Commission objections can be challenging to navigate if you don’t know the proper steps to take when addressing clients’ concerns.
As an agent, you’ll need to be prepared to head off objections to your commission rate during listing presentations with new clients. Unfortunately, even if you devote time to explaining your commission in a listing presentation, there’s no guarantee that you won’t encounter a commission objection. Below is your four-step plan of action for overcoming objections:
- Understand why the sellers think you deserve a lower rate – When discussing a commission objection, it’s important to understand why the seller wants to negotiate your commission. Is money tight? Do they simply think your time and effort aren’t worth the cost? Have they spoken to other agents who offered to accept a lower commission rate? Knowing where the seller is coming from can help you figure out the best way to address their objection.
- Present a list of all costs associated with selling a home – When clients don’t have a clear understanding of what you do, they may believe you don’t deserve your full commission for selling their home. Because clients don’t see much of what an agent does behind the scenes to sell a home, you should present your clients with a list of everything you will do on their behalf, with the cost and time spent listed next to each service. Explaining the process and the value you bring to the sale by handling each step can help a client better understand that you are indeed worth your commission rate.
- Let the sellers know how agents positively effect sales – Sellers may believe they can sell their home just as effectively on their own. It’s important that you emphasize how your experience and expertise can help them get more money, a faster sale and an easier experience than a FSBO. Present your sellers with stats from the market to demonstrate how agents positively effect home sales in the area.
- Let the sellers know you can’t provide full services on less commission – When clients say they want to negotiate your commission, let them know that means they’ll also be negotiating the services you are willing to offer them. Explain to sellers that a portion of your commission goes towards the materials and services needed to sell their home. If they are want to pay you less for your services, they may have to give up services, such as professionals photography, home staging, etc.