Jim Reitzel and Kevin Reitzel of Canada are passionate about helping agents achieve their best results. The KW MAPS Coaches share helpful tactics and scripts that can help agents increase their commissions; in many cases by 25 to 50 percent per deal.
Commission “MythUnderstandings”
According to Kevin and Jim, there are several commission MythUnderstandings that must be dispelled.
Myth #1: People want to pay less.
Fact: People say they want to pay less, but they don’t always buy the cheapest things.
The National Association of REALTORS® (NAR) conducted a survey on what sellers want most from their agent, and contrary to common belief, the wish to save money did not even appear in the top eight answers. Another surprising statistic is that, in 2016, 72 percent of sellers surveyed contacted only one agent and listed with that agent.
Myth #2: If you pay less, it will save you money.
Fact: When you pay less for something, it could cost you more in the long-run.
Myth #3: People won’t use me if they can find someone else cheaper.
Fact: People use those they know and trust. The BOLD Law states, “Change the way you look at things, and the things you look at change.”
Why more?
Before increasing their commissions, agents must understand how it will benefit their clients. Without recognizing the true value of commission, they are unable to communicate appropriately with buyers and sellers.
Added Value
When agents have more money to spend on sellers, they are able to add more value to the sale and ultimately net their sellers more money. According to NAR, an agent helps a seller net 10 percent more money.
Here are components that can be added to the sale with the proper commission:
Property staging
Pre-sale home inspection
Best virtual tour
Support staff
Lead generation staff
“In order to increase your commission, you need to re-draw the line in the sand,” Jim advises. Raise the bar and you will find yourself reaching it!
Better Service
With added value, consumers will receive better service and decrease their stress!
“The only reason to pay less is they think they will save money, but when sellers pay less, they get less,” says Kevin. “When you pay peanuts, you get monkeys. A perspective switch needs to happen to understand the value a great agent brings to the table.”
Commission Scripts
Scripts are the tools of the real estate trade. Knowing the exact right thing to say at the exact right time is critical to your success as a sales professional. Here are several scripts to use during your conversations with buyers and sellers.
It is important to note that when agents use the word “flexible” in their script, they earn 20 percent more in commission. For example, when a client brings up commission, agents can say:
It’s flexible and actually you get to choose. We talk about that more when we sign the papers.
“The delivery of this script depends on how confidently you say it,” shares Kevin. “Words matter, and how you say them matters.”
Negotiation Script
Seller: That’s a lot of money.
Agent: Yes, it’s a lot of money.
Seller: I don’t want to pay 6 percent.
Agent: OK, how about 5.99 percent?
Seller: I have someone who will do it for x percent.
Agent: That agent can’t even negotiate their own commission, the thing that should mean the most to them. Your home is probably one of your largest investments. Do you want a bad negotiator handling that transaction?
Buyer’s Agent Script
I’ve noticed that your seller on 123 Main St. is paying 2 percent commission. Would they be willing to pay 2.5 percent if we got an accepted offer?
The Key to Negotiations
After going through these scripts, make sure to pause and watch for cues. And, keep in mind, the agent who shows up prepared earns the highest commission.
Being proactive about taking a stand for commission is the best way to build a greater business.
“Be confident in the knowledge that you are the best real estate agent for the seller and that, by charging your desired commission percentage, you are helping others,” Jim emphasizes. “You are worthy of your commission because you are the best, and the best charge a premium.”