So Here is the commission question

Real Estate Agent with

It is the dreaded commission question that the sellers ask. Why am I paying this much? Some also ask the follow up , Do others charge less. 

So taking the pay out first. 

You can tell them about your broker split, your MLS split if there is one,  and your Realtor fees but all you are doing is explaining expenses that in truth do not directly benefit the client,

So you have to talk about your marketing strategy and fees.  

Your home walk through is often a very looked over and an important benefit. You may make suggestions and find things that can be fixed to enhance pricing and avoid negotiation during due diligence. Make sure your seller knows this and the value. 

When you do your CMA make sure the seller knows that as a real estate professional you are making them more money that if they listed by them selves.  In the CMA look at the percentage of sales price paid against asking. I had a seller look at the CMA and ask , why are use pricing me at 275 when the homes in my area average sales price was 260. Now a stock answer is we will leave room to negotiate down. But a better answer is look at the prices paid against asking. In this case more than 70 percent were paid over 100 percent of asking. What does that tell you about the market ? This type of analysis adds to your value proposition.

You are a value proposition and if you cannot add value then.....

As a recent example I found a seller had  LP siding. It was in great shape. So I told the seller that we are to disclose this and when asked we have taken this issue , even though things were great into account when we made the price. If found in due diligence we certainly would have been negotiating downwards.

Ask your self on every deal what is the value I am adding for the seller. And yes you have costs associated with that value which must be considered too. But stress your value.


The second part about others that charge less can only be addressed, in my opinion, by pointing out what is being left out of the service. Is what is being left out saving you more money than it is costing ? Have your answers ready for that one too. If I go on 10 listing appointments reject 3 because of unrealistic seller expectation  of the remaining 7 I end up with 6.  A big reason why is being able to address the value proposition. 

Posted by


Charlie Ragonesi All Mountain Realty Big Canoe and Mountain Blog

On line at Call at 706 579 1098

We sell Homes                                                    


Comments (3)

Troy Erickson AZ Realtor (602) 295-6807
HomeSmart - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Charlie - If you can't explain your value to your potential clients, it will be difficult for them to select you as their agent. Not only when it comes to the commission, but also just comparing you and your services with other agents.

Feb 27, 2017 05:54 PM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Charlie, I just had this conversation yesterday with a Seller, and they were comparing me to an Internet company that was a flat fee company.  No comparison.

Feb 27, 2017 06:18 PM
William Feela
Realtor, Whispering Pines Realty 651-674-5999 No.

It is a legit question and when explained properly you wont

 have to worry about this from these clkients again

Feb 27, 2017 06:44 PM