Most Agents have had to deal with sellers who insist on the agent reducing their commission. How you handle this objection can make a significant difference in what you earn. Here are some suggestions on how to deal with the question:
“Will you reduce your commission?”
1. Mr. Seller, if I understand you correctly, you appreciate my professionalism and want to me to represent you, but you’re concerned about how much it’s going to cost you. That’s right, isn’t it?
2. This is likely one of the most significant financial decisions you’ll make this year, isn’t it? And, of course, you want someone of the highest quality to represent you, don’t you? And, you do feel that I fit the criteria you’re looking for, don’t I?
3. If I may, I would like to ask you a question. Isn’t the most important part of this transaction what you are going to take away from the closing table? Or, net from closing? A strong negotiator can make a big difference.
4. Let me give you an example. If we were able to negotiate a $500,000.00 purchase price, you would be much happier than if we were to only get you $490,000.00, isn’t that right? It doesn’t seem like a big difference. But, if you compare it to the 1% difference you’re asking for, it’s twice as expensive as the $5,000 or 1% you’re asking me to give up…isn’t it?
5. If I was willing to cut my commission and lose my own money:
a. How quickly do you think I would be willing to give up your money?
b. Would I really be the type of agent you wanted protecting your money?
6. Doesn’t it always seem to be true that you get what you pay for? Let’s look at the things that most impressed you about what I will be doing for you:
a. Maximum exposure to all buyers. We’re going to cast as wide a net as possible to attract all buyers, that’s important isn’t it?
b. You also were impressed with the quality of how we’re going to brand your property, weren’t you? And, that can make a big difference in how much someone is willing to pay for your home, can’t it?
c. Our networking within the Real Estate Industry, is unmatched, which means we’ll get maximum benefit from our network of realtors, won’t we?
d. You do want a proven, highly-skilled negotiator don’t you.
e. Don’t you think all of these things will add up to get you significantly more than $5,000 (1% of $500,000.00 above)?
f. And you wouldn’t want to exclude any of the items above, would you?
g. Finally, agents that are willing to take a lot less, always do a lot less and that can cost you tens of thousands of dollars, can’t it?
7. (Last Resort) I can appreciate your concern, but isn’t the time for us to discuss a reduction in my fee when we get a serious offer for you to consider? If you don’t feel that I’ve done everything I could to earn my money, we can discuss it then.