Commission Reduction Dialogue

6% commission used to be the norm. Listing agents got a full commission and generally gave the buyer’s agent a 50/50 split. But times have changed, and sellers have become more willing to ask for commission reductions. Lacking proper dialogues, some agents don’t have a rebuttal. As time passed, 6% commissions gradually became less common.

Let me ask you this: Do you fight for your client? Do you go above and beyond? Do you do everything you can to get them the best possible deal?

If you answered “yes” to these questions, you certainly are worth every bit of that 6% commission.

Since we’ve established that, we need to prepare you for when a client objects to your new pay rate. With the dialogue below, you’ll move from a deer in headlights to a trained commission assassin.

Learn it well, and you’ll never be the same again!

Here we go:

Client: “What commission rate do you charge?”

Realtor: “I charge 6% on all my listings.”

The client gives some objections: “I can get it for less…”, “So and so said they would do it for…”, etc.

Realtor: “Ok, but what will they do for you?”

Client: “They’ll sell my house.”

Realtor: “Yes, but what will they do?” Have them list specific things such as getting pictures, putting them on the MLS, hosting open houses, etc.

Then ask:

“Will they represent you?” This is where the dialogue starts to bite.

Client: “Of course, they will!”

Realtor: “Will they negotiate and get you the highest possible price for your home?”

Client: “They better!”

Realtor: “Well, let me ask you this: If they were so willing to give away their commission, their own money, what do you think they would do with your money?”

THIS IS WHERE THE PROSPECT SHIFTS.

THEY WILL GO FROM THINKING THE LOWER COMMISSIONED AGENT IS THE BEST DEAL TO REALIZING THAT YOU, A VALUE AGENT, WILL GET MORE MONEY DURING NEGOTIATIONS.

“See, my job is negotiating and getting the most money for your property.”

“Everyone pays me 6% because that is what I do.”

“Is getting the highest price for your home the most important thing?”

Client: “Yes.”

Realtor: “Great. That’s what I’ll do for you. Let’s get started.”

The reason this dialogue works is that it severely invalidates the “discount” agent while at the same time elevating you and giving the prospect the confidence that you will get them the most money possible.

Note: for this to work, it must come across naturally and confidently. Either will only happen if you role-play the dialogue until you have it down pat. Ask another agent to help or your spouse, kid, dog…, anyone. Just drill, drill, dill until it’s second nature, and you can spout it off without hesitation, nervousness, or mistakes.

With this weapon, you’ll get what you deserve.