Why is it so easy for some Real Estate Clients to ask for commission reductions?
Why is it so easy for some Real Estate Clients to ask for commission reductions?
In what other Professional industry do the clients feel so brazenly justified asking their "representatives" to provide superior levels of service at a reduced rate?
I think it's because they (often) can.
After all, you never know til you ask, right?
Truth is, a commission reduction doesn't make up much ground in the grand scheme of things, does it?
If a Seller is up-side down, the mistake happened when they purchased . . . in combination with whatever circumstances are causing them to need to sell in a less favorable market.
Ask me to reduce my commission, and I'll ask you where you work . . . and I'll show up one day as a customer of yours and ask you to return the favor by reducing YOUR pay commensurately . . .
and just as arbitrarily . . .
"NO"
That's a complete sentence!
I know some agents agree to work for less commission than others for a variety of reasons. I have no issue with that whatsoever. Commissions are not standardized, so I'm perfectly fine with any agent who wants to charge a low, flat rate or a minimal percentage - Just to "get the listing" . . . That's OK by me . . . I have my own fee structure for my clients.
My beef is when after having signed an agreement (Listing or Buyer Representation) agreeing to pay a stated commission for that particular transaction . . . The client sometimes "strokes out" and develops amnesia and requests permission to renege on that contractual promise (obligation).
If you allow this behavior during a negotiation, what good will be the deal you have reached with the Purchase agreement?
If the client will renege on his deal with YOU, what level of comfort can you possibly have that he will perform as promised on the purchase agreement?
For me, this is a matter of principle.
Don't be quick to agree to cut your pay . . . You'll regret it later because there will an embedded emotion of disappointment . . . and odds are great that you will lose some motivation to maintain your standards of service for that client.
If you are the client . . . think about your integrity . . . and negotiate commission rates UP FRONT . . . BEFORE signing a representation agreement . . . NOT afterwards in the heat of a negotiation. This is "fair play" ... and honors your REALTOR'S professionalism.
At the end of the day, you'll save a heck of a lot more money (and reputation) simply by holding up to your end of the initial bargain.
I'm just sayin'
Best,
b
The Owen Group – http://www.theowengroup.net
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Barry Owen
Principal Real Estate Broker
Keller Williams Realty
30 Burton Hills Blvd
Nashville, TN – Green Hills
615-568-2123