Mr. & Mrs. Seller, I Have Already Reduced My Commission 50%! And You Want More?

By
Real Estate Sales Representative with Keller Williams Cornerstone Realty

Mr. & Mrs. Seller, I Have Already Reduced My Commission 50%!  And You Want More?

 

I heard this request again yesterday!  It usually begins something like this.  “My house has lost so much and you want me to sell for even less.  I have this much invested and I NEED this much.  You need to reduce your commission.” 

My response.  You know Mr. & Mrs. Seller, I also feel your pain.  My home is worth less than one-half of what I paid for it 6 years ago.  However, the bank has not reduced its principal or interest rate.

 

So I can understand how you feel, now that your home is worth one-half as well.  But because you home is worth one-half, my commission has reduced by one-half.

 

However, did my costs decrease by one-half?  No!  Unfortunately almost all my costs have increased, especially the cost of gas to show buyer’s your home!

 

I know times are tough if you are a home seller.  But trust me, times are tough for me your Realtor® as well.  I am working much harder, and making less than half of what I made a few years ago.  That is not your fault and it is not my fault either.

 

Let’s just sign the contract Mr. & Mrs. Seller, so we can get your house sold and move on with your lives.

 

 

Bob_the_realtor_transparent_copy

 

 

 

Join Active Rain

 

Can he sell it?  Yes he can!

 

 

 

352-547-1074

 

Bob@bobtherealtor.net

 

Bob Miller (Keller Williams Cornerstone Realty): Real Estate Sales Person in Ocala, FL

 

 

Bob the Realtor

 

Keller Williams Cornerstone Realty

 

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Re-Blogged 5 times:

Re-Blogged By Re-Blogged At
  1. Joe Jackson 03/09/2012 05:28 AM
  2. Brian Schulte 03/09/2012 09:49 PM
  3. Linda Jamail Marshall 03/09/2012 11:36 PM
  4. Stephen Turner 03/10/2012 01:02 AM
  5. Shannon Coe 03/18/2012 02:07 AM
Topic:
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Tags:
cutting commissions
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reduced commissions

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Rainmaker
816,712
Bob Miller
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team

Thanks Matthew & Robert.  Have a great 2012!

Mar 14, 2012 07:35 PM #181
Anonymous
Dennis Erickson

Bob,

There's an old saying in the South that seems to apply here.  It goes something like this:

"What do you want for nothing, your money back?"

Mar 15, 2012 03:23 AM #182
Rainmaker
816,712
Bob Miller
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team

Thanks Dennis.  Never heard it before and like it!

Mar 15, 2012 04:00 AM #183
Anonymous
Rob Conte - Prudential Select Real Estate, Bolton, ON. CANADA

Bob, its amazing when so much of the angst we feel as Realtors gets summed up in a short and concise manner, as you have done here.  We all agree that the rest of the world never even gets asked to do the same job for less money, but yet we are confronted with it all the time!  

Do we know why? Why your Dentist won't cut his paycheck? Why you can't negotiate with your Lawyer? Why a BigMac combo will cost you exactly what they tell you it will cost you?  The answer is simple! Its all about conditioning!  We as a society are conditioned to pay for services, and short of a garage sale, a flea market, or your friendly neighbourhood Realtor, you can't negotiate.  The reality is, we are our own worst enemies here, because our industry is so competitive, we decide to take less to get the listing, because less is better than none right?  In realtiy, we are hurting not only our credibility, but taking less going forward means we set the going rate lower, which then we are asked to cut from...

Cheers,

Rob

Mar 16, 2012 12:30 AM #184
Rainmaker
1,004,361
Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

Rob in #188:  Sorry to interrupt this thread, but please... there is no such thing as "the going rate."  All commissions are negotiable... and we are all free to charge what we either want, or within whatever leeway our individual Brokerage office allows.

Mar 16, 2012 02:17 AM #185
Rainmaker
816,712
Bob Miller
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team

Hi Karen, Great catch.  In no way am I suggesting or endorsing a "going rate" as I prefer to keep my license and not go to jail.

 

Rob, I don't necessarily think that is what you were suggesting, but rate cutting, or price "bidding" to gain listings is the way some agents choose to (and are free to) do business.

