Many new agents are terrified about the prospect of discussing their commission with a potential seller. If this is the case for you, you're going to need to be 100% comfortable with the commission fee you're going to propose. If you aren't, you're dead meat. If you have concerns that you're overcharging for your value, it will be crystal clear to the seller prospect. In my first year, almost all of my listings were taken at a very low percentage because that's all I thought I was worth, due to my inexperience. As my experience and expertise grew, I became more comfortable proposing (and sticking to) a higher fee.
I'm not being real helpful yet, am I? On one hand, I'm shooting down your confidence, yet on the other, I'm telling you that you must HAVE confidence to negotiate effectively! Well, that's the cold hard truth. But I won't leave you hanging... here's what to do.
You need to convince yourself that you're worth it before you can ever convince a seller.
On your first few listings, commit to yourself that you will go way above and beyond what is typically expected of a listing agent in your area. Commit to yourself that you WILL earn your fee, if not with your experience, with your enthusiasm and effort. Spend your own money marketing your listing if you have a great idea that you think might work. Spend as much time as you need to properly price the house. Do open houses all weekend long. Pay for a home-stager to consult with your seller. Include a home warranty. Be willing to bring in help if you'll need it - even if you have to pay for it.
In short, take this opportunity not only to blow the sox off your seller, but to actually experiment with various listing techniques to see what works. If, at the end of the day, you spend your whole paycheck on your experiments, that's really okay! The lessons you learned and the impression you made on that seller will serve you well in your future... and pay you back many times over.
Another way to help make the commission discussion go smoothly is to disclose your fee upfront - on your website if you have one. This is what I've done for years and it works beautifully. I don't beat around the bush about my fee - I simply direct the seller to my website where I explain how I charge and what I do for that money.
Sellers are often just as uncomfortable discussing your fee as you are, but the calmer you are, the better the conversation will go... so you can move onto more important topics!
The Confident Rookie Series:
- Know Your Systems
- Practice with Your Printer
- Preview, Preview, Preview
- Drive Your Route Ahead of Time
- Cheerfully Waste Your Time
- Find a Handyman
- Let Your Seller Prospect Do Most of the Talking
- Get Comfy with Your Commission
- Admit that You're New
- What to say when you don't know the answer
Stay tuned!
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Guest Author Jennifer Allan-Hagedorn has authored five books and multiple courses designed to teach agents her Sell with Soul philosophy that centers on four interrelated principles: Respect, Competence, Confidence and Enthusiasm. Her first book Sell with Soul is available in the VanEd bookstore. Her new book, Prospect with Soul for Real Estate Agents will be released in Spring 2011 and you can reserve one of the first 1,000 copies printed at www.sellwithsoul.com.
