How can you increase your commission earnings? During the pandemic, simply putting up a listing would often lead to a quick sale, even if the property wasn’t particularly great. However, the market has shifted, and that approach no longer works. Moreover, even if clients wanted to negotiate lower commissions, it was fine since the home would sell so fast. Now, things have changed, and we find ourselves in a different environment.
So the question is, what should we do? Let’s focus on the listing side. When you attend a listing appointment and compete against others, you need to bring your A-game. In my opinion, if you don’t have a well-prepared presentation, you’ll struggle to succeed. I’ve witnessed numerous instances where this has proven true. If you’re new to the business, it’s crucial to refine your presentation, and we can definitely assist you with that. You must be ready to compete because most sellers will interview three to five agents before making a decision.
However, let’s assume you have a great presentation game. In this case, the focus shifts to the dreaded question: “What’s your commission?” You probably dislike this question because you know it can go one of two ways. You state your commission, and they respond by comparing it to what their connections have paid. Alternatively, they may have already recognized the value you’ve presented in your listing pitch and willingly accept the commission percentage you propose. These are the two typical scenarios.
The first scenario involves them wanting to negotiate a lower commission because, for them, it’s all about maximizing their profit. If you excel at your job, the market will determine the value of the property. The challenge lies in ensuring potential clients understand this. Find a way to demonstrate your value and help your clients understand what you bring to the table, and you’ll be able to secure more commission from skeptical clients.
If you have questions about this topic or anything else, please call or email me. I am always willing to help!