Answer: I’d recommend that instead of becoming defensive and telling them how much you DESERVE what you charge, understand that homeowners care more about their finances than yours. The only reason they’d ever ask you to CUT your commission is because the BELIEVE by doing so they’ll come out better off financially. However, if they found out that paying LESS would actually COST them MORE they’d probably beg you to raise your fees, right? All you have to do is PROVE that CHARGING LESS to sell their home will COST MORE and CHARGING MORE will COST LESS. (I hope you’re not confused yet…)
The real secret to educating sellers on how it COSTS MORE to CHARGE LESS takes nothing more than a little research and a teeny bit of math. Do this; spend a few minutes searching your MLS for homes that sold by brokers that typically charge less than you do. Then calculate their average MARKDOWN PERCENTAGE (list price less sold price as a percentage) and add that number to the fee you believe they charge. Compare those numbers to yours and you’ll soon learn that CHARGING LESS to sell a home actually COSTS your sellers MORE. Now you just need to assemble the information in an easy-to-explain format and let your sellers know why they should PAY YOU MORE. I hope that helps…
Filed under: Commissions Etc, FSBO Training, Prospecting FSBOs, What do I say?
