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Commission-free, not for me.

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LukeWyatt | 07 Nov 2014, 09:42 AM Agree 0
I have a potential client who is contemplating the use of commission-free sites. I’ve tried to explain all the shortcomings of those sites but I’m a relatively new agent and not sure how else to win the business. What can I do that the sites aren’t doing?
  • DaveB | 07 Nov 2014, 12:20 PM Agree 0
    Even if you do the BARE minimum, your still doing more then those com free sites. Everyone thinks they can sell their own house but then they don't get the price they want or the house doesn't EVEN SELL and then they still complain about a commission. but if they went with a REALTOR the first time the house would have sold FASTER and for MORE MONEY.

    Tell your clients that your trained as a real estate PROFESSIONAL and the website is not doing anything for them except for listing on the MLS.
  • | 07 Nov 2014, 12:25 PM Agree 0
    I have a comprehensive list of the services I offer my clients -- everything from making showing appointments and hosting open houses, to negotiation and offer construction. Show your clients this list, and compare that to the services that DIY home sale sites offer -- that is, nothing!
  • LukeWyatt | 07 Nov 2014, 03:52 PM Agree 0
    So the goal is to prove the commission is worth it, I get that. Are there any specific tips or things you can do to show the client what they’re paying for is worth more than a listing? It seems like I have to sell them on selling them a house. Thanks for all the tips btw!
  • Peter | 08 Nov 2014, 12:11 PM Agree 0
    The allure of the commission-free can be somehow understood: people often do not see anything beyond dollar signs. Well, both a bicycle and a Cadillac will take you from point A to be B. However, having chosen a bike, you will most probably arrive sweaty, tired and occasionally covered with mud. One can debate that.
    What is more difficult to argue is the proposition of our colleagues in GTA, my stomping ground, who advertise $999.00, or 0.5% for a listing. I have even seen "list for 0.0% if you buy with me"! The value of real estate services has been devalued by the supply (of sales representatives) going well beyond the demand. Therefore, once you have convinced your client to forego the temptation of commission-free, try to explain the difference between you and someone who is offering 0.5% commission. That is an even greater challenge.
  • Matt Johnston | 09 Nov 2014, 03:01 PM Agree 0
    I tie it into my CMA presentation. During it, I explain all the services I provide, including what sets me apart from other REALTORS. In it, I also discuss commission, and that I don't negotiate it. When a potential client sees a comprehensive list of everything I'm going to do, I rarely if ever have my commission price questioned.
  • LukeWyatt | 11 Nov 2014, 02:08 PM Agree 0
    So presenting and being upfront about your value is important but with supply outweighing demand, what else can be done to ensure that realtors like me aren’t being undervalued?
  • sean | 19 Feb 2015, 02:18 PM Agree 0
    Even though this is an outdated link. Its speaks for itself and helped me when dealing with discounting and fsbo

    http://www.dailymail.co.uk/news/article-2022112/For-Sale-By-Owner-founder-sells-home--using-real-estate-broker.html
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