A fundamental rule, of being a real estate agent, is, seeking listings, by presenting your unique qualities, assets, and qualifications, and how you, might, be the best one, to represent and serve the needs, concerns and priorities, of the specific homeowner. Invariably (and correctly), at some point in this presentation, there must be a discussion about the commission, you will charge. Years ago, nearly every agent charged the same rate, but today, it often, differs, from agent to agent, and homeowners, also realize, they have the right, to try to sell their home, on their own (FSBO). Therefore, successful, effective, professional real estate agents, must be prepared for this eventual discussion, and be able, to convincingly, and accurately, explain (and justify, if necessary), the commission, they seek and request. This article, therefore, will present, a simple – to – understand, basic, 5 – step approach, to answering these questions, and/ or concerns.
1. Rephrase: The first thing to do, is determine, precisely what the concern might be. Is it, paying any commission, or the amount of commission, you request and seek? One shouldn’t be meek, or beat – around – the – bush, when it comes to this issue, but rather, confidently, answer these concerns, etc. Possible lines to use, might be, So, you’re concerned about paying a commission?; or Are you asking why I am seeking, the specific rate, and how it meets your needs? Wait patiently, for a response, before proceeding further.
2. Empathy: Remember, others are comforted, and, thus, become more comfortable, with you, and willing to listen, with an open – mind, when you listen, far more, than you speak. Don’t sound like you’re merely reciting some script, but, rather, consistently, proceed, with genuine empathy (not sympathy)! An effective statement, might be, I can perfectly understand your concerns. In fact, I used to feel that way, and so have most of the homeowners, I have served, until they realized a few things.
3. Answer thoroughly, and personalize: At this stage, successful agents, take the opportunity to explain, how they are unique, why they deserve the commission requested, justify it, and prove/ clearly demonstrate, your negotiating skills! After all, if an agent can’t negotiate, for himself, how can he effectively, do so, for the homeowner? Don’t rush this stage! Explain, not merely the services, you provide, but, how these might benefit them! Explain relevant statistics, from N.A.R., about the pricing, statistically, Realtors receive, versus, what those, trying to do so, themselves, generally garner. Customize this discussion, addressing the individual client’s perspective, etc, and explaining, why you might deserve more than some of the competition, and it’s in their best interests!
4. Recreate the need: Once you are convinced, you’ve explained things, to their satisfaction, you must strive to regain control of the discussion, by recreating the need, and focusing on the teamwork, process, expectations, and then, of course, proceeding to begin the necessary paperwork.
5. Close: There is no deal, until/ unless, a real estate agent, effectively closes it! Steps 4 and 5, are often approached, directly, by using language, similar to, In light of our discussions, and you now, better understanding, why I am the best one to meet your needs, and expectations, doesn’t it make sense, to formalize the arrangement, and get the process, moving forward? Doesn’t it?
This process takes self – confidence, training, practice, and a genuine commitment, to make a difference, for the better, for one’s clients! Will you be ready, willing and able, to proceed, as needed and necessary?