Why So Many Agents Fall Down Before the God of Commission Cutting
Do you know the value you bring to a real estate transaction? Could you easily justify your 6% commission to a skeptical buyer?
Often, real estate agents don’t know the value they bring to a transaction. They underestimate their worth. They dread the “C” word. They worry someone will figure them out.
So, when commission is mentioned, they throw themselves at a buyer’s feet and say, “How much?”
Over dramatized, I agree, but close to the truth. Especially in this wonderful mortgage meltdown we seem to be having.
Knowing the value of what you bring to the table is essential if you want to overcome any objection to a 6% commission.
With that in mind here are five simple reasons to justify your commission:
1. Without a professional, sellers may not sell as quickly. This is critical if they have a deadline or contingency clause on another house.
2. You are an objective, seasoned negotiator. You bring an emotional, clear-headed stability to the table. You are able to see the whole picture and you might pick up on advantages amateur negotiators would miss.
3. You know competent home inspectors, architects, contractors. You’ve been dealing with these people for years and know their work well.
4. You will list their home on the MLS–a privilege granted only to real estate professionals. And the MLS means nationwide exposure.
5. You will advertise and promote a seller’s home on the internet in newspapers, magazine ads, brochures, the MLS and on your own web site. To do this themselves would be costly.
Listen, the point is to distinguish yourself as an expert in the art of buying and selling a home. Educate yourself. Designate yourself.
Lawyers command enormous fees for a reason: they are experts. Surgeons are the same way. It’s not enough to say that you passed your state exam.
You have to define some skill you bring to the table that any hack on the street couldn’t bring. And once you define this for yourself, learn how to articulate it with pose and clarity.
Finally, have the courage to walk away from any deal, especially if someone insists you cut your commission. This attitude alone will make you a powerhouse, profit-making real estate professional.
Then, believe in yourself. Wholeheartedly.