Why Should I Pay Your Commission?

commission competition dialogue fsbo Dec 01, 2022

What is the most common reason we get pressure from For Sale By Owners about paying a commission?  If they understood the difference between hiring an independent contractor and hiring an employee, it could make all the difference.


“But we want a discount commission!  We need to walk away with more money!”


What if they knew the way to walk away with the most money was by hiring a full-service, full-commission Realtor?  How could that be true?


  • We are independent contractors, not employees. We are not on a salary with benefits. We pay all of our own expenses. Unlike many other businesses that charge for their service, we don’t get paid until after we get results for you, and only if you are happy with the result. And, actually, our checks are from the broker through the title company that officiates the closing.


  • Each year, we pay dues to belong to The National Association of Realtors, our State and Local Boards, and the MLS system. We pay our own Errors & Omissions insurance. We pay for professional photographs, aerial or drone photographs, and staging. We pay for advertising and web syndication. We pay for support and administrative staff to coordinate the hundreds of details required to deliver a successful closing and transfer of title.


  • We are negotiation experts who pay for additional training so that we can skillfully negotiate with the buyer’s agent on your behalf. We handle, track and monitor the progress of everyone who works on your file, from inspectors to appraisers to the title company and the mortgage company. Watching out for you, and all before receiving a nickel.  


  • There is a very good reason why for over 200 years sellers have insisted that commissions be paid as a percentage of the selling price instead of a flat fee. Think about it. This system incentivizes all of us to get you the absolute best price for your home.


  • While it may seem to uninformed sellers that they would net more if they didn’t pay us so much, the opposite is actually true. The research and data are clear: discounting the commission rate almost always results in lowering the seller’s net, not raising it.  Hiring a well-trained, full-commission expert is the most effective equity protector.


Working as an independent contractor is the same as being a business owner. We pay our own expenses upfront. We do all the work and take all the risks on behalf of our clients, and all for one reason – to put more money in their pockets, not ours.


Maybe we just needed a reminder as to why paying a full commission is a good idea!


The Floyd Wickman Team Blog by Mike and Mary Pallin

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