Sure...I'll cut my commission under one condition....

Reblogger MichelleCherie Carr Crowe Just Call...408-252-8900
Real Estate Agent with Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty DRE# 00901962 Lic.1985

This is a great response to the "will you cut your commission question." I like that he already has a letter prepared in advance and makes it part of the negotiation conversation.

Has anyone else used this type of close to the same effect? I'm curious to hear what other tools agents are using to address this part of the commission conversation.

Original content by Robert J. Russell 0479382, 723286

If you have ever worked the FSBO market you know that there is a 95% chance that the seller will ask you to cut your commission. I understand that and I am always ready in advance if that statement comes up.

What I do now is prepare myself for the inevitable question in advance. I draft a letter for the seller to sign which says the following:

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Dear Employer


As you may or may not know, I am looking to sell my home in the near future. I understand that things are tight as I move into the real estate market in an attempt to sell my home.

My Listing Agent has agreed to reduce his commission by 2/3 of the normal rate. He will do the same amount of work to sell my house and will only charge me 1% as opposed to the customary 3% as the listing agent. Of course the buyers agent will get his full 3% when he brings a buyer.

I have decided that it's only fair that I do the same thing. I would like for you to decrease my salary from my current amount by 2/3 just as my Realtor will do. For example, instead of paying me $100,000 per year salary I would like for you to decrease my income to $33,333 effective immediately.I also understand that my hours and workload will stay the same and not be affected at all.

When my house sells then I would like for my salary to be adjusted back to my $100,000 salary as before.

Sincerely,

Homeowner & Faithful Employee

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After the seller has read this and looks to me in amazement - I smile at him and say " Are we ready to get started ? "


What is even more amazing is that NO For Sale By Owner has ever agreed to this type of deal under these circumstances.........and I do not lower my commissions.


FYI - I have worked the For Sale By Owner market for the last 12 years - if you would like information on how to get more listings using this approach or other approaches - please call me.





Robert J Russell

Robert J Russell Companies 

Real Estate * Insurance * Speaker * Radio Show Host

972.292.8967 Office

972.679.9029 Direct

 

 

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Rainmaker
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Teral McDowell
Referral Patners LLC - Murphy, TX

Great reblog, Michelle - I really should type up that letter. I am amazed how often people think we should cut our commission. Frankly there's been a time or two I have simply said No. Once I quoted a higher than usual rate and said "but if your home..." they went with the lesser rate.

Nov 05, 2012 02:58 AM #1
Rainer
453,420
Diane M. Phillips Realtor 443-286-4365
Frankly Real Estate Inc. - Manchester, MD
Specializing in Carroll Co., MD

Michelle ~ That's one way to handle it.

Nov 05, 2012 11:38 PM #2
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MichelleCherie Carr Crowe Just Call...408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

Teral, yes it's a bit of a balancing act.

Diane, I liked that he had the letter handy!

Nov 06, 2012 01:26 PM #3
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