How To Compete with Agents Who Discount Their Fee

One out of every ten real estate agents never, ever discounts their commission.

Even when asked.

Especially when asked.

Two out of every ten almost always discount their commission, usually without even being asked. They think it’s the only way to compete with other agents and win.

What about the other seven? They are frustrated by having to compete with the two who always discount.

What’s the secret of the ones who never, ever discount? It’s their attitude, their beliefs and their skillful use of the right dialogue at the right time.

Their Attitude

I don’t need them all. I couldn’t help them all even if I got them all. So, I will always seek to work with people who know, like and trust me because of the relationships I have built, people who are less likely to question what I charge. 

Their Beliefs

I believe I am worth what I charge, and either I establish my value or I am letting someone else do it. I would work for free if someone needed it, but not just because someone asked me to discount my commission. 

Floyd always said, “You can’t sell what you don’t buy.”

The Dialogue 

When the prospect says, “Will you cut your commission?”

“No.” (Always said with a smile and a chuckle.)

“Is there some hardship here that I am not aware of?”

“What would you be trying to accomplish by lowering the commission?”

“If you knew for a fact that discounting would actually lower your ultimate net cash, and might jeopardize your plans to move, you’d probably insist on a full commission, wouldn’t you?”

“If I were to say yes to the discount you are proposing, that would be like I lied to you when I quoted my standard fee. And folks, I don’t lie about anything. Here’s what I’d rather see us do than start our relationship on anything other than the truth…”

When the prospect says, “I will pay your fee for listing, but I’ve heard I don’t have to pay the buyer’s fee.”

“Yes, it’s true you do not have to compensate the buyer’s broker, but in your case, you might want to, and here’s why…”

Finally

Always assume the dialogue worked and resume your presentation. Assume and resume. If you think that these dialogues won’t work because they wouldn’t convince you, remember that they don’t have to convince you. They just have to convince your prospect.

So, make a decision about what you are worth and what you will charge going forward.

Straighten out your attitude.

Solidify your beliefs.

And strengthen your sales dialogue.