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Frequently Asked Question: Do you reduce your commission?

Frequently Asked Question: Do you reduce your commission?

Real estate is this funny business where customers want to hire you but before they do they want you to reduce how much your are going to be paid. I don't know how many of my clients' bosses ask them to reduce their take home pay before take on a job. I understand no one likes to pay more than they have to pay. I also understand that the price for selling a home in America is high compared to other countries.

I posted a blog yesterday about how much we charge which explains the process and how a real estate agent gets paid. This is worth reading because it explains some of our answers to today's question.

As a real estate agent or in our case a Realtor, we get paid only if we are successful in meeting our clients goal or purchasing or selling a home.

So, it seems odd to me that before we even start a customer is trying to get me to reduce the amount I am going to get paid to help them be successful in achieving their goal. Now they may believe I am going to get paid the entire amount of the commission, please read yesterdays post linked above. 

Yes, ultimately as I explained yesterday our fees are negotiable depending on several different things. How many homes are you selling and buying? What price point is your home? Are you going to be buying a home locally as well as selling the one in which you are currently living? The answers to these questions will affect how much we charge.

Will we reduce our commission? The simple answer is no. You are hiring me to negotiate on your behalf and maybe this is simply a test to see how I handle the objection because you want to know if I am going to do a good job representing you and getting you the best price and terms for your home.

Another way to look at this is to ask your self what would you like me to drop out of the representation I am giving you. I note just a few below.

Buyers

Communication

Confidentiality

Negotiation skills

Pricing data

Data analysis

Public Records information

Neighborhood knowledge

Mortgage contacts

Home Inspector contacts

Contractor contacts

Title Insurance contacts who can offer you discounted rates

Movers

Which of these do you not want access to?

Sellers

Advice on staging and preparing your home for sale

Marketing 

Communication

Confidentiality

Security of your information

Protection of your Escrow account

Negotiation skills

Advice on market data

Contractor contacts

Movers

Conveyancing, obtaining tax certs, home owner or condo association documents

Obtaining the pay off amounts for your mortgage and making sure it is closed correctly

These are just a few of the things we do for clients which if any of these do you not want in your representation. We offer outstanding customer service as is evident from our testimonials and frankly we don't want to lower our standards of service. We may offer you a lower commission because of one of the reasons mentioned above but we don't want to give you shoddy service and therefore we charge what we do as this enables us to meet your expectations.

Buying or selling a Main Line home, call us to represent you and know that you are hiring one of the top Main Line agents with many positive testimonials over the years.

 

 

 

If you are buying or selling on or around Tredyffrin Easttown or along the Main Line we can help you,  contact us or connect

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Comment balloon 4 commentsNick Vandekar, 610-203-4543 • January 09 2015 11:50AM

Comments

There are times I'm willing to reduce my pay... when I have a seller with a hardship and I agree to list a short sale, I know it can happen.  When I have someone buying a new house from me while listing their old one I generally give them a break on my side of the second transaction since I'm getting two back to back.    But just random by asking my answer is usually no.

Posted by Tammy Lankford,, Broker GA Lake Sinclair/Eatonton/Milledgeville (Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668) about 4 years ago

Good afternoon.  I just was asked yesterday what the commission would be.  I smiled and told him I was surprised he was asking that even before he knew what my services included.  Also explained that the commission decided on is not mine alone but basically split 4 ways.  There was no more talk of commissions.  Mark

Posted by Mark Don McInnes, Sandpoint, North Idaho Real Estate - 208-255.6227 about 4 years ago

There's always a time to raise the question, but not at first blush.  Puts the emphasis on the wrong thing.

Posted by Michael Dagner, Your Denver Homes Realty Expert (Brokers Guild Classic) about 4 years ago

In certain situations I think we all do to some extent. I would do it for investors with multiple properties or on a very expensive property for instance,but still maintain a professional level of compensation.

Posted by Pete Xavier, Outstanding Agent Referrals-Nationwide (Investments to Luxury) about 4 years ago

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