What is the first thing a seller wants to know when you make a listing presentation? How much is this going to cost?
What is the last thing you should discuss with them before getting them to sign on the dotted line? How much it is going to cost.
One of the biggest things real estate agents tend to get really nervous about discussing is fees.
They’re not something to feel ashamed or uncomfortable talking about, in fact fees are something that every agent should be very proud of. Firstly, they reflect your worth – you’re going to put in a lot of effort and work hard to get the best possible result for the seller, so don’t discount yourself. Secondly, you should be very excited to talk about fees as it gives you the opportunity to really demonstrate to the seller that you’re the best negotiator. After all, if the sellers out negotiate you when discussing fees, well they might as well sell their home themselves.
While the cost is one of the first things sellers want to know you should never discuss fees unless you have asked this fundamental question: “Mr and Mrs seller, subject to us agreeing on a fee, are you happy to list the property with me tonight?”
Before talking dollars, you want to make sure that the seller is happy with everything else you have presented such as the marketing or sales strategy. You need to clear any objections here before you move on to fees because if they are unhappy with other things they will be more likely to baulk at the cost. It’s like a buyer who walks into a home and decides they will need to redo the kitchen and bathroom and starts knocking thousands off the price.
Once you have asked the question and know they are onboard with every other aspect of your campaign you can move on to fees and then it’s just a matter of negotiating and getting the best deal for yourself.
I’ll be talking fees, handling objections and dealing with “cheap” competitors at my upcoming seminar How to BOOM in a Disruptive Decade. Some of my Real Estate Brilliance clients have managed to start earning 3-4% on million dollar-plus dollar properties simply by knowing their true worth and being able to demonstrate their value to the seller. You too can make fees the bee’s knees, so come along and get excited about fees!