the commission-ectomy

Tuesday,May 20, 2014

CHAMBERSBURG SALES MEETING

Carolyn MannTerritory Manager

HSA HOME WARRANTY UPDATE

Don Clawson

AFFILIATED SERVICES UPDATE

Teri Eyler

REALTORS® CONTENT RESOURCE

http://members.houselogic.com/start/

CLIENT SATISFACTION SURVEYS

Congratulations to:

• Helen Meyers

• Ron Umbrell

RECOGNITION

TRANSITION UPDATES

June 4th

TRANSITION UPDATES

• Signage Installed on all listings on the changeover date Panels will be swapped out – riders will remain intact Agent will have to install signs on listings taken after June 2nd

Directionals available to install by agent

• Training for new and improved programs and services Watch for sign-up sheet

TRANSITION UPDATES

• Transition checklist Social media revisions Signatures for Zillow, Trulia, REALTOR.com, etc. OSA PREA eCards Admaster Logos

THE COMMISSION-ECTOMY

WHAT ARE YOU WORTH?

If you can’t clearly articulate how you bring value to the

transaction, why do you expect the seller to pay a full

commission?

THE CRITICAL ROLE OF THE REALTOR®

• Identifies 230 tasks that an agent performs for a seller in a ‘typical’ transaction

• Doesn’t include the unexpected extras that Homesale agents perform for their clients

• Doesn’t include tasks in complex transactions like Short Sales

All commissions charged by real estate firms are

negotiable between parties. Any reference to actual

commission amounts in this presentation are Homesale

policies.

DISCLOSURE

HANDLING THE COMMISSION OBJECTION

1. Don’t ignore the white elephant in the room

HANDLING THE COMMISSION OBJECTION

2. If they object – they’re interested

HANDLING THE COMMISSION OBJECTION

3. Rehearse and practice

%

HANDLING THE COMMISSION OBJECTION

4. Don’t take it personally

COMPANY POLICY ON COMMISSIONS

Type of Listing

Residential (resale)

Residential (new homes)

%

6%

5%

Minimum

$2,600

$2,600

Any other terms must be approved prior to taking the listing. See the company’s Policy & Procedure Manual in TeamHomesale

“Mr. Seller, this is one of the most common questions we get.”

“Once I’ve seen your property, discussed Homesale’s marketing plan and how the market conditions are in your area, we can discuss what it would take to sell your home and the marketing fee.”

WHAT IS YOUR ‘STANDARD’ COMMISSION?

“All commissions are negotiable.”

NEVER SAY . . .

“Mr. Seller, I can appreciate you asking but I don’t make adjustments to my marketing fee.”

- Sometimes the best response is also the simplest -

BE DIRECT

“The market is really moving right now. We wanted to know if you would list it for 5%?”

MARKET CONDITIONS OBJECTION

“Things are really tight right now. We

wanted to know if you would list it for

5%?”

When is the market perfect?

“Mr. Seller, I understand how tight things are right now. I know that everyone in this economy is counting dollars and cents; however, I am no different. With current market conditions, shrunken buyer pool, significantly longer days on market and adjustments to sales prices, my commission has already been adjusted due to the market and it is not feasible to offer the service I do for my clients at a reduced commission.”

IN A DOWN MARKET

“Mr. Seller, we are in a highly competitive market right now. If I take your listing at ___% versus ___% I would only be offering a co-broke commission of ___% which would appear in the MLS. If you made your living selling houses and you had the opportunity to show a home with a ___% co-broke fee or one with ___%, which one would you show first? I don’t want to put you at a disadvantage in the marketplace.”

IN AN UP MARKET

“Mr. Seller, I can appreciate you asking me to reduce my fee; however, I want to clarify something for you. You’re asking me to take a ___% reduction in earnings. If your employer came to you today and said, ‘We’re cutting your pay ___%’, how would you feel about doing your job?”

REDUCTION IN PAY

“Mr. Seller, I can understand how you feel. During the course of most transactions, buyers will see the compensation that is being offered co-broke agents and if they see you are paying less in commission they are more likely to offer less on your property knowing that you’re not paying a full commission on the property to start out with.”

HAVING YOUR CAKE AND EATING IT TOO

“Mr. Seller, our marketing plan strives to get you moved in the least amount of time with the most money in your pocket. To offer these services requires that we charge a fair commission. If your home lingers on the market because of a less than adequate marketing plan, you’ll actually lose money. If we add up your mortgage payments, utility bills, taxes and insurance for ___ months I think you’ll see that my commission is well worth it.”

TIME IS MONEY

“Mr. Seller, I understand that ________ told you they would market your home for ___%. When you asked them to reduce their commission, how long did it take before they told you they would do it for less? (wait) So they volunteered to do it without much discussion at all? (wait) Do you want an agent who is going to negotiate hard to get you every last dollar for your largest investment or one that will take whatever comes along?”

ANOTHER AGENT SAID THEY WOULD TAKE . . .

It is very important that you review with the seller who determines the price of a home up front.

WHO DETERMINES VALUE OF HOME?

“Mr. Seller, I can understand that you want me to reduce my commission. Please understand that what I receive in this transaction is already being reduced because the price is coming down. In addition, the longer your home is on the market, the more we are spending on getting it SOLD so my expenses are actually increasing not decreasing.”

REDUCE PRICE - - > REDUCE COMMISSION

“Mr. Seller, I can appreciate that you want me to reduce my commission; however, you agreed up front that you would pay my commission if I brought you a ready, willing and able buyer to purchase your home. This offer is within the range of what I told you initially we could probably expect for your home.”

MAKE THE DEAL WORK

“Mr. Seller, these certainly are a lot of unanticipated repairs; however, my commission had nothing to do with the repairs that need to be done to your home to complete this sale. If you decide to throw in this transaction and put your home on the market again you’re now going to have to disclose these problems in the Seller’s Disclosure Statement and more than likely you will not find another buyer that is willing to pay as much for your home.”

UNANTICIPATED REPAIRS

LOOK AT THE BIG PICTURE

If the honeymoon isn’t going very well, chances are the marriage isn’t going to be much better

PROPERTY / NEEDS EXCHANGE

BH DAY - - - WEDNESDAY, JUNE 4TH

• Breakfast will be served from 8:30-10:00 AM by Chef Tom

• Pick-up your Berkshire Hathaway HomeServices goodie bag Business cards Name badge Name riders Assorted ‘stuff’