As agents we have all experienced the "ALL ABOUT ME" genre' of seller's wanting us to reduce our fee when listing a property, usually playing one agent or company against another. Indicating that the "other" agent will reduce their fee, thus holding you hostage to that statement, whether it true or not. Most inexperienced or timid newer agents will "CAVE" immediately to this extortion fearing loss of a possible income and never considering the bottom line on this transaction.
The end product of this extortion, if the fee is reduced, the seller will always expect the agent to perform at 110% on marketing their home for 60% of the fee, yet remain 150% responsible for any and everything that may go awrigh during the transaction. The agent usually will not extoll their value proposition during their listing presentation and when asked to reduce their fee, the agent will resort to a response of the novice spelunker!
Recently one of my experienced and top producing agents, was confronted with this situation, and sought the same advice that I have been giving for years, when agents are confronted with these type of requests. I, again, suggested that she "do the math" as to the effect on her bottom line of such a suggestion, keeping in mind her usual comprehensive marketing and resulting expenses for such a reduction. She went back to her office and returned a short time later with the revelation or "Ah-Ha" moment that if she agreed to such a reduction and compromised her value proposition that she would net less than $400 on the transaction. She promptly proclaimed "why would I want to do that" and was rather enamored with herself that she came up with this resolution.
"Ah-Ha" I guess Good Things happen to those who wait - or procrastinate on the same advice that has been given for years.
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