Tuesday,
May 20, 2014
CHAMBERSBURG SALES
MEETING
Carolyn Mann
Territory 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
TRANSITION UPDATES
• Signage
 Installed on all listings on the changeover date
 Panels will be swapped out – riders will...
TRANSITION UPDATES
• Transition checklist
 Social media revisions
 Signatures for Zillow, Trulia, REALTOR.com, etc.
 OS...
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 t...
THE CRITICAL ROLE OF THE REALTOR®
• Identifies 230 tasks that an agent
performs for a seller in a ‘typical’
transaction
• ...
All commissions charged by
real estate firms are
negotiable between parties.
Any reference to actual
commission amounts in...
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
A...
“Mr. Seller, this is one of the most common
questions we get.”
“Once I’ve seen your property, discussed
Homesale’s marketi...
“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 ...
“The market is
really moving right
now. We wanted to
know if you would
list it for 5%?”
MARKET CONDITIONS OBJECTION
“Thing...
“Mr. Seller, I understand how tight things are right
now. I know that everyone in this economy is
counting dollars and cen...
“Mr. Seller, we are in a highly competitive market
right now. If I take your listing at ___% versus ___%
I would only be o...
“Mr. Seller, I can appreciate you
asking me to reduce my fee;
however, I want to clarify
something for you. You’re asking
...
“Mr. Seller, I can understand how you feel.
During the course of most transactions,
buyers will see the compensation that ...
“Mr. Seller, our marketing plan strives to get you
moved in the least amount of time with the most
money in your pocket. T...
“Mr. Seller, I understand that ________ told you
they would market your home for ___%. When you
asked them to reduce their...
It is very important that you review with the seller who determines
the price of a home up front.
WHO DETERMINES VALUE OF ...
“Mr. Seller, I can understand that you want
me to reduce my commission. Please
understand that what I receive in this
tran...
“Mr. Seller, I can appreciate that you want me to reduce my
commission; however, you agreed up front that you would pay my...
“Mr. Seller, these certainly are a lot of unanticipated
repairs; however, my commission had nothing to do with
the 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 Hathaw...
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The Commission-ectomy

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Chambersburg Office sales meeting regarding dealing with commission objections.

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The Commission-ectomy

  1. 1. Tuesday, May 20, 2014 CHAMBERSBURG SALES MEETING
  2. 2. Carolyn Mann Territory Manager HSA HOME WARRANTY UPDATE
  3. 3. Don Clawson AFFILIATED SERVICES UPDATE Teri Eyler
  4. 4. REALTORS® CONTENT RESOURCE http://members.houselogic.com/start/
  5. 5. CLIENT SATISFACTION SURVEYS Congratulations to: • Helen Meyers • Ron Umbrell
  6. 6. RECOGNITION
  7. 7. TRANSITION UPDATES
  8. 8. 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
  9. 9. TRANSITION UPDATES • Transition checklist  Social media revisions  Signatures for Zillow, Trulia, REALTOR.com, etc.  OSA  PREA eCards  Admaster  Logos
  10. 10. THE COMMISSION-ECTOMY
  11. 11. 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?
  12. 12. 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
  13. 13. All commissions charged by real estate firms are negotiable between parties. Any reference to actual commission amounts in this presentation are Homesale policies. DISCLOSURE
  14. 14. HANDLING THE COMMISSION OBJECTION 1. Don’t ignore the white elephant in the room
  15. 15. HANDLING THE COMMISSION OBJECTION 2. If they object – they’re interested
  16. 16. HANDLING THE COMMISSION OBJECTION 3. Rehearse and practice %
  17. 17. HANDLING THE COMMISSION OBJECTION 4. Don’t take it personally
  18. 18. 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
  19. 19. “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?
  20. 20. “All commissions are negotiable.” NEVER SAY . . .
  21. 21. “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
  22. 22. “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?
  23. 23. “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
  24. 24. “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
  25. 25. “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
  26. 26. “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
  27. 27. “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
  28. 28. “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 . . .
  29. 29. It is very important that you review with the seller who determines the price of a home up front. WHO DETERMINES VALUE OF HOME?
  30. 30. “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
  31. 31. “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
  32. 32. “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
  33. 33. LOOK AT THE BIG PICTURE If the honeymoon isn’t going very well, chances are the marriage isn’t going to be much better
  34. 34. PROPERTY / NEEDS EXCHANGE
  35. 35. 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’

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