Overcoming Commission Cutting Objections
Hello and welcome to Debbie’s Tips. And today I wanted to talk a little bit more about overcoming the “Will you cut your commission?” objection.
I know we’ve talked about this before, but it’s something that I hear every day from great agents, who say that they’re just struggling to hold the line on commission.
Now of course we all know that commission is negotiable by law, and yet I also believe that you do have the right to earn what you deserve to earn, to support your business and to support your family.
Today’s consumers, though, they’re more savvy and they’re more demanding than ever, aren’t they?
Today’s consumer is probably going to ask you to cut commission. And yet, just because they ask you doesn’t mean they won’t ultimately pay more.
In fact, I read that if you take any group of consumers for any product, 70% will pay more for perceived value. This is why it’s critical to have a well-prepared and a well-planned listing presentation. Because so much money is on the line, it just makes sense to practice, to rehearse, and to find at least three to five outstanding ways to handle the commission objection so that you’ll feel comfortable and confident that you can respond with ease.
Also, remember it’s critical to stay in rapport with your sellers. So if you flinch, scowl, or act mad, you won’t be able to maintain rapport. So when they bring it up, just be calm. And one thing you can control, don’t ever volunteer to take a cut. Because when you do, you show the seller that you’re weak and you open the door for them to try to get into your pocket for even more later. Here are just a few scripts that I’ve used and our clients are using to hold the line to earn what they deserve. I hope you find them helpful.
“Will you discount commission?”
“You know, if I were you, Mr. Seller, I probably would ask the same question. And when you think about it, I’m sure you’ll realize commission is really a powerful marketing tool.
And what I mean by this is, when you offer a reasonable rate of commission, it incentivizes me to work overtime to spend the money I need to spend to properly market and expose the home, and it causes the buyer agent to put your property at the top of the list.
So when you think about it, Mr. and Mrs. Seller, I’m sure you realize, you are not paying anyone anything today. Today, commission is actually nothing more than a marketing carrot. And when the offers come to the table, you’re going to make the decision whether or not to accept that offer.
Now, let’s do the right thing today. Let’s put the proper incentive out there to attract the showings we need, in order to sell your home for the highest realistic price possible.”
Now I understand they may say to you, yes, but the buyer will find my house on Zillow and tell their agent that they want to see it. And to that, you can say, “Yes, you’re right. That very likely may happen. And yet we can never underestimate the agent’s ability to persuade them towards or away from your property. So again, let’s do the right thing today.”
And if they’re really grinding on you and you need to do it, you can always say to them, “You know, Mr. and Mrs. Seller, I am a reasonable person and I want this deal to go together. So if we get an offer on the table but we’re a little way apart and we just can’t quite make it work, I’ll work with you.”
Because you see, if you’re going to have to take a cut, I would rather you are able to put that off and do that at the end when there’s an offer on the table, because now we have a buyer, a seller, and potentially two agents involved. Plus when you take the cut up front, they just think they’re going to be able to get in your pocket later.
So be well-prepared. Have a great presentation. Use your reviews and testimonials that talk about how you got them the highest price possible. Go out there with at least two or three great ways to overcome the objection with confidence to earn what you deserve to earn.