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How to Quote and Get Higher Commissions by Calvin Curry

By
Real Estate Agent with Starlight Realty Certified REO & Short Sale Specialist

Let's face it, selling a home is not easy. If it were easy there would be no need for the service that agents provide, right? We deserve to be paid well for closing a deal, so we might as well charge well to close it. 

Here are a few sales analogies that you can use to quote and get paid higher commissions:   Sales Analogies #1: "If you where a Realtor which home would you be the most motivated to sell?"   Here's how I would present this sales analogy: Mr. Seller, what you pay me as a sales commission to sell your home is up to you; but I would like to ask you something before we decide on the best commission structure. If you where a Realtor and you were out showing buyers homes,  say you were showing a buyer homes like yours, and if you sold your home you would be paid 4% but if you sold another home on the street you only got paid 3% which home would you be more motivated to sell?   Ok now think of it this way... say you're a Realtor again and you're out showing buyers homes. Your buyers are looking for a home similar to yours but this time you only get paid 3% to sell your home just like the rest of the homes on the street; but before you leave to show your buyer a home they explain that they are more interested in seeing the homes in the neighborhood across the street. Do you think you would go out of your way to show them your home when you only were paid 3% to sell it like the rest of the homes? Of course not, right? But if you were paid 4% to sell it do you think you would make an effort to convince your buyers that this was a great neighborhood too and get them to see your home? You would, right?   So as you can see paying just a little more commission than everyone else can ensure that Realtors always bring buyers to your home when they have an interested prospect. It will motivate them to show your listing and push it every time, right?   Also, when I am paid a little more money to sell your home I am able and motivated to push your home harder than everyone else. I can spend more money than on other homes to market your home and attract buyers.   So with that all being said, what you pay me as a commission to sell your home is up to you. I highly recommend paying 8% but I will still do it even if you only want to pay 7% to get it sold. Just remember that when you invest more you will get agents to push your home more.   I remember using this sales analogy about the commission when I was in the middle of filling out a listing contract on a listing appointment. When we came to the spot that said the listing commission I would get paid to sell the home it said 6% because I had filled out the listing agreement before going on the listing appointment. At that point I had really good rapport with the sellers so I just sat back down and went through the analogy above explaining that I had, by mistake, filled in 6% before I came and before I thought of the analogy. So I went through it and ended up getting the sellers to agree with me that 7% commission was way better than 6%.   The next time I went on a listing appointment I used 8% commission as the new 7% and got it. This sales analogy works really well and I make the decision be up to the sellers so they feel in control. Almost every time I've used this analogy the seller went for the higher commission.   Sales Analogies #2: "When You Pay Me More Money I'm Able To Work Harder"   Depending on how the listing presentation is going I may not use the first sales analogy I explained. I may just explain that my commission is 8% because I do more work than everyone else. I promote their home harder/more than the average agent.   If the seller balks at my commission I may show them how getting their home sold faster will result in a higher net to their pocket and thus the larger commission. If they continue to balk at my commission and it's what is holding them back from finalizing the agreement I will go through the first sales analogy with them and give them the option of what commission they pay.   This is a method you can use to "test the waters" so to speak if you want to wrap up the listing presentation faster and don't feel that the seller needs you to explain the larger analogy to get the listing at a higher commission. If they feel it's too high after you briefly explain why you charge your rate with this second sales analogy, then you can always stop and take the time to explain the first sales analogy at that point.   Keep in mind that I never start discussing commission until after the seller has committed to listing with me. Most of the time we have already filled out some of the basic agreements first, before I start talking about commission or length of the contract.   If you liked these sales analogies then you'll love the free chapter of an old sales book that I have for you with long lost sales strategies called "The Best-Looking Dotted Line Won't Sign Itself". You can download your free chapter by going here now: http://provensalesstrategies.com/free-chapter   You may also like my free audio and transcript that reveals how to create a powerful listing presentation that sells.

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