I think it’s extremely important for people everywhere to know their worth-especially Realtors and Mortgage Lenders. Often times in negotiations, the first thing that we think to do is to lower our commissions or fees. This sends a completely wrong message to the clients that we represent
We do so in an effort to let our clients know that we are not in the business for the sheer money or to assure them that we are looking out for their best interests and putting their interests above our own; simply, like our fiduciary duties suggest.
However, it’s perfectly fine to make money. We are professionals and this is our career. And, that’s not what it meant by fiduciary duties-lowering our own fees. I think it sends the complete opposite message. And, it would behoove all of us to change our thinking when it comes to our worth. If you negotiate your commissions at the listing appointment, your sellers may think that you’ll immediately give away their proceeds from the sale of their house when the going gets tough!
It’s important to let them know that, yes, you are protecting your own fees; however, you’ll protect their proceeds with even greater care. Often times, on listing appointments, when confronted with a request for reduced commissions, I would just say, “No, I don’t do that.” Then, give them the above script. Usually, they would just laugh and say that, “It never hurts to ask.” Someone else told them to ask in many cases. You can always say, “I didn’t think you were wanting discounted services.”
We are wired to want the best. And, the best is what you are! It’s also important to tell them how you’re paid. “It costs you nothing if I don’t sell your house.” (Or you can add in a marketing fee if desired) I would also tell them that I didn’t get paid a salary or hourly rate.
Listings actually cost agents money. Tell them of the professional photography, the professionally installed sign posts, the Just Listed, Under Contract and Just Sold postcards, the professional videos, the Open House costs and other associated fees of listing a property. So, it would seem that selling their house benefits both of you. We spend money and hopefully recover our expenses. I would also break down the 6 or 7% commission rate, split it with the selling agent, split it with the companies, remove the 25 to 30% off the top for taxes, minus the above expenses and show them what we actually make.
We charge a fair price for extraordinary services. And, people don’t mind paying a fair price. (They don’t want to pay to send your children to college and think that they’re your cash cow, however!) Especially, when they see your worth.
Other things that have worked well for me in the past, was to give them my broker’s name and contact information in case they ever thought that I wasn’t living up to my word. That also kept me on my toes! Or, I would offer them an Easy-Exit Listing Agreement. I would simply write the following on the listing addendum: “Seller may cancel at any time, for any reason, prior to an acceptable offer without any fees or obligations (or, without any other fee besides a $________marketing fee). Offers like this showed my worth and my desire to work hard on their behalf.
Professionals are paid well. And, you are a professional.
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