Real Estate Investing:We Need To Be More Like Mollusks When It Comes To Our Commissions!

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Well actually, to be precise, when it comes to our commissions, we need to be more like oysters.  Picture it, I am running to the market to get fresh oysters in those convenient little glass bottles with the screw top and oh my, go figure, they are out. All they have are the oysters still in the shell.  I am CRAVING them.  I ask the kid behind the counter if he can shuck them for me and he looks at me like I am on crack.

Oh well, I’ve seen those guys at the oyster bars slipping their knives in and easily revealing those luscious little gems.  Yeah right….I get them home and immediately sense they are on the defense.  I get out my knife and proceed to try to pry one open.  It resists so strongly that I end up banging it with my meat mallet just to get it to crack.  Nothing!!  Will not budge.  I put the little resister on the butcherblock and get eye level with it just waiting for it to have to breathe or something….just a little hint of a crack and I am going in for the kill.  My dream of succulent oyster fritters is quickly waning and my frustration level with these little  b%*&*&*&s is getting the best of me.  I finally resort to a pot of boiling water and steam the suckers open.

Think about it, the oyster is protecting itself with all it’s might and (almost) won against my efforts to snuff out it’s life. When we are able to break the protective seal of the oyster, we are able to kill it.  When clients break your commissions protective seal they kill your income potential and make it virtually impossible to maintain your value to future clients.  Word gets around fast if you cave at the table.  Stay strong in your confidence in your value.  Besides, if a potential client wants to pry me open, bang my head on the concrete and eventually throw me in boiling water to take away my ability to provide for my family…do I really want them as a client?

I don’t care if your rate is 2%, 5%, 8% or 10% why would you want to bargain at the listing table?  You haven’t even brought the property to market yet. I am not really keen on a list of services either.  I feel like, as an agent, you know what activities it will take to sell the home. That should be your standard package at your going commission rate, period.  If you want to have other little goodies that sellers “believe” will sell their home then offer them as an upsell, not as part of your initial offering.

There doesn’t have to be any manipulative explanation to the seller about why you charge what you do…the minute you start explaining yourself, you lose!  You are showing that you don’t have the confidence in your offering or the systems you have chosen to get their property sold.  Basically, if you net the seller what they want in the shortest amount of time, what difference does it make what you get paid? That is what I would say…and if, at the end of the day, at the closing table, you feel like there is some flexibility because the house sold quickly or you were able to secure the buyer, then consider a good faith gesture on this closing or on ”future” business and put it in writing.  If they use your services again, they will get X discount.

Think about the impact just a 1/2% can have on an sale averaging 8,000.  That is ,290. Do that 10 times this year and that is ,900. Now think about what it could mean to a career of discounting? Not chump change to most people.