Getting A "Discount" By Working With The Listing Agent

In the past couple of days I have had a few conversations with listing agents who were confronted by potential buyers wanting a discount on the sales price because they didn't want to use a buyer's agent.

I Want A Discount

This is one of the biggest misconceptions we face as real estate agents.  For whatever reason, buyers seem to think that by working with the listing agent they can automatically get a reduction in the sales price of a property.  So what do you say when you are approached by a potential buyer who wants a discount?

Educate The Consumer

The very first thing you need to explain to them is that the commission is a legally binding agreement between the seller and the Broker.  It is not an agreement with the listing agent, but their Broker.  The seller has agreed to pay the Broker a certain percentage.  Of course there are exceptions and those would be stated in the listing agreement, but I'm speaking in general terms.  So while the buyer thinks they would get a "discount", in most cases they wouldn't.  The listing agent would simply get the full commission.

Explain Agency Laws

The next conversation would need to be that of Agency.   Since Agency laws vary from state to state, you need to discuss the level of representation you would be able to provide to these potential buyers.  Lastly what is your standard of practice when it comes to working both sides of the transaction?  Of course they will say that other Broker's offer a discount to buyers, but you can't control what other Broker do or don't do.  You can only talk about what you do.  Consumers need to understand the value of having someone represent them and their interests 100% and hopefully you understand the importance of representing someone fully.

What Is The Property Worth?

Although many jurisdictions allow dual agency, I find it difficult to walk that thin line...but that's just how I choose to run my business.  There is no right or wrong way of running your business, but it is our obligation to educate the consumer so they can weigh all of their options to make an informed decision.  At the end of the day it's about the consumer feeling as though their interests were represented fairly.  Buyers should make an offer based on what they feel the property is worth, trying to get a "discount" has nothing to do with what a property is worth.

Related Articles

• I Don't Want Representation
• I Want It All
• It's Nice To Be Appreciated - Tips for Working With Buyers
• Selling Real Estate Is A Job
• Be Careful What You Start

Real-Life Real Estate Training – The Training You Need, When You Need It

Have you struggled turning contacts into clients?

Are you working hard, but hardly making any money?

Are you beginning to think you made a bad career choice?

If you answered “yes” to any of these questions you are in the right place!  The Real-Life Real Estate Training program was designed to transform you and your business so that you achieve your goals.  It doesn’t matter what stage in your real estate career you are in…new, experienced, or somewhere in between, our systems will help you focus your time, energy and effort on the right areas of your business.

The Real-Life Real Estate Training pr0gram was designed by an active Realtor, so our program is totally realistic, doable and easy to put into action immediately.

Check out what our valued clients have said about us on our testimonials page.  I’d love to talk to you if you still have some questions or need additional information.  Give me a call at (202) 669-1924 or send me an email at candy@rlretraining.com.

Let’s Go to Work!

Candy Miles-Crocker

Real-Life Real Estate Training