Your commission rate isn’t just about money; it’s about pride and self-respect. Our previous Cutting Commission Cutters Down to Size article discredited discount brokers by turning their own actions against them.
The strategy involved scenarios where discount brokers had sold their own personal properties at full selling broker commissions. It worked so well that I decided to use the same strategy in other situations.
There was an expired listing in a hard to sell location that had been on the market for years with various different agents. The seller didn’t want to continuously reduce the price so I suggested that we instead list at the same price but offer a higher than normal commission.
Needless to say, she wasn’t too keen on the idea so I pushed further. I asked her, “People are motivated by money, right?” to which she agreed. I then continued, “If we offer more money to the agents, they’ll be more motivated to show and sell it, right?”
She was still reluctant so I showed her some other listings that had previously expired but then sold later on once the commission rate was increased. Once she saw the proof, she agreed to list for 7% which was unheard of in my area!
After a flurry of activity, her home sold for well over the asking price! I then put together a folder that showed the failed sales history of the property when it had been listed with other agents at standard commission rates. At the back of the folder, I showed the 7% listing next to a sold sign. I even had a testimonial from the seller attributing the sale to the 7% commission!
It’s natural for people to want to know “what’s in it for me” so don’t tell just them that you deserve a high commission for this reason or that. It’ll all sound like a bunch of empty promises but if you can prove that a high commission is in their best interest, you’ll be on your way to a sale instead of on your way out the door.