When meeting with potential sellers it’s possible you’ll be faced with questions regarding the process and commission percentages. Use the following questions & answers to overcome objections and earn the client’s business.
Why should I pay you 6% when I can get another company to list for 5%?
What’s important is what you net. The only thing that’s more important than the amount of commission or other expenses you might pay is what you net at the end of the sale.
How would I negotiate your price? If I were unwilling or unable to uphold my own fee, how would I be able to prevail when negotiating the best deal on your house?
The better question: What do I get for 6% with ReeceNichols that I don’t get for 5% with other companies? Tell me what you are getting for 5%.
We’ve done several deals together in the past. Will you reduce your commission on this one?
Let me explain how commission works—3% will go straight to the buyer side and 3% will go to me. I would be happy to give you a 15% discount on the 3% which would make my commission 2.55%.
Let me explain how commission works—3% will go straight to the buyer side and 3% will go to me. I would be happy to give you a 10% discount on the 3% which make my commission 2.70%.
I don’t want to hire a real estate agent because I can’t afford to pay the commission.
I understand exactly how you feel. Most people in this economy who have sold their homes successfully have felt the same way. But they probably lost money when they chose not to use a real estate practitioner. Here’s why: this year, and every year for decades, the National Association of REALTORS survey of sellers found that home owners who do not use a real estate pro sold their home for an average of 20% less than a home represented by a practitioner. So even with the commission of (insert %), you are likely to make more money. People, who don’t use a real estate pro, despite their best efforts, usually sell their homes for far less.
You’re making a huge commission on my investment.
Perhaps I can help you see the situation from a different viewpoint. First of all, the $24,000 commission that I charge is not what I receive. Did you know commission fees are used to pay for marketing your property, as well as to compensate the other real estate professionals who will be involved in this transaction?
The commission is generally split up four ways.
What do you mean four ways?
As the listing salesperson, I try to give you every edge to market your house competitively. So, I’ll be sharing 50% with the selling agent and that person’s company.
But you still get to keep $12,000. That’s still a good chunk of change!
Much of that money will go directly into marketing and other activities that will lead to the successful sale of your home. Those expenses are: online advertising, holding open houses, negotiating, managing the paperwork, preparing for the closing, etc. Here’s a list of the work I will perform to get your house sold for the highest value. In addition, I also split my commission with my brokerage.
But doesn’t the brokerage pay you?
No, I’m an independent contractor. I actually receive no salary or benefits. I pay for my car, my laptop and other technology and professional education sessions to better serve clients. I also put money away for retirement and taxes.
What if my home doesn’t sell? Do you get any money then?
No. If the home doesn’t sell or you take it off the market, I get paid zero. We both share the goal of selling your home quickly and for the highest value. (Present seller with a sheet that shows the average days on the market and selling prices of your listings vs the average days on the market of the MLS as a whole). Even though I might charge more than others you’ve interviewed, it’s because my experience, marketing skills and negotiation expertise will generally net you more money. That is your ultimate goal, isn’t it?
Someone else will do it for less.
Yes, you can probable find someone who will take your listing for less money. However, the amount of money you pay is directly related to the marketing services provided to get your home sold quickly and for the highest value. Is that your goal?
It’s how much I net from the sale that matters most to me.
Of course, your net matters greatly to me too. I have a lot of experience selling homes in this neighborhood and I believe that my marketing strategy and negotiation skills will lead to a selling price that will make you very happy.
But if other companies are willing to do it for less, I would save money.
I encourage you to take a close look at what the other companies are going to do for the fee. Usually a lower fee translates into less marketing dollars to promote your home, which isn’t a good plan in this market. In the end, you’re not saving money when you pay a lower commission. You’re actually missing out on market exposure. And that’s the one thing that is going to get your property sold right now.
What will it take to get my property sold?
It will take more than simply adding the home to MLS. I am prepared to handle all the details from suggesting simple home improvements that will impress potential buyers, to hosting open houses and crafting an online marketing plan that is customized to this property. My goal is the same as yours: to attract serious buyers and sell this home for the highest dollar value.
We appreciate your interest, but we want to list with a friend.
I think your loyalty to your friend is admirable, but what about your family? Most people have the bulk of their net worth tied up in their home, don’t you owe it to your family to get the best negotiators so you can get the best price?
The average real estate pro in this market gets (insert %) of the list price and I get (insert %) because I am a better negotiator. That’s money in your pocket. And even in the market, I never leave any money on the table. In addition, you will have peace of mind knowing you can fire me at will, without ruining a friendship. As a friend they will want what is best for you – not what is best for their pocketbook.
What you do just isn’t that hard. It’s not worth that much money.
When you say what I do is not hard or not worth paying for, please help me understand what do you mean?
Well, you put up a For Sale sign in the yard, load information on MLS and do some open houses. I’ve read about it in the paper. I know how real estate works.
It sound to me like you feel the key to marketing is just putting a house in MLS and handling inquiries from buyers.
Well, yes, In fact, my brother didn’t even hire a real estate agent when he sold his home two years ago and he got even more money than he was asking for.
I’m not familiar with the details of your brother’s sale, but I can tell you that selling a home for top dollar in today’s market conditions takes more work than simply listing the home online.
Like what? I talked to some other companies and that’s what they said they’d do, and for a lot less.
I handle all aspects of the sale, from helping you prepare your home for open houses to negotiating with buyers. Here’s a list of other activities that I include as part of my commission fee. (Hand seller a printed list of the most significant activities you do to earn your money.) I will also use the most powerful marketing outlets, including online advertising, targeted mailings and my personal network to promote your house. I won’t be working alone either. I have a talented team to back me up. (Now is the time to talk about your assistance that specializes in online marketing, home staging, transaction management or other specialties).
I see how these people can help you do your job, but how does that help me?
I’m bringing a world of experts to you. Not only will they help me in marketing and selling your house but when an offer comes in, the process will go more smoothly and there will be fewer complications. Plus, I’ll be there not matter when the offer comes in—even at 11pm on Saturday—to negotiate the best deal for you.