10.12.09 Great listing in an area that you want. The Seller says to you "why do you charge 6%, when the other agent who sells a lot of homes, only charges 5%?"

[Elaine Stucy]

What is your dialogue?

[Tracy King]

Because they don't have the confidence in their negotiating skills to charge 6%. Charging 5% is the easy way to get your listing. Let me ask you, is it more important to save money on the commission, or net more money on the sale of your home?

[jefflemen]

Well, what my clients in the past who have listed their homes with me for 6% have told me is that they saw the value in paying a full fee to me, which is 3%, based on my ability to negotiate. I negotiated my commission and they believed I would be a tough negotiator for their price. They also saw value in paying the cooperating broker a full fee of 3% as a way to attract more buyer's agents to the property.
Did the other agent demonstrate or explain any value for the 5% fee?
-No. That's just what they charge.
Hmmm. Why do you think they only charge 5%?
-I don't know. I thought that was the standard fee.
Some agents do charge 5% and some do charge 6%. Let me ask you, if an agent could have a meaningful conversation with their seller which resulted in the seller seeing the benefit and value of paying their representative 6%, why do you think the other agent would avoid having that conversation?
-I don't know.
Without bashing anyone, I would submit because it's easier to take the path of least resistance. The dis-service to you when an agent does that is that you have no ability to see what kind of a negotiator that agent is. Do you believe having an agent who will fight and negotiate on your behalf will have an impact on what you net at closing?
-I guess so.
It will. Am I demonstrating that ability?
-It seems so.
Which one of us would you want on your side of the negotiating table?
-Geez. You.
Can we get started at 6%?
-Sure.

[Sean McGlynn]

They do sell a lot of homes in the area. However, I believe in the end I sell my homes for a higher sales price than they do strictly because I’m a better negotiator.
And you saw the other agent, correct?
Yes.
And did you ask them what their fee was?
5%.
They said 5 right off the bat, is that correct?
Yes.
That’s normal. And basically what that agent is doing… they know if they say 5 most sellers are going to be OK with that. The reason they don’t want to ask for 6% is they know some sellers are going to question that. And that’s where the negotiation begins. They are not real comfortable with their ability to negotiate, they are trying to avoid it by offering to do it at 5. They feel like they have a better chance at getting your business if they don’t ask for a higher commission. Does any of that make sense?
Sure.
If they are afraid to negotiate with their own money how much do you think they are going to work to negotiate your price up?
I see what you're saying.
I'm not afraid to negotiate my own fee as I'm doing right now. Do you want me in charge of negotiating your price when we've got an interested buyer?
Yes.

[Carol Menconi]

Agent: Some agents charge 5% or less; others charge 6% or more. It's based on the agent's level of confidence in their ability to negotiate. Let me ask you, did you have to wrestle the other agent to the ground to get them to reduce theiir commission?

Seller: No

Agent: So if they were willing to just give up 17% of their own money right up front what do you think will happen when it comes time to negotiate an offer on your home and it's your money that they're giving up?

Seller: Gee, I don't know.

Agent: What is actually more important to you, saving money on the commission or netting more money on the sale of your home?

Seller: Netting more, of course.

Agent: Okay. And do you believe that the skill of your agent will make a difference in the price that you get?

Seller: Yes, I do.

Agent: And do you want someone who is a skilled negotiator to represent you?

Seller: Yes.

Agent: And am I demonstrating that skill to you right now?

Seller: Why, yes, you are!

Agent: Great! Shall we do the paperwork now at 6%?

Seller: Okay.

[Yancy Whittaker]

I'm a Professional Realtor, with integrity. Not only do I sell a lot homes, I help people move…not that other Realtors who'll fold on their earnings just to buy your business and diminish any internal integral respectability at the negotiating table don't have it but do you really believe they will hold the line and get you the best possible net for you at the negotiating table if they folded so fast on their own money to you...you also have a whole host of real good Professional people behind the scenes who are at your service to make this work, I mean some really really good people...do you understand what that means to you??? So tell me, why wouldn't you want that???

[Josef Szigeti]

Is commission your only criteria in selecting an agent?
There are 3 factors that determine your final net cash in your pocket. 1% cost; 6% commission and 93% final sale price. Obviously the final sale price is the most important factor.
Do you believe an agent ability to negotiate will impact your final net?
What did the agent that offer to sell your home for 5% demonstrated to you?

[Craig Ratowsky]

I charge 6% because bottom line i net my sellers more money- i believe in my ability to negotiate a higher price for you - isn't that what you said is most important to you ....

[Gary Price]

It is the path of least resistance to getting your business. They are interested in getting the listing. I am interested in selling your home for the most money possible

Are you more interested in saving money on the commission or netting more money from the sale of your home?

Do you believe an agent's ability to negotiate can impact your net from sale?
Do you want a strong negotiator on your side?

I"m curious. If you can out-negotiate your agent on his fee, why would you hire him?

If he is not willing to fight for his own money, do you really expect him in the heat of negotiation to fight for yours?

[Steven Ross]

Would you like to discuss why it is so important to list your agent with someone who charges a full fee?

[sure]

Any agent who charges 5% is in it for themselves - they want your listing. By discounting their fee they are essentially buying your business. All they care about is getting the listing, and eventually hoping that it sells. My goal is to put you in the best negotiating position possible to get you the highest possible sales price. Period. Do you understand the difference?

[I am not sure[

Great. Ultimately, you want to walk away with the most amount of money possible - your NET sales price, right?

[yes]

There are three factors that go into what you NET on the sale of your home. 1% for closing costs, 6% for sales commissions, and 93% is the final sales price. Which of these factors makes the biggest difference on what you walk away with?

[sales price]

Exactly. My job is negotiate the best possible sales price for you, so you can walk away with the most amount of money possible. So, if the other agent just rolled right over and offered you 5%, what do you think they are going to do when an offer comes in on your house - are they going to put on their "super negotiating cape" and start fighting for your money?

[probably not]

Probably not. Is there anything else you would like to discuss before we move forward?

[David Griffith]

Agent: Because i will get you the highest price in the shortest time period
Seller: How will you do that
Agent: Because I will negotiate on your behalf with more conviction and ability than the other agents, does that sound like somebody you would like on your side?
Seller: The other agent sells lots of homes for good prices
Agent: Any agent that discounts their fee has a discount mentality, if they cant negotiate their own fee they are not going to be any better at negotiating the sales price of the house with a buyer and their agent, who would you rather have selling your house a negotiator who will talk the price up or an agent who will talk you down?