Commission protection from Unscrupulous Sellers

Young people are a resourceful group. Although they are considered financially inattentive, there is evidence that many people know how to negotiate lower prices for goods and services, including negotiating lower fees. The first seller who hasn’t yet realized the value they bring to the deal on the sales side is especially likely to bargain with you. Some real estate experts try to lower fees to meet long-term goals, such as getting recommendations from satisfied clients, but they shouldn’t automatically yield to client requests.

“Before that question arises, explain what you’re doing and why it’s worth it when you talk to potential clients,” said Paula Montoffer, ABR, a Realty One Group Mountain Desert real estate expert in Flagstaff, Arizona, and president of the Realtorus® Arizona Association in 2017. “It says. Unremarkably (it can give the impression that they’re not trying in their job) people can underestimate their value. “If you do a good preliminary game and show them what’s going on behind the scenes, they won’t question your commissions.

You may find yourself in this situation with many different clients, as well as first-time sellers. According to a December 2016 Redfin survey, 58% of Generation X and 39% of Baby Boomers report the same fact, while 66% of Millennial sellers say they’ve ever tried to negotiate a commission for a real estate brokerage.

Heather Davis, sales representative for RE/MAX Preferred Properties in Oklahoma City, said the way commissions are protected reflects how you will represent your clients in real estate transactions. She said: “How can you represent and protect the seller if you can’t protect their prices and fees? “It says. “If you’re serious about your business, you need to make sure you have your principles in place and you’re providing services that justify your fee schedule.

Of course, your defense should be witty and respectful. Instead of justifying the reason for charging a certain fee rate, provide the client with a justification for paying the fee. “Explain how your negotiation skills, home inspection know-how or ability to identify serious offers can help sellers get the best sales,” says Terry Miller, CRB, CRS, managing broker at Coldwell Banker Bain in Seattle. “Millennials love data, and they want to prove why you need to hire them quickly and efficiently,” she said. “It says. “It’s home to help them understand that you’re the obvious choice.”

Remember, your commission isn’t just based on the time you spend with your clients. That’s why fighting for commissions is so important. Your commissions also include items like the ones you advertise properties and arrange vendors and contractors for needed repairs. When you think about your business a little more deliberately, you don’t treat your commissions as a negotiation card, says Montofer.

If you’re still interviewing potential clients, you don’t need to verbally defend your commissions right away. First, prove your expertise and consider attaching a link to your agency brochure, letter of recommendation and online testimonials to your email confirmation of your first meeting. If a potential client needs additional sources, contact past clients who are willing to share their experiences with you. “Show your clients the facts about how you’ve sold in your area and what products you’ve sold,” said Pete Kopf, senior broker at Kopf Hunter Haas, REALTORS® in Cincinnati. “It says. “Relationships are how you present yourself and explain your values. And another way you communicate that value is how you handle commission issues.”

If you’re already working with a salesperson, make a strong case for commissions by tracking your work in case the client asks you questions later in the transaction. Update the client for calls, reports, and tasks completed for the client at the end of each week. This reinforces your sense of accountability and makes it harder to argue about fee percentages if you’ve consistently reported your actions.

“Dozens of clients ask me to lower my fees because I’m in a competitive market, and I say, ‘I don’t discount,'” says Marie Presti, a broker who owns Presti Group Inc.in Newton, Mass. And here’s why,” he says. “It says. She adds that sellers often ask her to lower her fee if she accepts offers that are below their asking price. “I said: ‘I’m not in this deal. I agree with you, and you can accept, reject or deny this offer, but my commission is not part of the discussion.’

“No” is an appropriate response, and if your client doesn’t accept it, you can decline the relationship. However, if you make a mistake, you will have to pay for it, Kopf says. After all, it’s your job to ensure that the transaction goes smoothly.