I am active in the AgentsOnline.net forum, so wanted to share my recent response to a post. A new agent asked how to overcome commission objections from a seller who had a higher-priced home for sale. The sellers thought they should pay less commission on their home because the agent "would be doing about the same amount of work" as lower-priced listings.
First, I must point out that David Knox has excellent scripts and videos for overcoming objections. Through use of his training DVDs, I learned to build my value upfront and to set myself apart from other agents. I would point out my corporate business background, certifications, trainings, and community involvement, but you can write down everything that makes you unique or proves your professionalism. This can be included in a pre-listing presentation or on your personal marketing materials.
TIPS TO EASE SELLER FEARS
Tackle objections before clients bring them up. This could be that you are new to the business, haven't sold a home like theirs, or aren't the "top" listing agent in their area. In my case, I looked young and, therefore inexperienced. Depending on the seller's personality and initial reaction to meeting me, I may joke about my age or be more direct in bringing up the issue. I overcame many of their fears by using very professional materials as well as showcasing my knowledge of home values and MLS statistics for their area. Practice with friends or other agents on identifying possible objections and your response.
Guarantees and Seller Safeguards. Sellers want to feel safe and secure with us. They don't want to feel trapped. They want options and to know that they have made the right decision by listing with you.
- I offer an "easy exit" listing agreement where the seller can cancel at any time before acceptance of an offer with 48-hour notice.
- I offer a performance guarantee. My guarantee states that, if the seller does not feel I deserve my full fee at closing, we can negotiate it. This includes me getting paid ZERO if I did that bad of a job. Of course, sellers loved this and it showed how confident I was.
- I offer testimonials from past clients. They can call some of my clients to discuss the good, bad, and the ugly. Most sellers do not call, but they like having the ability to speak with someone who recently listed with me.
Flexible Commission Programs. This has helped many top teams in my area secure listings, especially in our current seller's market. For those of you in a buyer's market, it can still help in cases where the seller is thinking of going FBSO.
Here is an EXAMPLE of what some agents offer as their flexible fee structure:
1-2% commission if the seller brings the buyer and you are the only agent in the transaction.
4% If you bring the buyer and are the only agent in the transaction.
6% If another agent represents the buyer (co-broker gets 3%).
The flexible commission program works well with investors or sellers who have sold without agents in the past. If they are competitive in nature, you can offer the program as a challenge to see who brings the buyer.
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What do you think? What would you say to the seller in this example? Would you offer a flexible commission or negotiate your fee?
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