 

Karen, hopefully what I intended and others commenting, was assuming a free market exists; - to choose to lower our commission to assist sellers who have lost equity or to choose to adjust our fees to the current market.  And we all do so independently!

Mar 16, 2012 09:38 AM #186
Rainmaker
1,004,361
Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

Bob Miller... I was not suggesting that YOU were talking about a "going rate..." as I would assume you would know that implied price fixing.  I was responding to "Rob Conte's" comment in #188 when he mentions "the going rate" at the end of his comment.

Have a great weekend.

Mar 16, 2012 10:11 AM #187
Rainmaker
816,712
Bob Miller
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team

Karen, I know you weren't.  I just wanted to clear the air, that none of us were condoning or suggesting any kind of rate fixing.  This is a free marketplace, and this post and comments including yours, and Rob's, are all about agreed to compensation as determined by the parties to the agreement.

Mar 16, 2012 10:54 AM #188
Anonymous
Rob Conte - Prudential Select Real Estate, Bolton, ON. CANADA

Yes Bob, you explained it the way i was intending it.  I would never suggest anything to do with 'price fixiing'. Thanks for clarifying it, and understainding what I was trying to get across.

Cheers,

Rob

Mar 16, 2012 04:16 PM #189
Ambassador
832,372
Charlie Ragonesi
AllMountainRealty.com - Big Canoe, GA
Homes - Big Canoe, Jasper, North Georgia Pros

I really like your point about I am making less too. I will use it. I did reduce on a short sale to save a foreclosure in my neighborhood.

Mar 17, 2012 04:27 AM #190
Rainmaker
816,712
Bob Miller
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team

Thanks All Mountain.  Good luck.

Mar 17, 2012 04:44 AM #191
Rainmaker
1,177,654
Adrian Willanger
206 909-7536 AdrianWillanger-broker.com - Seattle, WA
Profit from my two decades of experience

Bob. I like your perspective, we're all working much harder and our costs structure is still going up. 

Mar 18, 2012 02:48 AM #192
Rainmaker
816,712
Bob Miller
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team

Thanks Adrian for reading and your thoughts.

Mar 18, 2012 10:20 AM #193
Rainmaker
273,464
Wayne B. Pruner
Oregon First - Tigard, OR
Tigard Oregon Homes for Sale, Realtor, GRI

I like the way you phrased your response. I'm pretty sure I did not get a recent listing because I would not lower my commission.

Mar 20, 2012 05:31 AM #194
Rainmaker
816,712
Bob Miller
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team

Hi Tigard.  Thanks for reading and commentling.  It does not always work as I lost one also last week on commission.  Actually the seller is still holding out.  He wants me to list it but wants the lower commission.  At this point I am letting him wait.

Mar 20, 2012 07:35 PM #195
Rainmaker
686,609
Hella Mitschke Rothwell
(831) 626-4000 - Honolulu, HI
Hawaii & California Real Estate Broker

Bob: I've been contacted by a lot of potential seller clients and their first question is "what do you charge as a commission?" We then negotiatie, and either I'm happy with it or not. Often they have a number in mind. I also talk about "the other side". If there's not enough for them, that can be a big problem. You may THINK that agents are above that, but...

Dec 29, 2012 06:08 AM #196
Rainer
135,626
Matt Robinson
Professional Investors Guild - Pensacola, FL
www.professionalinvestorsguild.com

As Dave Ramsey says, "No" is a complete sentence.  Will you reduce your commission? No.  Ok, so sign right here.

Jan 15, 2013 02:22 AM #197
Rainmaker
816,712
Bob Miller
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team

Thanks Matt, we will try that next time.

Jan 15, 2013 02:32 AM #198
Rainer
405,379
Brad MacKenzie
Brad MacKenzie - Duxbury, MA
Turning Houses into Homes on the South Shore

I'm with Matt. If I've explained my value proposition to them, they needn't ask. If they persist, they need to decide what part of my services they don't want me to do.

Mar 12, 2013 05:02 AM #199
Rainmaker
816,712
Bob Miller
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team

Thanks Brad, we need to practice that script!

Mar 12, 2013 05:56 AM #200
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