Many people are so desperate in my area to make money that they are willing to sacrifice their commission for the clients. Is that a good thing or bad thing? You decide. My approach to this is that I am worth at least 3% for a commission for the service that I provide. If a person wants a lower rate, such as 2%, I show them my spiel as to what is done at no cost to them. A misconception out there is that agents make 3%, we all know that we make 2% or 2.5 at the most. The rest is given to our broker. Is it worth sacrificing your commission to get a client. That is up to you, but for me, I know what my worth is and it would depend upon the home value and the effort that would have to be given to close the deal. My issue is that if it will hinder the customer service that I give then I will not sacrifice, but if I can accomplish both then I might get future referrals from that client. This is a very touchy subject, because most realtors define their worth by their commission. A good realtor is one that gets the job done. That's it.
Windermere Real Estate/M2, LLC - Stanwood, WA
Stanwood, Camano & Arlington, WA
Hi Matthew,
I don't think I would define my worth completely on my commission. I prefer to think of my worth and success on the number of happy clients that I create each year. Don't get me wrong, dollars are nice, but raving fans are a good thing to have too.
Dec 11, 2007 07:32 AM
Aksland Real Estate - Modesto, CA
Realtor, CFS, CVS
Complete Home Inspections, Inc. - Brentwood, TN
Home Inspectons - Nashville, TN area - 615.661.029
Austin Avenue Real Estate Company - Austin, TX
I mostly agree. I have found one of the best approaches to keeping more commissions is educating my friends and clients about where my commission goes....... to my broker, E & O, taxes, gas, insurance, marketing, etc. I will admit though, I have had to cut my commission more than I would like to get the listing or sale since things have slowed down.
Dec 11, 2007 07:39 AM
Aksland Real Estate - Modesto, CA
Realtor, CFS, CVS
Aksland Real Estate - Modesto, CA
Realtor, CFS, CVS
Frank Rubi Real Estate - Slidell, LA
Licensed in Louisiana
I must agree I look at the commission rate to see if I want to waste my time.
Dec 11, 2007 07:52 AM
Lockwood Real Estate - Sacramento, CA
I don't define my worth by my commission. I define the worth of my business by the number of closed escrows per agent times the number of agents. Hey, that gives me an idea. I think I'll go hire one.
Dec 11, 2007 07:59 AM
Aksland Real Estate - Modesto, CA
Realtor, CFS, CVS
First I want to say, I wrote this to show how many agents think. I believe the bottom line is results and customer service. I agree with John W. if there is no buyer commission, then I won't waste my time, but if I can close a deal and make clients happy and get new referrals then that is worth its weight in gold.
Dec 12, 2007 01:40 AM
Rainer
83,652
83,652
Matthew Zgonc
Realtor, CFS, CVS
Comments(9)