Sure...I'll cut my commission under one condition....
Now I am sure this 'objection' has many answers.
The simplest is 'No, I do not cut commission. Any other question?'
Robert J. Russell shares a great answer in this re-post.
Sure...I'll cut my commission
under one condition....
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.
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