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Negotiate Higher Commissions & Longer Listings!

by: Postal Realtor
If an owner (Mr. Smith) tells you they want to list their property with you at a 4% commission instead of a 6% commission, consider asking them a question like the following:

"Mr. Smith, pretend that you're a real estate agent working in my marketplace. There are ten properties that you can present to your clients where the owners are paying a 6 percent commission, and then there's one where the owner is only willing to pay a 4 percent commission. Now knowing that at 6% you'll make much more money, in what order would you then submit those properties to your clients?"

Now that you've got his attention, here are a few follow-up questions you may want to ask after waiting for his response each time:
"Knowing that your property will receive far less showings at the commission you're offering, how much money do you think this will cost you in terms of the lower purchase price you'll definitely receive when you finally locate your buyer?"

(Wait for his response)

"And with that in mind, paying the fair market commission rate of 6 percent may actually now sound like a bargain to you, doesn't it?"

Now of course this won't work successfully for you every single time you utilize it, but it will definitely work enough times for you to make it very much worth your while. And at the minimum, it will help you to negotiate a longer listing period on the property, in exchange for you now accepting the 4% commission.

Brief Overview:

-    The longer a home sits on the market the more it develops the reputation of a problem property.

-    Lower commission rate means a lower final sales price.

-    If they want low commission... get a longer listing.

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