Are You Worth Your Commission? - Real Estate and Technology News for Agents, Broker

Are You Worth Your Commission?

"When a seller asks you to lower your commission, that usually means that you haven't demonstrated your value." counsels Bernice Ross, Real Estate Coach.

Luxury Home sales are no exception. Real estate agents in all markets are facing this dilemma.

Create a Premium Marketing Plan, suggests Ross, that includes a list of Premium Services that set you apart from the competition. Ross has these suggestions:

3D Open House: This online tool offers the potential buyer a chance to engage with the floor plan and see if it fits their lifestyle and furnishings. Ross offers a link to try 3D Open House at a huge discount for first time users.
Create a Property website for their listing only. This is especially important for luxury properties.
Translate your listing in many different languages. A luxury listing might be of interest to foreign buyers.

"If, after reviewing your Premium Marketing Plan, the sellers still ask you to discount, (especially on a luxury listing)," Ross suggests using the strategy of Allen Bernardi, a Broker in California and devoted reader of Ross's blog, who responds to discount inquiries with this answer:

"Well, perhaps I can refer you to a junior associate in our office who might be willing to work for that rate."

"Nobody ever wants to get referred to the junior associate in any profession!" writes Ross. "According to Bernardi the key is to be willing to walk away from the client. If you can't walk away, then they have you."

Another key point is to counteract the term "discount" and to use the term "limited service". Just as no one wants a "junior associate," most people don't want "limited service." says Ross.

Show the value of your services and defend your commission with these key points.

Read more from Bernice Ross at LuxuryClues.com.

photo credit: Yaletown Business Improvement Association