The Dreaded Commission Conversation

Understanding your value and what you offer to your client will help make it easier to discuss your real estate commission. It is difficult to make a name for yourself as a new agent, but you need to be able to explain your worth to your potential clients.

Here are some tips that can help:

1. Understand why they are asking you to cut your commission. It’s only fair to understand their why in asking. Perhaps there is a financial reason that would help them with their closing expenses. Maybe your client was approached by another agent that offered to take a lower commission. You need to be able to show why you are worth your full commission. Do not be afraid to ask why. You deserve to know.

2. Understand the type of relationship you have with your client. Is this a one-time transaction that you will likely never work together again, then you should probably stand firm on your commission rate. However, if this is a client that you will have multiple deals with, it might not be in your best interest to fight over this one deal. If that is the case, you need to let them know you don’t normally cur your commission and that you don’t plan to do that again in the future. It’s not being rude, you are just establishing your ground rules and that you’re a professional that deserves to be paid your worth for your time ad exercise.

3. Understand the big pictures. Don’t get caught up in commission talk that you miss the point of what you’re trying to achieve. Having some flexibility in your negations might encourage your client to refer you to others and increase your leads.

In the end, you need to understand what you want to be your end game.