Last month, we covered the first five ways to increase your commission, and we’re wrapping up the year with the last five ways to increase your commission.
If you missed the first five ways from last month, click here.
- Include a transaction coordination fee.
I started using a transaction coordination fee about 25-years ago. Many offices have them as standard fees now. They range from $250 to $1250, depending on your nerve and price range.
It is easy to answer their objection: “I understand that with a 7% commission you find that another $475 seems excessive. Allow me to highlight the items that most agents cannot do or don’t do. I spend more overhead than agents in this area; it’s not the market but the marketing that achieves your goals. I have evaluated my excess overhead and my expected transactions this year; the number runs about $475 per listing to provide these extra services.”
If you cannot sell the transaction fee, back off a bit: “I understand. Do all the other terms meet with your agreement? I have already mentioned that I think I can do wonderful things with the marketing of this property and achieve your goal of (core motivation). If you move ahead with my plan, I will personally absorb the additional overhead reimbursement.”
- Offer credit.
If you have to negotiate commissions, offer credit toward the property they buy from you after the closing of their listing.
- Offer credit-yes, again.
Same as above, but only offer the deduction if you get both ends of the transaction. It does result in lower commissions, but only if you get both ends. Most agents (except my coaching clients) rarely get both ends.
- Take reasonably alternative commissions.
I have taken commission in the form of bullion from a coin dealer client, restaurant gift cards, and antiques. All, of course, at more than the commission was in “real” money. You can net more by taking things you like or can use, rather than taking a discount for cash.
- Get a new house.
I have taken all my commission in the form of a house at the end of a long string of sales with one builder. Builders need cash flow. By taking my commission at the end in the form or a house or credit toward a house, it helped to mitigate the commission-ectomy so often ably performed by my builder-seller.
I coach top agents on a limited basis. If you are interested in coaching or a speaking engagement, please call our office at 800.792.5837. Be sure to place your order and take advantage of half-off our already discounted internet prices for training systems.
Don’t re-invent the wheel, use 30 years of real estate wisdom and experience to your benefit!
Walter Sanford has been designing and implementing real estate systems for 30 years. One of the most successful REALTORS® and now wealthy from his systems, Sanford teaches his systems and strategies through his products, seminars, and personal coaching producing the best results in the industry. Do what works, do what is proven. Hire Walter Sanford. Call our office at 800.792.5837, email walter@waltersanford.com, or chat with us online at www.waltersanford.com.
