze?  

PictureAre you feeling the squeeze of “Commission Compression?” 

Here’s the best way I’ve found to deal with closing on commission questions.

Start with pulling a search from your MLS of all the competing actives within the serviceable area (all the homes you would potentially show a buyer that would be interested in the listing).  You’ll want to bring this with you to the listing appointment with the CMA.

After you have established the listing price and have found their motivation, take out your print-outs of the “actives” sorted by the percentage being offered to the buyer’s agent.  Explain that the buyers’ agent’s commission is a marketing cost and “would you like your house to be placed toward the top of this list or would you like your home to be at the bottom of the list.”  Then shut up and wait for an answer.  This will be a logical decision based on empirical data which you are giving them.  Write the number that they give you at the top of that sheet and set it to the side.

Once the selling side of the commission is established you can start on your side.  You have two different tact’s you can take:  The first and the one I recommend is to simply say “My listing fee is X%” (X being your ideal negotiable commission for the listing side). When we split the commission it for some reason in psychologically easier to swallow.  People aren’t stupid they will add the two numbers together; however, if we can justify how we got the big scary number of a full commission they feel better.  Remember the buyer’s agent is a logical decision, you are an emotional one.

The second, if you are feeling uncomfortable with saying you charge Y%, is to say to the seller “You have decided to give X% to a buyer’s agent who’s job it is to negotiate against us and make our lives difficult.  How much would you like to give to your advocate?” I have found that that with those which we are coaching, this dialog nets them equal or greater than commission percentages that is being offered to the buyer’s agent every time. 


  Chris Pollinger, Mastery Coaching  
  PS. Have you seen our individual agent and team program that combines coaching, advanced marketing strategies with hundreds of pieces of personalized print ready marketing collateral,  specialized training, and all the tools you need to get into the top 1% of agents nationwide? Check out for more the details.  
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Comments (2)

Edward & Celia Maddox
The Celtic Connection Realty - Queen Creek, AZ

Thanks for Posting. We learn a lot of good information from Active Rain blogs. Best Regards,

Apr 06, 2010 03:16 AM
Christina ONeal
At Home Real Estate Group - Ripon, CA
Realtor - Ripon California

love this one...i have been following you on my email which has me not coming here & commenting.  Keep up the posts.  Thanks.

Apr 27, 2010 02:22 AM