How to Answer the Commission Question

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  1. Flo Sayre

    When I am asked to reduce my commission, I ask the person this: “Is your salary negotiable?” They say, “Yes.” I say, “Do they ever go down?” They answer quite adamantly, “NO, of course not!” And I smile and say, “Neither do mine.” Then I hand them the pen to sign the listing agreement. DONE!

  2. Usually Sellers are the ones wanting to negotiate a commission reduction to achieve a higher net. I try to explain to them that the only thing I have to sell is my time and there are no upfront guarantees to me as to how much time I must invest in selling their home. If I offer a discount, what portion of my service would they expect me to reduce in order to save them money.

  3. What about relatives who expect yout services for free? Like a son or in law who wants lots of time and attention totally free or. At best, 1/2. Of 1 per cent. This is not expected from any other family members.
    They are happy I am receivin the commission
    I receive from other clients.
    I’m really stressed about this one transaction that I let go because I value my time and experience. Comments appreciated

  4. Kevin Coburn

    Hi Miriam, What I have done in the past when it comes to close friends and family is I refer them to other agents. This way if for some reason things go south it is not really on me and I get a nice little referral fee when things go through. Friends are worth more than a commission why risk it for a few dollars. Use them for networking.

  5. George Schrempf

    In my state, the seller pays both agents’ commissions.
    What do I say to a seller who wants to negotiate my buyer’s agent commission? It’s easy for me to justify the many hours of work I did on behalf of the buyer, but to be honest a large portion of that work does not directly involve their transaction.

  6. George, this is an easy one for me. I assume you are talking about the listing presentation. There are numerous answers to that question, my question is how often that comes up with your sellers? I am not one of those HGTV agents that sells multi-million dollar homes, I sell your average “middle class America” house 🙂 That being said, it’s only come up once for me. I said that it will have to be displayed in the MLS as such (which actually contradicts the MLS in Florida) and to be quite honest, no one is going to take me or the sale seriously with that deal. Think about it, and have them think about it. I’m asking you to bring me a buyer for my listing but I want you to know you are worth 1/3rd of what I am. Now, to tell anyone that, they won’t take me seriously as an agent and move along, “steering” their client away. I know I would.