When you agree to represent a seller, the homeowner hires you to:
- Get them the highest price for their home
- In the least possible time
- With minimal or no stress or aggravation
So, what do you do when you meet every objective above and the homeowner demands that you reduce your commission?
The best way to deal with this situation, especially given the sharp drop in days on market for most listings, is to address this objection before it happens. After all, from the homeowner’s perspective, they’re paying you a lot of money and they question the amount of effort you’ve had to put in because your hourly rate has turned out to be astronomical. In fact, top real estate professionals are no different than top surgeons or attorneys. It takes years and years of experience to become the best. In the case of real estate professionals, being the best includes developing a massive network of buyers and strong relationships with other agents. You must remind your sellers that they have selected you because you are the best agent to represent them.
The script outlined below should be used as a way to keep the homeowner from feeling that they may have over paid when the property sells quickly.
“Mr. and Mrs. _____________, you know that I have been practicing real estate for ___ years now. During that time, I’vebeen able to both hone my skills and establish strong relationships with local agents and a pool of perspective buyers.”
“Every once in a while, when I agree to represent a homeowner and I present their property to my sphere of influence and pool of buyers, I’m able to meet the seller’s objectives immediately. I can’t promise this will happen, but when it does, I become an overnight success as a result of being in this business for ____ years. I know that’s why you’ve agreed to let me represent you. If we are successful very quickly, you’re not going to want to penalize me for our success, are you?”
With the speed in which listings could sell in 2014, we strongly recommend you include the script above in your presentation. It should help you from having to reduce your commission when you have a quick sale.