Another tactic to deal with sellers who ask for a reduced commission.
Today I want to talk about handling that dreaded question: Will you cut your commission? This is part two of my series on this topic, so if you missed the first video, you can watch it here. Last time, I discussed how in the absence of value, cost is always an issue. You should always keep that in mind and understand that this is how we get paid.
If you’ve already tried everything I covered last time, the next step is to ask the seller if they understand how commissions work. You’d be surprised how many don’t. Explain to them that the typical 6% commission gets split evenly between the listing brokerage and the buying brokerage.
You can mention the possibility of negotiating a lower commission for the buyer brokerage. However, if you bring this up, you have to make sure it will work in your market. I wouldn’t say that they’d save 0.5%. Instead, emphasize the dollar amount. On a $500,000 home, 0.5% is $2,500.
If you have any questions about this, please call, text, or email. If you’re enjoying this series, stay tuned for part three!